Hiring a foreign worker costs more than salary in Singapore. Employers should budget for five main cost items: the foreign worker levy (monthly); the application and issuance fees charged by MOM; a compulsory medical check-up; WICA insurance and an optional agency placement fee. The total cost of a Work Permit holder in construction for the first year (excluding salary) is typically between SGD 10,000 – SGD 14,000, depending on your levy tier, source country and whether you are using a licensed manpower agency.
What Does It Cost to Hire a Foreign Worker in Singapore?
Hiring a foreign worker in Singapore involves five distinct cost layers, and most employers who budget only for salary and levy end up surprised by the additional mandatory expenses. The full cost picture includes one-time upfront costs and ongoing monthly costs that continue throughout the employment period.
The five cost layers every employer must budget for:
- Monthly foreign worker levy (ongoing — paid to MOM every month)
- MOM application and work pass issuance fees (one-time per application)
- Mandatory medical examination (pre-employment and periodic)
- WICA insurance and medical insurance (annual — mandatory)
- Manpower agency placement fee (one-time — if using a licensed agency)
Beyond these five, employers in the construction and marine sectors must also budget for a security bond of SGD 5,000 per non-Malaysian Work Permit holder, and are legally responsible for providing accommodation and return airfare at end of contract. Understanding all of these costs upfront is the foundation of accurate workforce budgeting. If you haven’t started the hiring process yet, see our complete guide on how to hire foreign workers in Singapore for the full step-by-step process.
How Much Is the Monthly Levy?
The foreign worker levy is the largest and most consistent ongoing cost of employing a Work Permit or S Pass holder in Singapore. It is a mandatory monthly payment to MOM — not a salary deduction from the worker — and cannot be passed on to the employee in any form.
Since 1 September 2025, the S Pass levy is a flat SGD 650 per month across all sectors. The previous two-tier S Pass structure has been replaced with a single unified rate.
Work Permit Levy Rates — 2026:
| Sector | Higher-Skilled (R1) | Basic-Skilled (R2) |
| Construction (with MYE) | SGD 300/month | SGD 700/month |
| Construction (without MYE) | SGD 600/month | SGD 950/month |
| Marine Shipyard | SGD 300/month | SGD 500/month |
| Process | SGD 300/month | SGD 450/month |
| Manufacturing (Tier 1) | SGD 250/month | SGD 370/month |
| S Pass (all sectors) | SGD 650/month (flat) | — |
For a construction employer hiring 10 Basic-Skilled (R2) Work Permit holders from Bangladesh with MYE, the monthly levy bill alone is SGD 7,000 — or SGD 84,000 per year. This makes levy management one of the most important cost-control levers in foreign workforce planning. For the complete sector-by-sector levy breakdown, see our guide to Foreign Worker Levy in Singapore 2026.
What Are the MOM Application and Work Pass Fees?
MOM charges a fixed application fee and a separate issuance fee for every work pass — payable by the employer at each new application and at every renewal. Per MOM’s published fee schedule as at May 2026, the fees are: Employment Pass at SGD 105 application plus SGD 225 issuance (SGD 330 total); S Pass at SGD 60 application plus SGD 100 issuance (SGD 160 total); and Work Permit at SGD 35 application plus SGD 35 issuance (SGD 70 total).
MOM Work Pass Fees Summary:
| Pass Type | Application Fee | Issuance Fee | Total Per Pass |
| Work Permit | SGD 35 | SGD 35 | SGD 70 |
| S Pass | SGD 60 | SGD 100 | SGD 160 |
| Employment Pass | SGD 105 | SGD 225 | SGD 330 |
These fees are charged per worker per application and per renewal. For an employer hiring 20 Work Permit holders, the government fee component alone is SGD 1,400 upfront — and the same again at renewal every two years. While these fees are relatively modest compared to levy costs, they must be included in your total cost projection. Before scaling up your headcount, check your available hiring capacity in our guide to Foreign Worker Quota: DRC & MYE Explained.
How Much Is WICA Insurance?
WICA (Work Injury Compensation Act) insurance is mandatory for all Work Permit holders and most S Pass holders in Singapore. The employer must purchase this insurance before the worker’s first day — it cannot be delayed or deferred, and the cost cannot be passed on to the worker.
WICA insurance premiums typically range from SGD 250 to SGD 400 per year per worker, depending on the insurer and coverage options. Workers in higher-risk sectors such as construction and marine shipyard generally attract higher premiums than those in services or manufacturing.
In addition to WICA, employers must buy medical insurance covering at least SGD 60,000 per worker per year before the Work Permit can be issued or renewed. Group health policies for mid-tier foreign workers typically cost SGD 300 to SGD 600 per worker per year for minimum coverage.
Annual Insurance Costs Per Worker (Estimate):
| Insurance Type | Estimated Annual Cost |
| WICA (Work Injury) | SGD 250 – SGD 400 |
| Medical Insurance (min. SGD 60,000 coverage) | SGD 300 – SGD 600 |
| Total Annual Insurance | SGD 550 – SGD 1,000 |
Employers who hire from higher-risk source countries or place workers in hazardous worksites should budget toward the upper end of these ranges and review their policies annually to ensure continued MOM compliance.
What Does a Manpower Agency Charge?
Using a MOM-licensed manpower agency is not legally required, but most employers hiring foreign workers from overseas — particularly in construction, marine, and process sectors — choose to work with a licensed agency for sourcing, documentation, and compliance support.
Agency fees vary depending on the type of workers being recruited, the source country, and the scope of services provided. Reputable MOM-licensed agencies like 114 Solutions operate with fully transparent pricing — no hidden fees, no undisclosed charges, and no cost recovery from the worker (which is prohibited under MOM regulations).
What a full-service agency typically covers:
- Candidate sourcing and pre-screening from approved source countries
- Qualification verification and medical fitness check coordination
- Work pass application preparation and submission
- Documentation review to reduce MOM rejection risk
- Onboarding support including SIP registration and accommodation guidance
- After-placement support for the duration of employment
Under MOM regulations, employers are strictly prohibited from recovering any recruitment or placement fees from the foreign worker. All agency costs are the employer’s responsibility. Agencies that ask workers to pay fees are operating outside MOM guidelines — always verify your agency’s EA licence number before engaging their services.
What Is the Total First-Year Cost?
Combining all five cost layers gives employers an accurate picture of what it truly costs to hire a foreign worker in Singapore for the first year. The table below shows a worked example for a Basic-Skilled (R2) Work Permit holder in the construction sector, hired from Bangladesh with MYE.
First-Year Cost Worksheet — Construction Work Permit Holder (R2, with MYE):
| Cost Item | Frequency | Amount (SGD) |
| Foreign Worker Levy (SGD 700 × 12 months) | Monthly | 8,400 |
| MOM Application + Issuance Fee | One-time | 70 |
| Pre-Employment Medical Examination | One-time | 80 – 120 |
| WICA Insurance (annual) | Annual | 250 – 400 |
| Medical Insurance (annual) | Annual | 300 – 600 |
| Security Bond (non-Malaysian workers) | One-time (refundable) | 5,000 |
| Agency Placement Fee | One-time | varies |
| Settling-In Programme (SIP) fee | One-time | 75 |
| Total First-Year Cost (excl. salary & agency fee) | ~SGD 14,375 – SGD 14,665 |
Note: The security bond of SGD 5,000 is refundable at the end of the worker’s contract if no bond conditions are breached. It is a cash outlay that must be funded upfront but does not represent a permanent cost.
First-Year Cost for S Pass Holder (all sectors):
| Cost Item | Amount (SGD) |
| S Pass Levy (SGD 650 × 12 months) | 7,800 |
| MOM Application + Issuance Fee | 160 |
| Medical Insurance (annual) | 300 – 600 |
| WICA Insurance (annual) | 250 – 400 |
| Agency Placement Fee | varies |
| Total First-Year Cost (excl. salary & agency fee) | ~SGD 8,510 – SGD 8,960 |
These figures exclude worker salary, which will be the largest single cost item in most employment relationships. Always factor salary, accommodation (where provided), and return airfare into your total workforce cost model.
Key Takeaways:
Most employers underestimate the true cost of foreign worker hiring because they budget only for salary and levy. A complete cost model must include all five layers — and planning for them upfront prevents cash flow surprises mid-project.
- Monthly levy is the biggest ongoing cost — SGD 300 to SGD 950 per Work Permit holder, SGD 650 flat for S Pass holders
- MOM fees are modest but recurring — SGD 70 per Work Permit, SGD 160 per S Pass, payable at every new application and renewal
- Insurance is mandatory and non-negotiable — WICA plus medical insurance typically costs SGD 550 to SGD 1,000 per worker per year
- Security bond of SGD 5,000 is required for non-Malaysian Work Permit holders — refundable at end of contract if conditions are met
- Agency fees should be fully transparent — MOM-licensed agencies cannot pass any placement costs to the worker
- Total first-year cost (excl. salary) for a construction R2 WP holder is approximately SGD 14,000 to SGD 15,000 including a refundable security bond
For the most accurate cost projection for your specific sector, worker type, and source country, verify current levy rates and MOM fees at mom.gov.sg before finalising your workforce budget.
Get a Transparent Hiring Quote from 114 Solutions
114 Solutions is a MOM-licensed foreign worker agency in Singapore. We provide full-cost transparency from the first conversation — no hidden fees, no surprises, no cost recovery from workers. Our team helps employers in construction, marine, process, and manufacturing plan their foreign workforce budget accurately and hire compliantly.
Request a transparent quote today: Visit our Employers page or call +65 8112 8544. Learn more about our levy and quota management support for Singapore employers.
