The foreign worker quota in Singapore sets a limit on the number of foreign employees a company can hire, depending on its industry and size. Implemented by the government, this policy ensures that local employment remains a priority while managing the inflow of foreign workers.

Different sectors have varying quota limits. For example, the construction industry has a higher quota compared to the service industry, which is more restricted. This system is regularly reviewed and adjusted to align with Singapore’s economic needs.

Beyond just a headcount limit, the quota also includes levies and other regulatory measures designed to moderate foreign worker employment.

To maintain a balance between local and foreign employment, the government applies a foreign worker levy in addition to the quota. The levy serves as an economic tool to encourage companies to prioritize local hires while still allowing access to foreign labour when necessary.

The levy amount varies depending on the ratio of local employees to foreign workers in a company. Businesses must carefully manage their workforce composition to optimize costs while staying compliant with government regulations.

Despite these policies, Singapore continues to be a sought-after destination for foreign workers due to its political stability, excellent infrastructure, and high standard of living.

The food and beverage (F&B) sector is a significant contributor to Singapore’s economy, yet it faces a lower foreign worker quota and higher levy rates compared to other industries. Currently, F&B businesses can employ foreign workers up to 45% of their total workforce, but they must also pay a higher levy.

To support the industry, the government offers various grants and schemes, such as: 

• Productivity Solutions Grant (PSG): Helps F&B businesses implement technology to improve efficiency.
• Capability Development Grant (CDG): Supports businesses in areas such as marketing, branding, and human resource management.
• Singapore Tourism Board (STB) Initiatives: Promotes Singapore’s food culture through events like the Singapore Food Festival and Michelin Guide Singapore.

By leveraging these resources, F&B businesses can navigate workforce challenges while continuing to grow.

For self-employed individuals, hiring foreign labour is more restricted. They are typically allowed to employ only one foreign worker, making it essential to select employees with the right skills and experience.

While the foreign worker quota for self-employed individuals is set at a more flexible 20%, they must still pay a levy, which varies based on the business sector and number of employees.

Hiring foreign workers can be beneficial for self-employed individuals looking to expand their operations, but it’s crucial to factor in the costs and regulations involved.

The quota system is determined by the ratio of local employees (Singapore citizens and permanent residents) to foreign employees in a company. Each industry has specific quota limits that businesses must adhere to when hiring foreign workers.

How is the Foreign Worker Quota Calculated?

The Ministry of Manpower (MOM) regularly reviews and updates quota limits to ensure a balanced workforce. These calculations consider:

• The proportion of local vs. foreign employees.
• Industry-specific workforce requirements.
• Singapore’s evolving economic needs. 

To be eligible for employment in Singapore, foreign workers must meet specific criteria set by MOM, including:

Qualifying Criteria

• Minimum age requirement.
• Educational qualifications and work experience.
• Clean record with no criminal convictions.
• Sector-specific requirements that vary across industries.

Skill Levels

MOM classifies foreign workers into three categories based on their skills:

• Skilled Labour: Requires tertiary education or equivalent experience.
• Semi-Skilled Labour: Requires primary or secondary education.
• Unskilled Labour: Minimal education and work experience required.

Understanding these classifications helps businesses hire foreign workers efficiently while complying with regulations.

Singapore’s foreign worker quota plays a vital role in balancing local and foreign employment. Businesses must remain aware of quota limits, levies, and eligibility criteria to ensure compliance while optimizing their workforce. 

At Lett, we specialize in corporate services and can help businesses navigate Singapore’s foreign worker policies efficiently. Contact us today to learn how we can assist your company in staying compliant while maximizing your hiring potential!