Service Sector Foreign Workers

The latest changes are part of a broader strategy to attract higher-quality talent and encourage business transformation.

1. Dependency Ratio Ceiling (DRC) and Levy The Dependency Ratio Ceiling (DRC) for the service sector remains at 35%. This means the total number of Work Permit and S Pass holders in a service company cannot exceed 35% of its total workforce.

Employers are also subject to a tiered foreign worker levy. The levy rate is higher for companies that hire a greater proportion of foreign workers, encouraging them to optimize their workforce and invest in local talent.

2. Expanded Source Countries and Occupations To provide employers with a larger talent pool, MOM has expanded the list of approved source countries and occupations for Work Permit holders.

• New Source Countries: From June 1, 2025, companies in the services sector can hire Work Permit holders from Bhutan, Cambodia, and Laos. These are in addition to the existing Non-Traditional Sources (NTS) like Bangladesh, India, Myanmar, the Philippines, Sri Lanka, and Thailand.

• New Occupations: Effective September 1, 2025, the NTS Occupation List will be updated to include more roles across various sectors. For the services sector, this includes occupations such as cooks in any restaurant (not just Indian restaurants), housekeeping workers, and porters in licensed hotels.

• NTS Sub-DRC and Salary: Companies hiring NTS workers for these specific occupations must adhere to a sub-Dependency Ratio Ceiling of 8% and pay them a fixed monthly salary of at least S$2,000.

3. S Pass Salary and Levy Increases It’s important for employers to understand the distinction between Work Permits and S Passes. The government has made changes to the S Pass to attract higher-quality workers, with the goal of aligning the salaries of mid-skilled foreign workers with the top one-third of local Associate Professionals and Technicians (APT) wages.

• S Pass Salary Increase: From September 1, 2025, the minimum qualifying salary for new S Pass applications will increase from S$3,150to\ast \ast S$3,300** (for most sectors). For the financial services sector, the salary will increase from S$3,650to\ast \ast S$3,800**.

• S Pass Levy Increase: The S Pass Basic/Tier 1 levy rate will be standardized and raised from S$550to\ast \ast S$650** per month, effective from September 1, 2025.

4. Stricter Employer Responsibilities MOM is placing a greater onus on employers to justify their need for foreign hires.

• Local Hiring Proof: Companies must now provide detailed documentation of their attempts to recruit Singaporeans before hiring a foreign worker.

• Upskilling Efforts: Employers must also provide details on their training and skill development initiatives for their local workforce.

5. General Work Permit Requirements Beyond sector-specific rules, there are general requirements that apply to all Work Permit holders.

• Employment Duration: As of July 1, 2025, the maximum employment duration for Work Permit holders has been removed. This allows employers to retain experienced workers for longer periods, promoting stability.

• Age Limits: The maximum employment age for Work Permit holders has been raised to 63 years old. For new applicants, the age limit is 61 years old.

• 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.

• Settling-in Programme (SIP): All first-time non-Malaysian Work Permit holders in the services sector must attend the SIP within two weeks of their arrival in Singapore.