Singapore Construction: Migrant Worker Hiring Rules & Guidelines

The construction industry plays a vital role in Singapore's economy, and it relies heavily on foreign labor to meet its demands. To ensure that the employment of migrant workers is managed effectively, the Ministry of Manpower (MOM) has established specific regulations governing the issuance of Work Permits. Here’s an in-depth look at the key requirements that employers must adhere to.

1. Eligibility Criteria for Migrant Workers

To hire migrant workers legally in the construction sector, employers must meet various eligibility criteria related to the source country of the workers, their age, and their employment duration.

• Source Countries: The eligibility to employ migrant workers is restricted to specific countries. This segmentation helps ensure that workers come from regions where the labor standards and skill levels align with Singapore’s construction needs. Employers can hire from:
  • Traditional Sources:
    • Malaysia: A longstanding partner due to geographical and cultural proximity, allowing for better integration of workers.
    • People's Republic of China (PRC): A significant contributor to the migrant workforce in the construction sector.
  • Non-Traditional Sources (NTS):
    • Countries such as India, Sri Lanka, Thailand, Bangladesh, Myanmar, the Philippines, and others are recognized as eligible sources. The inclusion of these nations reflects Singapore’s commitment to a diversified workforce.
  • North Asian Sources (NAS):
    • Workers from regions like Hong Kong, Macau, South Korea, and Taiwan are also eligible, bringing various technical skills and experience.
• Age Restrictions: Age limits are imposed to ensure that workers are sufficiently mature and capable of handling demanding physical labor. The following age criteria apply:
  • All prospective workers must be at least 18 years old to apply for a Work Permit.
  • Malaysian workers must be younger than 58 years at the time of application, while workers from other countries must be under 50 years. This differentiation considers the varying retirement ages and workforce participation rates in different countries.
• Employment Duration: The duration that workers can remain employed under a Work Permit varies by their qualifications and source of origin. For instance:
  • Workers from Non-Traditional Sources and PRC have a maximum employment period of 14 years for basic-skilled workers and up to 26 years for higher-skilled workers.
  • Malaysian workers, however, can work indefinitely in Singapore, reflecting the reliable and established relationship between the countries.

2. Quota and Levy System

The quota system regulates the number of foreign workers each employer can hire based on the local workforce present. This system aims to ensure a healthy balance between local and foreign labor.

• Dependency Ratio Ceiling: Under this system, employers are allowed to employ five Work Permit holders for every local employee who meets the Local Qualifying Salary (LQS). This promotes the hiring of local talent while still accommodating the need for foreign labor.
• Levy Rates: From January 2024, a differentiated levy system will be implemented, which offers lower rates for higher-skilled workers. For example:
  • The monthly levy for Higher-skilled NTS workers is set at $500, while Basic-skilled workers face a rate of $900.
  • Employers hiring workers from Malaysia or NAS will have lower levies ranging from $300 to $700 depending on skill levels.

This levy structure not only influences hiring practices but also serves as a financial incentive for companies to invest in higher-skilled workers. Furthermore, companies with contracts awarded before February 18, 2022, can utilize awarded man-year entitlement (MYE) quotas to hire non-traditional source workers at lower levy rates until project completion or until December 31, 2024.

3. Safety and Training Requirements

Safety is paramount in the construction sector, given the high-risk environment. Therefore, MOM has instituted specific training programs that migrant workers must complete before obtaining their Work Permits.

• Settling-in Programme (SIP):
  • This program is mandatory for all non-Malaysian workers entering the construction sector. It aims to provide essential information about working and living in Singapore, thereby equipping workers with the necessary skills to adapt.
• Safety Courses:
  • The Construction Safety Orientation Course (CSOC) is compulsory. Workers must register for this course and complete it within two weeks of arrival in Singapore. A passing grade must be achieved within three months; otherwise, their Work Permits may be revoked. This requirement emphasizes the importance of workplace safety and the expectation that workers maintain awareness about safety protocols.
• Ongoing Safety Training:
  • Workers are required to periodically refresh their safety training. For those who have worked in the sector for six years or less, re-certification is needed every two years. Those with over six years of experience must refresh their training every four years. This continuous education helps keep safety practices current, reducing workplace accidents.

4. Application Process

The process of applying for Work Permits involves several critical steps, ensuring that employers follow a structured approach that minimizes discrepancies and fulfills legal requirements.

• Step-by-step Application:
  • Initially, employers must apply for a Work Permit and obtain an in-principle approval (IPA) for non-Malaysian workers.
  • Following this, employers need to purchase a security bond and medical insurance for their workers.
  • For those companies which were awarded contracts before February 18, 2022, prior approvals are still needed to hire NTS workers, marking the importance of keeping track of contract timelines.

5. Additional Obligations

Employers have a range of additional responsibilities to maintain compliance and promote ethical business practices in the hiring of migrant workers.

• Interviews and Documentation:
  • Some companies may be required to undergo interviews to provide insight into their business operations. This can include submitting documentation regarding the nature of their projects and staffing levels. The intent is to ensure that companies adhere to labor regulations and provide workers with the rights and protections afforded to them.
• Monitoring and Compliance:
  • Employers must maintain accurate records and monitor compliance with the required percentages of higher-skilled workers. At least 10% of employed workers must be categorized as higher-skilled (R1) before any new basic-skilled (R2) permits can be issued. Any excess basic-skilled workers may have their Work Permits revoked.

Conclusion

Navigating the Work Permit requirements in Singapore's construction sector requires careful attention to detail and adherence to regulations aimed at promoting safety, compliance, and the fair treatment of workers. Understanding the eligibility criteria, quota and levy systems, training prerequisites, application processes, and ongoing responsibilities is crucial for employers to successfully manage their labor force. By adhering to these guidelines, construction companies can foster an effective and harmonious working environment that supports both local and foreign workers while contributing to Singapore's economic growth. For further details, employers are encouraged to closely follow updates from the Ministry of Manpower's official resources.