Navigating Singapore’s Employment Pass, S Pass, and Work Permit system can be challenging for businesses hiring foreign talent. Each pass serves different workforce needs with its own eligibility criteria, quotas, and conditions. Employment Passes are geared towards professionals, S Passes for mid-skilled workers, and Work Permits for specific sectors. Beyond skill levels, distinctions include quotas, nationality restrictions, and regulatory requirements. For HR teams and business owners, understanding these differences is key to shaping effective recruitment strategies.
Understanding the Three Work Passes in Singapore
Singapore’s Ministry of Manpower (MOM) offers three main types of work passes, each catering to different skill levels and business needs.
Work Permit: For basic-skilled roles in key sectors
Work Permits target semi-skilled or unskilled foreign workers in specific industries vital to Singapore’s economy. These include construction, manufacturing, marine shipyard, process, and services sectors. Notably, only workers from approved source countries are eligible, with no minimum qualifying salary requirement. The validity extends up to two years, subject to the employee’s passport validity and a Banker’s Guarantee.
For construction sectors, migrant workers must attain Basic-Skilled status through certifications like Skills Evaluation Certificate (SEC) or Accelerated Learning Programme (ALP) before working in Singapore. Additionally, each sector operates under specific quotas called Dependency Ratio Ceiling (DRC), with the services sector capped at 35%.
S Pass: For mid-skilled technicians and specialists
The S Pass bridges the gap between Work Permits and Employment Passes, catering to mid-level skilled workers such as technicians and specialists across industries. To qualify, applicants generally need a minimum monthly salary of around S$3,000, with higher thresholds for older candidates and those in financial services.
Unlike Work Permits, S Pass holders may bring their families to Singapore if they meet the required income level. Employers must also observe quota limits, as S Pass holders can only make up a fixed percentage of a company’s workforce, and monthly levies apply depending on quota usage.
Employment Pass: For professionals and executives
The Employment Pass targets foreign professionals, managers, and executives with strong qualifications. To qualify, candidates must generally earn a minimum monthly salary of around S$5,000, with higher benchmarks for older applicants and those in financial services, and must also pass the Complementarity Assessment Framework (COMPASS).
Unlike other passes, the Employment Pass is not subject to quotas or levies. It also offers greater flexibility for career growth and family integration, allowing holders to bring spouses and children on Dependant’s Passes. In addition, experienced tech professionals in shortage areas may qualify for an extended five-year pass duration, beyond the standard two-year validity.
Eligibility and Salary Requirements Compared
Securing the right work pass hinges on meeting distinct eligibility requirements for each category. The differences primarily lie in salary thresholds, educational qualifications, and demographic factors.
Minimum Salary: $0 vs $3,300 vs $5,600 (2025 updates)
The salary benchmarks vary significantly across pass types. Work Permits have no minimum salary requirement, making them suitable for basic-skilled roles. S Pass applicants generally need to earn around S$3,000 to S$3,500, with slightly higher thresholds for those in financial services. Employment Pass requirements are set much higher, starting from about S$5,000, and increase with age and sector. For older candidates, especially those aged 45 and above, the qualifying salaries are considerably higher, particularly in financial services.
Educational Qualifications: Basic vs Diploma vs Degree
Educational requirements escalate across the pass hierarchy. Work Permits accept basic qualifications suitable for semi-skilled work. Meanwhile, S Pass positions typically expect diploma-level education, though declaring qualifications remains optional. Employment Pass applicants generally need degree-equivalent qualifications, with extra points awarded through COMPASS for degrees from top 100 universities or Singapore’s Autonomous Universities.
Age and Nationality Restrictions by Pass Type
Work Permits have the strictest demographic limitations, with the maximum employment age increasing from 60 to 62 on July 1, 2025. Additionally, only workers from approved countries including Bangladesh, India, Myanmar and newly added Bhutan, Cambodia, and Laos can apply. Essentially, S Pass and Employment Pass have no explicit age caps, yet applicants must justify higher salaries as they age.
Quota, Levy, and Employer Costs
Beyond eligibility criteria, businesses must consider quota restrictions, monthly levies, and additional employer costs when hiring foreign talent.
Dependency Ratio Ceiling: Sector-based quotas explained
The Dependency Ratio Ceiling (DRC) limits the proportion of foreign workers a company can employ. This varies by industry, with construction and process sectors having the highest allowance at 83.3%, marine shipyard at 77.8%, manufacturing at 60%, and services at just 35%. For S Pass holders specifically, companies face tighter sub-quotas: 10% in services and 15% in other sectors.
Monthly Levy Rates: $330–$650 for S Pass, tiered for Work Permit
Employers must pay a monthly levy for every foreign worker they hire. For S Pass holders, the levy has been standardised at about S$650 across all sectors since September 2025. Work Permit levy rates differ by sector and skill level, with lower rates for higher-skilled workers and higher charges when companies exceed their quota.
Security Bond and Accommodation: Only for Work Permit holders
Uniquely, employers must post a SGD 5000 security bond for each non-Malaysian Work Permit holder. This bond guarantees compliance with regulations and proper repatriation of workers. Companies must provide acceptable accommodation and bear costs for medical treatment, upkeep, and potential repatriation.
Medical Insurance: Mandatory for S Pass and Work Permit
Employers of S Pass and Work Permit holders must provide medical insurance that covers at least S$60,000 per year for inpatient care and day surgery. Since July 2023, enhanced rules apply, including a co-payment structure where insurers cover 75% and employers 25% for claims above S$15,000. From July 2025, further requirements will take effect, such as standardised exclusion clauses, age-based premiums, and direct insurer payments to hospitals.
Which Pass Fits Your Business Needs?
Choosing the ideal work pass depends primarily on your business requirements and workforce strategy. Each pass type serves distinct organisational needs.
Hiring for Manual Labour: Work Permit is the go-to
For companies requiring semi-skilled workers in construction, manufacturing, or services sectors, Work Permits offer the most straightforward solution. With no minimum salary threshold and the removal of maximum employment periods (effective July 2025), businesses can retain experienced workers indefinitely. Importantly, this pass category now allows hiring from expanded source countries including Bhutan, Cambodia, and Laos (from June 2025).
Hiring for Technical Roles: S Pass offers balance
Mid-level technical positions benefit from the S Pass framework, designed specifically for Associate Professionals and Technicians (APTs). This option suits organisations seeking qualified specialists without meeting higher EP salary requirements. Although subject to quotas, S Pass holders can potentially convert to Work Permits to retain their skills and experience.
Hiring for Strategic Roles: EP offers flexibility and PR path
For critical management positions and professional roles, the Employment Pass presents distinct advantages. With faster processing times (10 business days) and no quota restrictions, EP holders contribute strategic value. Plus, EP applications now undergo expedited processing compared to previous years.
Long-Term Talent Strategy: S Pass and EP holders as future PRs
Businesses planning long-term talent development should note that S Pass and EP holders earning above SGD 8000 monthly can bring dependants, establishing deeper Singapore roots, potentially leading toward permanent residency applications.
How PeopleFirst can help you
Figuring out Singapore’s work pass system is tricky enough, and making sure your application gets approved is another challenge altogether. That’s where PeopleFirst comes in. We take the stress out of the process by managing everything from paperwork to submissions, so you don’t have to worry about missed details or costly delays.
Whether you’re hiring a professional on an Employment Pass, a mid-skilled worker on an S Pass, or building your team with Work Permit holders, our team knows the ins and outs of each pass type. We’ll help you decide what works best for your business and make sure every requirement is covered.
What makes us different is that we don’t just handle forms. We keep up with all the latest MOM updates, from salary benchmarks to quota changes, so you’ll always know you’re making the right move.
And because PeopleFirst is more than just a work pass agency, we can also support you with recruitment, overseas talent sourcing, and even large-scale placement projects. It’s about giving you the right people, at the right time, with less hassle.
If you’re ready to take the guesswork out of work passes and focus on growing your business, talk to us today. Our team will walk you through your options and get you started on the right track.
Comparison Table
| Criteria | Employment Pass (EP) | S Pass | Work Permit |
| Minimum Monthly Salary (2025) | General: S$7,500 Financial: S$8,300 Age 45+: Up to S$14,300 | General: S$4,428.86 Financial: S$5,099.90 | No minimum requirement |
| Educational Requirements | Degree-level qualifications | Diploma-level education (optional declaration) | Basic qualifications |
| Quota Requirements | No quota restrictions | 10% (services sector) 15% (other sectors) | Varies by sector: – Construction: 83.3% – Marine: 77.8% – Manufacturing: 60% – Services: 35% |
| Monthly Levy | None | S$650 | (within quota) Up to S$950 (exceeded quota) |
| Additional Requirements | None mentioned | Medical insurance (S$60,000 coverage) | – Security bond (S$5,000) – Medical insurance – Accommodation provision – Source country restrictions |
| Target Workers | Professionals, managers, executives | Mid-skilled technicians, specialists | Semi-skilled or unskilled workers |
| Validity Period | 2 years (5 years for tech professionals) | Not specified in article | Up to 2 years |
| Family Benefits | Can bring dependants | Can bring family if earning ≥S$8,000 monthly | Not mentioned |
FAQs
What are the main differences between an Employment Pass and an S Pass in Singapore?
The Employment Pass is designed for high-earning professionals and executives, with a minimum monthly salary of around S$7,500 in 2025 and typically requiring degree-level qualifications. The S Pass, on the other hand, caters to mid-skilled workers with a minimum monthly salary of around S$4,400 and usually expects diploma-level education. Employment Passes have no quota restrictions, while S Passes are subject to sector-based quotas
How do salary requirements differ across the three work pass types?
Work Permits have no minimum salary requirement. S Pass holders generally need to earn around S$4,400, with slightly higher benchmarks for financial services. Employment Pass holders typically start at around S$7,500, rising to about S$8,300 in financial services, with progressively higher thresholds for older applicants.
What additional costs should employers consider when hiring foreign workers?
Employers must pay monthly levies for S Pass holders (about S$650) and for Work Permit holders (ranging from about S$330 to S$650, depending on sector and skill level). Work Permit employers are also required to provide a security bond of about S$5,000, arrange suitable accommodation, and bear medical treatment costs. Both S Pass and Work Permit employers must provide medical insurance with minimum coverage of about S$60,000 per year for inpatient care and day surgery.
Are there any changes to the Work Permit system in Singapore for 2025?
Yes, from July 1, 2025, Singapore will remove the maximum employment period for Work Permit holders, which previously ranged from 14 to 26 years. Additionally, the maximum employment age for Work Permit holders will increase from 60 to 62 years old.
How can businesses determine which work pass is most suitable for their needs?
The choice depends on the specific role and business requirements. Work Permits are ideal for manual labour in sectors like construction and manufacturing. S Passes suit mid-level technical positions and offer a balance between skill level and cost. Employment Passes are best for high-level professional and executive roles, offering more flexibility and potential pathways to permanent residency.
