Employer hiring foreign workers in Singapore with MOM-licensed manpower agency

How to Hire Foreign Workers in Singapore: The Complete 2026 Employer’s Guide

Hiring a foreign worker in Singapore takes five key steps: check your quota and levy eligibility, select the right work pass (Work Permit, S Pass or E Pass), find suitable candidates, apply via MOM’s online portal and onboard with mandatory WICA insurance. In most cases, employers get the entire process done within the standard MOM processing timeframe with a MOM-licensed agency like 114 Solutions – without the compliance headaches. 

Who Can Hire Foreign Workers in Singapore?

Any company registered in Singapore that has a valid UEN (Unique Entity Number) may employ foreign workers, provided they meet the quota and levy requirements stipulated by MOM. Foreign manpower is mostly employed in the construction, marine, process and manufacturing sectors. But service industries and F&B businesses also regularly engage foreigners under the various work pass categories.

To qualify, your company must:

  • Be listed and actively traded in Singapore
  • Meet the minimum local workforce ratio (Dependency Ratio Ceiling)
  • No outstanding MOM violations or unpaid levies
  • If you are a foreign worker agency Have a valid MOM licence number 

Small businesses with less than 10 employees can still hire foreign workers but are subject to tighter DRC (Dependency Ratio Ceiling) ratios imposed by MOM for their industry sector. 

What Are the Steps to Hire a Foreign Worker?

Hiring a foreign worker in Singapore is a 5 step process that every employer must complete correctly to remain MOM compliant.

Step 1 — Check Your Quota and Levy 

Before you source for any candidate, log into MOM’s Work Permit Online (WPOL) portal to find out the number of foreign workers your company’s current local headcount can support. In addition a levy is levied on each foreign worker, with different rates by sector and worker tier.

Step 2 — Choose the Right Work Pass 

Choose the applicable pass type based on the worker’s job role, salary and qualification. The 3 types are Work Permit (WP), S Pass and Employment Pass (E Pass) – each with different criteria, explained in detail below.

Step 3 — Source and Shortlist Candidates 

Engage a MOM-licensed foreign worker agency to tap on a vetted pool of skilled workers from approved source countries. A licensed agency conducts the screening, background checks, qualification verification, and interviews for you.

Step 4 — Apply Through MOM’s Online Portal 

Application for work pass using MOM’s WPOL system. Prepare supporting documents for submission such as In-Principle Approval (IPA) letter, employment contract and medical insurance. 

Step 5 — Onboard and Insure Your Worker 

After the work pass is approved, purchase the mandatory WICA (Work Injury Compensation Act) insurance before the worker starts work.Register the worker’s local address and complete MOM’s Settling-In Programme (SIP), if required for Work Permit holders from selected source countries.

5-step process to hire foreign workers in Singapore under MOM regulations 2026

What Documents Are Required? 

Correct documentation is the key to getting a work pass approved without delays. MOM’s number one reason for returning applications for resubmission is missing or incorrect documents. 

Documents required from the employer:

  • Company Unique Entity Number (UEN) and ACRA business profile
  • Latest CPF contribution records on local workforce headcount
  • Signed employment contract (salary, job scope, contract length)
  • Security bond (SGD 5,000 for each Work Permit holder from Non-Traditional Source countries) 

Documents required from the worker:

  • Valid passport with minimum 6 months validity
  • Educational certificates and trade qualifications (Application for S Pass)
  • MOM-approved clinic medical examination report
  • Passport size photographs as per MOM specifications 

For Work Permit holders from Myanmar, India and Bangladesh, the employer also has to submit the bio-data form of the worker and ensure that the candidate has passed MOM’s biometric registration. Applications will only be processed after the documents are submitted digitally via MOM’s Work Permit Online (WPOL) portal.

Which Work Pass Does My Worker Need?

In Singapore, there are three major types of work passes. One of the most common and costly mistakes that employers make is they choose the wrong work pass for their foreign employee.

Work Permit (WP) 

Work Permits are for semi-skilled foreign workers in construction, marine, process, manufacturing and F&B sectors. MOM-approved source countries like Myanmar, India, Bangladesh, Sri Lanka, Thailand and China need to be sourced for workers. There is no minimum salary requirement but workers must meet sector-specific criteria and pass a medical examination.

S Pass 

The S Pass is a work visa for foreign workers in the mid-skilled category and requires a minimum monthly salary of SGD 3,150 (as of 2025). Candidates must have a diploma or degree and related work experience. Most sectors also have S Pass sub-quotas, which cap the number of S Pass holders at 10% of the total workforce. 

Employment Pass (E Pass) 

Employment Pass Foreign professionals, managers and executives earning at least SGD 5,600 a month (or SGD 3,900 for those in the financial services sector) are eligible for an Employment Pass. E Pass holders are not subject to foreign worker levy and their headcount is not counted against your WP or S Pass quota.

Work Pass Minimum Salary Quota Applies? Levy Applies?
Work Permit None (sector rates) Yes Yes
S Pass SGD 3,150/month Yes (10% sub-quota) Yes
Employment Pass SGD 5,600/month No No

How Much Does It Cost to Hire a Foreign Worker?

The foreign worker levy, agency fees, insurance and onboarding costs make up the total cost of hiring a foreign worker in Singapore. Put these numbers on the table up front and avoid surprises in the budget.

Foreign Worker Levy 

It is a monthly charge levied by the government and paid by employer. If you hire construction workers on Work Permits, you will have to pay a levy from SGD 300 to SGD 950 per month based on the worker’s skill tier and your company’s DRC ratio. The higher the rate of levy the more you use the DRC.

Agency Fees 

The manpower agency usually charges a placement or recruitment fee to the employer . Trusted MOM licensed agencies like 114 Solutions have transparent pricing policy with no hidden charges. MOM rules also prohibit employers from charging the worker for any placement costs.

Insurance Costs

WICA insurance is mandatory and must be purchased before the worker’s first day. The amount of the premium will depend on the industry and the coverage you need. Employers in higher-risk industries, such as construction, typically pay higher premiums.

Other Costs to Budget For

  • Medical examination (pre-employment and periodic)
  • Settling-in Programme (SIP) fee for qualifying workers
  • Accommodation (employer responsible for providing accommodation)
  • Return airfare (must at end of contract) 
Singapore employer reviewing foreign worker levy and hiring cost breakdown 2026

What Are the Quota and Levy Rules?

Singapore’s Dependency Ratio Ceiling (DRC) limits the proportion of foreign workers a company can employ against its local staff. The DRC is industry specific, and is decided by MOM.

The DRC construction sector permits up to 1 foreign worker for every 1 local worker (ratio 1:1) at the base level, with Man-Year Entitlement (MYE) for project-specific employment. The manufacturing sector has a DRC of 60%, which means foreign workers cannot exceed 60% of the total workforce. Services sector has a lower 35% DRC.

Your company automatically pays higher levy rates when it exceeds the basic tier DRC thresholds. That’s why managing your local-to-foreign workforce ratio is a key part of MOM compliance — and why working with an experienced manpower agency helps you optimise headcount before you make any new hires. 

Key levy tiers to know:

  • Basic Tier Levy – Foreign worker is in basic DRC ratio
  • Higher Tier Levy – If you exceed the basic quota threshold
  • Man-Year Entitlement (MYE) – Project-based quotas for construction industry 

Which Countries Can I Hire From?

MOM has a list of approved source countries for Work Permit holders, and the allowed countries vary by industry sector. Countries not approved under Work Permit rules cannot be hired from..

Construction, Marine, and Process Sectors: 

Source countries are India, Bangladesh, Myanmar, Sri Lanka, Thailand, Philippines and China. Malaysia workers can also be hired but under separate pass regulations.

Domestic Sector: 

Only a smaller approved list of foreign domestic workers can come in, including Indonesia, Philippines, Myanmar, India and Sri Lanka, among others.

Manufacturing and Services: 

These sectors enjoy broader sourcing flexibility and may recruit from all Non-Traditional Source (NTS) countries approved by MOM.

114 Solutions has a large talent pool in Myanmar, India and Bangladesh, three of the biggest source countries for Singapore’s construction and industrial workforce, enabling employers to access pre-screened, MOM-ready candidates quickly. 

Skilled foreign construction workers from Myanmar India Bangladesh hired in Singapore

How Long Does the Process Take?

The processing time for work passes in Singapore depends on the type of pass, but employers using a MOM-licensed agency usually get their approvals faster and more smoothly because the required documents are prepared correctly.

Work Permit: 

Most WP applications are processed in 1 to 3 weeks after the entire document has been submitted through WPOL. Employers with a clean compliance record will see faster approvals.

S Pass: 

S Pass applications are usually processed within 3 weeks. Qualification verification cases may take longer time.

Employment Pass:

E Pass online applications are processed in about 3 weeks. Applications submitted by hand may take longer to process.

In most cases, the biggest source of delay is not the speed of MOM’s processing – it is incomplete or incorrect documentation submitted by the employer or the agency. A seasoned MOM licensed agency will check all your documents before submitting, so the chances of rejection or re-submission delay is less. 

Timeline Summary:

  • Pre-application preparation: 1–2 weeks (quota check, candidate sourcing, document collection)
  • MOM application processing : 1-3 weeks (WP/S Pass/E Pass)
  • Post approval onboarding – 1 week (insurance, SIP, accommodation arrangement)
  • Average timeline: 3-6 weeks from start to first day of work 

What Are Employer’s Responsibilities? 

Employers have ongoing legal responsibilities throughout the foreign worker’s stay in Singapore, not just work pass approval.

Key employer responsibilities include:

  • Levy payment – Pay foreign worker levy monthly on time to MOM. Penalties apply for late payments and it may affect your eligibility for future hiring.
  • WICA insurance renewal – Always check the worker is covered under Work Injury Compensation Act insurance during employment.
  • Accommodation — Provide safe, clean and MOM-compliant accommodation. Construction sector employers told to register addresses of worker accommodation with MOM
  • Pay salaries on time and by way of a proper bank transfer or pay slip system. MOM can audit salary records anytime.
  • Work pass validity period Manage work pass expiry dates and start renewal process 6 weeks before expiry to avoid lapse in legal employment status.

Failure to meet these responsibilities may lead to penalties by MOM, suspension of hiring privileges or cancellation of existing work passes.Post-placement support is also provided by agencies such as 114 Solutions to ensure that employers stay compliant for the duration of employment with a MOM license. 

Can I Renew a Work Pass? 

Yes, Work Permits and S Passes are renewable – provided the employer and worker still meet MOM’s eligibility criteria at the point of renewal.

Work Permits are normally issued for 2 years and can be renewed for additional periods of 2 years depending on the age of the worker, skill tier and the employer’s compliance record. Workers over a certain age may face shorter renewal periods or additional medical requirements. S Passes are subject to a similar renewal process and require the employer to confirm that the employee continues to meet the minimum salary threshold of SGD 3,150 per month. 

Steps to renew a Work Permit:

  • Log into MOM’s WPOL portal at least 6 weeks before the pass expires
  • Verify current eligibility and updated medical fitness of worker
  • Submission of renewal application with updated employment contract and insurance papers .
  • Re-arrange worker’s re-entry medical (if applicable) after in-principle approval from MOM 

Employers should be aware that MOM may periodically review the DRC ratios and levy rates. 2 years ago, a renewal might be straightforward but if MOM has changed its foreign manpower policies since the original application, there may be new conditions.

Do I Need a Manpower Agency?

You do not have to go through a manpower agency in Singapore to hire foreign workers – but for the majority of employers, especially those hiring construction or industrial workers from abroad, a MOM-licensed agency can offer significant advantages that are worth the agency fee.

Why employers choose a licensed agency:

  • Faster sourcing – Agencies such as 114 Solutions have a ready pool of pre-screened, medically fit candidates, slashing the sourcing time from months to days.
  • MOM compliance expertise – A licensed agency will ensure that your application is complete, accurate and MOM-compliant at the first submission, reducing the risk of rejection.
  • Full-service support — A full-service agency handles everything from candidate interviews and documentation through onboarding, training, and after-placement support.
  • Transparent Pricing – Good agencies will have no hidden fees, clear terms and full regulatory compliance.
  • Risk mitigation — If a worker is not suitable or leaves early, agencies can help with replacement sourcing as per agreed terms. 

114 Solutions is a MOM-licensed foreign worker agency (EA License: MOM-licensed) located at 21 Woodlands Close, #08-44 Primz Bizhub, Singapore 737854. We are specialised in Work Permit placement for construction, marine and process industries and S Pass & local staffing for manufacturing & services employers across Singapore. 

MOM-licensed manpower agency consultant helping Singapore employer hire foreign workers

What If a Worker Leaves or Abandons? 

All employers should be ready for worker abandonment or early termination and doing it wrong can lead to penalties from the MOM or the security bond being forfeited.

If a foreign worker leaves the job or is absent, the employer must inform MOM of the absence within 7 days from the worker’s last working day. If not reported promptly, the employer may be held liable for any offences committed by the worker while the worker is still technically under a valid work pass under the employer’s sponsorship. 

Immediate steps to take:

  • Report the worker’s absence in MOM through the WPOL portal
  • Cancel work pass, once worker whereabouts is confirmed or after MOM required notice period
  • Inform MOM if worker has left Singapore on own accord or been sent back
  • If the worker is missing and unreachable, file a police report.

The security bond (SGD 5,000) paid at the time of application may be forfeited if the worker overstay or breach the conditions of the pass. There’s also an additional layer of security when engaging a MOM-licensed agency. Reputable agencies like 114 Solutions help employers find replacements and guide them through the reporting process, thus reducing the likelihood of non-compliance and financial losses. 

Key Takeaways:

The process of bringing a foreign worker into Singapore is a structured, compliance-driven process that takes planning – but is entirely manageable when you follow MOM’s framework correctly. 

  • Confirm your DRC quota before posting any job or reaching out to candidates.
  • Select the appropriate work pass – Work Permit, S Pass or E Pass – according to the worker’s job, salary and qualifications.
  • Construction and marine Work Permit holders to source only from MOM approved countries.
  • Build in the costs of levy, insurance, accommodation and agency fees from the start.
  • count on 3-6 weeks total, from first application to first day on the job.
  • Work with a MOM-licensed agency to lower your compliance risk, accelerate your sourcing and gain end-to-end support throughout the entire process. 

MOM regulations are updated regularly – the figures and thresholds in this guide are based on MOM policy as at 2026. Always check the latest levy rates, DRC ratios and minimum salary requirements at mom.gov.sg before you submit any work pass application. 

Ready to Hire Foreign Workers in Singapore?

114 Solutions is MOM licensed foreign worker agency in Singapore offering Work Permit placement, S Pass recruitment and Workplace Safety professional outsourcing. We have transparent pricing, end to end documentation support and strong talent network across Myanmar, India and Bangladesh.

Get a hiring quote today: Visit our Employers page or call us at +65 8112 8544.