To alleviate manpower constraints, cited by employers as a key cost challenge, and to enable businesses to hire and keep higher-skilled workers, MOM will:
- Moderate the final increase for the S Pass minimum qualifying salary (from SGD 3,150 to SGD 3,300, and for the Financial Services sector, from SGD 3,650 to SGD 3,800). Compared with previous increases, this increase is a smaller percentage of the existing minimum qualifying salary.
- Enhance the Work Permit framework by:
- Removing the maximum period of employment restrictions for Work Permit holders
- Expanding the list of Non-Traditional Sources (NTS) to include Laos, Cambodia and Bhutan
- Expanding the Non-Traditional Sources Occupation List (NTS-OL) to enable employers in the Services and Manufacturing sector to hire skilled workers from Non-Traditional Sources in additional selected non-Professionals, Managers, Executives and Technicians (PMET) occupations
- Expand the eligible programs under the Manpower for Strategic Economic Priorities (M-SEP) scheme and add a new pathway for firms that send locals on overseas exposure or leadership programs, and extending the support period from two to three years.
We provide further details on these changes below.
Details
1. S Pass minimum qualifying salary
In MOM's continued efforts to raise the quality of the overall workforce and to safeguard local employment opportunities for Associate Professionals and Technicians (APTs), MOM has benchmarked the minimum cost of hiring for S Pass holders to the top one-third of local APT wages. To ease the transition for employers, MOM has increased the S Pass qualifying salary over three phases: 2022, 2023 and 2025. MOM will also continue to review the S Pass qualifying salary against the benchmark, given prevailing economic conditions.
For the latest 2025 phase, MOM's moderated increase is as follows:
| All sectors except financial services |
| Current applications and renewals |
Applications from 1 September 2025 / renewals of passes expiring from 1 September 2026 |
| SGD 3,150 (progressive increase from 23 years old up to SGD 4,650 at 45 years old and above) |
SGD 3,300 (progressive increase from 23 years old up to SGD 4,800 at 45 years old and above) |
| Financial services |
| Current applications and renewals |
Applications from 1 September 2025 / renewals of passes expiring from 1 September 2026 |
| SGD 3,650 (progressive increase from 23 years old up to SGD 5,650 at 45 years old and above) |
SGD 3,800 (progressive increase from 23 years old up to SGD 5,650 at 45 years old and above) |
The S Pass levy rate will also be standardized at SGD 650 for all S Pass holders from 1 September 2025.
2. Enhanced Work Permit framework
MOM will remove the maximum period of employment restrictions for Work Permit holders. Recognizing that the previous cap of employment period at between 14 to 26 years old resulted in employers having to let go of experienced workers at prime working age, MOM will raise the maximum employment age of Work Permit holders to align with the local retirement age of 63 years old. With these changes, employers can retain experienced workers who are still able to contribute.
3. Expanding NTS and NTS-OL
MOM will expand the list of Non-Traditional Sources to include Laos, Cambodia and Bhutan, considering industry demand and to allow employers to build a more skilled and resilient workforce.
In line with the call for policy adjustments by the Alliance for Action (AfA) on Business Competitiveness — jointly established by the Ministry of Trade and Industry and the Singapore Business Federation — MOM will expand the NTS-OL to allow employers in the Services and Manufacturing sectors to hire skilled workers from Non-Traditional Sources in more non-PMET occupations. Following consultations with industry partners and unions, MOM has included nearly all the manufacturing operator roles recommended by the AfA, as well as heavy vehicle drivers and cooks, subject to the SGD 2,000 minimum wage requirement, to ensure this expansion will not undermine efforts to uplift locals in similar occupations.
4. M-SEP scheme: Broader criteria and extending support
The M-SEP scheme gives firms flexibility to temporarily hire S Pass and Work Permit holders above their existing Dependency Ratio Ceiling (DRC) and S Pass sub-DRC for two years. Eligible firms can obtain an additional S Pass and Work Permit quota of up to 5% of their base workforce headcount, subject to a cap of 50 workers per firm and the fulfillment of the commitments listed below:
- Condition 1: Participate in at least one approved initiative by economic agencies, or meet specific economic criteria to be eligible
- Condition 2: Commit to hiring and training locals
From 1 May 2025, the M-SEP scheme will be enhanced to better support firms that contribute to Singapore's strategic economic priorities and local workforce development. There will be:
- Additional eligible programs under Conditions 1 and 2
- An additional pathway for firms to fulfill Condition 2; Besides investing in the training or hiring of locals, firms can also commit to sending locals on overseas job exposure or leadership programs.
- Longer support period from two years to three years.
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Leong Eng Poh, Senior Paralegal, contributed to this legal update.
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