Foreign Worker Quota in Singapore: Understanding the Rules and Regulations
Foreign workers in Singapore play a vital role in complementing the local workforce, contributing to economic growth, and enhancing the diversity of skills available. As of June 2024, over 1.5 million foreign workers were employed in Singapore, accounting for approximately 40% of the workforce.
However, there are strict regulations governing the entry of foreign workers, including different types of work passes and quota limitations. Businesses looking to hire foreign workers can apply for several work passes, the most common being the Work Permit, S Pass, and Employment Pass (EP).
What is the MOM Foreign Worker Quota?
The foreign worker quota is the limit imposed on the number of foreign employees a company can employ. It is based on the company’s industry and size. The Singapore government introduced this quota to manage the influx of foreign workers into the country, balancing local and foreign talent, and ensure its citizens have sufficient access to employment opportunities.
How is the Foreign Worker Quota Determined?
The limit depends on the company sector – for example, a construction business enjoys a higher quota of foreign workers as compared to a business in the service industry. The quota is reviewed periodically to make sure that it is in line with Singapore’s economic needs.
Who Does the Foreign Worker Quota Apply to?
There are no quota restrictions or foreign worker levies for Employment Pass (EP) holders in Singapore. However, businesses hiring S-Pass and work permit holders – the latter only for companies in the construction, manufacturing, marine shipyard, process, or services sectors – are subject to these quota restrictions.
Foreign Worker Levy (FWL)
Aside from the foreign worker quota, companies also need to pay a levy to hire foreign workers. This is an added cost to companies when they engage foreign employees and was introduced to encourage firms to employ local workers while reducing reliance on foreign workers.
How is the Foreign Worker Quota Calculated?
MOM uses information from a company’s central provident fund (CPF) account to calculate the number of local employees hired by the company and uses that to determine the foreign worker quota. The foreign worker quota is calculated based on the average number of local employees in a company over the last 3 months.
Conclusion
In conclusion, the foreign worker quota is an important regulation in Singapore that ensures a balanced workforce by limiting the proportion of foreign workers relative to local workers, promoting local employment while allowing companies to access foreign talent where necessary.
FAQs about Foreign Worker Quota in Singapore
Q: What is the foreign worker quota in Singapore?
A: The limit, or quota, depends on the industry that the company is in. Contact us to find out more!
Q: What is the purpose of the foreign worker quota?
A: It regulates the number of foreign workers that businesses in certain sectors can employ. It is designed to ensure a balanced workforce by limiting the proportion of foreign workers relative to local workers, promoting local employment while allowing companies to access foreign talent where necessary.
Q: How do I calculate the foreign worker quota?
A: You can find the calculator on MOM’s website. Otherwise, our experts are happy to help!
