New Guidelines For Work Permits in Singapore: Workpermit holders will be allowed to work until 63

Very big huge changes are breaking barriers in Singapore’s work permit system. From June 1, businesses will no longer just be able to employ work-permit holders from different countries but will also include areas of expanded job functions. “This is meant to strengthen and make the workforce more skilled,” said Manpower Minister Tan See Leng when speaking on this initiative in Parliament.

Added Countries to the List of Hiring

Now, Companies in Singapore are allowed to hire workers from six additional countries in construction, marine shipyard, and process industries- Bangladesh, India, Myanmar, the Philippines, Sri Lanka, and Thailand- from June 1, 2011; they can also hire workers from Bhutan, Cambodia, and Laos.

On September 1, an even bigger bunch of jobs will be opened up to those workers from those countries. Some of the additions to the new roles include:

• Heavy vehicle drivers
• Manufacturing operators
• Cook (expanding beyond Indian restaurants)

But, again, no worker shall earn less than S$ 2,000 and cannot make up more than 8% of the company’s force from this source.

Nan More Limit on Employment for Work Permit!

To keep capable, trained workers employed in a company for as many years as he or she choose, Singapore shall remove maximum employment periods for all work permit holders from 1 July.

A worker can stay for a period ranging from 14 to 26 years, depending on the skills he possesses and the industry in which he is employed. This limit will be done away with completely.

The only clause applied now is the maximum age for employment in the work permit, however, the limit is now going to be raised from 60 to 63 years to adhere to the retirement age set in Singapore.

For new work permit applications, it will also increase the age limit to 61 years (previously 50 for non-Malaysians and 58 for Malaysians).

Why this change?

MOM believes that a longer retention period would yield dividends in the long run to businesses retaining skilled workers. Companies would, however, have to offset it with higher health insurance costs for older workers.