Singapore Work Permit Changes 2025: What Employers Need to Know

Did you know that foreign workers make up over one-third of Singapore’s total workforce? With manpower shortages pressing on industries like F&B, retail, and manufacturing, keeping up with policy updates has never been more important. The upcoming Singapore Work Permit changes in 2025 mark one of the biggest reforms in years, and every employer needs to understand how they affect hiring, costs, and compliance.

If you are an SME owner, HR manager, or first-time employer hiring foreign staff, this guide breaks down MOM’s updates in simple terms. You’ll learn how the changes affect hiring, costs, and compliance — plus, what steps you should take now to stay ahead.

TL;DR : What Are The Singapore Work Permit Changes in 2025?

The Singapore Work Permit changes in 2025 bring both flexibility and higher costs for employers. Here’s the quick scoop:

• ✅ No more employment duration caps – keep skilled workers longer.
• ✅ Higher age limits – retain experienced staff without replacing them.
• ✅ More NTS countries – wider hiring options in service, retail, and F&B.
• ⚠️ Higher S Pass salaries & levies – re-budget payroll or risk compliance issues

💡 Action tip: Review your workforce mix, tap into new talent pipelines, and outsource payroll to Grof for stress-free compliance.

Key Changes Announced by MOM for 2025

The Ministry of Manpower (MOM) updates for the year 2025 focus on balancing fair opportunities for locals while easing labour pressures for SMEs. Here’s what has been confirmed:

1. Removal of Employment Duration Limits

• Work Permit holders previously had strict maximum employment periods.
• From 2025, MOM will remove duration limits.
• Employers can now retain foreign workers longer, reducing turnover and retraining costs.

2. Higher Maximum Age for Workers

• The maximum age cap will increase for Work Permit holders.
• Businesses can retain experienced, older workers who understand company culture.
• This reduces hiring disruptions and preserves operational stability.

3. Expansion of NTS (Non-Traditional Sources) Countries & Occupations

• Singapore will expand eligible Non-Traditional Source (NTS) countries.
• New talent pools (e.g., Bhutan) will become available in service sectors.
• Employers in manpower-heavy industries like F&B and retail gain wider recruitment options.

4. S Pass Changes (Salary & Levy)

• S Pass qualifying salaries will rise to reflect market benchmarks.
• The foreign worker levy changes mean higher monthly contributions for S Pass holders.
• SMEs must budget more carefully when hiring mid-skilled employees.

What These Changes Mean for Your Business

Let’s explore the practical impact of the Work Permit reforms on different types of SMEs.

1. For SMEs in F&B & Retail

• Easier to hire cooks, drivers, and service staff.
• Expanded NTS list means more manpower options.
• Challenge: Higher S Pass levies may raise payroll costs if you rely on mid-skilled hires.

2. For Manufacturing SMEs

• More workers will qualify for Work Permits.
• Recruitment bottlenecks may ease.
• Challenge: You still need to plan for levy costs in workforce budgeting.

3. For Employers with Long-Serving Staff

• You can retain loyal employees past previous duration or age limits.
• This saves costs on retraining and preserves institutional knowledge.

4. For HR & Payroll Planning

• Expect levy increases to affect GIRO deductions.
• Payroll systems must adapt to higher contributions.
• Solution: Outsource payroll to Grof for seamless compliance and levy management.

Practical Steps You Should Take Now

To stay compliant and cost-efficient under the Singapore Work Permit changes in 2025, SMEs should act early.

1. Review Workforce Mix

• Evaluate your current ratio of local vs foreign hires.
• Use MOM’s quota calculator to ensure compliance.

2. Re-Budget Payroll

• Factor in the foreign worker levy changes for S Pass holders.
• Build in buffer costs for levy hikes and salary adjustments.
• Or outsource payroll to Grof’s experts to manage compliance stress-free.

3. Update HR Policies

• Adjust retention strategies for older staff who can now stay longer.
• Revise internal policies on training, progression, and retention.

4. Tap into New NTS Sources

• Explore hiring pipelines from newly approved countries.
• Consider Bhutanese and other eligible workers for service and retail jobs.

5. Use MOM’s Online Tools

• MOM provides quota calculators, levy checkers, and compliance guides.
• Regularly review these tools to avoid fines and ensure accurate workforce planning.

Conclusion

The Singapore Work Permit changes in 2025 represent both opportunities and challenges. On one hand, SMEs gain flexibility through longer employment terms, older worker retention, and expanded NTS recruitment. On the other, costs rise through foreign worker levy changes and higher S Pass salary benchmarks.

Employers who plan ahead will turn these reforms into an advantage. Review your workforce structure, update payroll systems, and tap into new manpower sources. And if compliance and payroll management feels overwhelming, let Grof handle it for you — so you can focus on growing your business.

FAQs

1. How much is the foreign worker levy in Singapore?
   Levies range from S$315 to S$950 monthly depending on worker type and quota. In addition, employers must pay the Skills Development Levy (SDL) for every employee, both local and foreign. Learn more in our Skills Development Levy expert guide.
2. Do foreign workers need to pay CPF in Singapore?
   No. Only Singapore Citizens and Permanent Residents contribute to CPF. Employers of foreign workers pay levies instead.
3. How many years can a foreigner work in Singapore?
   From 2025, with employment duration limits removed, foreign workers can stay as long as they meet age, health, and permit renewal conditions.