SINGAPORE – In a significant shift to its work permit framework, Singapore is set to enhance employer flexibility in hiring and retaining talent. Announced during the Committee of Supply debate on 6 March 2024 by Manpower Minister Tan See Leng, the changes include lifting maximum employment periods and adjusting age limits for work permit holders.
Changes to Employment Period and Age Limits
Starting from 1 July 2024, work permit holders will no longer face a maximum employment period—previously ranging from 14 to 26 years based on skill level, sector, and nationality. This update aligns with existing policies for workers from Malaysia and select North Asian countries.
- Current maximum age limit for work permit holders will rise from 60 to 63.
- Age limit for new applicants will increase to 61, up from 50 for non-Malaysians and 58 for Malaysians.
The Ministry of Manpower (MOM) noted that these adjustments aim to allow companies to keep experienced workers who can contribute significantly.
Expanding Talent Sources
In response to industry needs, the non-traditional sources (NTS) list for work permits will be expanded to include Bhutan, Cambodia, and Laos beginning 1 June 2024. This list allows firms to recruit from countries that may not traditionally supply migrant labour.
New occupations will be included in the NTS Occupation List (NTS-OL) from 1 September 2024, such as:
- Cooks
- Heavy vehicle drivers
- Manufacturing operators
Salary and Levy Adjustments
The qualifying salary for S Pass holders will be raised from S$3,150 to S$3,300, and the S Pass Tier 1 levy will increase from S$550 to S$650, effective 1 September 2024. MOM explained that these increases are designed to mitigate rising manpower costs while giving businesses a chance to adapt.
Understanding Foreign Talent’s Role
Dr Tan emphasised that foreign talent is not the enemy of local job opportunities. He pointed out that over the past decade, the number of Employment Pass (EP) and S Pass holders grew by 38,000, while local professionals surged by 382,000—a tenfold difference.
“Developing a ‘Singaporean only’ mentality would deprive us of essential talents needed to anchor global businesses that ultimately benefit all Singaporeans,” Dr Tan stated.
COMPASS and M-SEP Updates
The points-based Complementarity Assessment Framework (COMPASS), which evaluates employment pass applications, has shown promising results since its implementation.
Additionally, enhancements to the Manpower for Strategic Economic Priorities (M-SEP) scheme will allow firms to hire beyond industry quotas, provided they meet specific conditions aimed at supporting local workforce growth.