Construction Sector-Specific Rules for Work Permit - Singapore

Construction Sector-Specific Rules for Work Permit - Singapore | Bestar

Construction Sector-Specific Rules for Work Permit in Singapore

The Ministry of Manpower (MOM) in Singapore has specific regulations for employing foreign workers in the construction sector under the Work Permit scheme. These rules address the unique demands and safety considerations of the industry. Here's a detailed overview:

1. Eligibility of Migrant Workers:

• Source Countries/Regions: Employers can only hire construction Work Permit holders from specific approved countries and regions. These include:

  • Traditional Sources: Malaysia, People's Republic of China (PRC).

  • Non-Traditional Sources (NTS): India, Sri Lanka, Thailand, Bangladesh, Myanmar, Philippines.

  • North Asian Sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, Taiwan.

• Age Requirements:

  • Minimum age for all non-domestic migrant workers is 18 years old.

  • Malaysian workers: Must be below 58 years old at the time of application.

  • Non-Malaysian workers: Must be below 50 years old at the time of application.

  • Important Update (Effective July 1, 2025): All non-domestic migrant workers (regardless of nationality) must be below 61 years old when applying for a Work Permit and can work up to a maximum age of 63 years old.

• Maximum Period of Employment: The maximum duration a construction worker can work in Singapore on a Work Permit depends on their origin and skill level:    

  • NTS and PRC (Basic-Skilled - R2): 14 years (includes those holding SEC or SEC(K) qualifications).

  • NTS and PRC (Higher-Skilled - R1): 26 years (includes those upgraded through various means).

  • NAS and Malaysia: No maximum employment period, but workers can work up to the age of 60 (and potentially 63 from July 1, 2025).

2. Quota and Levy:

• Quota (Dependency Ratio Ceiling): As of January 1, 2024, under the construction sector quota, you can employ 5 Work Permit holders for every local employee who earns the Local Qualifying Salary (LQS). This has been reduced from a previous ratio of 7:1.   

• Levy Rates: Employers must pay a monthly levy for each Work Permit holder. The levy amount varies based on the worker's skill level (Basic-Skilled or Higher-Skilled) and their source country/region. As of January 1, 2024, typical monthly levy rates are:

  • NTS Higher-Skilled: $500

  • NTS Basic-Skilled: $900

  • Malaysia, NAS, PRC Higher-Skilled: $300

  • Malaysia, NAS, PRC Basic-Skilled: $700

  • Off-site Construction Higher-Skilled: $250

  • Off-site Construction Basic-Skilled: $370   

• Minimum Percentage of Higher-Skilled Workers: At least 10% of a construction company's Work Permit holders must be Higher-Skilled (R1) before they can hire new Basic-Skilled (R2) workers or renew existing R2 permits. Work Permits of any excess R2 workers may be revoked.   

3. Safety Training:

• Migrant workers in the construction industry must complete specific safety courses before their Work Permits can be issued. These include:    

  • Construction Safety Orientation Course (CSOC)

  • Apply Workplace Safety and Health in Construction Sites

• Workers must register for the course within 2 weeks of arrival in Singapore.

• They need to pass the course within 3 months of arrival, or their Work Permit may be revoked.

• Refresher Courses: Workers need to retake and pass the safety course periodically:

  • 6 years or less experience in the sector: Once every 2 years.

  • More than 6 years experience in the sector: Once every 4 years.

4. Other Requirements:

• Security Bond: Employers are generally required to buy a security bond for non-Malaysian Work Permit holders.

• Medical Insurance and Primary Care Plan: Employers must purchase and maintain medical insurance with a coverage of at least $15,000 per year for each worker. Additionally, they need to provide a Primary Care Plan (PCP) for outpatient primary care costs.

• Settling-in Programme (SIP): First-time non-Malaysian Work Permit holders in the construction sector must attend the SIP.

• Salary Payment: Employers must pay the fixed monthly salary declared in the Work Permit application no later than 7 days after the last day of the month. CPF contributions are not required for Work Permit holders.   

• Building and Construction Authority (BCA) Registration: Companies in the construction sector need to be registered with the BCA's Contractors Registration System (CRS) (excluding the Suppliers Registry) or the Singapore List of Trade Subcontractors (SLOTS) to apply for and renew Work Permits and S Passes for construction workers. Effective from June 1, 2025, all companies in the construction sector will need to be registered in the BCA's CRS to do so.

• Levy Bond: Employers may need to pay a levy bond under specific circumstances, such as revoked permits due to unpaid or late levy payments.

5. Work Permit Application Process:

The general steps include:

1. Apply for a Work Permit and get an in-principle approval (IPA).

2. (For non-Malaysian workers) Buy a security bond.

3. Buy medical insurance and a Primary Care Plan.

4. Register workers for the required safety course and the Settling-in Programme (if applicable).

5. Ensure the company has the necessary BCA/SLOTS registration.

It is crucial for employers in the construction sector to stay updated with the latest regulations and guidelines provided by the Ministry of Manpower and the Building and Construction Authority to ensure compliance.

How Bestar HR Consulting can Help

Construction Sector-Specific Rules for Work Permit - Singapore

Bestar HR Consulting can provide valuable assistance to companies in Singapore's construction sector navigating the complexities of Work Permit rules. Here's how we can help:

• Expert Guidance on Regulations: Bestar can provide in-depth knowledge and up-to-date information on the specific Work Permit rules for the construction sector, including eligibility criteria for workers from different source countries, quota calculations (Dependency Ratio Ceiling), and the tiered levy system. This ensures your company remains compliant with the latest MOM regulations.

• Work Permit Application and Renewal Assistance: We can streamline the entire application and renewal process, ensuring all necessary documents are accurately prepared and submitted on time. This includes handling the initial application for the In-Principle Approval (IPA), security bond arrangements (for non-Malaysian workers), and the renewal process, minimizing administrative burdens and potential delays.

• Quota and Levy Optimization Strategies: We can analyze your workforce composition and advise on strategies to optimize your quota usage and potentially reduce levy costs by ensuring you meet the minimum percentage of higher-skilled (R1) workers through skills upgrading programs.

• BCA Registration Guidance: Bestar can guide you through the Building and Construction Authority (BCA) registration process (CRS or SLOTS), which is essential for construction companies to apply for and renew Work Permits. We can ensure your company meets all the necessary criteria for registration.

• Medical Insurance and Primary Care Plan Management: We can help you understand the requirements for medical insurance and the Primary Care Plan for your Work Permit holders, assisting in the selection of appropriate plans and ensuring compliance with MOM's stipulations.

• Settling-in Programme (SIP) Arrangement: For first-time non-Malaysian Work Permit holders, Bestar can facilitate their participation in the mandatory Settling-in Programme (SIP).

• Staying Updated on Regulatory Changes: Bestar can keep you informed about any changes in MOM and BCA regulations related to foreign workers in the construction sector, ensuring your company remains proactive in its compliance efforts.

• Efficient HR Administration: By outsourcing Work Permit related tasks to Bestar, your HR department can focus on other strategic initiatives, improving overall efficiency.

In summary, Bestar HR Consulting acts as a knowledgeable partner, helping construction companies in Singapore navigate the complex landscape of Work Permit rules, ensuring compliance, optimizing costs, and streamlining administrative processes, ultimately contributing to a more efficient and legally sound workforce management.

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