What is the Work Permit quota?
The quota — officially the Dependency Ratio Ceiling, or DRC — is the maximum proportion of your total workforce that can be foreign (Work Permit plus S Pass holders). It is set per sector and works as a share of your whole headcount, not a fixed number. The more local employees you have, the more foreign workers you may hire. Employment Pass holders sit outside the quota entirely — they are not counted.
Who counts as a “local” for the quota?
A local is a Singapore Citizen or Permanent Resident on your payroll — but only if they earn enough. A local paid at or above the Local Qualifying Salary (LQS) counts as one full head. A local paid in the half-count band — half the LQS up to the full LQS — counts as half a head. Below that, they don’t count at all. This is the part most employers miss: a low-paid or part-time local doesn’t add full quota. The current LQS, and the increase coming on 1 July 2026, are in the table below.
What is the Dependency Ratio Ceiling for my sector?
The DRC differs by sector. Construction and process allow the highest reliance on foreign labour; services the lowest. The table below shows the current ceiling for each sector, compiled from officially published Ministry of Manpower information.
| Sector | Max foreign share (DRC) | S Pass sub-DRC |
|---|---|---|
| Construction | 83.3% | 15% |
| Process | 83.3% | 15% |
| Marine Shipyard | 75% | 15% |
| Manufacturing | 60% | 15% |
| Services | 35% | 10% |
Local Qualifying Salary: full count at $1,600/month, half count at $800/month. Local employees are counted from CPF contributions averaged over the last 3 months. A full-time local earning >= LQS (S$1,600) counts as 1; earning S$800 to < S$1,600 counts as 0.5; below S$800 counts as 0. Part-time LQS requirement is >= S$10.50/hour gross. From 2026-07-01: full count rises to $1,800/month, half count $900/month.
Compiled from officially published Ministry of Manpower information · Last reviewed against officially published rates: 2026-06-13. Figures may change — confirm with official sources before acting.
Construction and process are commonly expressed as five Work Permit holders per local; marine shipyard as three per local. Services and manufacturing work as a straight share of your total headcount.
How is the quota actually calculated?
Picture your whole team as 100 people. Your sector’s DRC is the most of those 100 that may be foreign — so the rest must be local. In services, at most 35 in 100 can be foreign, which means just over one foreign worker for every two locals. In construction, the ceiling is far higher — around five foreign workers per local.
A worked example, services: a firm with 13 local employees (each at or above the LQS) can hire up to 7 Work Permit and S Pass holders. That keeps foreign staff at roughly 35% of the combined team of 20. Add more locals and the ceiling rises; lose locals, or have them drop below the LQS, and it falls. Because the rounding follows MOM’s own method, use the quota calculator for your exact number rather than working it by hand.
Worked example · services
A firm with 13 local employees (each at or above the LQS) can hire up to 7 Work Permit and S Pass holders. That keeps foreign staff at roughly 35% of the combined team of 20. Add more locals and the ceiling rises; lose locals, or have them drop below the LQS, and it falls. Because the rounding follows MOM’s own method, use the quota calculator rather than working it out by hand.
What is the S Pass sub-quota?
Within your total foreign quota, S Pass holders are capped separately — a sub-limit inside the limit. In services, S Pass holders can be at most 10% of your total workforce; in all other sectors, 15%. So even when your overall quota still has room, you can reach the S Pass ceiling first. It pays to plan the Work Permit and S Pass split before you commit to either.
Is there a limit on workers from specific countries?
Yes. Workers from the People’s Republic of China are capped within two sectors: up to 25% of the quota in manufacturing and up to 8% in services. There is no equivalent national sub-cap in the other sectors. If your hiring leans heavily on one source, check this ceiling early — it can bind before your overall quota does.
What changes on 1 July 2026?
The Local Qualifying Salary rises on 1 July 2026 — the full-count threshold and the half-count band both step up (the new figures are in the table above). Because the LQS decides who counts as a local, some lower-paid local staff will count for less from that date, which can tighten your quota even though your headcount hasn’t changed. Review your local payroll before then so the change doesn’t catch you mid-hire.