Singapore’s Upcoming Workforce Law Changes: What Employers and Workers Need to Know

Big Changes Coming to Singapore’s Workforce Laws: Here’s What You Need to Know

Singapore is making some major changes to its Work Permit and S Pass systems, aimed at improving workforce stability and tackling labor shortages. These updates, announced by the Ministry of Manpower (MOM), will take effect between July 1 and September 1, 2025. The focus is on expanding opportunities for foreign workers, adjusting S Pass eligibility, and broadening the talent pool across different industries.

Goodbye to Employment Duration Limits

One of the most significant updates is the removal of the employment duration limits for Work Permit holders. Starting July 1, 2025, Work Permit holders will no longer face a cap on how long they can stay employed in Singapore. Previously, this duration ranged from 14 to 26 years, depending on factors like sector and country of origin. Now, as long as workers meet eligibility requirements and their employers still need them, they can stay indefinitely. This change is expected to help reduce turnover and lower training costs for businesses.

Raising the Maximum Employment Age

Along with removing the employment duration limits, Singapore is also raising the maximum employment age for Work Permit holders from 60 to 63 years in July 2025. The age limit for new applicants will also rise to 61, up from 50 for non-Malaysians and 58 for Malaysians. This shift will help strengthen workforce continuity and create better long-term employment prospects for foreign workers, particularly those with valuable skills and experience.

Expanding Source Countries and Occupations

To help address labor shortages, Singapore is expanding the list of approved source countries for Work Permit holders. Starting June 1, 2025, workers from Bhutan, Cambodia, and Laos will be eligible to apply for Work Permits, joining countries like Bangladesh, India, and Myanmar. Additionally, from September 1, 2025, the Non-Traditional Sources (NTS) Occupation List will be updated to include more roles, including heavy vehicle drivers, manufacturing positions, and a wider range of specialized cooks. These changes will give businesses more flexibility in hiring and help fill key roles.

S Pass Salary Requirements Going Up

In addition to the Work Permit updates, there are also changes to the S Pass system. Starting September 1, 2025, the minimum qualifying salary for S Pass holders will increase from S$3,150 to at least S$3,300 across most sectors (except financial services). For the financial services sector, the minimum salary will rise from S$3,650 to at least S$3,800. These adjustments align with the top one-third of local Associate Professionals and Technicians (APT) salaries and will help businesses stay competitive while ensuring they hire highly skilled workers.

What Does This Mean for Employers and Workers?

All in all, these changes represent a shift in how Singapore plans to manage its foreign workforce. By removing Work Permit caps, expanding source countries, and adjusting S Pass salary criteria, the government is aiming to retain skilled foreign workers and keep hiring practices competitive. Employers and foreign workers should start reviewing their workforce strategies now to stay ahead of these changes and make sure they remain compliant as the new regulations take effect.