MOM measures to support business transformation

25 March 2025

On 7 March 2025, the Ministry for Manpower (“MOM”) issued a press release on MOM’s key priorities for 2025, as outlined at this year’s Committee of Supply (“COS”) debate. MOM outlined key measures to support business transformation and empower workers to build their career health, while fostering fair, inclusive, and safe workplaces. MOM will continue to work closely with its tripartite partners, namely the National Trades Union Congress (“NTUC”) and the Singapore National Employers Federation (“SNEF”), to develop pro-worker and pro-business initiatives that help individuals and businesses seize opportunities for the future.

Details of some of the initiatives are set out below.

New Enterprise Workforce Transformation Package

The Government will set aside over S$400 million for the new Enterprise Workforce Transformation Package which will provide greater support for companies to embark on workforce transformation. It comprises three key measures:

  • Existing Government workforce transformation schemes under SkillsFuture Singapore and Workforce Singapore will be brought together under the SkillsFuture Workforce Development Grant (“WDG”) to simplify the application process. Companies will be able to access workforce development support through a single application channel via the Business Grants Portal. The WDG will be rolled out in phases in 2026.
  • Workforce Singapore (WSG) will increase funding support of up to 70% for job redesign activities under the WDG. In addition, the scope of support will be expanded beyond consultancy services, incorporating training for line managers and HR teams in job redesign and change management, as well as identifying workforce solutions and technology tools to drive sustainable transformation.
  • Eligible businesses will receive a fresh S$10,000 in credits under the redesigned SkillsFuture Enterprise Credit (SFEC), which can be used to offset out-of-pocket costs for eligible workforce transformation programmes.

Tripartite Workgroup on Human Capital Capability Development to be launched 

Businesses must build strong human capital capabilities in order to carry out workforce transformation to support their objectives. MOM, NTUC, and SNEF have formed the Tripartite Workgroup on Human Capital Capability Development to level up human capital capabilities across the economy to maximise workforce potential and support business growth. The workgroup convened its first meeting in February 2025 and is expected to run for a year.

Foreign workforce policies

S Pass changes

MOM announced in COS 2022 that the S Pass qualifying salary and levy would be raised progressively over three steps, from 2022 to 2025. The first and second steps of the S Pass qualifying salary and levy increase were implemented on 1 September 2022 and 2023 respectively. MOM will proceed with the third step.

As part of the third step, the S Pass minimum qualifying salary will be increased from S$3,150 to S$3,300. The qualifying salary will continue to increase progressively with age, up to S$4,800 for candidates in their mid-40s. The Financial Services (“FS”) sector will continue to have a higher S Pass qualifying salary, given its higher wage norms. The S Pass minimum qualifying salary for the FS sector will be raised from S$3,650 to S$3,800. The qualifying salary will increase progressively to S$5,650 for candidates in their mid-40s.

The new S Pass qualifying salary will apply to new applications from 1 September 2025, and to renewal applications for passes expiring from 1 September 2026.

In addition, the S Pass Tier 1 levy will be increased from S$550 and harmonised with the Tier 2 levy at S$650 from 1 September 2025.

Work Permit changes

For Work Permits, the following changes will be made to provide employers with greater flexibility to hire and retain higher quality Work Permit holders from more diverse sources:

  • Lift maximum period of employment and raise maximum employment age: Currently, Work Permit holders are subject to a maximum period of employment (“POE”) of 14 to 26 years and maximum employment age of 60 years old. Workers must also be below 50 (non-Malaysian) or 58 (Malaysian) years old when applying for a new Work Permit. To enable employers to retain experienced workers, MOM will lift the maximum POE and peg the maximum employment age for existing Work Permit holders to the local retirement age, i.e. 63 years old. MOM will also streamline the age limit for new Work Permit applications, pegging it to two years below the local retirement age, i.e. 61 years old. These changes will be implemented from 1 July 2025.
  • Expand Non-Traditional Sources: The list of Non-Traditional Sources (“NTS”) will be expanded to include Bhutan, Cambodia, and Laos from 1 June 2025.
  • Include more occupations on NTS Occupation List: MOM will include (i) cooks, (ii) heavy vehicle drivers, and (iii) manufacturing operator roles on the NTS Occupation List from 1 September 2025.

Senior employment 

Senior Employment Credit

The Senior Employment Credit (“SEC”) was launched in 2021 and provides up to 7% in wage offsets to employers who hire Singaporean workers aged 60 and above, earning less than S$4,000. MOM will extend the SEC to end-2026, with no change in funding levels. The highest tier of wage support will be adjusted to apply to those aged 69 and above, up from 68 and above currently.

Tripartite Workgroup on Senior Employment to be established

MOM, NTUC, and SNEF will set up a Tripartite Workgroup on Senior Employment in 2025. The workgroup will develop policy recommendations in two key areas: empowering our senior workers to be productive and employable, and promoting age-friendly jobs and workplaces.

Reference materials

The following materials are available on the MOM website www.mom.gov.sg: