Singapore Lifts Time Limits on Migrant Workers in Major Policy Shift

In a landmark move set to redefine Singapore’s labour landscape, the government has announced the removal of time limits on how long migrant workers can be employed in the city-state. From 1 July 2025, work permit holders will no longer face the previous cap of 14 to 26 years, a change aimed at helping businesses retain experienced rank-and-file workers while supporting broader economic transformation. This policy shift, unveiled by Manpower Minister Tan See Leng during a parliamentary debate on 6 March, signals a significant pivot in Singapore’s approach to its foreign workforce, which currently stands at a record high, 17% above pre-Covid-19 levels.

The decision, which excludes migrant domestic workers due to their distinct regulatory framework, is part of a broader overhaul of the work permit system. Alongside the removal of tenure caps, the maximum employment age for work permit holders will rise from 60 to 63, aligning with Singapore’s local retirement age. Additionally, the age limit for new work permit applications will be adjusted to 61, two years below the new maximum. Previously, non-Malaysian applicants had to be under 50, and Malaysian applicants under 58. “With these changes, employers can retain experienced workers who are still able to contribute,” Dr Tan emphasised in his address.

Balancing Economic Needs and Local Aspirations

Singapore’s economy, a powerhouse in South East Asia, has long relied on foreign labour to fuel growth in sectors like construction, manufacturing, and services. However, this dependency has often sparked debate over job opportunities for locals and the city-state’s long-term sustainability amid an ageing population and slowing resident workforce growth. Dr Tan acknowledged these tensions, addressing scepticism raised by Workers’ Party MP Jamus Lim about the need for foreign talent. “When we see a foreigner, we think, ‘they are taking a job a local could have had’,” he said. “What is harder to see is that, without access to foreigners, the company and its jobs may not even be in Singapore to begin with.”

Data presented by the minister offers a nuanced perspective. Over the past decade, while the number of Employment Pass (EP) and S Pass holders—higher-skilled foreign workers—grew by 38,000, resident professional, managerial, executive, and technical (PMET) roles increased by 382,000. Notably, one in three of these new resident PMET positions came from locals upgrading from lower-skilled roles, with many in their 30s to 50s benefiting from upskilling programmes. In high-value sectors like financial services and IT, resident PMETs outnumber EP and S Pass holders by a ratio of three to six for every one foreign worker as of 2024. “Our investments in our local non-PMETs to upgrade to PMETs have borne fruit,” Dr Tan noted.

Yet, the government remains cautious about over-reliance on foreign labour. “There are limits to growing through numbers,” Dr Tan warned, stressing the need to drive productivity and redesign jobs for Singaporeans. The removal of work permit caps is thus framed as part of a delicate balancing act—enabling businesses to retain skilled non-PMET workers while pushing for transformation to reduce overall dependency on foreign labour in the long term.

Expanding Opportunities and Diversity in the Workforce

Beyond tenure and age adjustments, Singapore is also broadening the scope of its foreign labour pool. From 1 September 2025, the Non-Traditional Sources (NTS) Occupation List, which allows employers in services and manufacturing to hire rank-and-file workers from a wider range of countries, will be expanded. New roles such as heavy vehicle drivers, manufacturing operators, and cooks in general—previously limited to Indian restaurant cooks—will be included. Additionally, Bhutan, Cambodia, and Laos will join existing NTS economies like Bangladesh, India, and Thailand from 1 June 2025, diversifying the talent pool.

Dr Tan assured that safeguards remain in place to protect local workers. NTS workers must be paid at least S$2,000 and constitute no more than 8% of an employer’s total headcount (excluding EP holders). “This will not undermine efforts to uplift locals in these occupations,” he said. Historically, employers in these sectors could hire work permit holders only from specific regions like China, Malaysia, and Taiwan. The NTS expansion reflects a strategic effort to raise the quality of foreign workers while addressing manpower shortages cited by businesses as a key challenge.

Further tweaks to the Manpower for Strategic Economic Priorities scheme, launched in 2022, will take effect from 1 May 2025. This initiative allows firms advancing Singapore’s economic priorities to temporarily exceed foreign worker quotas for their industry. The support duration will extend from two to three years, with new qualifying conditions such as sending locals for overseas exposure or leadership programmes. These measures aim to incentivise companies to invest in local talent alongside accessing foreign labour.

S Pass and Workforce Transformation Updates

On the S Pass front, which caters to mid-skilled foreign workers, the final phase of a three-step increase in qualifying salaries and levies, first announced in 2022, will apply to new applications from 1 September 2025 and renewals a year later. The minimum qualifying salary will rise from S$3,150 to S$3,300 for most sectors, and from S$3,650 to S$3,800 for financial services, with progressive increases based on age. The S Pass levy will be standardised at S$650. Dr Tan noted that these hikes were moderated in light of businesses’ cost pressures, while no further changes were announced for EP salaries, which were recently adjusted in January 2025.

Complementing these policy shifts is a new Enterprise Workforce Transformation Package, backed by over S$400 million, to support job redesign and business transformation. Key components include the SkillsFuture Workforce Development Grant, set to roll out in phases from 2026, and enhanced SkillsFuture Enterprise Credit. A Tripartite Workgroup on Human Capital Capability Development, involving government, unions, and employers, has also been formed to strengthen HR practices and establish national standards for human capital outcomes.

A Path to Inclusive Growth?

The sweeping changes to Singapore’s work permit framework stem from recommendations by the Alliance for Action on Business Competitiveness in a November 2024 report. They reflect a dual focus: enabling businesses to access skilled foreign labour while fostering an inclusive, productivity-driven economy. Dr Tan highlighted the need for “meaningful and resilient careers” for Singaporeans amid global competition and demographic challenges. However, some proposals, such as cross-deployment of foreign workers across sectors, remain under review due to concerns over potential circumvention of work pass controls.

There are also calls from MPs, including Non-Constituency MP Hazel Poa and Mr Zhulkarnain Abdul Rahim, for higher foreign workforce quotas for firms with inclusive employment practices—a suggestion the government is studying. If implemented, such a policy could further align Singapore’s labour strategy with social equity goals.

For now, the removal of work permit caps and related reforms mark a bold step towards flexibility in managing foreign labour. Yet, as Singapore navigates this transition, questions linger about the long-term impact on local employment and wage dynamics. While Dr Tan insists that openness to foreign talent is not a “zero-sum game,” the government’s ability to sustain public confidence in these policies will be critical. As the city-state charts its economic future, the interplay between global competitiveness and local aspirations remains a complex, evolving challenge.