Foreign Worker Quota in Singapore 2026: How Quotas and Levies Work

Quick Answer Singapore’s foreign worker quota is administered through the Dependency Ratio Ceiling (DRC), which caps the proportion of Work Permit and S Pass holders a company can employ relative to its total workforce. The applicable ceiling varies by sector. Employers also pay a monthly foreign worker levy for every Work Permit and S Pass holder on their payroll. Employment Pass holders are exempt from the DRC.

How Does the Foreign Worker Quota Work in Singapore?

The Ministry of Manpower uses two mechanisms to manage the number of foreign workers in Singapore: the Dependency Ratio Ceiling and the foreign worker levy.

Three factors determine how much foreign worker quota a company has:

• Dependency Ratio Ceiling: The DRC sets the maximum ratio of foreign workers to the total workforce that a company in a given sector can employ. Work Permit and S Pass holders are both counted within this ceiling. If the DRC for a sector is 35%, the combined total of Work Permit and S Pass holders cannot exceed 35% of the company’s total workforce.
• Sector Assignment: The sector your company is assigned to determines which DRC applies. The Ministry of Manpower (MOM) assigns your company to the most relevant sector based on a business activity declaration made through WP Online. If your company has never applied for a Work Permit or S Pass, you must declare your business activity before MOM can assign a sector and, with it, a quota.
• Quota Calculation: MOM calculates the foreign worker quota based on the average number of local employees in your company over the last three months. MOM draws this figure from your company’s CPF account, so timely, accurate CPF contributions and salary declarations directly affect your available quota.

Foreign Worker Quota Limits by Industry in 2026

The DRC differs by sector:

Sector	Dependency Ratio Ceiling (DRC)
Construction	83.3%
Process	83.3%
Marine Shipyard	75%
Manufacturing	60%
Services	35%

What Are the S Pass and PRC Worker Sub-Quotas?

Within the overall DRC, two further sub-quotas apply to specific categories of foreign workers:

• S Pass Sub-Quota: The number of S Pass holders your company can hire is limited to 10% of your total workforce in the services sector and 15% in the construction, manufacturing, marine shipyard and process sectors.
• PRC Work Permit Sub-Quota: The number of People’s Republic of China Work Permit holders is limited to 8% of the company’s total workforce in the services sector, and 25% in the manufacturing sector.

How are Local Employees Counted Towards Your Quota?

Not every local employee on your payroll contributes equally to your foreign worker quota entitlement. The Local Qualifying Salary (LQS) determines how many local employees are counted, and at what weight, when your quota is calculated.

From 1 July 2026, the LQS is S$1,800 per month for full-time employees. The counting rules are as follows:

• Full Count: A Singaporean or Permanent Resident employed under a contract of service, including a company director, who earns at least S$1,800 per month counts as 1 local employee.
• Half Count: A local employee who earns at least S$900 but below S$1,800 per month counts as 0.5 local employee.
• No Count: A local employee earning below S$900 per month does not contribute to quota entitlement.

For part-time local employees working fewer than 35 hours per week, the LQS requirement is at least S$10.50 per hour gross. A part-time local who meets the hourly rate but earns below S$900 monthly in gross wages will not be counted towards the quota.

Late or non-payment of CPF contributions and salary declarations can affect your quota calculation and may also cause your foreign workers to be allocated higher levy tiers.

How Does the Foreign Worker Levy Work?

The foreign worker levy is a monthly charge employers pay for Work Permit and S Pass holders. For a Work Permit holder, levy liability starts from the day the Temporary Work Permit or Work Permit is issued, whichever is earlier. For an S Pass holder, it starts from the day the S Pass is issued. Levy liability ends when the relevant pass is cancelled or expires.

Paying the levy does not exempt an employer from the quota requirements, and staying within the quota does not waive the levy. Both obligations run in parallel.

• S Pass Levy: Since 1 September 2025, the S Pass levy rate has been harmonised to S$650 per month across all sectors and levy tiers.
• Work Permit Levy: The monthly levy for Work Permit holders varies by sector and worker’s skill level. In sectors with tiered levy rates, it can also vary according to the proportion of Work Permit and S Pass holders in the company’s workforce. Higher-skilled workers generally attract lower levy rates.

MOM notes that levy rates are regularly reviewed and adjusted. Employers should verify current rates directly on the MOM website before budgeting for new hires, particularly where sector-specific tiered rates apply.

How Do EP, S Pass and Work Permit Holders Affect Your Quota?

These types of work passes in Singapore have different obligations for employers:

• Employment Pass: EP holders are not subject to the foreign worker quota or the foreign worker levy. EP holders do not count against the DRC, which means hiring an EP holder does not reduce the company’s available quota for Work Permit and S Pass holders. The same applies to holders of the Overseas Networks and Expertise Pass (ONE Pass). Like the EP, the ONE Pass carries no foreign worker levy or quota requirement and does not count against the DRC.
• S Pass: S Pass holders are subject to the overall sector DRC, the S Pass sub-quota, and the monthly levy of S$650. Each S Pass holder hired uses one slot in both the overall quota and the tighter S Pass sub-cap.
• Work Permit: Work Permit holders are subject to the sector DRC and any applicable sub-quotas, including the PRC Work Permit sub-quota in services and manufacturing. The monthly levy rate varies by sector and worker skill level.

Planning Your Foreign Worker Hiring Mix

Quota entitlement changes as local headcount shifts, levy rates are reviewed by MOM, and sector classifications determine which ceilings apply. Companies that plan their hiring mix before they reach the ceiling avoid the disruption of rejected applications and higher levy tiers.

As a trusted immigration agency in Singapore, Xignam supports employers through this process as part of a broader engagement that covers work pass applications, support for founders and executives relocating to Singapore, and company formation services for businesses establishing a local presence for the first time.

For companies in the planning stage, we can guide you on which sector MOM will assign your company to, how many local employees count toward your quota entitlement, which levy bill each hire will generate, and which pass type fits each role.

Speak with our team today to learn about the quota and levy requirements that apply to your company and how they fit into your broader workforce and immigration strategy.

Frequently Asked Questions About Foreign Worker Quotas

_{All information in this article reflects MOM’s published guidance as of October 2026. Quota limits, levy rates and LQS thresholds are subject to change. Xignam recommends a personalised consultation before making hiring or workforce planning decisions.}