Singapore has had a foreign worker hiring quota in place for several years and has undergone several adjustments to fit the nation’s demands. The government frequently reviews the quota system to ensure it is functional and efficient. The quota system involves taxes and other restrictions on the employment of foreign workers and limits the number of foreign workers a company may hire.

Categories of Foreign Worker in Singapore

1. S Pass
   
   This pass is designed for professionals with mid-level skills, such as those in the engineering, healthcare, and information technology sectors.
   
   
2. Work Permit (“WP”)
   
   This permit covers both skilled and unskilled work. This permit is intended for individuals who support Singapore’s workforce, such as domestic helpers and construction workers.
   
   
3. Employment Pass (“EP”)
   
   This pass is exclusive to managers, executives, professionals, and experts with advanced training and experience.

Eligibility of Foreign Worker in Singapore

The applicant must fulfill certain requirements regarding skill level and qualifications to be hired as a foreign worker in Singapore. These requirements are necessary to guarantee that foreign labourers can satisfy the demands of the workforce and make an effective contribution.

1. Qualifying Criteria
   
   Specific eligibility requirements are set by the Ministry of Manpower (“MOM”) for foreign workers looking for work in Singapore. These requirements include minimum age, professional or educational credentials, relevant work experience, and a spotless record free of criminal convictions. It is important to note that different sectors may have different eligibility requirements, and each sector may have unique requirements.
   
   
2. Skill Levels
   
   Additionally, MOM divides foreign workers into discrete skill levels according to factors like job responsibility, work experience, and educational background. These skill levels include highly-skilled, mid-skilled, semi-skilled and unskilled people. This skill level will be used to determine a person’s eligibility for various work passes.
   
   (1) Highly Skilled: Professionals, managers, executives, and specialists who qualify for the Employment Pass (EP) usually fall into this category. These people possess advanced training, unique experience, and much relevant experience in their field.
   
   (2) Mid-skilled: Those in these groups fit the bill for their roles in terms of education and experience. Although not to the extent expected for EP, their job may require specialized skills. Employees falling into this group are qualified for the S Pass.
   
   (3) Semi-skilled & unskilled: Workers from overseas who fall into the semi-skilled or unskilled category are eligible for work permits (WP). They work mostly in industries like services or construction. In most cases, they won’t need any specialised skills or a lot of experience, but they are expected to have the fundamental credentials or vocational training in their respective fields.
   

Foreign Worker Quota and Levy Requirements

1. Quota and Dependency Ratio Ceiling (“DRC”)
   
   Based on the size and industry of the company, the quota and dependency ratio ceiling (DRC) are essential measures for controlling the maximum number of foreign workers that can be hired. It is important to remember that DRCs and quotas vary by industry; certain may have fewer requirements, and others may have higher ones.
   
   
2. Monthly Levies
   
   If an employer decides to bring on a foreign worker, they must also pay monthly levies. The levy is computed by considering the proportion of foreign to local workers in the organisation.
   
   Each employee must always pay the entire levy on time to avoid penalties like those mentioned below:
   
   (1) A SGD20 late payment fee, or 2% of the total amount due each month, will be assessed; the maximum penalty is 30% of the unpaid levy.
   (2) The cancellation of active work permits.
   (3) Unable to apply, obtain a work permit, or renew one.
   (4) Possible legal action to recover the unpaid levy.
   (5) Restrictions on other businesses connected to you, your partners, or directors when submitting a work permit application.
   

In addition, only if the following requirements are met will the local employees be included in the quota entitlement:

1. An employee who is a Singaporean or a Permanent Resident who receives the Local Qualifying Salary (“LQS”) of at least SGD1,600 monthly is considered one local employee.
2. An employee who is a Singaporean or a Permanent Resident and makes half the LQS, or at least SGD800 but less than SGD1,600 per month, is regarded as a 0.5 local employee.

The following employees are not included when determining the quota, in addition to those whose salaries are below SGD800 per month:

1. Owners of partnerships or sole proprietorships.
2. Employees who receive salaries and CPF contributions from three or more employers.

Calculation of the Total Workforce

As the foreign worker quota is capped at a proportion of the overall employment, the applicant must first determine the number of local employees before calculating the total workforce. The formula to determine the entire staff is:

1. The full staff = LQS count (based on the average of three months’ worth of CPF payments and stated salaries) + S Pass holders and Work Permit holders
2. It’s crucial to take EP holders out of the workforce total calculation.

Quota for Foreign Workers

The maximum number of foreign workers varies by industry and includes both S Pass and Work Permit holders. The LQS determines the number of local employees who can be used to calculate your Work Permit and S Pass quota entitlement.

Sector	Maximum number of foreign workers
Construction	LQS count x 5
Process	LQS count x 5
Marine shipyard	LQS count x 3.5
Manufacturing	LQS count x 1.5
Services	LQS count x 0.538462

Quota for Work Permit Holders

The quota for those with work permits varies depending on the industry.

Sector	DRC
Construction	83.3%
Process	83.3%
Marine shipyard	77.8%
Manufacturing	60%
Services	35%

Please note that the above DRC is applicable to Malaysian/NAS Work Permit Holders only. NAS (“North Asian Source”) refers to Taiwan, South Korea, Macau and Hong Kong. The Work Permit Quota for employees from countries other than Malaysia and NAS is determined differently, depending on the industry.

Quota for S Pass Holders

The quota for S Pass holders varies by industry and is included in the overall foreign worker quota.

Sector	DRC
Construction	83.3%
Process	83.3%
Marine shipyard	77.8%
Manufacturing	60%
Services	35%

Under the existing quota, the number of S Pass holders your company can hire is capped at:

1. Construction: 15%
2. Services: 10%

The minimum salary requirement for S Pass holders is subject to upcoming changes by MOM:

1. SGD3,150 a month (existing and renewal) or SGD3,300 a month (new applications from 1 Sep 2025) (in general)
2. SGD3,650 a month (existing and renewal) or SGD3,800 a month (new applications from 1 Sep 2025) (for financial services)

Quota for Employment Pass (EP) Holders

Holders of Employment Passes (EPs) are not subject to quota restrictions in Singapore. For EP holders, there is a minimum salary requirement:

1. $5,600 a month (in general)
2. $6,200 a month (for financial services)