If you’re thinking about hiring foreign professionals in Singapore then you’re not alone. As a global business hotspot, Singapore attracts companies from all over the world looking to build a skilled workforce. But before you start the recruitment process, it’s crucial to know about the country’s strict regulations and foreign worker quota system.
We know that understanding these rules can feel a bit overwhelming, but getting it right is essential for your business’s success. It’s even more important if you’re expanding your team or setting up operations in Singapore.
To make things easier for you, we’ll lay down the quota for hiring foreign workers in Singapore by sector, discuss some of the key factors that affect it, and everything else you need to know.
Foreign Worker Quota by Sector
In Singapore, the foreign worker quota isn’t the same across all industries. The Ministry of Manpower (MoM) has set some specific limits on each sector, and staying within these limits is key to ensuring compliance and avoiding penalties.
Here’s a breakdown of the quota for hiring foreign workers in Singapore by sector:
Quota for Hiring Foreign Workers in the Services Sector
In the service sector, organizations can recruit foreign workers for up to 35% of their total workforce, but only 10% of the company’s employees can be S Pass holders.
This regulation helps businesses strike the right balance between local employees and foreign talent.
Quota for Hiring Foreign Workers in the Construction Sector
Given the labour-intensive demands of construction projects, the Ministry of Manpower (MoM) has set a much higher foreign worker quota for the construction sector than other industries.
In this sector, organizations can recruit foreign workers for up to 83.3% of their total workforce. This makes it much easier to meet labour demands. However, employers still need to pay levies and meet certain training requirements to avoid hefty fines and compliance issues.
Quota for Hiring Foreign Workers in the Manufacturing Sector
In the manufacturing sector, organizations can recruit foreign workers for up to 60% of their total workforce, but only 15% of the company’s employees can be S Pass holders.
This helps businesses bring in skilled foreign workers while maintaining a strong local workforce. It’s a good way to meet industry demands without relying too much on one employee group.
Quota for Hiring Foreign Workers in the Marine & Process Sector
Since the marine and process industries require highly specialized skills, their foreign worker quota is set much higher than other sectors.
In the marine and process sectors, organizations can recruit foreign workers for up to 77.8% and 83.3% respectively. This allows the companies to fulfil their labour needs more effectively.
Key Factors Affecting the Quota for Hiring Foreign Workers
By now you might’ve noticed that the quota for hiring foreign workers in Singapore isn’t so straightforward. Several key factors come into play, affecting just how many foreign employees a company can hire.
Some of these factors are:
Dependency Ratio Ceiling (DRC)
The Dependency Ratio Ceiling (DRC) basically sets the maximum proportion of foreign workers that a company can bring in based on its total workforce. Each industry has different limits, so it’s important to know the ins and outs of the DRC before making any major hiring decisions.
Foreign Worker Levy
All employers are required to pay a Foreign Worker Levy for each foreign employee they get on board. The levy amount depends on the worker’s skill level and the sector. This encourages companies to hire highly skilled workers and invest in training too.
Fair Consideration Framework (FCF) and its impact
The Fair Consideration Framework (FCF) ensures that the citizens of Singapore get a fair chance at jobs before businesses recruit foreign talent. All employers are required to post job vacancies on MyCareersFuture.sg before applying for (EPs) for foreign hires.
Updates and Changes to the Quota Policy in 2025
On 6 March 2025, Singapore’s Ministry of Manpower (MOM) announced key updates to its foreign worker quota policy.
Here’s what’s new:
- Employers are now required to pay a higher minimum salary to the S Pass applicants.
- The Ministry of Manpower (MoM) has simplified Work Permit regulations to make the recruitment processes much more efficient.
- MoM has also expanded the M-SEP Scheme– Qualifying companies can now get up to 5% extra S Pass and Work Permit quotas beyond the general limit. This will help businesses address their urgent manpower needs by hiring more foreign workers.
P.S. Want a look at Singapore’s 2025 salary guide? Click here.
How Employers Can Manage Workforce Quotas Effectively
Last but not least, here are some simple strategies businesses can adopt to stay compliant and manage their workforce quotas effectively:
- Prioritize recruiting and training local employees.
- Regularly monitor the quota limits and adjust your hiring plans accordingly.
- Partner with experts like BGC group and make use of our EOR solutions to ensure compliance and get access to a larger talent pool.
Conclusion
By now you know how important it is to understand the quota for hiring foreign workers in Singapore, no matter your goal.
Knowing the sector-specific quotas and key factors like the DRC and the FCF, and staying on top of upcoming policy changes not only ensures compliance but also helps you build a diverse workforce.
At BGC Group, we specialise in providing EOR services in the APAC region. Our flexible hiring solutions and innovative workforce services make recruitment a breeze. If you’re looking to hire permanent employees or contract staff, get in touch with our experts today!
