New Changes to work permits are going to significantly change the way employers retain their existing workforce. These upcoming reforms, effective 1st July 2025, will reflect the Ministry of Manpower’s duty to build a resilient workforce and strengthen the long-term economic and demographic goals of Singapore, whilst supporting employers with challenges with employment.
Removal of the maximum employment duration.
A major key reform to the existing work permit is the removal of the maximum employment duration for work permit holders, regardless of nationality.
Effective July 2025, employers will no longer be faced with the challenge of restrictive time limits on permits, which require the need for foreign workers to leave the country after a fixed period. The changes to the duration of time aim to reduce the requirement for recruitment and the associated costs of training new workers. Instead, employers can focus on and retain experienced workers, ultimately securing more productivity.
Employment Age
To extend the working lifespans for the population of Singapore, another new valuable reform will also be implemented in July 2025. For holders of a work permit, the employment age will be raised to 63 years, and a new entry age for non-Malaysian permit applicants will also increase from 50 years to 61 years. This reform will allow employers to hire talent from a pool of mature and well-experienced workers, and the shrinking pool of young labour availability will gain valuable knowledge and expertise in the key sectors from senior workers.
Additional approved countries to source new talent
Bhutan, Cambodia and Laos are new countries that have been added to the list of countries used to source a sustainable labour supply. The addition of these countries provides a larger pool for recruitment, more so for the construction sector, which has relied on limited countries for its labour source. Effective June 2025, this significant reform aims to provide a diverse and sustainable workforce for Singapore.
Quotas and levies
Although there are no changes to sector-specific quotas and foreign worker levies, these will remain in place. Employers must continue to manage their workforce in line with MOM’s (Ministry of Manpower) guidelines. An example of the guidelines: Five work permit holders can be hired by construction companies for every local employee earning the local qualifying salary. Since Levy rates are to remain tiered by skill and dependency, it’s a good time for companies to think more strategically about how to build their foreign workforce.
In light of the upcoming reforms to Singapore’s work permit regulations, Leap29 recommends proactive steps to maximise the benefits and maintain compliance under the new framework
- Review and Update HR Policies: Ensure your policies reflect the new employment duration and age limits.
- Plan for Diversity: Explore new talent pools from the expanded list of approved countries.
- Invest in Management Training: Equip your team to navigate quota management and compliance requirements.
- Maximise the Benefits: Take advantage of the reforms to build a more stable, experienced, and diverse workforce.
If you’re planning to hire in Singapore or make the move yourself, it’s important to stay informed and prepared. Leap29 supports employers and individuals navigating the full range of Singapore work permits and visas. Whether you’re looking to understand the COMPASS framework, get practical advice from our 10 handy tips for expats in Singapore and Malaysia, or learn more about our presence in the region following the launch of our new Singapore office, we’re here to help.
