Work Permits for Foreign Workers in Singapore's Process Sector
Singapore’s Process Sector, which includes industries like petrochemicals, pharmaceuticals, and specialty chemicals, is a critical part of the nation’s economy. The sector’s demand for specialized skills and labor is often met by foreign workers on Work Permits. To ensure a productive, safe, and skilled workforce, the Ministry of Manpower (MOM) has introduced a number of significant policy updates.
Staying informed about these changes is essential for business owners and foreign employees alike. Here is a comprehensive overview of the latest Work Permit regulations from MOM, with new policies taking effect in 2025.
Key Updates to the Process Sector Work Permit Framework
The new policies are designed to raise industry standards, prioritize local employment, and streamline processes while ensuring worker safety and well-being.
1. Increased Age Limits and Employment Duration A key change for 2025 is the removal of previous limits on how long a worker can be employed in the process sector.
Maximum Employment Age: The maximum employment age for Work Permit holders has been raised to 63 years old. For new Work Permit applicants, the age limit is 61 years old.
No Maximum Duration: As of July 1, 2025, the maximum employment duration for all Work Permit holders has been removed. This allows employers to retain experienced and skilled workers for longer periods, providing greater workforce stability.
2. Dependency Ratio Ceiling (DRC) and Levy The Dependency Ratio Ceiling (DRC) for the process sector remains at 83.3%. This means a company can hire up to five foreign workers for every local employee who earns the Local Qualifying Salary.
The foreign worker levy for the process sector is tiered based on a worker’s skill level. Employers pay a lower levy for “Higher-Skilled” (R1) workers, encouraging upskilling. Companies must maintain a minimum of 10% of their Process Work Permit holders as Higher-Skilled (R1) workers to hire new or renew existing Basic-Skilled (R2) permits. The enhanced R1 framework for the Process sector will be implemented no earlier than January 1, 2026.
3. Mandatory Pre-Entry Housing Check To ensure that all foreign workers have acceptable living conditions, MOM has a mandatory pre-entry housing check. Before a new non-Malaysian Work Permit holder can enter Singapore, their employer must submit proof of acceptable accommodation, such as a tenancy agreement or a bed reservation at a licensed dormitory.
4. Mandatory Programmes and Training All Work Permit holders in the Construction, Marine Shipyard, and Process (CMP) sectors must adhere to specific mandatory requirements upon arrival.
Onboard Centre: Male non-Malaysian Work Permit holders in the CMP sectors must attend a mandatory residential programme at an Onboard Centre upon arrival.
First-time workers or those returning after more than two years will attend a 3-day programme.
Returning workers who come back within two years of their last work pass cancellation will attend a shorter, 2-day programme that excludes the Settling-in Programme (SIP). This change is effective from August 1, 2025.
Safety Training: All process workers must possess a valid Oil/Petrochemical Safety Orientation Course (OPSOC) or a similar relevant safety course certificate before their Work Permit can be issued or renewed.
5. Stronger Employer Responsibilities MOM places a strong emphasis on employer responsibility to ensure a skilled and compliant workforce.
Medical Insurance and Security Bond: Employers must purchase medical insurance with a minimum annual coverage of S$60,000 for each worker. Additionally, a S$5,000 security bond is required for each non-Malaysian Work Permit holder.
Upskilling Efforts: The government encourages employers to provide training and skill development initiatives for their local workforce and to justify their need for foreign hires with detailed documentation of local recruitment efforts.
For the most accurate and up-to-date information, employers and foreign workers should always refer to the official Ministry of Manpower (MOM) website.