In aims to foster workforce stability and tackle shortages in labor, in 2025, Singapore has taken a major step in reforming its work permit policies. As announced by Singapore’s Ministry of Manpower (MOM), starting from July 2025, pivotal changes have been implemented in terms of employment age and period, source countries, levy rates and S pass eligibility criteria. Several of these new regulations will come into effect by September 1, 2025.
For employers and foreign workers seeking to get a job in Spore this year, this article will walk you through all the key updates you need to know about Singapore's work permit changes.
What’s new in Singapore's work permit regulations 2025
According to Asean Briefing and RSM Stone Forest, some recent amendments in Singapore's work permit are as follows:
1. Extended employment duration
Along with the implementation of the new work permit regulations, Singapore has officially nullified employment term limits for work permit holders since the start of July 2025. Now, work permit holders from all nationalities can continue their job in Singapore indefinitely with no maximum employment period—so long as they match the eligibility criteria and their services are still required.
This marks a significant shift from the previous rule, where the no maximum employment period rule only applies to Malaysian and North Asian Source (NAS) workers such as Macau, Taiwan, Hong Kong, and South Korea. Meanwhile, workers from the People’s Republic of China (PRC) and Non-Traditional Sources (NTS) originally can only work in Singapore for 14 to 26 years maximum.
2. Increased maximum employment age
Apart from the abolishment of employment duration limits, Singapore is also aiming to raise hiring options and bolster long-term career opportunity for skilled foreign workers by increasing the employment age restriction. According to the new work permit change, employment age is raised in accordance with Singapore's formal retirement age, which is at 63 years. In addition, the maximum age limit for new work permit applicants has now been elevated to 61 years, from 58 for Malaysian workers and 50 for non-Malaysians.
3. Broadened source countries and occupation options
On June 1, 2025, Singapore has officially added Laos, Cambodia, and Bhutan to its list of approved Non-Traditional Source (NTS) countries in addition to the previous group of countries including India, Myanmar, Thailand, Sri Lanka, Philippines, and Bangladesh. Singapore will also be expanding its occupation list with a broader array of jobs such as heavy vehicle drivers and diverse manufacturing occupations and cooks specializing in all kinds of cuisines. Previously, the occupations available were food processing workers, workers in manufacturing companies, housekeeping workers and porters in licensed hotels, and cooks in Indian restaurants in the country.
This expansion is designed to provide companies with a larger talent pool, specifically for construction, process, and marine shipyard firms. With this rule set to be implemented on September 1, 2025, employers are also obligated to pay at least $2,000 of fixed monthly wage to NTS work permit holders. Moreover, workers are required to account for 8% or lower of the employer’s total headcount, excluding Employment Pass Holders.
4. Adjustments in S Pass salary requirements and levy rates
Lastly, essential changes are also implemented in terms of levy rates and minimum qualifying salary requirements for S pass holders. In the beginning of September 2025, the minimum qualifying salary for S pass—which is intended for mid-level skilled workers—will increase up to S$3,300 from S$3,150 for most sectors, and will be raised to S$3,800 for financial service sectors, aligning with the top one-third Professionals and Technicians’ (APTs) salaries. The goal of this adjustment is to draw in higher-skilled foreign workers and ameliorate workforce quality, while the S Pass Tier 2 levy rate remains unchanged at S$650 per month.
What are the impacts?
Impacts caused by the change in Singapore’s work permit can be summarized below:
Impacts on Employers
- Longer retention of skilled foreign workers: For industries heavily depending on accumulated expertise, such as marine, manufacturing, and construction industries, the omission of maximum employment period serves a great advantage. With firms able to keep skilled and experienced workers for a longer period of time, these seasoned workers can contribute greatly to improve productivity and operational efficiency.
- Increase in labor costs: On the other hand, these new regulations also have some financial repercussions for employers. Along with the increase in S pass qualifying salary rate, companies will have to invest more funds for its skilled foreign workers.
- Wide range of hiring options: With Laos, Bhutan, and Cambodia included in the list of eligible NTS source countries, companies now have a wider hiring option, which can be helpful to resolve problems in labor shortage.
- Challenge in administrative and hiring decisions: According to People Matters Global, compliance with hiring quotas, salary benchmarks, and COMPASS (Complementary Assessment Framework)—a point-based system established to ensure foreign hires complement the local labor market—will require employers to face a more challenging HR procedures and strategic workforce planning. Employers should carefully select individuals with in-demand skills to maximize its COMPASS points.
Impacts on foreign workers
- Increased entry barriers and minimum wage criteria: The increase in salary requirements favors more competent and higher-paid workers, making it a fierce competition for mid-level professionals to acquire an EP.
In short, Singapore’s 2025 work permit changes collectively aim to prioritize local talents while attracting top-tier professionals from across the region, thereby strengthening workforce quality and sustaining the nation’s global competitiveness.
