Construction Sector

Construction Sector: Foreign Worker Work Permit Requirements

Employ foreign workers for the construction sector, you will have to meet specific requirements for worker’s source country or region, quota, and levy.

These requirements are additional and specific to the construction sector. You should refer to the more general conditions and requirements for Work Permit as well.

Foreign worker eligibility

You can only hire foreign workers who satisfy the conditions for source countries or regions, age when applying and maximum period of employment.

Source countries or regions

You can employ foreign workers from these countries or regions:

Malaysia Worker
People’s Republic of China (PRC Worker) China Workers
Non-traditional sources (NTS):
- India Worker
- Sri Lanka Workers
- Thailand Worker
- Bangladesh Workers
- Myanmar Worker
- Philippines Workers
North Asian sources (NAS):
- Hong Kong Worker (HKSAR passport)
- Macau Workers
- South Korea Worker
- Taiwan Worker

Age when applying

The minimum age for all non-domestic foreign workers is 18 years old.

When applying for a Work Permit:

Malaysians worker must be below 58 years old.
Non-Malaysians worker must be below 50 years old.

Maximum period of employment

For the construction sector, the maximum number of years a foreign worker can work in Singapore on a Work Permit is as follows:

Source country / region	Type of worker	Maximum period of employment
NTS, PRC	Basic-Skilled (R2)i.e. those holding SEC, SEC(K).	14 years
NTS, PRC	Higher-Skilled (R1)i.e. those who have been upgraded through various means.	26 years
NAS, Malaysia	All sectors	No maximum period of employment.

Note: All workers can only work up to 60 years of age.

Quota and levy

The number of Work Permit holders that you can hire is limited by quota (or dependency ratio ceiling) and subject to a levy.

Under the construction sector quota, you can employ 7 Work Permit holders for every local employee who earns the Local Qualifying Salary.

In addition to quota, NTS and PRC workers are subject to man-year entitlement (MYE) requirements. They may qualify for a waiver if they have at least 3 years of construction experience in Singapore. MYE does not apply to Malaysian and NAS workers.

The levy rate is as follows:

Tier	Monthly	Daily
Malaysians and NAS – Higher-Skilled	$300	$9.87
Malaysians and NAS – Basic-Skilled	$700	$23.02
NTS and PRC – Higher-Skilled, on MYE	$300	$9.87
NTS and PRC – Basic-Skilled, on MYE	$700	$23.02
NTS and PRC – Higher-Skilled, MYE waiver	$600	$19.73
NTS and PRC – Basic-Skilled, MYE waiver	$950	$31.24

Calculate your quota

Note:

The daily levy rate only applies to Work Permit holders who did not work for a full calendar month. The daily levy rate is calculated as follows: (Monthly levy rate X 12) / 365 = rounding up to the nearest cent.
If your Work Permit renewal involves changing between prior approval to MYE waiver, or vice versa, the change in levy rate will start on the 1st of the month following the expiry date of the permit.

You can:

Refer to the Local Qualifying Salary (LQS) to determine the number of local employees who can be counted towards your Work Permit and S Pass quota entitlement.
Refer to the guidelines on how to calculate your quota and levy bill.
Learn more about S Pass quota and levy rates.

Minimum percentage of Higher-Skilled (R1) workers

At least 10% of your construction Work Permit holders must be Higher-Skilled (R1) before you can hire any new Basic-Skilled (R2) construction workers or renew the Work Permits of existing R2 construction workers.

Work Permits of any excess R2 construction workers will also be revoked.

Levy bond

You will have to pay a levy bond for each Work Permit holder if:

Your workers’ Work Permits have been revoked because of unpaid levies.
You have been late in levy payments for at least 3 times in a 12-month period.
Your sole proprietorship has changed owner.
You are starting a new business entity to employ foreign workers. The business entities include:
- Sole-proprietorship.
- Partnership.
- Incorporated business that has a paid-up capital of less than $50,000.

How much to pay

The amount of levy bond you need to pay depends on the worker’s skill level.

If your worker is	You need to pay
Higher-Skilled or Basic-Skilled	$600
Unskilled	$2,000

Settling-in Programme

Before their Work Permits can be issued, first time non-Malaysian Work Permit holders in the construction sector must attend the Settling-In Programme (SIP).

Documents required

Your foreign worker must bring the following documents to the SIP training centre:

IPA letter (full set)
Foreign worker’s passport

Required safety courses

Foreign workers in the construction industry must take one of the following safety courses before their Work Permits can be issued.

Construction Safety Orientation Course (CSOC)
Apply Workplace Safety and Health in Construction Sites

As soon as you get in-principle approval, register the workers for the course. They should take the course within 2 weeks of arriving in Singapore. The Work Permit cannot be issued until they take the course.

As an employer, you are responsible for your workers passing the test. If they fail the course, they should retake it as soon as possible. They need to pass the course within 3 months of arrival or their Work Permit could be revoked.

Course requirements during employment

Foreign workers in the construction sector need to retake and pass the safety course based on these timelines:

If they have worked in the construction sector for	They must pass the safety course
6 years or less	Once every 2 years
More than 6 years	Once every 4 years

When renewing a Work Permit, the worker’s safety course certificate must be valid for more than 1 month on the day of renewal. Otherwise the Work Permit will not be renewed.

Interview for selected companies

Some companies may be asked to go for an interview and submit documents about their business operations. This is to help us better understand their business activities.

If your company is selected, you will receive an email on the interview details. It is compulsory for your ACRA-registered director to attend the interview.

Steps for a work permit application

When applying for a Work Permit, you need to submit your application in the following order:

For Malaysian or NAS

Get in-principle approval for each Work Permit.
Buy security bond.

For NTS or PRC

With MYE

Apply for man-year entitlement (MYE). This can only be done by the main contractor.
Ensure the company has Building Construction Authority (BCA) or Singapore List of Trade Subcontractors (SLOT) registration certification.
Apply for prior approval (PA).
Get in-principle approval for each Work Permit.
Buy medical insurance and security bond.

With MYE-waiver

For workers with at least 3 years of construction experience.

Make sure the company has Building Construction Authority (BCA) or Singapore List of Trade Subcontractors (SLOT) registration certification.
Get in-principle approval for each Work Permit.
Buy medical insurance and security bond.

Settling-in Programme for Work Permit holders
- Register and send your first-time non-Malaysian foreign worker for the SIP.
Man-year entitlement
- How to calculate, apply for and make changes to the MYE for the construction or process sector.
Prior approval for construction sector
- How to apply for prior approval and cancel or change an application.
Basic-skilled workers for construction sector
- Find out which construction workers need a Skills Evaluation Certificate and how to get one.
Higher-Skilled workers for construction sector
- Upgrade your foreign workers to get lower levy and extended maximum period of employment.

Security bond requirements for foreign worker

You must buy a security bond for each non-Malaysian foreign worker you employ. You can buy the bond at any bank or insurance company.

What is a security bond
A security bond is a binding pledge to pay the government if either you or your worker breaks the law or Work Permit conditions. The bond is in the form of a banker’s or insurer’s guarantee.
You must buy a $5,000 security bond for each non-Malaysian Work Permit holder you employ. You cannot ask your worker to pay for the bond.

When to buy the bond
Before your worker arrives in Singapore, you must:
1. Buy a security bond.
2. Get your insurer to send us the security bond details. It takes up to 3 working days.
3. Ensure that the security bond takes effect when your worker arrives.
4. Log in to WP Online to check the security bond status and print the security bond acknowledgement letter. Send your worker a copy of the letter.

If you do not complete the steps above, your workers will be refused entry into Singapore and you will have to pay to send them home immediately.

When will the bond be discharged
You will be discharged from the security bond liability for a worker only if you meet all of these conditions:
– You have cancelled the Work Permit.
– The worker has returned home.
– You did not breach any of the conditions of the security bond.
If all conditions are met, the security bond will usually be discharged one week after the worker left Singapore.
You’ll be notified by post when the security bond is discharged.

When the bond will be forfeited
Your security bond may be forfeited if any of these happens:
– You or your worker violates any of the conditions of the Work Permit or security bond.
– You don’t pay your worker’s salary on time.
– You fail to send your worker home when the Work Permit is expired, revoked or cancelled.
– Your worker goes missing.

You will not be liable for your workers’ violations (such as those relating to pregnancy) if you can prove that you have:
– Informed them of the Work Permit conditions they must comply with.
– Reported a violation when you first become aware of it.

Medical insurance requirements for foreign worker

You need to buy a medical insurance plan for each foreign worker you employ. You also need to submit the insurance details online before the Work Permit can be issued.

What it should cover
As an employer, you must buy and maintain medical insurance coverage of at least $15,000 per year for each Work Permit holder.
The insurance should cover inpatient care and day surgery, including hospital bills for conditions that may not be work related.
You can have a co-pay arrangement with the Work Permit holder only if all of the following are met:
– The medical treatment is not for work-related inpatient expenses.
– The co-pay amount is reasonable and does not exceed 10% of the worker’s monthly salary.
– The duration co-payment does not exceed 6 months.
– The co-payment option is explicitly in the employment contract or collective agreement and has the worker’s full consent.

You cannot pass on the cost of purchasing the medical insurance to Work Permit holders.

Submit insurance details
You need to submit medical insurance details online before you request to issue or renew a Work Permit, and when the details change.
To update the information, log in to WP Online.
You need to keep the following information up to date:
– Name of Insurer
– Insurance policy number
– Insurance policy commencement date
– Insurance policy expiry date

Medical examination for foreign worker

You need to send your workers for a medical examination before their Work Permit is issued.

Clinics will likely resume medical examinations for pass issuance in Phase 2 (Safe Transition period). Workers will be given more time to complete their medical examinations. You can proceed to get Work Permits issued without your workers’ medical results.

Please do not make an appointment for card registration until your workers have completed their medical examinations. We will email you when to send them for their medical examinations closer to Phase 2.

In the meantime, we will automatically extend the expiry date of their notification letters to give them more time for the card registration. They can remain in Singapore with their notification letters. Workers who telecommute or work in permitted services approved by MTI may use the letters as proof of the validity of their passes.

Requirements for the check-up
You must send your workers for a medical examination by a Singapore-registered doctor within 2 weeks of their arrival in Singapore. Bring along the medical examination form when the worker goes for the tests.

The worker must pass the examination, and you need the completed medical form to get the Work Permit issued. Those who fail the examination will have to be sent home.

The medical examination screens the worker for 4 types of infectious diseases (tuberculosis, HIV, syphilis and malaria) and checks if they are fit to work.

You can send your workers for more tests if you have specific concerns about their health.

Paying the salary of foreign worker

You must pay your foreign worker the monthly salary that you declare to us. You need to pay the salary within 7 days of the end of the month.

As part of the Work Permit application, you must declare the fixed monthly salary that the Work Permit holder will be receiving.

When to pay
You must pay the salary that your worker is due each month, no later than 7 days after the last day of that month.
The salary period must not exceed 1 month.

How to pay
You can pay the salary either by cash or by crediting the wages directly into the worker’s bank account.
If you both agree that you should keep the bank account book, you need to allow the worker to check the book to make sure that payments are made regularly.
You must keep a record of the monthly salary and be able to produce this record if requested.

Salary adjustments
You should consider raising your worker’s salary periodically as a reward for good performance and loyalty in service.
Apart from monthly wages, you may also consider offering your worker a contract gratuity as an incentive.
You should negotiate the amount of gratuity with the worker. You can pay it at the end of an agreed period of employment, which should be before the Work Permit expires.

CPF is not required
You do not need to make Central Provident Fund (CPF) contributions for your foreign workers.

In-principle approval (IPA) for foreign worker

You will get an in-principle approval if your Work Permit application is approved.

What is in-principle approval
An in-principle approval (IPA) is one of the requirements for getting foreign workers to Singapore.
You will get an IPA letter when your Work Permit application is approved.
The validity of the IPA will be mentioned in the letter. This is the window you have to bring the foreign worker to Singapore.
To check the validity of an IPA, use Work Permit or IPA Validity Check via WP Online (Non-login).

Extend an IPA
Processing time: Immediate
You can extend the IPA for up to 1 month if you need more time. You are allowed to extend the IPA only once.
To extend an IPA, log in to WP Online to make the request at least 1 week before the IPA expires.
If approved, you can print the extended IPA online.