• 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

Generic Insights

Fragomen news

2026年10月 米国移民法ダイジェストLearn more

Awards

Fragomen Recognized in 2027 Best Law Firms® Rankings in the United States

Fragomen has been recognized in the 2027 edition of Best Law Firms®, earning a National Tier 1 ranking in Immigration Law and 16 regional rankings across the United States.

Learn more

Media mentions

Global Underwater Hub: The Specialist Skills Needed to Deliver Future Offshore Projects

Director Kelly Hardman explores how early UK immigration planning and investment in domestic skills can help offshore businesses access the specialist expertise needed to deliver future projects.

Learn more

Media mentions

SHRM: Why ‘Hush Trips’ Can Pose Big Risks for Employers and Workers

Senior Counsel Jo Antoons explains the immigration, social security, insurance, employment law and tax risks that undisclosed international remote work can create for employers.

Learn more

Media mentions

Times of India: Immigration After the Midterms: A New Congress, but Who Holds the Power?

Senior Counsel Mitch Wexler discusses the potential impact of the US midterm elections on immigration policy and the areas where bipartisan support could shape future developments.

Learn more

Blog post

UK Earned Settlement: When Immigration Status Becomes an Incentive for Growth and Compliance

In a new blog, UK Government Affairs Strategy Director Shuyeb Muquit examines what the framework could mean for employers, including potential impacts on sponsorship costs, retention planning, employee communications and support for internationally mobile workers and their families.

Learn more

Blog post

What the 2026 Midterm Election Results Mean for U.S. Business Immigration and Employers

In a new blog, Partner K. Edward Raleigh examines what the election results could mean for employers and where businesses should focus now, from immigration compliance and workforce planning to state response procedures and preparation for increased scrutiny.

Learn more

Media mentions

The PIE: UK to Increase HPI Visa Cap and Expand Eligibility to 150 Universities

Manager Russell Hodges discusses how the HPI visa expansion could help UK employers attract global talent.

Learn more

Fragomen news

Fragomen Expands Asia Pacific Presence with New Vietnam Offices

Fragomen has opened new offices in Hanoi and Ho Chi Minh City, expanding its presence and immigration capabilities across Asia Pacific.

Learn more

Media mentions

Human Resources Director: Global Mobility Risk Can No Longer Be an HR Afterthought

Partner Jack Kim discusses how organizations can take a more strategic approach to global mobility through actionable intelligence, proactive workforce planning and preparation for geopolitical disruptions.

Learn more

Blog post

UK Budget 2026: What the Government’s Immigration Plans Mean for Employers

In a new blog, UK Government Affairs Strategy Director Shuyeb Muquit examines what this direction could mean for employers, including why access to international talent may increasingly be considered alongside investment, productivity, innovation, regional growth and long-term workforce development.

Learn more

Video

UAE – Demographic Diversity Requirements | #MobilityMinute

The UAE’s demographic diversity requirements are designed to encourage a more diverse workforce among companies operating in the mainland jurisdiction. In this Mobility Minute, Manager Devika Thamattat explains the requirements, potential consequences of noncompliance and steps employers can take to help maintain the required nationality balance.

Learn more
Generic Insights

Fragomen news

2026年10月 米国移民法ダイジェストLearn more

Awards

Fragomen Recognized in 2027 Best Law Firms® Rankings in the United States

Fragomen has been recognized in the 2027 edition of Best Law Firms®, earning a National Tier 1 ranking in Immigration Law and 16 regional rankings across the United States.

Learn more

Media mentions

Global Underwater Hub: The Specialist Skills Needed to Deliver Future Offshore Projects

Director Kelly Hardman explores how early UK immigration planning and investment in domestic skills can help offshore businesses access the specialist expertise needed to deliver future projects.

Learn more

Media mentions

SHRM: Why ‘Hush Trips’ Can Pose Big Risks for Employers and Workers

Senior Counsel Jo Antoons explains the immigration, social security, insurance, employment law and tax risks that undisclosed international remote work can create for employers.

Learn more

Media mentions

Times of India: Immigration After the Midterms: A New Congress, but Who Holds the Power?

Senior Counsel Mitch Wexler discusses the potential impact of the US midterm elections on immigration policy and the areas where bipartisan support could shape future developments.

Learn more

Blog post

UK Earned Settlement: When Immigration Status Becomes an Incentive for Growth and Compliance

In a new blog, UK Government Affairs Strategy Director Shuyeb Muquit examines what the framework could mean for employers, including potential impacts on sponsorship costs, retention planning, employee communications and support for internationally mobile workers and their families.

Learn more

Blog post

What the 2026 Midterm Election Results Mean for U.S. Business Immigration and Employers

In a new blog, Partner K. Edward Raleigh examines what the election results could mean for employers and where businesses should focus now, from immigration compliance and workforce planning to state response procedures and preparation for increased scrutiny.

Learn more

Media mentions

The PIE: UK to Increase HPI Visa Cap and Expand Eligibility to 150 Universities

Manager Russell Hodges discusses how the HPI visa expansion could help UK employers attract global talent.

Learn more

Fragomen news

Fragomen Expands Asia Pacific Presence with New Vietnam Offices

Fragomen has opened new offices in Hanoi and Ho Chi Minh City, expanding its presence and immigration capabilities across Asia Pacific.

Learn more

Media mentions

Human Resources Director: Global Mobility Risk Can No Longer Be an HR Afterthought

Partner Jack Kim discusses how organizations can take a more strategic approach to global mobility through actionable intelligence, proactive workforce planning and preparation for geopolitical disruptions.

Learn more

Blog post

UK Budget 2026: What the Government’s Immigration Plans Mean for Employers

In a new blog, UK Government Affairs Strategy Director Shuyeb Muquit examines what this direction could mean for employers, including why access to international talent may increasingly be considered alongside investment, productivity, innovation, regional growth and long-term workforce development.

Learn more

Video

UAE – Demographic Diversity Requirements | #MobilityMinute

The UAE’s demographic diversity requirements are designed to encourage a more diverse workforce among companies operating in the mainland jurisdiction. In this Mobility Minute, Manager Devika Thamattat explains the requirements, potential consequences of noncompliance and steps employers can take to help maintain the required nationality balance.

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 InsightsView 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
  • 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
November 5, 2026 | Saudi ArabiaSaudi Arabia: Minimum Salary Thresholds for Nitaqat Saudization Calculations to Increase
November 5, 2026 | Japan, United States2026年10月 米国移民法ダイジェスト
November 5, 2026 | AustraliaAustralia: Stricter Application Requirements Introduced for Training Visa
November 5, 2026 | United StatesFragomen Recognized in 2027 Best Law Firms® Rankings in the United States
November 5, 2026 | United KingdomGlobal Underwater Hub: The Specialist Skills Needed to Deliver Future Offshore Projects
November 5, 2026 | Saudi ArabiaSaudi Arabia: Minimum Salary Thresholds for Nitaqat Saudization Calculations to Increase
November 5, 2026 | Japan, United States2026年10月 米国移民法ダイジェスト
November 5, 2026 | AustraliaAustralia: Stricter Application Requirements Introduced for Training Visa
November 5, 2026 | United StatesFragomen Recognized in 2027 Best Law Firms® Rankings in the United States
November 5, 2026 | United KingdomGlobal Underwater Hub: The Specialist Skills Needed to Deliver Future Offshore Projects
November 5, 2026 | Saudi ArabiaSaudi Arabia: Minimum Salary Thresholds for Nitaqat Saudization Calculations to Increase
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.