Changes to Singapore’s foreign workers laws offer greater flexibility in recruiting and retaining talent

Effective 1 July 2025, there will be no limit to the number of years a work permit holder can be employed in Singapore, allowing work permit holders to remain employed as long as they continue to meet the eligibility requirements, and their employers require their services.

This marks a significant change from the current maximum employment period, which ranges from 14 to 26 years depending on skill level, sector, and country of origin of the work permit holder.

Mayumi Soh, an expert on employment law at Pinsent Masons, said: “Under the previous scheme, work permit holders were not allowed to work in Singapore after a certain number of years even if they were willing to continue working and their employer was willing to employ them for a longer period." 

“With the cap now lifted, employers have the discretion and flexibility to hire and retain work permit holders as needed,” she said.

“This change allows businesses to retain skilled and experienced employees, ensuring operational stability.”

Furthermore, the maximum employment age for these workers will be raised from 60 to 63 years old, in line with the retirement age in Singapore. The age limit for new work permit applicants will be raised to 61 years old, up from the current 50 for non-Malaysians and 58 for Malaysians. 

The changes will not apply to migrant domestic workers, who are governed by a separate regime.

Tan See Leng, Minister for Manpower of Singapore, said that the changes have been made to enable companies to draw and retain experienced foreign workers.

He added that the number of work permit holders is currently at an all-time high at 17% above pre-Covid-19 levels, with 843,400 foreign workers holding work permits as of June 2024.

Workers from Malaysia and South Korea, and Taiwan and the Hong Kong and Macau Special Administrative Regions (SARs), have benefitted from an unrestricted period of employment, and the announced changes bring foreign workers from other countries under the same employment terms.

In response to the increasing demand for workers in the manufacturing and services industries, Bhutan, Cambodia and Laos will be added to the list of non-traditional sources (NTS). These three countries will join the existing countries on the list, Bangladesh, India, Myanmar, the Philippines, Sri Lanka and Thailand. 

The NTS occupation list was introduced in 2023 to allow organisations to fill a restricted set of occupations in the manufacturing and services sector that have been harder to fill with Singaporean workers. Employers who wish to hire such workers must offer a minimum monthly salary of S$2,000 (approx. US$1,503), and these workers must make up no more than 8% of the employer’s total headcount, excluding employment pass holders.

From 1 September 2025, the range of occupations that may be filled by foreign workers will also be expanded to include heavy vehicle drivers, manufacturing operators, and cooks.

The list of occupations currently comprises of cooks in Indian restaurants, food processing workers, hotel housekeepers, hotel porters, and certain roles in the manufacturing sector.