The Work Permit is Singapore’s most common work pass, issued to semi-skilled foreign workers in the construction, marine, process, manufacturing, and services sectors. It is distinct from the Employment Pass (for professionals) and the S Pass (for mid-skilled workers), and comes with its own specific eligibility requirements, sector-specific quotas, and monthly levy obligations.

If you are an employer in Singapore considering hiring foreign workers on Work Permits, or an employee navigating the application process, this guide explains everything you need to know for 2026 — from eligibility and levy rates to the application procedure and your ongoing obligations as a permit holder or employer.

Who Is the Work Permit For?

Work Permits are issued to foreign nationals who are engaged in semi-skilled or unskilled work in designated sectors. Unlike the Employment Pass, there is no minimum salary requirement for a Work Permit — eligibility is determined primarily by nationality, sector, and employer quota.

The main sectors covered by the Work Permit scheme are construction (including civil engineering and building works), marine (shipyard and offshore), process (petrochemical, pharmaceutical, and similar industries), manufacturing, and services (including retail, food and beverage, and cleaning).

Work Permit holders must be nationals of one of the approved source countries designated by MOM. For most sectors, approved source countries include Malaysia, China, India, Sri Lanka, Thailand, Philippines, Bangladesh, Myanmar, and Pakistan (and in some sectors, others). The approved source country list can vary by sector, so employers should verify the current list on the MOM website before hiring.

Dependency Ratio Ceiling (DRC) and Quota

One of the most critical constraints on Work Permit hiring is the Dependency Ratio Ceiling (DRC). The DRC sets the maximum ratio of Work Permit holders (and S Pass holders in some calculations) to the employer’s total workforce. The ratio differs by sector:

  • Construction sector: DRC of up to 1:7 (for companies with a valid registration with BCA and meeting safety record requirements), and a separate Man-Year Entitlement (MYE) system applies for construction workers from non-traditional source countries
  • Marine sector: DRC of up to 1:4.5 for main contractors
  • Process sector: DRC and sub-DRCs vary depending on project classification
  • Manufacturing sector: Work Permit holders may constitute up to 60% of the total workforce (with the sub-DRC for certain non-traditional source countries at 25%)
  • Services sector: Work Permit holders may constitute up to 10% of the total workforce (with the S Pass sub-DRC of up to 10%), giving a combined foreign worker ceiling of up to 20% in some service sub-sectors

The DRC is calculated based on the employer’s local workforce (Singapore Citizens and Permanent Residents) on CPF contributions. Employers who reduce their local headcount will see their Work Permit quota shrink correspondingly. This is a common operational issue for SMEs in tight labour markets.

Work Permit Levy Rates in 2026

Employers who hire Work Permit holders must pay a monthly levy to the Government for each Work Permit holder. The levy serves to regulate demand for foreign workers and encourage employers to hire locals. Levy rates differ by sector and by worker tier (basic or higher-skilled tier).

As of 2026, the indicative monthly levy rates (subject to revision by MOM) are broadly as follows:

  • Construction (basic tier): S$300 per month for traditional source country (TSC) workers; higher rates apply for non-traditional source country (NTSC) workers
  • Services sector (basic tier): S$300–S$400 per month depending on the sub-sector and worker’s tier classification
  • Manufacturing (basic tier): S$300–S$370 per month
  • Marine sector: varies by tier, generally S$300–S$400 per month

Levy rates are reviewed and may be revised by MOM from time to time. Employers should verify the current rates on the MOM website (mom.gov.sg) before budgeting for new hires.

The levy is payable monthly via GIRO and is due on the 17th of the following month. Failure to pay the levy on time results in penalties and can lead to revocation of the Work Permit and a ban on future Work Permit applications for the employer.

Levy Waiver for Hospitalised or Absent Workers

Employers can apply for a levy waiver if a Work Permit holder is hospitalised for at least seven consecutive days, is on approved no-pay leave, or is overseas for a continuous period of at least seven days. The waiver application must be made within six months of the qualifying event. This is a frequently overlooked benefit that can result in significant savings for employers with large foreign workforces.

How to Apply for a Work Permit

The Work Permit application is made by the employer (not the worker) via the MOM online portal. The process involves the following steps.

Step 1: Check Eligibility and Quota

Before applying, verify that the worker is a national of an approved source country for your sector, that your company has available quota under the DRC, and that the worker satisfies any sector-specific requirements (e.g., minimum age of 18, no criminal record, medical fitness).

Step 2: Submit the Application Online

Log in to the WP Online portal (wpol.mom.gov.sg) and submit the application with the worker’s personal details, passport information, and employment details. There is an application fee of S$35 per application (for a two-year permit).

Step 3: In-Principle Approval (IPA)

If approved, MOM issues an In-Principle Approval (IPA) letter valid for six months. The worker uses the IPA to apply for a long-term visit pass at the Singapore Embassy in their home country (if required) and to enter Singapore.

Step 4: Medical Examination and Insurance

Before the Work Permit card is issued, the worker must undergo a medical examination by an approved Singapore doctor. The employer must also purchase medical insurance covering at least S$60,000 per year in hospitalisation and surgical costs, as well as a Personal Accident insurance policy.

Step 5: Issue the Work Permit Card

After the medical and insurance are in order, the employer notifies MOM via the WP Online portal. MOM issues the Work Permit card, which typically arrives within a few days. The card is valid for up to two years and can be renewed. Unlike Employment Pass holders, Work Permit holders cannot bring their dependants to Singapore.

Employer Obligations

Holding a Work Permit triggers a range of legal obligations for employers under the Employment of Foreign Manpower Act (EFMA) and the Employment Act. Key obligations include providing adequate accommodation that meets MOM’s housing standards; paying the monthly levy on time via GIRO; maintaining valid medical and personal accident insurance throughout the permit period; ensuring the worker is only deployed in the declared occupation and sector; and promptly cancelling the Work Permit when the worker’s employment ends.

Employers who allow Work Permit holders to work for a different employer, or in a different sector or occupation, commit an offence under the EFMA and face fines of up to S$30,000 and/or imprisonment. Repeated or egregious violations can result in permanent debarment from hiring foreign workers.

Renewing and Cancelling a Work Permit

Work Permits are typically issued for one to two years and can be renewed online via the WP Online portal. Renewal should be initiated at least one month before expiry. If the worker’s employment ends — whether through resignation, dismissal, or completion of the contract — the employer must cancel the Work Permit within seven days of the last day of employment and ensure the worker departs Singapore (or transitions to another valid pass).

Failure to cancel a Work Permit promptly can result in ongoing levy charges for a worker who is no longer in your employment — a common and expensive mistake for employers who do not monitor their permit portfolio diligently.

How Raffles Corporate Services Can Help

Raffles Corporate Services assists employers with all aspects of Work Permit management — from quota assessment and application submission, to renewal, cancellation, and MOM correspondence. Our team ensures that your obligations under the EFMA are met and that your levy payments and insurance coverage are properly maintained.

For assistance with Work Permit applications or to discuss your workforce planning needs, contact us or visit Raffles Corporate Services.

Raffles Corporate Services provides corporate secretarial and employment advisory services to companies in Singapore. This article is for general information only and does not constitute legal advice. Please consult a qualified professional for advice specific to your circumstances.