Singapore Work Permit Reforms 2025- What Employers Must Know About Salary, Eligibility & Quotas

Singapore’s Work Permit Reforms 2025 mark a pivotal shift in the country’s foreign labour policy—balancing global competitiveness with local workforce protection.

These comprehensive changes, affecting Employment Passes (EP), S Passes, and Work Permits (WP), are grounded in data-driven wage benchmarks and workforce sustainability. Here’s your in-depth update.

Key Changes at a Glance

Policy Area	Previous Rule	New Rule & Effective Date
EP Minimum Salary	SGD 5,000 (general), SGD 5,500 (finance)	SGD 5,600 (general), SGD 6,200 (finance) — effective 1 Jan 2025 (renewals from 1 Jan 2026)
EP Progressive Salary	Up to SGD 10,500–11,500 (aged 45+)	Up to SGD 10,700 (general), SGD 11,800 (finance)
S Pass Salary	SGD 3,150 / SGD 3,650 (finance)	SGD 3,300 / SGD 3,800 — effective 1 Sep 2025 (renewals from Sep 2026)
S Pass Levy (Tier 1)	SGD 550	SGD 650 — effective 1 Sep 2025
Work Permit Max Age	60 years old	63 years old — effective 1 Jul 2025
NTS Source Countries	Bangladesh, India, Myanmar, Philippines, Sri Lanka, Thailand	+ Bhutan, Cambodia, Laos — effective 1 Jun 2025
NTS Occupations Expanded	Cooks (Indian), hotel porters	+ Cooks (all cuisines), heavy vehicle drivers, manufacturing roles, effective 1 Sep 2025 (with WY quotas and minimum $2,000 salary)

1. Employment Pass (EP) – Elevated Salary Bar

From 1 January 2025, new EP applicants (excluding finance) must earn at least SGD 5,600, while those in finance must earn SGD 6,200. Renewals from 1 January 2026 also require meeting the same thresholds . 

Additionally, higher age-based thresholds apply—ranging up to SGD 10,700 for non-finance and SGD 11,800 for finance, for applicants aged 45+ . These thresholds remain in line with the top one‑third of local professional wages under the COMPASS framework.

What Employers Should Do:

• Review compensation for new and current EP holders.
• Adjust salary bands to align with age-based thresholds.
• Prepare finance-sector roles to meet the higher eligibility mark.

2. S Pass – Final Step in Progressive Tightening

Starting 1 September 2025, the S Pass qualifying salary increases to SGD 3,300 (general) and SGD 3,800 (finance), with renewals from Sep 2026. This completes the three-step wage alignment initiated in Budget 2022. The Tier‑1 levy also rises to SGD 650 

Employer Tip:

• Plan ahead to meet S Pass wage increases.
• Reassess staffing budgets and talent strategies.
• Monitor S Pass renewals under the new thresholds.

3. Work Permit (WP) – Age, Country & Occupation Expansion

Age & Duration:

Effective 1 July 2025, WP holders’ maximum employment age rises from 60 to 63; new applicants can be up to 61 . The maximum tenure cap (14–26 years) has been abolished 

Non-Traditional Sources (NTS):

From 1 June 2025, NTS countries now include Bhutan, Cambodia, Laos 

Occupation List Expansion:

As of 1 September 2025, NTS occupations now also cover:

• Cooks (across all cuisines)
• Heavy vehicle drivers (with existing licence)
• Manufacturing operators
• Minimum monthly salary must be SGD 2,000, and dependent ratio ceilings apply 

Employer Action:

• Adjust WP plans to retain older, skilled individuals.
• Explore expanded hiring pools from new NTS countries.
• Verify that WP roles fit NTS occupation requirements and meet salary rules.

4. Fair Hiring & Compliance Enhancements

A renewed emphasis on the Fair Consideration Framework (FCF) includes:

• Mandatory local recruitment efforts before foreign hiring.
• An expanded FCF Watchlist targeting non-compliant employers.
• Renewals of EP/S Pass contingent on meeting salary and COMPASS criteria 

Employer Action:

• Strengthen local recruitment efforts.
• Keep detailed records of fair hiring processes.
• Stay updated on MOM’s compliance benchmarks and evaluations.

5. Practical Guide: What Employers Must Do

1. Audit Workforce Composition
   Identify staff with upcoming EP/S Pass renewals under new thresholds.
2. Adjust Salary Structures
   Ensure offers and renewals meet revised EP/S Pass and WP/NTS salary criteria.
3. Enhance Talent Pipelines
   Ramp up local hiring, training, and development to meet FCF requirements.
4. Validate WP Licences & Eligibility
   For newly added occupations (drivers, cooks, manufacturing), verify qualifications and licences—especially heavy-vehicle licences dated before Sep 2025 
5. Track Renewal Deadlines
   Document renewal dates and threshold applicability carefully.

The Singapore Work Permit Reforms 2025 significantly raise the bar on foreign employment through higher salary thresholds, older permissible work ages, expanded source countries and roles, and strengthened fair hiring protocols.

Employers should proactively audit their workforce, realign compensation, and reinforce compliance strategies to excel under the new regime.

FAQs

When do EP and S Pass changes apply?

EP thresholds take effect for new applications from 1 January 2025, with renewals from 1 January 2026; S Pass updates apply to new applications from 1 September 2025, with renewals from 1 September 2026.

Will current pass holders be affected?

Yes. Any EP/S Pass expiring in 2026 (for EP) or 2026–27 (for S Pass) must comply with the new thresholds at renewal.

Can employers still hire older WP holders?

Yes. Work Permit holders can now be employed till 63 years old, and there is no longer a tenure cap. However, ensure that NTS occupations—drivers, cooks, manufacturers—meet NTS salary ($2,000+) and licence requirements.