Work Permit vs S Pass: What Employers Should Know Before Hiring Foreign Workers

Hiring foreign workers in Singapore requires employers to navigate the Ministry of Manpower's work pass framework carefully. Two of the most common passes for mid-level workers are the Work Permit and S Pass. Understanding the differences between these passes is crucial for employers to make informed hiring decisions, manage costs effectively, and ensure compliance with regulations. 

Understanding the Two Pass Types 

Work Permit 

The Work Permit is designed for semi-skilled migrant workers from approved source countries or regions. This pass allows workers to fill roles in specific sectors including construction, manufacturing, marine shipyard, process, and services. Work Permit holders typically perform operational or manual work and represent a significant portion of Singapore's foreign workforce. 

S Pass 

The S Pass provides greater flexibility for employers seeking to hire skilled workers, specifically Associate Professionals and Technicians (APTs), who may not qualify for an Employment Pass. This pass is suitable for mid-level skilled staff such as technicians, supervisors, and associate professionals across all sectors. 

Key Eligibility Differences 

Work Permit Eligibility 

Work Permits are granted to workers from specific approved source countries and regions. The eligibility criteria are primarily based on nationality and the sector in which they will work. Employers must ensure their business activities align with the sectors permitted to hire Work Permit holders, and workers must meet age and medical requirements. 

S Pass Eligibility 

S Pass candidates must meet stricter salary requirements. As of September 1, 2025, new applicants must earn at least $3,300 per month, with this minimum increasing progressively with age. For workers aged 45 and above, the minimum salary is $4,800 monthly. In the financial services sector, these thresholds are higher, starting at $3,800 and reaching $5,650 for those aged 45 and above. 

Quota Limitations 

Both passes are subject to dependency ratio ceilings (DRC), which limit the proportion of foreign workers relative to a company's total workforce. 

Quota by Sector 

Dependency ratio ceiling (DRC) is the maximum ratio of foreign workers to the total workforce that a company can employ. Below is the maximum ratio for Work Permit and S Pass holders: 

• Construction: 83.3% 

• Process: 83.3% 

• Marine Shipyard: 77.8% 

• Manufacturing: 60% 

• Services: 35% 

If the DRC for the services sector is 35%, the total number of Work Permit and S Pass holders employed by a services company cannot exceed 35% of its total workforce. 

S Pass Sub-Quota 

Within the overall foreign worker quota, S Pass holders are subject to additional caps: 

• Services sector: Maximum 10% of total workforce 

• Other sectors: Maximum 15% of total workforce 

For instance, if a services company has a total workforce of 100 employees, it can hire up to 35 foreign workers (Work Permit and S Pass holders combined), but only 10 of these can be S Pass holders. 

PRC Work Permit Sub-Quota 

Companies hiring Work Permit holders from the People's Republic of China face further restrictions: 

• Services sector: Maximum 8% of total workforce 

• Manufacturing sector: Maximum 25% of total workforce 

Calculating Your Workforce 

Your company's quota is determined by the number of Local Qualifying Salary (LQS) employees. A local employee (Singaporean or Permanent Resident) earning at least $1,600 per month counts as 1 employee for quota purposes. Those earning $800 to below $1,600 count as 0.5 employees. 

The Ministry of Manpower calculates this quota based on your company's CPF account data over the preceding three months, updating every Saturday. Accurate and timely CPF contributions and salary declarations are essential to maintain proper quota allocation. 

Levy Requirements 

Employers must pay a monthly levy for both Work Permit and S Pass holders. These levies serve as a pricing mechanism to regulate foreign worker numbers in Singapore. 

Work Permit Levy 

Work Permit levy rates vary by sector and depend on two main factors: 

1. Worker qualifications: Higher-skilled workers (based on experience, qualifications, or skills certificates) may qualify for reduced levy rates 

2. Number of foreign workers employed: Companies are typically divided into levy tiers, with rates increasing as the proportion of foreign workers rises 

Levy rates differ significantly across sectors, with construction and marine shipyard sectors generally having different structures compared to manufacturing and services. 

S Pass Levy 

As of September 1, 2025, the S Pass levy has been harmonized across all sectors at $650 per month per S Pass holder, regardless of sector or tier. This standardization simplifies budgeting for employers hiring S Pass holders. 

The daily levy rate for partial months is $21.37, calculated as (Monthly levy × 12) ÷ 365. 

Application Requirements 

Fair Consideration Framework 

Before applying for an S Pass, employers must advertise the position on MyCareersFuture for at least 14 days and give fair consideration to all candidates, including Singaporeans. This requirement ensures local workers have opportunities to apply for available positions. Work Permit applications are not subject to this advertising requirement. 

Medical Insurance 

Both Work Permit and S Pass holders must be covered by medical insurance. For S Pass holders, employers must provide medical insurance with minimum coverage of $15,000 per year for inpatient care and day surgery. 

Security Bond 

Work Permit holders require a security bond, typically $5,000, which employers must maintain throughout the worker's employment. S Pass holders do not require a security bond. 

Pass Validity and Renewal 

Work Permits are typically issued for up to two years initially and can be renewed based on sector-specific rules and the worker's age. Some sectors have maximum age limits for Work Permit holders. 

S Passes are generally issued for up to two years for first-time applicants and can be renewed for up to three years subsequently, provided the holder continues to meet eligibility criteria including the qualifying salary. 

Family Considerations 

S Pass holders earning at least $6,000 per month can apply for Dependant's Passes for their spouse and children. Work Permit holders do not have this privilege, making the S Pass more attractive for skilled workers with families. 

Converting Between Pass Types 

Employers may convert workers between pass types as circumstances change: 

• Work Permit to S Pass: Requires the worker to meet S Pass salary and eligibility requirements 

• S Pass to Work Permit: May be considered when the worker no longer meets S Pass criteria but has valuable experience. MOM recognizes past experience accumulated while holding an Employment Pass, S Pass, or Work Permit when assessing eligibility for higher-skilled (R1) levy status 

  
  

Making the Right Choice 

When deciding between a Work Permit and S Pass, employers should consider: 

1. Job role and skill level: S Pass is appropriate for supervisory, technical, or specialized roles requiring higher skills 

2. Salary budget: S Pass minimum salaries are significantly higher than typical Work Permit wages 

3. Quota availability: Check your company's current quota balance and S Pass sub-quota 

4. Levy costs: Factor in the $650 monthly levy for S Pass holders versus potentially variable Work Permit levies 

5. Recruitment needs: S Pass requires fair consideration advertising, adding time to the hiring process 

6. Long-term plans: S Pass holders may seek permanent residency and can bring dependants if earning sufficient salary 

   
   

Using MOM's Tools 

The Ministry of Manpower provides several online tools to assist employers: 

• Self-Assessment Tool (SAT): Check whether a candidate is likely to qualify before applying 

• Quota Calculator: Plan your foreign worker hiring based on your current workforce 

• Work Permit Online (WPOL): Monitor your quota balance and manage applications 

These tools are available through MOM's website and help employers make informed decisions before submitting applications. 

Partnering with K.Merleone for Work Pass Management 

Beyond MOM’s online tools, you can engage with us! K.Merleone is a registered agent for professional guidance and operational support. By applying in-depth knowledge of MOM regulations and systems, we assist employers in assessing candidate eligibility, planning workforce quotas, and managing Work Permit and S Pass applications accurately and efficiently, ensuring informed decisions, regulatory compliance, and a smoother hiring process. 

Staying Compliant 

Employers must maintain compliance throughout their workers' employment: 

• Declare business activities accurately to be assigned the correct sector 

• Submit CPF contributions and salary declarations promptly 

• Update MOM of any changes to worker details, company information, or job roles 

• Ensure workers only perform jobs specified in their pass conditions 

• Maintain valid medical insurance throughout the employment period 

• Pay levies through GIRO on time to avoid penalties 

  
  

What’s The Next Step? 

Choosing between a Work Permit and S Pass requires careful consideration of your business needs, budget, and available quota. While Work Permits provide access to a broader pool of semi-skilled workers from approved source countries at generally lower costs, S Passes enable hiring of mid-skilled professionals who can take on more complex responsibilities. 

Understanding the eligibility requirements, quota limitations, levy structures, and compliance obligations helps employers make strategic hiring decisions that support business growth while meeting regulatory requirements. Employers should regularly review their workforce composition and use MOM's planning tools to optimize their foreign worker strategy. 

For the most current information and to access application tools, visit the Ministry of Manpower website. 

Need Help with Work Permit or S Pass Applications? 

Navigating MOM’s work pass requirements can be time-consuming and complex, especially with quotas, levies, and compliance obligations to manage. Connect with K.Merleone, a registered agent, provides professional assistance for Work Permit and S Pass applications, renewals, and conversions. K.Merleone provides end-to-end support, from eligibility and quota assessment to application, renewal, and compliance management. We strive in helping businesses hire foreign workers efficiently while staying fully aligned with MOM regulations. 

Connect with us here.