Maximum employment period removed and age limit raised to strengthen workforce stability

From 1 July 2025, Singapore will no longer impose a maximum employment period for migrant workers holding work permits, a policy shift expected to impact the country’s foreign workforce significantly.

At present, work permit holders can be employed for a period ranging from 14 to 26 years. However, Minister for Manpower Tan See Leng announced in Parliament on 6 March that this restriction will be lifted, except for migrant domestic workers, who fall under a separate set of regulations.

In addition to removing the employment cap, the government will raise the maximum working age for these workers from 60 to 63, aligning it with the national retirement age. This means firms can now retain experienced employees for longer, a move designed to support businesses in need of skilled rank-and-file workers.

The age requirement for new work permit applicants will also be adjusted. Currently, non-Malaysian applicants must be under 50, while Malaysians can apply up to age 58. Moving forward, the age limit will be set at two years below the new retirement threshold, meaning applicants can be up to 61 years old.

Dr Tan emphasised that these changes will help businesses retain valuable workers who have gained expertise over the years, rather than losing them due to arbitrary time limits.

Other adjustments to foreign workforce regulations include an expansion of the Non-Traditional Sources (NTS) Occupation List. From 1 September 2025, heavy vehicle drivers and various manufacturing operator roles will be included, alongside a broader category of cooks, rather than limiting them to Indian restaurants.

Singapore is also broadening the range of countries from which employers can hire work permit holders. Currently, firms can recruit from China, Malaysia, Hong Kong, Macau, South Korea, and Taiwan, as well as six NTS countries: Bangladesh, India, Myanmar, the Philippines, Sri Lanka, and Thailand. From 1 June 2025, Bhutan, Cambodia, and Laos will be added to this list.

Furthermore, changes are being introduced to the Manpower for Strategic Economic Priorities (M-SEP) scheme. From 1 May 2025, approved companies will receive manpower support for three years instead of two. There will also be additional pathways for firms to qualify, such as committing to overseas training programmes for local employees.

Dr Tan explained that these reforms stem from recommendations made by the Alliance for Action on Business Competitiveness. The government aims to balance the need for skilled foreign labour with measures to enhance job opportunities and productivity growth for Singaporeans.

He also addressed concerns about reliance on foreign workers, noting that a complete restriction on hiring them would harm businesses and limit economic opportunities for locals. Over the past decade, while the number of Employment Pass and S Pass holders grew by 38,000, the number of resident professionals, managers, executives, and technicians (PMETs) increased by 382,000, demonstrating that foreign talent has not diminished local career prospects.

Singapore’s evolving workforce policies reflect a broader strategy to maintain economic competitiveness while ensuring job sustainability for both local and foreign employees.