Hiring Foreign Workers in Singapore: Complete Guide for Employers
- Vance Lim
- May 7
- 4 min read
Singapore’s fast-paced economy and limited local manpower often require companies to consider hiring foreign workers to meet business demands. Whether you’re in the F&B, construction, logistics, or retail sector, navigating the Ministry of Manpower (MOM) regulations and application process can feel overwhelming.
This complete guide breaks it down for employers who are planning to hire foreign workers in Singapore, with tips to ensure compliance, streamline approvals, and build a reliable workforce.
Why Companies Hire Foreign Workers in Singapore
Hiring foreign employees in Singapore is not just about filling a gap — it’s about growth, productivity, and competitiveness. Here are the common reasons businesses choose to employ foreign talent:
Manpower shortage in sectors like F&B, logistics, and construction.
Specialized skills or language abilities not easily found locally.
Scalability and operational expansion across markets.
Understanding the Types of Work Passes
Before you start hiring, you must first understand the various Singapore work pass types available:
1. Employment Pass (EP)
For professionals, managers, and executives earning at least SGD 5,600/month (higher for older applicants).
Suitable for skilled talent with recognized qualifications.
2. S Pass
For mid-skilled workers earning at least SGD 3,150/month (increase to $3.300 from 1st Sept 2025 ).
Requires a quota and is subject to the Dependency Ratio Ceiling (DRC).
3. Work Permit (WP)
For semi-skilled or unskilled foreign workers in sectors like construction, manufacturing, marine shipyard, process, and services.
Heavily regulated by quotas and levies.
Steps to Hiring a Foreign Worker in Singapore
Step 1: Assess Eligibility
Start by ensuring your business meets the requirements set by the MOM. You’ll need to:
Have sufficient quota under the DRC (for WP and S Pass holders)
Offer a salary that meets the pass requirement
Step 2: Post Job Advertisements on MyCareersFuture
To prioritize locals, MOM mandates that job vacancies for EP and S Pass holders be advertised on the MyCareersFuture portal for at least 14 days unless exempted.
Step 3: Apply for the Right Work Pass
Use MOM’s online portal to apply:
EP and S Pass applications can be done through MOM's EP Online
Work Permit applications are sector-specific (e.g., construction or services)
Step 4: Receive In-Principle Approval (IPA)
Once approved, the candidate receives an IPA letter, valid for 6 months. Employers must:
Arrange for medical examinations (if applicable)
Secure medical insurance and settle levy obligations
Step 5: Onboard the Worker
The final step involves:
Issuing the Work Pass card
Briefing workers on safety, conduct, and housing
Maintaining proper employment records and payroll
Common Compliance Requirements
To legally employ foreigners in Singapore, employers must ensure:
Payment of foreign worker levy (monthly levy based on pass type and sector)
Provision of acceptable accommodation for Work Permit holders
Timely renewal and cancellation of work passes
Adherence to the Employment Act and MOM regulations
Failure to comply can result in hefty fines, suspension of work pass privileges, or legal penalties.
Quota and Levy Considerations
Employers must take note of:
Dependency Ratio Ceiling (DRC): Limits on the number of foreign workers per local employee
Tiered levy rates: The more foreign workers you hire, the higher the levy tier
For example, in the services sector, the DRC is capped at 35% and levy rates range from $450–$800 per worker
Key Sectors for Foreign Hiring in Singapore
F&B Industry
Heavy reliance on Work Permit holders from Non-Traditional Sources (NTS) like India, Bangladesh, and Thailand.
Common roles: kitchen helpers, cooks
Construction Sector
Foreign workers make up a significant part of the workforce.
Requires an Approval to Employ (ATE) from BCA and MOM registration.
Logistics & Warehousing
S Pass and WP workers are common in operations and driving roles.
Emphasis on shift flexibility and physical fitness.
Tips to Improve Your Work Pass Approval Chances
Provide clear job descriptions and proper documentation
Offer market-competitive salary packages
Ensure your company has strong financial standing and compliant HR practices
Engage a licensed employment agency in Singapore to manage recruitment, KYC, and pass application processes
Hiring from Non-Traditional Sources (NTS)
As of 2025, Singapore allows companies in certain sectors to hire Work Permit holders from NTS countries under specific schemes. These include:
Construction NTS Scheme
Service Sector NTS Arrangement
Requires adherence to tight quota and skill certification (e.g., BCA for construction)
Final Thoughts: Engage the Right Partner
Navigating foreign worker recruitment can be time-consuming and complex — especially with ever-changing MOM policies. Many employers now work with manpower agencies in Singapore who are licensed by MOM to handle:
End-to-end recruitment
Work pass applications
Payroll compliance
Worker onboarding and housing
Whether you're a growing SME or expanding enterprise, having the right support ensures smooth onboarding and compliance.
Conclusion: Build a Resilient Workforce with Foreign Talent
Hiring foreign workers in Singapore is not only legal and viable — it's necessary in many industries. However, compliance with MOM regulations, quota management, and documentation are critical. Stay up to date with the latest MOM guidelines and consider partnering with a reliable employment agency to avoid costly mistakes.
Frequently Asked Questions (FAQs)
Q1: Can I hire foreign workers for part-time roles?
A: No. Foreign workers on Work Permits or S Passes must be employed full-time.
Q2: How long does the Work Permit application take?
A: Processing typically takes 1-3 weeks if all documents are complete.
Q3: Can I transfer a worker from another company?
A: Yes, but this is subject to MOM approval and mutual agreement between employers.
📌 Need Help Hiring Foreign Workers in Singapore?
At Account-Ink Pte Ltd, we help employers streamline recruitment, ensure compliance, and get the Work Pass approvals fast. Need help with Work Pass applications? Send us your enquiry today.
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