Hiring foreign manpower is common in Singapore, particularly in industries such as construction, manufacturing, marine, process, logistics, food and beverage, hospitality, engineering and professional services.

However, the actual cost of employing a foreign worker is considerably more than the employee’s basic salary.

An employer may need to account for expenses such as:

• Monthly salary
• Foreign worker levy
• Work pass application fees
• Medical insurance
• Security bond
• Recruitment fees
• Medical examinations
• Accommodation
• Transportation
• Skills Development Levy
• Training and onboarding
• Airfare and repatriation costs
• Other employee benefits

The amount ultimately depends primarily on whether the employee holds a Work Permit, S Pass or Employment Pass.

For businesses planning their manpower budget, understanding these differences is important because two foreign employees receiving similar salaries can have very different total employment costs.

This guide explains how much it may cost to hire a foreign worker in Singapore and the major expenses employers should budget for.

Figures in this article are based on rules applicable in October 2026. Work pass regulations and levy rates can change, so employers should check the latest Ministry of Manpower requirements before hiring.

Quick Overview: How Much Does a Foreign Worker Cost?

There is no single fixed figure.

As a broad illustration, the employer’s monthly cost may look something like this:

Worker Category	Main Monthly Costs
Work Permit	Salary + $250–$900+ levy depending on sector/skill + accommodation/insurance/other expenses
S Pass	Salary of at least $3,300 for younger applicants in most sectors + $650 levy + insurance
Employment Pass	Salary starting from $5,600 for younger applicants in most sectors + benefits/insurance if offered

These figures should not be interpreted as guaranteed total employment costs.

Actual costs depend on the employee’s age, occupation, nationality, industry, accommodation arrangement, salary, qualifications and work pass.

1. Salary

The largest component of foreign manpower cost is usually salary.

However, salary requirements vary substantially between work passes.

Work Permit Salary

Unlike S Pass and Employment Pass applications, Work Permit rules generally do not operate through a universal minimum qualifying salary across all Work Permit occupations.

Actual salaries depend on factors including:

• Industry
• Occupation
• Experience
• Nationality
• Skills
• Market demand
• Overtime
• Employer
• Employment contract

A construction worker, machine operator and experienced technician could therefore have very different salaries despite all holding Work Permits.

Employers should budget not only for basic monthly salary but potentially overtime pay, allowances and other contractual payments.

2. Work Permit Levy

One of the most important costs when hiring Work Permit holders is the foreign worker levy.

The levy is a monthly payment employers make to the Singapore Government for eligible foreign workers.

The amount varies according to factors such as:

• Business sector
• Percentage of foreign workers within the company
• Worker skill level
• Worker category

For example, in the services sector, current Work Permit levies range from $300 a month for higher-skilled workers in the lowest tier to $800 a month for basic-skilled workers in the highest tier.

For manufacturing companies, current monthly levy rates range from $250 for higher-skilled workers in Tier 1 to $650 for basic-skilled workers in Tier 3.

Construction levy structures differ again. For example, levy rates can vary according to worker source and skill classification.

This demonstrates why employers should not assume that a Work Permit worker simply costs “salary plus a few hundred dollars”.

The worker’s levy classification can materially affect the company’s monthly manpower cost.

Example of Work Permit Cost

Suppose a company employs a foreign worker at:

Salary: $1,800 per month

Assume the applicable foreign worker levy is:

$600 per month

The immediate salary and levy cost would already be:

$2,400 per month

But the employer could additionally incur:

• Accommodation
• Insurance
• Medical examinations
• Recruitment charges
• Transport
• Airfare
• Training
• Work pass fees

The real monthly cost could consequently be considerably higher than the employee’s $1,800 salary.

3. S Pass Salary

The S Pass is generally intended for foreign associate professionals and technicians.

As of October 2026, the minimum qualifying salary for a younger S Pass candidate outside financial services begins at $3,300 per month and rises progressively with age.

For candidates aged 45 and above, the current qualifying salary reaches $4,800 outside financial services.

Financial services candidates are subject to higher thresholds.

Importantly, these thresholds will increase.

For new S Pass applications from 1 January 2027, the minimum qualifying salary outside financial services will start at $3,600, increasing progressively with age.

Employers planning their 2027 manpower budget should therefore take the higher requirements into account.

4. S Pass Levy

In addition to salary, employers must pay the S Pass levy.

Since 1 September 2025, the S Pass levy has been harmonised at:

$650 per month per S Pass holder

across sectors and levy tiers.

Therefore, if an employee receives $3,500 monthly, the employer’s immediate monthly salary-plus-levy cost is already:

$3,500 salary + $650 levy = $4,150

before insurance, SDL, recruitment costs and employee benefits.

This is an important consideration when comparing an S Pass employee with a local employee.

Example of S Pass Cost

Consider an S Pass employee earning:

Monthly salary: $3,500

Add:

S Pass levy: $650

The direct recurring amount becomes:

$4,150

If an employer then pays for items such as:

• Medical insurance
• Employee benefits
• Recruitment costs
• Training
• Bonuses
• Transport allowances

the effective cost may become significantly higher.

5. Employment Pass Salary

Employment Pass holders typically represent the highest-cost foreign manpower category because the EP is intended for foreign professionals, managers and executives.

As of October 2026, the qualifying salary for EP applicants outside financial services begins at $5,600 per month.

However, this figure increases progressively with age and reaches $10,700 for candidates aged 45 and above under the current framework.

Financial services candidates face higher salary requirements, beginning at $6,200 and rising to $11,800 for candidates aged 45 and above.

Employment Pass candidates generally must also meet the COMPASS framework unless an exemption applies.

Employers should therefore avoid interpreting $5,600 as a universal EP salary.

An experienced candidate aged 35, for example, may need a substantially higher qualifying salary.

Employment Pass Salary Changes in 2027

From 1 January 2027, minimum EP qualifying salaries for new applications will increase.

For sectors other than financial services, the starting qualifying salary will rise from:

$5,600 to $6,000

For financial services, it will rise from:

$6,200 to $6,600.

Age-adjusted requirements will also increase.

Companies recruiting foreign professionals for 2027 should therefore budget according to the new salary framework rather than today’s threshold.

Is There a Foreign Worker Levy for Employment Pass Holders?

No standard monthly foreign worker levy equivalent to the Work Permit or S Pass levy applies to Employment Pass holders.

This can make the cost structure simpler.

For example, an employer could hire an EP professional receiving $7,000 a month without paying an additional $650 monthly S Pass levy.

Nevertheless, the salary requirement itself is considerably higher.

6. Work Pass Application Fees

Employers must also budget for government application and issuance fees.

Work Permit

MOM currently charges $35 per Work Permit application.

There are also administrative requirements when bringing the worker into Singapore and issuing the permit.

S Pass

The current S Pass application fee is:

$105 per application

If approved, the issuance fee is:

$100 per pass.

Therefore, the basic MOM application and issuance charges come to $205 for an approved S Pass, excluding other expenses.

Employment Pass

The current EP application fee is:

$105

The issuance fee is:

$225

An additional $30 Multiple Journey Visa fee may apply where relevant.

These government charges are relatively small compared with salary and recruitment expenses, but employers should still include them in their hiring budgets.

7. Medical Insurance

Employers hiring Work Permit and S Pass holders must purchase medical insurance meeting MOM requirements.

The minimum medical insurance coverage is currently:

At least $60,000 per year

for inpatient care and day surgery for each Work Permit or S Pass holder.

The insurance cost cannot simply be passed on to the employee.

Actual premiums vary according to:

• Age
• Insurance provider
• Coverage
• Worker profile
• Industry
• Additional benefits

Employers should therefore obtain insurance quotations when calculating manpower costs.

For Employment Pass holders, MOM does not currently require employers to purchase medical insurance, although many companies provide health coverage as part of their employment benefits.

8. Security Bond for Work Permit Holders

For each non-Malaysian Work Permit holder, employers generally need to arrange a:

$5,000 security bond

before the worker arrives in Singapore.

This should not be confused with an automatic $5,000 cash expense.

The security bond is generally provided through a bank or insurer as a guarantee to the Government.

The employer cannot require the worker to pay for the security bond.

The employer will usually incur the cost of arranging the relevant guarantee or insurance product rather than necessarily placing $5,000 in cash with MOM.

Nevertheless, the potential liability is important.

9. Medical Examination

Newly arriving Work Permit holders generally need to undergo the required medical examination before their Work Permit is issued.

MOM states that the worker must typically be sent for the examination within two weeks of arrival.

Employers should therefore budget for:

• Medical examination fees
• Clinic charges
• Transportation to appointments
• Administrative time

Depending on the sector and worker category, additional healthcare requirements may also apply.

10. Primary Care Plan

Certain Work Permit holders are subject to Primary Care Plan requirements.

For example, this may apply to workers residing in specified dormitories or employed in construction, marine shipyard and process sectors.

MOM specifically requires employers to purchase the relevant Primary Care Plan where applicable before completing certain Work Permit issuance requirements.

This becomes another recurring manpower cost for affected employers.

11. Accommodation

Accommodation can be one of the biggest additional expenses associated with Work Permit manpower.

Depending on the worker and industry, employers may need to arrange suitable accommodation such as:

• Purpose-built dormitories
• Factory-converted dormitories
• Approved housing
• Other permissible accommodation

The cost varies substantially according to location, accommodation standard and market conditions.

For example, if accommodation costs several hundred dollars per worker each month, a company employing 100 workers could incur tens of thousands of dollars in monthly housing expenses.

Accommodation should therefore be included when calculating the true cost per worker.

12. Transportation

Some foreign-worker-dependent industries also incur significant transportation expenses.

Examples include:

• Construction companies transporting workers to project sites
• Marine companies moving employees between accommodation and shipyards
• Manufacturing companies operating employee transport
• Companies hiring buses or vans for worker transport

These costs may include:

• Vehicle leasing
• Fuel
• Drivers
• Bus contractors
• ERP charges
• Parking
• Maintenance

When spread across each worker, transport can materially increase employment costs.

13. Recruitment Agency Fees

Many employers recruit overseas employees through recruitment or employment agencies.

Agency costs can vary widely according to:

• Country of recruitment
• Occupation
• Salary
• Worker availability
• Work pass category
• Recruitment complexity
• Candidate sourcing requirements

A professional or technical candidate may require a very different recruitment process from a general Work Permit worker.

Employers should request a clear breakdown covering:

• Candidate sourcing
• Work pass application
• Documentation
• Overseas recruitment
• Medical checks
• Travel coordination
• Onboarding

before comparing recruitment packages.

14. Airfare and Repatriation

Foreign manpower may also involve travel expenses.

An employer could incur the cost of:

• Initial flight to Singapore
• Airport transfers
• Return airfare
• Repatriation when employment ends
• Emergency travel

These costs may not occur monthly, but they should still be spread across the worker’s expected period of employment when preparing a manpower budget.

15. Skills Development Levy

Another easily overlooked expense is the Skills Development Levy, or SDL.

SDL applies to employees working in Singapore, including foreign employees.

The current rate is:

0.25% of monthly total wages

subject to:

• Minimum: $2 per employee per month
• Maximum: $11.25 per employee per month

The maximum applies once wages exceed $4,500.

Although this is relatively small compared with salary and foreign worker levy, companies employing large numbers of workers should include it in their payroll calculations.

16. Do Employers Pay CPF for Foreign Workers?

Generally, CPF contributions are not payable for foreign employees who are neither Singapore Citizens nor Singapore Permanent Residents.

CPF Board states that CPF contributions are only payable for Singapore Citizens and Singapore Permanent Residents.

This means employers generally do not incur the employer CPF contribution that would apply when employing an eligible Singapore Citizen or Permanent Resident.

However, this does not necessarily mean the foreign employee is cheaper.

Foreign worker levy, insurance, accommodation and other costs can replace or exceed the CPF savings.

17. Foreign Worker Quota Can Affect Cost

Another important consideration is quota.

Singapore does not allow companies to hire unlimited numbers of Work Permit and S Pass employees.

The permitted number depends partly on the employer’s sector and local workforce.

For example, the services sector currently has a 35% Dependency Ratio Ceiling for Work Permit holders.

The S Pass quota is also restricted.

Furthermore, local employees must satisfy the applicable Local Qualifying Salary conditions before they can count fully towards foreign manpower quota calculations.

The current LQS is $1,800 per month.

Therefore, manpower planning should consider quota before a company begins overseas recruitment.

Example: Calculating the Real Cost of a Work Permit Worker

Suppose a company hires a worker at:

Salary: $2,000

Foreign worker levy: $600

Accommodation: $500

Insurance and healthcare allocation: $80

Transport allocation: $150

Recruitment and onboarding cost spread monthly: $150

SDL: $5

The estimated effective monthly cost becomes:

$3,485

This is only an example.

Actual expenses can be lower or significantly higher.

The important lesson is that a worker earning $2,000 does not necessarily cost the employer $2,000.

Example: Calculating an S Pass Employee

Assume an S Pass employee receives:

Salary: $4,000

S Pass levy: $650

Medical insurance allocation: $80

Benefits and recruitment allocation: $200

SDL: $10

Approximate total:

$4,940 per month

Again, the actual figure depends on the employer.

Example: Employment Pass Employee

Suppose an EP professional earns:

Salary: $7,500

Employer-provided insurance and benefits: $400

Recruitment allocation: $300

SDL: $11.25

Approximate monthly employment cost:

$8,211.25

There is no corresponding monthly S Pass or Work Permit foreign worker levy, but the salary and benefits are substantially higher.

Which Foreign Worker Is Cheapest to Hire?

It is misleading simply to compare salary.

Employers should compare the total cost of employment.

A Work Permit worker may have a lower salary, but employers could pay for:

• Levy
• Accommodation
• Transport
• Insurance
• Medical care
• Recruitment
• Security bond arrangements

An S Pass employee has a higher salary and a $650 monthly levy.

An Employment Pass employee carries no equivalent monthly foreign worker levy but has significantly higher salary requirements.

Therefore, the appropriate work pass should be determined primarily by the employee’s role, qualifications, salary and eligibility—not simply by trying to obtain the cheapest pass.

How Businesses Should Budget for Foreign Manpower

Before hiring foreign employees, companies should calculate:

Fixed monthly expenses

These may include:

• Salary
• Levy
• Housing
• Transport
• Insurance
• Allowances
• SDL

One-time hiring expenses

These may include:

• Recruitment agency charges
• Work pass application
• Work pass issuance
• Medical examination
• Flights
• Onboarding
• Training

Contingency expenses

Companies should also prepare for unexpected costs such as:

• Medical treatment
• Employee replacement
• Repatriation
• Recruitment failure
• Early resignation
• Additional accommodation costs
• Salary adjustments

A proper manpower budget should therefore calculate the employee’s annual total employment cost, rather than focusing only on monthly salary.

Conclusion

So, how much does it cost to hire a foreign worker in Singapore?

The answer depends primarily on the employee’s work pass.

For Work Permit holders, employers need to consider salary plus a foreign worker levy that can range from a few hundred dollars to considerably more depending on sector, worker skill classification and quota tier. Accommodation, insurance, healthcare, transport and recruitment can substantially increase the total cost.

For S Pass holders, employers currently pay a $650 monthly levy on top of the employee’s qualifying salary, which begins at $3,300 for younger candidates outside financial services as of October 2026.

For Employment Pass holders, there is no comparable monthly foreign worker levy, but the qualifying salary currently starts at $5,600 outside financial services and increases considerably with the candidate’s age. The threshold will rise to $6,000 for new applications from 1 January 2027.

Employers should consequently avoid asking only:

“What salary do I need to pay?”

A better question is:

“What is the complete annual cost of hiring and maintaining this foreign employee in Singapore?”

Salary, levy, recruitment, insurance, accommodation, transportation, work pass fees, healthcare and compliance expenses should all be considered before making the hiring decision.

Proper manpower planning allows Singapore businesses to determine whether hiring locally or recruiting foreign manpower provides the best combination of skills, availability, productivity and cost for the organisation.