Singapore’s Work Permit & S Pass Changes 2025: What Employers Need to Know

In 2025, Singapore will implement crucial updates to its Work Permit and S Pass regulations, impacting employment periods, sourcing options, and labour costs. This article covers the key changes and provides employers with the necessary insights to adapt and ensure compliance.

Changes to Work Permit Employment Period & Age

The changes to the Work Permit Employment Period & Age limits provide employers with the opportunity to retain skilled foreign workers for longer periods and increase hiring options. The table below outlines these changes and their potential impact.

Note: While the maximum employment period has been removed, work permits are still required to be renewed regularly as per existing processes.

Expansion of Non-Traditional Source (NTS) Countries & Occupations

The expansion of Non-Traditional Source (NTS) countries and occupations aims to help industries facing labour shortages, particularly in process, construction, and marine shipyard sectors. While firms in manufacturing and services sectors can also hire Work Permit holders from NTS countries, they are limited to a restricted list of occupations under the NTS Occupation List. Below are the key updates:

Approved NTS Countries:

Expanded NTS Occupation List:

Additionally, employers are required to pay NTS Work Permit holders a fixed monthly salary of at least $2,000, and these workers must account for 8% or less of the employer’s total headcount, excluding Employment Pass holders.

Changes to S Pass Qualifying Salary & Levy Rates

To raise the quality of S Pass holders to the top one-third of our local Associate Professionals and Technicians (APTs), the minimum qualifying salary and levy rates for S Pass holders will increase from 1 September 2025. These adjustments aim to attract higher-skilled foreign talent while maintaining a sustainable workforce.

Increase in S Pass Qualifying Salary:

Increase in S Pass Levy Rate:

Note: There are no changes to the S Pass Tier 2 levy rate, which will remain at $650 per month.

How these Changes Impact Employers & Next Steps

• Retaining Skilled Workers Longer
  
  The removal of maximum employment period and increase in maximum employment age for work permit holders allows businesses to retain experienced and skilled foreign workers for extended durations. This is particularly beneficial for industries that rely heavily on accumulated expertise, such as construction, manufacturing, and marine sectors, where seasoned workers contribute significantly to productivity and operational efficiency.
  
  
• Greater Flexibility in Workforce Sourcing
  
  The inclusion of Bhutan, Cambodia, and Laos in the NTS-approved source list allows employers to tap into a broader labour pool, which is especially beneficial for sectors facing labour shortages. Furthermore, the expansion of the NTS Occupation List provides more hiring options across different job functions.
  
  
• Increased Labour Costs
  
  While these changes grant more flexibility in recruitment, they also come with cost implications. The rise in S Pass qualifying salaries means businesses will need to allocate a higher budget for skilled foreign workers. 

Next Steps for Employers

To ensure a smooth transition and compliance with the upcoming changes, businesses should take proactive steps:

• Review Workforce Planning
  
  Companies should assess their long-term hiring needs and consider retaining skilled foreign workers who can now work for longer periods. Employers may also explore re-training initiatives to enhance productivity and workforce retention.
  
  
• Budget for Increased Labour Costs
  
  Employers must anticipate the financial impact of higher salaries and levy rates. Businesses should review their financial projections and adjust salary structures accordingly to remain competitive in attracting talent.
  
  
• Ensure Compliance with Work Pass Regulations
  
  Given the dynamic nature of work pass regulations, employers should ensure they are up to date with the latest work pass requirements. Collaborating with HR teams or employment agencies can help streamline the management of work passes to ensure compliance with the new rules.

How PayrollServe Can Help

Staying compliant with evolving work pass regulations can be complex, but PayrollServe is here to simplify the process. Our Work Pass Management Services handle every step - from application and renewal to cancellation, ensuring that all your major pass types are tracked, managed, and compliant with ease.

Additionally, our HR advisory Services provide strategic guidance on workforce planning, helping your business navigate regulatory changes smoothly and optimise staffing strategies for sustained growth and success.

Contact us today to learn how we can help you manage your work pass applications efficiently and strengthen your workforce for the future.