New changes have been introduced to the S Pass and work permit policies

Singapore is changing its foreign workforce policies to give businesses greater flexibility while maintaining local employment priorities. The Ministry of Manpower (MOM) has announced a series of adjustments that will impact work permit holders, S Pass applicants, and employers hiring from abroad. These changes mark a significant shift in how companies can access talent.

The new changes introduced the removal of the maximum employment period for work permit holders. Currently, non-Malaysians are subject to a 14- to 26-year cap, but starting July 1, 2025, this restriction will be lifted. Employers can now retain experienced workers for as long as they remain employable. However, migrant domestic workers will continue to be subject to existing employment duration rules.

Next, the government is raising the maximum employment age for work permit holders from 60 to 63, aligning it with Singapore’s local retirement age. New work permit applications will be restricted to workers under 61 to facilitate a smooth transition.

S Pass framework will also experience changes. Beginning September 1, 2025, the minimum qualifying salary for S Pass holders will increase from S$3,150 to S$3,300, while financial services sector salaries will rise from S$3,650 to S$3,800. These wages will continue to scale with age, reaching up to S$5,650 for senior professionals in finance. To standardize costs, the Tier 1 levy for S Pass holders will increase from S$550 to S$650, aligning it with the Tier 2 levy.

Singapore’s Employment Pass (EP) framework remains unchanged. Following its recent update, the minimum salary was raised from S$5,000 to S$5,600. The government reaffirmed that EP policies are designed to attract top-tier global talent while ensuring fair employment practices. The COMPASS assessment framework, introduced in 2023, continues to drive diversity in hiring. This has led to a 7% decline in companies overly reliant on workers from a single nationality and an overall 15% reduction in foreign workforce dependence.

To further support businesses, the Manpower for Strategic Economic Priorities (M-SEP) scheme, which allows eligible companies to exceed standard S Pass and work permit quotas, will see its approval period extended from two to three years starting May 1, 2025. Additionally, companies can now qualify by sending local employees abroad for leadership programs, reinforcing Singapore’s goal of building a globally competitive workforce.

Singapore’s foreign workforce has already rebounded to 17% above pre-pandemic levels and with new changes, the industries are expected to evolve.