If you run a business and are looking to increase your manpower and expand your operations, understanding the requirements to successfully apply for work permits for semi-skilled individuals to work at your company is a crucial business advantage.
In Singapore, a work permit for migrant workers is specifically for semi-skilled foreign workers from approved source countries or regions to work in sectors such as construction, manufacturing, marine shipyard, process and services. The requirements to successfully apply for work permit vary by sector, and each sector has its own requirements. In general, the work permit issued to a worker only allows that worker to be employed by the employer and in the occupation specified in the work permit.
There are quota limitations based on the industry and there is a monthly levy to be paid for each worker. Each work permit is valid for up to 2 years, and depends on the validity of the worker’s passport, security bond and employment period, whichever is the shortest. Work permits are renewable. There is no minimum qualifying salary which have to be paid to work permit holders.
The purpose of this article is to provide a general overview of the prerequisites and application process to obtain work permits for migrant workers to be employed in Singapore. The information in this article is only accurate as of the date of publication, and there may be nuances in relation to particular situations which are not covered in this article. If your business requires assistance with the application of work permits for migrant workers in Singapore, please reach out to us with your queries.
You may refer to our other articles where we address questions on applying for other types of work passes such as S Pass and Employment Pass.
The author, Waltson Tan, specialises in advising employers and employees on their employment-related legal matters, including the application of work passes for individuals to work in Singapore. He also has in-depth experience in drafting employment agreements, and handling employment contract disputes, salary disputes, and dismissal related claims.
If there are any suggestions and/or legal queries, please feel free to contact the author, Waltson Tan, at: waltson.tan@28falconlaw.com
(a) First-time applicants
If your business organisation has never applied for a work permit before, you must declare your business activity before submitting any application. Based on your declaration, the Ministry of Manpower (MOM) will assign your organisation to the most relevant sector. The assigned sector will determine the number of work permit holders you are allowed to employ. Once the sector is assigned, you can proceed to submit the work permit applications.
(b) Source countries or regions from which migrant workers can be employed
Work permits in Singapore are typically issued to semi-skilled foreign workers from countries such as Malaysia, People’s Republic of China, Bangladesh, India, Taiwan, South Korea, Sri Lanka and other approved source countries and regions. Eligible sectors where these workers can be employed include: construction, manufacturing, marine shipyard, process and services. Each sector has its own eligibility requirements for work permit holders, and employees are required to originate from certain source countries or region and be of a certain minimum and maximum age. There are also restrictions on the maximum number of years a worker can work in Singapore on a work permit, and these differ for different sectors.
(c) Dependency Ratio Ceiling (DRC) or Quota
The number of work permit holders which a business can employ is limited by a quota. The dependency ratio ceiling stipulated by the MOM sets a maximum percentage of foreign workers to the entire workforce which a company in a given sector may hire. This quota ranges from 35.0% to 83.3% depending on the sector.
To calculate the number of work permit holders which a company can hire, the first step is to determine the number of Singaporeans or Permanent Residents employed in a company based on the concept of “Local Qualifying Salary” or “LQS”. As of the date of this article, paying an LQS of S$1,400 per month to a local employee would count as hiring 1 local employee for the purposes of the quota, and paying an LQS of an amount between S$700 to S$1,400 per month to a local employee would count as hiring 0.5 local employee for the purposes of the quota.
(d) Foreign Worker Levy
This is a pricing mechanism applied by the MOM to regulate the number of foreigners in Singapore. The levy is payable monthly for each work permit holder and is broadly determined by: (i) the worker’s qualifications and (ii) the number of work permit holders hired. For workers who work less than a month, a daily levy is used to calculate the levy amount employers are required to pay.
(a) The application process
Applications for work permits can be made online by either an employer or an appointed employment agent. Prior to the submission of the application, the foreigner’s written consent must be obtained. The MOM does not prescribe any format, and the written consent may be in the form of a signed employment contract. The application status is typically updated within 1 week of submission. Upon approval, the MOM will provide the in-principle approval (IPA) letter and the work permit application form. The IPA letter will have a validity period, within which the migrant worker will have to be brought into Singapore. The IPA can only be extended once for up to 1 month, and it has to be done at least 1 week prior to its expiry.
Upon receipt of the IPA letter, employers are required to purchase the primary care plan (PCP) for workers who either: (A) stay in dormitories that can accommodate 7 or more workers; or (B) work in CMP sectors. The PCP will cover workers for primary care services such as statutory medical examination, and unlimited consultations for acute conditions such as flu and fever.
Employers are also required to buy and maintain medical insurance for each migrant worker based on the MOM’s stipulated minimum coverage. The cost of insurance cannot be passed on to the workers. The insurance details would have to be submitted online to the MOM prior to the issuance of the work permit.
Work permit holders are also required to undergo medical examination prior to the issuance of the work permit.
Migrant workers in certain sectors must also complete some courses before employers can get their work permits issued.
Employers in the construction and process sectors must apply for man-year entitlement (MYE) to hire construction and process sector workers from non-traditional source (NTS) countries/regions and the People’s Republic of China (PRC) if they have project contracts which were awarded or had the tender called on or before 18 February 2022. From 1 January 2024, main contractors are no longer required to apply for MYE to hire NTS or PRC workers based on the value of their projects or contracts awarded.
(b) Pre-arrival step – pre-entry housing check
If you are employing a non-Malaysian male construction, marine shipyard and process sectors (CMP) worker, you will have to submit an online form to make a request for a pre-entry housing check and submit proof of acceptable accommodation for the worker, and upon approval, book a slot at the Onboard centre at least 4 days before the worker arrives. The Onboard centre has a 3-day Onboarding programme which comprises a COVID-19 test, medical examination and vaccination check and a settling-in programme.
(c) Pre-arrival step – purchase of security bond
If you are employing a non-Malaysian worker, you will have to purchase a security bond for each worker, which is in the form of a banker’s or insurer’s guarantee. This can be purchased at any bank or insurance company and will be issued based on the relevant template which can be found on the MOM website. A security bond is a binding pledge to pay the Singapore government if either the employer or their worker breaks the law, work permit conditions or security bond conditions. The employer must buy a $5,000 security bond for each non-Malaysian worker employed and the worker cannot be asked to pay for the bond.
(d) Issuance of work permit: Employers or appointed employment agents must ensure that the work permits are issued within the stipulated timeframe after the worker enters Singapore (i.e. for newly-arrived Malaysians, before the due date stated on the IPA letter; and for newly-arrived non-Malaysians, within 14 days from arrival). This can be done by registering the worker’s residential address and mobile number using the Online Foreign Worker Address Service.
After the work permit is issued, a notification letter will be generated. It is valid for 1 month from the date of issue and it: (A) allows the worker to travel in and out of Singapore while waiting for the Work Permit card; and (B) states if registration of fingerprints and photo is required.
If required to register fingerprints and photo, the worker will have to complete this registration within 1 week after the work permit is issued. For registration, the employer or appointed employment agent must make an appointment for the worker to visit the MOM Services Centre – Hall C. Thereafter, the Work Permit card will be delivered to the given address within 5 working days after the worker registers and gets their documents verified.
We hope that readers of this article have a better understanding on the requirements to obtain work permits for migrant workers to work in Singapore.
If there are any queries in relation to the application of work permits or other types of work passes, please feel free to contact the author, Waltson Tan, at: waltson@tjylaw.com.sg
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Our firm specialises in advising employers and employees on their employment-related legal matters. We have experience in drafting employment agreements, and handling employment contract disputes, salary disputes, and dismissal related claims.
The author, Waltson Tan, is a corporate lawyer trained in London and Singapore. He is qualified as an advocate and solicitor in Singapore, and has more than eight years of post-qualification experience.
Waltson also advises clients on a monthly and yearly retainer basis, where he provides dedicated services to each client in relation to the issues which clients face, including general corporate and employment related matters.
If you require further information and/or expert guidance on the above or any other area of law, you may wish to contact the author of the article, whose details are as follows:
Waltson Tan Director +65 8079 0028 waltson.tan@28falconlaw.com |
Office address: 101A Upper Cross Street #13-11, People’s Park Centre Singapore 058358Singapore |