The S Pass allows mid-skilled foreign workers to work in Singapore. Both employees and employers must understand the S Pass quota and foreign worker levy rules as it is crucial to manage workforce composition and comply with Singapore government regulations.
Companies can only hire a certain number of S Pass holders and pay a monthly fee for each worker.
The S Pass system balances local and foreign talent. You need to know the industry quota and costs. This will help you plan your hiring and budget. Understanding these rules can be complicated but it’s necessary for business operations.
Let’s break down the S Pass quota and levy system for you.
Points to Note
S Pass quotas limit the number of foreign workers a company can hire
Monthly levy fees must be paid for each S Pass holder
Quota and levy fees vary by industry and are subjected to changes over time
The S Pass is a work visa for mid-skilled foreign workers in Singapore. It’s for those who earn at least $3,150 per month and have relevant qualifications and work experience.
You can apply for S Pass if you are offered a job in Singapore that matches your skills. The pass is usually valid for up to 2 years and can be renewed.
You need:
A job offer from a Singapore employer
A fixed monthly salary of at least $3,150
Relevant qualifications (usually a degree or diploma)
Work experience in the same field
The S Pass helps companies in the manufacturing and services sectors to fill skill gaps in their workforce. It allows companies to hire foreign workers when they cannot find local talent.
Employers must follow foreign worker quota and levy rules when hiring S Pass holders. The foreign worker quota system set by the Ministry of Manpower (MOM) has strict limits on the percentage of foreign workers in a company’s workforce.
Before applying, employers must advertise the job on MyCareersFuture and consider all candidates fairly. This ensures employment opportunities for local job seekers.
S Pass holders can bring their family members to Singapore if certain conditions are met and their spouses and children can apply for Dependant’s Pass.
Getting an S Pass requires meeting certain qualifications. The key factors are education and salary.
To qualify for S Pass, you need a degree or diploma. Your education must match the job you are applying for. A bachelor’s degree from a good school is usually required. Some roles may accept technical diplomas.
Eligible candidates must have skills that match the job. Work experience can sometimes make up for lower education. The government will assess each case.
Your qualifications are scored on a points system. Higher scores mean higher approval chances.
The S Pass has a minimum salary requirement. As of 2024, you must earn at least $3,150 per month. This is based on the local qualifying salary LQS framework and to ensure fair competition with local workers.
Your salary must match what local workers in the same job earn. The government will compare it to the top third of local salaries for your role.
Older and more experienced workers may need higher salaries. This is to ensure fair pay to local employees. Your employer must be willing to pay this amount.
S Pass quota and ratio play a significant role in Singapore’s workforce management. They balance local and foreign employment while meeting industry needs. These rules impact hiring decisions and shape the labor market.
Different sectors in Singapore have different S Pass quotas. The manufacturing sector can have up to 18% of their workforce as S Pass holders. Services and construction sector are limited to 10%. These limits are to protect local jobs while allowing companies to fill skill gaps.
You must know your industry’s quota when planning your workforce. Exceeding the quota will result in penalties and hiring restrictions. Stay updated on any changes to these percentages.
The government reviews these quotas regularly. They may change them based on economic conditions and local workforce development.
Calculating your S Pass quota is crucial for compliance. Employers can use the quota calculator provided by the Ministry of Manpower to check their quota balance. The foreign worker quota is based on the company’s total workforce, including local employees and foreign workers.
To calculate, you will need:
Number of local employees
Current Work Permit holders
Existing S Pass holders
The system will show you how many S Pass holders you can hire. Keep your employee data updated for accurate calculations.
Remember, your quota can change when you hire or lose employees. Regular checks will help you stay within limits and avoid issues with foreign worker hiring.
The S Pass levy system has different rates based on the number of foreign workers a company has. Companies pay this levy every month for each S Pass holder.
The S Pass levy uses a tiered system. This means the amount you pay changes based on the number of S Pass workers you have. The quota for S Pass holders is a percentage of your total workforce.
When you have fewer S Pass workers, you pay lower levy. As you hire more, the levy rate goes up. This is to encourage companies to hire local workers when possible.
Levy rates vary based on your industry and number of S Pass holders you employ.
For example, in services sector, the rates are:
Basic Tier: $330 per month
Tier 2: $650 per month
These rates may change, so check the latest information. You must pay the levy from the day the S Pass is issued until it’s cancelled or expired.
Most companies pay the levy through GIRO. This is an automatic payment system that makes it easier to manage your payments.
Getting and keeping an S Pass involves several steps and rules. You need to know how to apply and when to renew.
To apply for S Pass, you must submit an online form through Work Pass Account. Fill up all required fields carefully. Upload necessary documents like worker’s passport and proof of skills. Pay the application fee.
Ministry of Manpower (MOM) will review your form. This may take up to 3 weeks. Check your status online frequently.
If approved, you will receive an In-Principle Approval (IPA) letter. The worker can then enter Singapore. Complete the issuance steps within 2 weeks.
You can renew S Pass up to 6 months before it ends. Don’t wait too long or the pass will lapse.
To renew, the worker must still meet all S Pass rules. Their skills and salary must still qualify. Your company must also have enough S Pass quota.
Make sure the worker’s passport is valid for at least 7 months. If needed, set up their Primary Care Plan before you renew.
Submit renewal application online. MOM will process within 3 weeks. If approved, you will get a new pass for up to 3 years.
As an employer in Singapore, you must comply with foreign worker quotas. These quotas help to balance the workforce across industries.
Ministry of Manpower (MOM) will strictly enforce these rules. If you don’t comply, you will face serious penalties.
To be compliant, you must:
Stay within your S Pass quota
Pay the monthly foreign worker levy for each S Pass worker
Ensure your S Pass workers meet the minimum salary requirements
The levy rate varies by sector.
Penalties for non-compliance can be severe. They may include:
Fines
Revocation of work passes
Limits on hiring new foreign workers
To avoid these issues, you should review your workforce composition regularly.
Make sure you are always within the quota and paying the correct levy.
Strategic workforce planning is key. It helps you to assess your current and future manpower needs while staying within the rules.
S Pass quota and levy system is part of Singapore’s foreign workforce management. You must know these rules to comply if you plan to hire foreign employees.
Foreign worker quota determined by your company's total workforce. The percentage varies by sector, usually 10% to 18% of your total workforce.
You must pay monthly levy for each S Pass holder. Rates vary by sector and dependency ratio ceiling.
Looking forward, the government may adjust quota entitlement and levy to balance economic needs with local workforce development. Recent trends show a tightening of rules.
Be aware of the changes. This will help you to adjust your recruitment and budget planning.
Look into alternative talent sources, like upskilling local workers or EP for higher-skilled roles.
Be compliant and strategic, you can navigate the S Pass system and grow your business in Singapore.
