Overview of Foreign Workforce Policies

We remain open to global talent for businesses

to grow so that we create good job opportunities for Singaporeans

Complementarity Sustainability

1. Foreign workforce to 1. Maintain restructuring to

complement the skills and achieve manpower-lean
number gaps in our local growth
workforce
2. Ensure sustainable foreign
2. Singapore remains an workforce growth to
attractive hub where prevent strain on
companies can build their infrastructure and society
best teams
MOM has been updating its policies to improve complementarity and
sustainability

Key Shifts

Employment Pass EP: Attract high-quality and diverse foreign

(EP) professionals with the specialised skills,
(205k, 17%) networks and expertise to complement our
local workforce

S Pass
S Pass: Additional flexibility for employers
(179k, 15%)
to hire skilled workers who may not meet the
EP criteria, subject to a quota

Work Permit (WP) WP: Manage numbers and raise quality of

WP holders to spur industry transformation
(827k, 68%)
and productivity-driven growth

Note: Figures as of Dec 2023

EP framework refreshed to improve the complementarity of our foreign
professionals

Stage 1 – EP Qualifying Salary Stage 2 – COMPASS

Since 1 Sep 2023 (new applications):

1. Quality of EP holders to be comparable
to top one-third of local PMETs
2. A higher qualifying salary will continue to
apply for the Financial Services Sector
Roll-out COMPASS
(Complementarity Assessment Framework)
to holistically evaluate complementarity
Applies to renewal applications from Sep 2024
COMPASS is designed to enable companies to select high-quality
professionals, while maintaining a healthy workforce profile with a strong
Singaporean core
40 points to pass Individual Attributes Firm-Related Attributes
All applications are scored on C1. Salary C3. Diversity
four foundational criteria Whether candidate improves
Relative to local PMET
Points for each criterion salary norms for sector nationality diversity in firm

20 points : Exceeds expectations

C2. Qualifications C4. Support for Local
10 points : Meets expectations
Employment
0 points : Does not meet Based on candidate’s
qualifications Based on local PMET share
expectations
relative to industry peers

C5. Skills Bonus C6. Strategic Economic

Additional points awarded on (Shortage Occupation List) Priorities Bonus
bonus criteria For candidate in job where For partnership with Government
skills shortages exist on ambitious innovation or
internationalisation activities 4
Ensure that quality of S Pass holders is comparable to the top one-third of
local Associate Professionals and Technicians (APT) workforce

1. Benchmark the total cost of hiring an S Pass holder to top one-third of local APT wages
2. S Pass numbers are kept within a tight sub-Dependency Ratio Ceiling (DRC) of 10% to 15% depending on sector
3. Qualifying salaries and levies raised progressively over three steps from 2022 to 2025 to achieve this

From 1 Sep 2022 From 1 Sep 2023 From 1 Sep 2025

Qualifying Salaries
Non-Finance Sectors $3,000 $3,150 At least $3,300*
(up to $4,500) (up to $4,650)

Finance Sectors $3,500 $3,650 At least $3,800*

(up to $5,500) (up to $5,650)

Levies
Tier 1 (up to 10% of total workforce) $450 $550 $650

Tier 2 (up to 15% of total workforce) $650

*values to be announced closer to implementation date based on prevailing local APT wages at the time
Continue to adjust Work Permit policies to reduce reliance on low-skilled
foreign labour and spur industry transformation

For example, we have announced measures in the Construction and Process sectors which has
been implemented since January 2024

Reduce Dependency Ratio Ceiling (DRC) from 87.5% to 83.3%.

Revise levy framework for Work Permit holders (WPHs) - generally, lower levies
for higher-skilled WPHs

• Encourage more productive technologies and higher-skilled WPHs

End