Work Permit Guides » Singapore

Hiring Foreign Employees in Singapore: Visa and Work Permit Requirements

Key Takeaways:

  • Types of employment visas and permits
  • Step-by-step application process
  • Employer and employee responsibilities
  • Timelines and fees involved

Introduction

Highlighting Singapore’s status as a business hub and the processes for obtaining visas and work permits for foreign employees.

Types of Work Visas in Singapore

Singapore offers several types of work passes for foreign employees based on their skill levels, salary, and job scope. The three most common work passes are the Employment Pass (EP), S Pass, and the Work Permit for Foreign Workers. Each type of pass has specific criteria and is intended for different categories of workers.

1. Employment Pass (EP)

The Employment Pass is intended for foreign professionals, managers, and executives. This pass is designed for highly skilled individuals who hold professional qualifications, have specialized skills, and are employed in senior positions.

  • Who is eligible?

    To qualify for the Employment Pass, the applicant must have a job offer from a Singaporean employer and earn a minimum monthly salary of SGD 5,000. Candidates in the financial sector must earn a higher threshold of SGD 5,500. The applicant must also possess recognized qualifications, such as a degree or professional certifications, that match the industry standards.

  • Validity and Renewal:

    The Employment Pass is typically issued for 1 to 2 years, with the possibility of renewal for up to 3 years, depending on the employee’s contract and performance.

2. S Pass

The S Pass is designed for mid-skilled foreign employees working in technical or supervisory positions. This category includes roles that require specific qualifications, technical skills, or diplomas, but may not necessarily fall into the professional or managerial level.

  • Who is eligible?

    To qualify for an S Pass, the applicant must have a job offer from a Singaporean employer and earn a minimum monthly salary of SGD 3,000. Applicants must have a degree, diploma, or relevant work experience. The S Pass is subject to a quota system, meaning that only a certain percentage of a company’s workforce can be comprised of S Pass holders.

  • Validity and Renewal:

    Similar to the Employment Pass, the S Pass is valid for 1 to 2 years and can be renewed for up to 3 years.

3. Work Permit for Foreign Workers

The Work Permit for Foreign Workers is for semi-skilled or unskilled workers in industries such as construction, manufacturing, marine shipyard, and services. This permit is generally reserved for lower-wage occupations where there is a shortage of local workers.

  • Who is eligible?

    The Work Permit is available to foreign employees who have job offers in industries approved by the Singaporean government. There are specific age restrictions, with applicants needing to be between 18 and 58 years old, depending on their country of origin.

  • Validity and Renewal:

    The Work Permit is typically valid for up to 2 years, subject to the worker’s employment and the employer’s compliance with quotas and levies.

Employer Requirements for Visa Applications

When hiring foreign employees, employers have specific responsibilities in ensuring that the visa application process is smooth and complies with MOM regulations. Each visa category has its own set of criteria that must be met by both the employer and the employee.

Criteria and Documents for EP, S Pass, and Work Permits

  1. Employment Pass (EP) Requirements:

    • The employer must offer a position that requires specialized skills and a competitive salary that meets or exceeds the minimum salary threshold.
    • The employee must provide proof of qualifications, including educational certificates and employment history.
    • The company must provide information about the role, the contract, and the business’s financial standing to ensure that it can meet the salary requirements.
  2. S Pass

    Requirements:

    • The employer must ensure that the job role meets the minimum salary threshold for S Pass holders and falls within an approved industry.
    • The employer must comply with the S Pass quota, which restricts the number of S Pass holders to a percentage of the total workforce in each industry.
    • Relevant educational certificates or proof of technical qualifications must be submitted as part of the application.
  3. Work Permit Requirements:

    • Employers must adhere to the sector-specific quotas and levies that apply to hiring Work Permit holders.
    • A security bond is required for Work Permit holders, depending on the nationality of the employee. The bond acts as a financial guarantee that the employer will adhere to the rules and requirements set by MOM.
    • Employers must submit proof of compliance with medical insurance requirements, ensuring that the worker is covered throughout their employment.

Ministry of Manpower (MOM) Approval Process

The Ministry of Manpower (MOM) oversees the entire process of granting work passes to foreign employees. Before any work visa is approved, the MOM reviews the company’s financial health, its need for foreign workers, and its ability to comply with local labor regulations. The approval process is thorough to ensure that companies are not over-relying on foreign talent when local workers are available for the job.

Manage your Asia employees with AYP

We’re here to help you on your journey to hire, manage and pay.

Application Process for Work Passes

The process of applying for a work pass in Singapore involves several steps, beginning with employer registration and submission of the application to MOM. Here’s a breakdown of how to apply for the Employment Pass, S Pass, and Work Permit.

How to Apply for EP, S Pass, and Work Permit

  1. Registering the Company with MOM:

    The employer must first register with the Ministry of Manpower and obtain a Singapore Corporate Access (CorpPass) account. This is necessary for submitting applications online through the MOM’s portal.

  2. Submit the Application:

    Employers must submit the application online via the MOM’s EP Online system for Employment Passes and the Self-Service Online system for S Passes and Work Permits. Applications must include the employee’s personal details, job description, salary offer, and relevant qualifications.

  3. Await Approval:

    The processing time for an Employment Pass or S Pass application is typically between 3 to 8 weeks, while Work Permit applications may take slightly longer depending on quotas and industry-specific regulations.

  4. Approval and Issuance of Pass:

    Once approved, the MOM issues an in-principle approval letter, which the foreign employee must present upon arrival in Singapore. The employer will then assist the employee in completing the medical examination (if required) and collecting their work pass.

Processing Times and Costs

  • Processing Times:

    The MOM typically processes Employment Pass applications within 3 weeks, while S Pass and Work Permit applications may take up to 8 weeks, depending on the applicant’s qualifications and the employer’s compliance with quotas.

  • Costs:

    Application fees for an Employment Pass are approximately SGD 105 per application, and an issuance fee of SGD 225 is charged once the pass is approved. For S Pass and Work Permits, application fees are SGD 75, and the issuance fees are SGD 30 to SGD 100, depending on the industry.

Employer Compliance with Local Regulations

Employers hiring foreign employees in Singapore must adhere to a range of local regulations, including quotas, levies, and the provision of security bonds. Non-compliance can result in penalties, fines, or revocation of work passes.

Quotas, Levies, and Security Bond Requirements

  1. Quotas:

    Employers are limited by quota restrictions, especially for S Pass and Work Permit holders. For S Pass holders, only 10-15% of the workforce can consist of foreign employees, depending on the industry. The same applies to Work Permit holders, though quota percentages vary by sector.

  2. Levies:

    A levy is a fee charged by the MOM to control the number of foreign workers in Singapore. The amount of levy depends on the skill level of the foreign worker and the number of foreign employees the company hires. Employers must pay monthly levies for S Pass and Work Permit holders, with the rates ranging from SGD 330 to SGD 950 depending on the worker’s skill level and industry.

  3. Security Bond:

    Employers of Work Permit holders are required to post a security bond of SGD 5,000 to ensure compliance with employment and immigration regulations. This bond can be forfeited if the employer violates work permit conditions.

Penalties for Non-Compliance

Non-compliance with Singapore’s labor and immigration regulations can result in significant penalties. Employers who hire foreign workers without the proper work passes, or who fail to meet quota and levy requirements, may face fines of up to SGD 10,000 per violation or imprisonment for up to 12 months. Repeated offenses can lead to the suspension or cancellation of work passes, barring the company from hiring foreign workers in the future.

How AYP Can Help

Navigating Singapore’s work visa and permit regulations can be challenging, especially for businesses unfamiliar with the legal landscape. At AYP, we offer Professional Employer Organisation (PEO) and Employer of Record (EOR) services to help employers manage the complexities of hiring foreign employees in Singapore.

Our experienced team can handle the entire process, from submitting visa applications to ensuring compliance with MOM regulations. We take care of quota management, levies, security bonds, and reporting requirements, allowing you to focus on growing your business. Whether you’re hiring one foreign employee or building an entire team, AYP’s services are tailored to ensure smooth onboarding and full legal compliance.

Learn more about hiring in Singapore

We use cookies

This website use cookies to ensure you get the best experience on our website. For more information, see our Cookie Policy