• Insights

Foreign Worker Quota to be Reduced in Services Sector

February 21, 2019

insight-news-default

Country / Territory

  • SingaporeSingapore

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

The situation

The government has announced plans to reduce the quotas for S Pass and Work Permit holders in the services sector (which includes industries such as business management and consultancy services, engineering activities, information and communications activities, accommodation and accounting services, among others) in the next two years.

A closer look

To achieve this reduction, the Ministry of Manpower will reduce the Dependency Ratio Ceiling (DRC) (which sets out the maximum permitted ratio of foreign workers to the total workforce that a company is allowed to hire), and S Pass sub-DRC as follows:

  • Dependency Ratio Ceiling (DRC) reduction. The DRC will be reduced from 40 percent to 38 percent starting January 1, 2020, and further to 35 percent starting January 1, 2021. The DRC for all other sectors will remain unchanged.
  • S Pass Sub-DRC reduction. The DRC for the S Pass category will also be reduced from the current 15 percent to 13 percent starting January 1, 2020, and further to 10 percent on January 1, 2021.

 

Impact

  • Foreign worker limits for service sector companies. A lower DRC and S Pass sub-DRC will mean that companies in the services sector will be further limited in the number of foreign nationals under S Pass and Work Permits they can hire. Companies that exceed their S Pass quota due to the lower DRC will need to either hire more locals or reduce the number of their S Pass holders.
  • Monitoring of Employment Pass holders. Although Employment Pass (EP) holders are not subject to quota requirements, companies should also monitor borderline Employment Pass holders who may potentially be downgraded to an S Pass to ensure that they have sufficient S Pass quota to continue sponsoring these employees.

 

Background

Singapore imposes quotas that restrict the number of foreign workers an employer may hire under the S Pass and Work Permit categories. The S Pass quota has been progressively reduced since July 2012 when it was reduced from 25 percent to 20 percent (for all sectors) and then again in July 2013 from 20 percent to 15 percent (for the services sector only).

Quotas and ratios are effective tools used by governments worldwide in regulating the intake of foreign workers. Some recent examples of this are in Indonesia, Saudi Arabia, Switzerland and the United Kingdom.

Looking ahead

The quota reduction was announced by the Minister of Finance during the annual Budget speech and was intended as a calibrated response to slow down the number of S Pass and Work Permit holders in the service sector over the past three years. The move reflects a continuing government policy of ensuring that local workers have access to highly-skilled jobs. Such regulatory measures may have an adverse impact on companies with large skilled labour workforces.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • SingaporeSingapore

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Bloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers

Partner Bo Cooper discusses the practical considerations facing employers and foreign nationals amid recent changes to green card processing.

Learn more

Video

Sponsor Guide: Brazil Family Reunion Visa Essentials

In this video, Partner Diana Quintas discusses how Brazil’s family reunion visa supports long-term international assignments and outlines key eligibility, documentation and compliance considerations for employers and families relocating to Brazil.

Learn more

Blog post

Immigration and Employment in Chile: Legal Requirements for Foreign Workers

Attorney María José Clarke explores Chile’s intensified immigration enforcement framework under President José Antonio Kast, examining new employer compliance obligations, work authorization rules for foreign nationals and the legal and financial consequences of unauthorized employment.

Learn more

Media mentions

The PIE: New UKVI compliance metrics for universities take effect today

Senior Manager Jonathan Hill examines how the UK's new RAG rating system and stricter compliance metrics could shape universities' approaches to international student recruitment and sponsorship compliance.

Learn more

Blog post

EU Inc. Signals a Shift: Why Immigration Will Matter to Europe’s New Corporate Agenda 

Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.

Learn more

Video

Less Than Two Weeks: FIFA World Cup 2026 Countdown | #MobilityMinute

With less than two weeks until the first match of the 2026 FIFA World Cup, Senior Associate Jake Paul Minster outlines important visa and entry considerations for travelers planning to visit the US, Canada and Mexico.

Learn more

Media mentions

The National: Companionship Scheme Addresses Loneliness Among Elderly as UAE Population Ages

Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.

Learn more

Blog post

Business Immigration After the Midterms (Part 1): What to Expect No Matter What

Partner K. Edward Raleigh analyzes how post‑midterm US business immigration will shift toward heightened enforcement, worker‑protection scrutiny and cross‑agency oversight, urging employers to align hiring practices, sponsorship decisions and documentation with consistent, defensible workforce strategies.

Learn more

Media mentions

Business Insider: Trump’s Green Card Memo Dropped Before a Holiday Weekend. Immigration Lawyers Say Clients Panicked.

Counsel Brian Hunt said employers quickly sought clarity after a USCIS memo on green card adjustment of status raised questions about immigration timelines, work continuity and travel planning.

Learn more

Awards

Fragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia

Fragomen is named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia and receives National and Regional Tier 1 rankings in Immigration Law.

Learn more

Media mentions

USA Today: USCIS Green Card Announcement Spurs Confusion. What to Know

Partner Parisa Karaahmet discusses the broad application of a USCIS memo to adjustment of status applicants and notes that H- and L-visa holders may have a somewhat easier burden in demonstrating factors that support favorable discretion.

Learn more

Blog post

Commonwealth Games 2026 Travel Planning: UK ETA Rules for Teams and Fans

Senior Manager Alice Spaull and Associate Stephanie Fitton examine the evolving UK immigration and Electronic Travel Authorisation (ETA) requirements for athletes, their support teams and associated guests attending the Commonwealth Games 2026, highlighting key compliance risks and the importance of early travel planning.

Learn more

Media mentions

Bloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers

Partner Bo Cooper discusses the practical considerations facing employers and foreign nationals amid recent changes to green card processing.

Learn more

Video

Sponsor Guide: Brazil Family Reunion Visa Essentials

In this video, Partner Diana Quintas discusses how Brazil’s family reunion visa supports long-term international assignments and outlines key eligibility, documentation and compliance considerations for employers and families relocating to Brazil.

Learn more

Blog post

Immigration and Employment in Chile: Legal Requirements for Foreign Workers

Attorney María José Clarke explores Chile’s intensified immigration enforcement framework under President José Antonio Kast, examining new employer compliance obligations, work authorization rules for foreign nationals and the legal and financial consequences of unauthorized employment.

Learn more

Media mentions

The PIE: New UKVI compliance metrics for universities take effect today

Senior Manager Jonathan Hill examines how the UK's new RAG rating system and stricter compliance metrics could shape universities' approaches to international student recruitment and sponsorship compliance.

Learn more

Blog post

EU Inc. Signals a Shift: Why Immigration Will Matter to Europe’s New Corporate Agenda 

Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.

Learn more

Video

Less Than Two Weeks: FIFA World Cup 2026 Countdown | #MobilityMinute

With less than two weeks until the first match of the 2026 FIFA World Cup, Senior Associate Jake Paul Minster outlines important visa and entry considerations for travelers planning to visit the US, Canada and Mexico.

Learn more

Media mentions

The National: Companionship Scheme Addresses Loneliness Among Elderly as UAE Population Ages

Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.

Learn more

Blog post

Business Immigration After the Midterms (Part 1): What to Expect No Matter What

Partner K. Edward Raleigh analyzes how post‑midterm US business immigration will shift toward heightened enforcement, worker‑protection scrutiny and cross‑agency oversight, urging employers to align hiring practices, sponsorship decisions and documentation with consistent, defensible workforce strategies.

Learn more

Media mentions

Business Insider: Trump’s Green Card Memo Dropped Before a Holiday Weekend. Immigration Lawyers Say Clients Panicked.

Counsel Brian Hunt said employers quickly sought clarity after a USCIS memo on green card adjustment of status raised questions about immigration timelines, work continuity and travel planning.

Learn more

Awards

Fragomen named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia

Fragomen is named “Law Firm of the Year” for Immigration Law by Best Law Firms™ - Australia and receives National and Regional Tier 1 rankings in Immigration Law.

Learn more

Media mentions

USA Today: USCIS Green Card Announcement Spurs Confusion. What to Know

Partner Parisa Karaahmet discusses the broad application of a USCIS memo to adjustment of status applicants and notes that H- and L-visa holders may have a somewhat easier burden in demonstrating factors that support favorable discretion.

Learn more

Blog post

Commonwealth Games 2026 Travel Planning: UK ETA Rules for Teams and Fans

Senior Manager Alice Spaull and Associate Stephanie Fitton examine the evolving UK immigration and Electronic Travel Authorisation (ETA) requirements for athletes, their support teams and associated guests attending the Commonwealth Games 2026, highlighting key compliance risks and the importance of early travel planning.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
June 2, 2026 | Sierra LeoneSierra Leone: Nationwide Immigration Compliance Inspections Begin
June 3, 2026 | United StatesBloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers
June 2, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
June 2, 2026 | New ZealandNew Zealand: English Language Requirements Expanded for Certain Visa Applicants
June 2, 2026 | New ZealandNew Zealand: New Work Visa Options for Graduates Announced
June 2, 2026 | Sierra LeoneSierra Leone: Nationwide Immigration Compliance Inspections Begin
June 3, 2026 | United StatesBloomberg: Trump’s Green-Card Crackdown Sparks Outcry From Confused Lawyers
June 2, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
June 2, 2026 | New ZealandNew Zealand: English Language Requirements Expanded for Certain Visa Applicants
June 2, 2026 | New ZealandNew Zealand: New Work Visa Options for Graduates Announced
June 2, 2026 | Sierra LeoneSierra Leone: Nationwide Immigration Compliance Inspections Begin
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.