Singapore’s labour market depends significantly on foreign manpower, especially in sectors currently facing labour shortages like construction, manufacturing, and domestic work. However, hiring foreign talent is not just about filling a vacancy, it requires strict adherence to the law and a deep sense of ethical responsibility.
Failing to comply with the Ministry of Manpower’s (MOM) regulations can lead to hefty penalties, reputational damage, or unknowingly being complicit in forced labour.
Understand the Legal Framework
To begin with, employers and employment agencies must comply with the Employment of Foreign Manpower Act (EFMA), the Employment Agencies Act (EAA), and the Prevention of Human Trafficking Act (PHTA). These provide the legal foundation for employing foreign workers in Singapore responsibly.
Hiring a foreigner without a valid work pass or assigning them to duties outside of what the pass permits is an offence under the EFMA.
Employers must ensure workers hold the correct type of permit, such as the Work Permit, S Pass, or Employment Pass, and that it remains valid throughout employment.
Employers must also exercise due diligence and conduct checks to ensure compliance with MOM regulations, including verifying employee information and making sure that they are in possession of the right documents. When any discrepancies are found, MOM will not take ‘I didn’t know’ as an answer.
Keep up-to-date with any new changes to rules and regulations
With MOM’s rules constantly evolving, it’s essential for employers to keep up to avoid slipping out of compliance.
A critical upcoming update involves changes to S Pass qualifying salary thresholds, effective 1 September 2025 for new applications and 1 September 2026 for renewals. These changes aim to ensure that S Pass holders complement, rather than compete with, the local workforce purely on cost.
The new minimum monthly salary will increase from S$3,150 to S$3,300 for most sectors, rising progressively with age up to S$4,800.
In the financial services sector, the baseline will increase from S$3,650 to S$3,800, with the upper age-adjusted limit reaching S$5,650.
These revised benchmarks are aligned with the top one-third of local Associate Professionals and Technicians (APTs), reinforcing the requirement for S Pass holders to bring commensurate skills and value to the organisation.
Learn more about additional changes to Work Permit rules in Singapore here.
Partner Only With Licensed Employment Agencies
When engaging an employment agency (EA), ensure it is licensed by MOM. You can verify an agency’s status and demerit points through the Employment Agencies Directory. Licensed agencies must comply with ethical standards, placement fee caps, and documentation requirements.
Importantly, remember that even if the agency makes a mistake, employers will still be held legally responsible!
Create a Safe, Ethical Workplace
MOM regularly inspects employers and responds to complaints filed by workers, whistleblowers, or NGOs. Penalties for non-compliance range from fines and license revocations to imprisonment.
Beyond compliance, treating workers ethically fosters loyalty, reduces turnover, and contributes to a more sustainable workforce. Hiring foreign talent in Singapore isn’t just a paperwork exercise—it’s a legal and moral responsibility. By using licensed agencies and following clear contract terms, employers can hire confidently and ethically.
Here at Verti Human Capital, we stay attuned to the shifting dynamics of the HR landscape, helping you stay compliant with Singapore’s manpower regulations while empowering your business to grow. Whether you’re a jobseeker ready to take the next step in your career or a company seeking the right talent, we’re here to connect both sides with expert recruitment solutions.
Reach out to us at contactus@verti.sg or call +65 6909 5691 and we would be delighted to answer any questions you may have and help determine which of our services best fit your needs.
