The Work Permit is Singapore’s primary mechanism for hiring semi-skilled and unskilled foreign workers in approved sectors. For employers in construction, manufacturing, marine, process, and services, understanding the Work Permit framework — quotas, levies, source country rules, and employer obligations — is not optional. Non-compliance exposes your company to MOM enforcement action, debarment, and significant financial penalties.
This guide covers everything a Singapore employer needs to know about Work Permits in 2026, including the July 2026 changes to the maximum application age and the current levy and quota structure.
What Is a Work Permit?
A Work Permit (WP) is a pass issued by the Ministry of Manpower (MOM) to a foreign national to work in Singapore in a specific sector and for a specific employer. Unlike the Employment Pass or S Pass — which are skills-based passes for higher-earning professionals — the Work Permit is designed for semi-skilled and less-skilled workers in sectors with a recognised shortage of local labour.
Work Permits are generally issued for two years at a time (or the duration of the employment contract, whichever is shorter) and are employer-specific: the holder may not change employers without cancelling and re-applying for a new permit.
Which Sectors Can Hire Work Permit Holders?
Work Permits are only available for five approved sectors:
- Construction — Building, civil engineering, and related trade works
- Marine — Shipbuilding, ship repair, and offshore industry
- Process — Petrochemical, pharmaceutical, and energy sectors
- Manufacturing — All types of manufacturing activity
- Services — Retail, food and beverage, cleaning, logistics, and a range of other services businesses
Domestic and caregiving workers are covered under separate permits (Foreign Domestic Workers and Caregivers’ Work Permits) with distinct rules not covered in this guide.
Dependency Ratio Ceilings: How Many Work Permit Holders Can You Hire?
The number of Work Permit holders you can employ is capped by the Dependency Ratio Ceiling (DRC) — the maximum proportion of Work Permit holders relative to your total workforce. The DRC varies by sector:
| Sector | DRC (Max WP as % of total workers) |
|---|---|
| Construction | 83.3% |
| Process | 83.3% |
| Marine | 75.0% |
| Manufacturing | 60.0% |
| Services | 35.0% |
Quotas are calculated monthly based on your total headcount (including both local and foreign employees). If your local headcount falls, your Work Permit quota falls with it. Employers should monitor their headcount position carefully — hiring a foreign worker when you are already at your DRC will result in MOM rejecting the Work Permit application.
Approved Source Countries
MOM restricts which nationalities may be hired on Work Permits, and the approved source countries differ by sector. There are two tiers:
Non-Traditional Sources (NTS) and Traditional Sources (TS)
For most sectors, workers may be from Traditional Sources (Malaysia) or Non-Traditional Sources (NTS), which include India, Bangladesh, Myanmar, the Philippines, Sri Lanka, Thailand, and a number of other countries. In construction and process, workers may also come from North Asian Sources (NAS): China (People’s Republic), Hong Kong SAR, Macau SAR, South Korea, and Taiwan.
The services sector has the most restricted approved source list. Employers in services should verify the current MOM approved country list via the MOM Work Permit eligibility page before making any hiring commitment.
Work Permit Levy: What You Pay Each Month
Every employer hiring a Work Permit holder must pay a monthly Work Permit levy to MOM. The levy rate depends on:
- The sector the worker is employed in
- The skill level of the worker (basic-skilled vs higher-skilled, determined by qualifications and skills assessment)
- The source country of the worker
Levy rates in 2026 range from approximately S$200 per month (higher-skilled workers in process sector from Malaysia or NAS) to S$900 per month (basic-skilled workers in construction from NTS countries). The full levy rate table is published on the MOM website.
Levy is collected via GIRO on the 17th of each month for the previous month’s levy obligations. Failure to maintain a valid GIRO arrangement is a compliance breach that may result in MOM debarring you from hiring foreign workers.
July 2026 Changes: Maximum Age Raised to 62
From 1 July 2026, MOM raised the maximum application age for new non-domestic Work Permit holders from 61 to 62 years old. Simultaneously, the maximum employment age for existing Work Permit holders increased from 63 to 64 years old. These changes align the Work Permit age limits with Singapore’s statutory retirement age, which also increased to 64 on 1 July 2026 as part of the government’s multi-year retirement age roadmap.
This is the second consecutive annual increase. Employers with workers approaching the previous age limits should review their Work Permit holders’ ages and update their workforce planning accordingly. Workers who were previously ineligible for a new Work Permit due to age may now have a pathway if they meet all other eligibility criteria.
Applying for a Work Permit: Step-by-Step Process
- Verify eligibility. Confirm the worker’s nationality is an approved source country for your sector, the worker meets the minimum qualifications (if any), and your company is within its DRC quota.
- Obtain the In-Principle Approval (IPA). Submit the work permit application via WP Online (for employers) or through a registered Employment Agency. MOM typically processes in-principle approvals within one to three working days.
- Worker arrives in Singapore. The IPA letter serves as the worker’s entry approval. The worker travels on a single-entry visa (if required).
- Medical examination. The worker must undergo a medical examination at an approved clinic within the first two weeks of arrival. Workers from certain countries must also complete a medical screening at a Migrant Worker Medical Centre.
- Work Permit card issuance. After the medical examination clears, MOM issues the Work Permit card. The card is the worker’s official authorisation to work.
- Maintain obligations. Throughout the Work Permit duration, the employer is responsible for the worker’s housing, medical insurance, levy, and repatriation at the end of employment.
For more on hiring foreign employees at different skill levels, including Employment Pass and S Pass requirements, see our overview of Singapore work passes. For EP and S Pass applications, our associated licensed employment agency handles the full submission process with MOM.
Employer Obligations: What You Must Maintain
Holding a Work Permit triggers a range of ongoing employer obligations under the Employment of Foreign Manpower Act (EFMA) and its subsidiary legislation:
- Medical insurance: You must maintain medical insurance for each Work Permit holder of at least S$60,000 per year (effective 1 July 2025). This is a hard requirement — not maintaining insurance is a criminal offence.
- Approved housing: The worker must be housed in accommodation that meets MOM standards. Employers in construction must ensure workers are housed in MOM-approved dormitories for large construction projects.
- Salary payment: Salaries must be paid at least monthly and within 7 days of the end of the salary period. From 1 July 2026, a minimum salary of S$500 per month applies to services sector Work Permit holders meeting the Local Qualifying Salary rules.
- EFMA obligations: You must not ask the worker to perform tasks outside their approved job scope, must not deduct housing costs beyond the permitted amount, and must not engage in conduct that constitutes exploitation or abuse.
- Repatriation: When the work permit expires, is cancelled, or is revoked, you are responsible for returning the worker to their home country. Failure to do so may result in you being liable for the repatriation costs and potential debarment.
Employer compliance with Work Permit obligations is an important part of your company’s broader regulatory standing. Good employment compliance also supports a strong track record with MOM, which matters when applying for future work passes. For Singapore employment regulatory updates, there are useful resources for HR and compliance teams. For broader business and financial planning, managing levy costs is an important input to your annual budget.
How Raffles Corporate Services Can Help
Work Permit compliance sits alongside your company’s broader employment and corporate obligations. Raffles Corporate Services advises Singapore employers on work pass strategy, employment compliance under the EFMA, and the interaction between Work Permit obligations and your corporate secretarial requirements (including disclosure of foreign employees in annual returns).
To speak with the team at Raffles Corporate Services, you can email [email protected] or call, SMS, or WhatsApp +65 8501 7133. We are happy to assist with any queries.
— The Editorial Team, Raffles Corporate Services
Leave A Comment