Singapore Scraps Migrant Worker Tenure Limits, Expands Foreign Worker Options

 

Singapore Scraps Migrant Worker Tenure Limits, Expands Foreign Worker Options

Singapore, March 7, 2025 – In a significant move set to reshape the nation's foreign workforce, Singapore has announced the removal of hard caps on the duration of work permit holders' employment, effective July 1, 2025. This policy shift, announced by Manpower Minister Tan See Leng in Parliament on March 6th, aims to address labor shortages and retain experienced migrant workers.

Currently, work permit holders face employment limits ranging from 14 to 26 years. The removal of this cap will allow employers to retain seasoned workers who are often at their prime working age, according to Dr. Tan. This change does not apply to migrant domestic workers, who operate under a separate framework.

Key Policy Changes:

 * Removal of Tenure Limits: Work permit holders will no longer be subject to a maximum employment period.

 * Increased Maximum Employment Age: The maximum employment age for work permit holders will rise from 60 to 63, aligning with the local retirement age.

 * Adjusted Application Age: The age limit for new work permit applications will be set at 61, two years below the new maximum employment age.

 * Expanded Non-Traditional Sources (NTS) Occupation List: From September 1, 2025, the NTS Occupation List, which allows employers to hire rank-and-file workers from a wider range of countries, will be expanded. This includes adding roles like heavy vehicle drivers, manufacturing operators, and general cooks.

 * NTS Source Country Expansion: Bhutan, Cambodia, and Laos will be added to the NTS source countries from June 1, 2025.

 * Manpower for Strategic Economic Priorities (M-SEP) Scheme Tweaks: The M-SEP scheme, which allows firms to temporarily hire more foreign workers, will see its support period extended to three years, and eligibility criteria broadened.

 * S Pass Adjustments: The S Pass minimum qualifying salary will increase for new applications from September 1, 2025, and for renewals of passes expiring from a year later. The S Pass levy will be standardized at $650.

Rationale and Impact:

Dr. Tan highlighted that the current capped employment period forces businesses to release experienced workers prematurely. He also noted that the number of work permit holders is at an all-time high, 17% above pre-COVID-19 levels, demonstrating the continued need for this segment of workers.

The expansion of the NTS Occupation List and the inclusion of new source countries aim to diversify the workforce and provide businesses with more options for hiring non-PMET (professional, managerial, executive, and technical) workers. The $2,000 minimum salary requirement for NTS workers is intended to protect local workers' wages.

The changes are intended to help businesses draw and retain needed workers, while still encouraging productivity and job redesign to help local workers. The Manpower Ministry also announced the Enterprise Workforce Transformation Package, a $400 million initiative to help companies transform their workforce, with an emphasis on job redesign and skills development.

While the government acknowledges concerns about foreign worker reliance, they emphasize that remaining open to foreign talent is crucial for Singapore's economic competitiveness. Dr. Tan addressed concerns raised by MPs, highlighting that foreign talent does not necessarily displace local jobs, but often helps create and maintain them.

The government continues to study the possibility of cross-deployment of foreign workers across sectors and will also consider allocating higher foreign workforce quotas to companies with inclusive employment practices.

These changes reflect Singapore’s ongoing efforts to balance its economic needs with the need to develop its local workforce and maintain a dynamic and competitive economy.