Singapore Employer Sponsorship Cost Explained 2026

Recruitment of foreign talent in Singapore had traditionally been a business growth attribute. Nonetheless, the price of the so-called sponsorship in 2026 is no longer an absolute administrative fee. As the mandatory requirements of the Enhanced Medical Insurance and the standardized S Pass levies system takes effect, employers will no longer have to rely on simplistic calculations when it comes to the calculation of the owner total cost of foreign employees.

Be it climbing a tech startup or running a multinational, negotiating the Singapore Employer Sponsorship Cost Explained 2026 is essential in keeping the margins healthy, at the same time remaining in line with the Ministry of Manpower (MOM).

Authority MOM Administrative Charges

All work pass applications start with government processing fees which are not refundable and paid via MOM My Mom Portal at every stage of application and issuance process.2

Application Fee (EP/S Pass): S$105 (payable at time of application).
EP Issuance Fee: S$225/pass (to be paid upon the In-Principle Approval).4
S Pass Issuance Fee: S$100 per pass.5
Application and Issuance Fees: S$35 and S$35 respectively.
Multiple Journey Visa (MJV): The Visa costs S$30 extra in case the applicant wants to use it to travel frequently.

Monthly Foreign Worker Fees (The Recurring Budget)

Routine costs such as the monthly fee are usually the greatest expenditure to the employers of S Pass and Work Permit holders. It is worth mentioning that Employment Pass (EP) holders do not pay levies; thus, they are levied-free, and a good solution to high income earners.

S Pass Levy (The 2026 Harmonization).

The tiers of S Pass levies have changed by 2026.

Harmonized Rate: The majority of industries have now a common charge of S$650 per month on S Pass holders.7
Tiered Benefit: There are also areas where the company maintains a Tier 1 rate of S330 to those that require a reduced dependence on foreign employees (commonly not more than 10% of the workforce).8

Work Permit Tiered Levies

Under the Work Permits, the fee varies depending on your Dependency Ratio Ceiling (DRC)- the higher the number of foreign employees compared to the locals, the greater the cost.9

Basic Tier (Tier 1): ~S10$300 – S$450 per month.11
Exceeding Quota (Tier 3): Employers that have high dependency on foreign labor may have rates that shoot up to S$950 per month.

the 2026 Insurance Spike Mandatory Security and Insurance (The 2026 “Insurance Spike”)

The biggest alteration in the year 2026 is the Improved Medical Insurance (MI). Large medical bills now demand a significantly greater safety net by MOM in order to cover both the workers and the businesses.

S$60,000 Minimum Coverage: The minimum annual coverage by the employers is S60 000 on S Pass and Work Permit holders (an increase of 4 folds of the earlier S15,000 limit).13
Premiums Estimates: It is anticipated to cost between S$170 and S$400 annually per employee. The age differentiation of the premiums is now in place, with workers who are above 50 years of age paying more to insure.14
Security Bond: Non-Malaysian Work Permit holders are required to have a S$5,000 bond on board.15 Most employers cover this through Security Bond Insurance, which is approximately S$50 -S100.
Work Injury Compensation (WICA): This is compulsory to all manual employees as well as non-manual employees having salaries less than S2, 600/month.

On boarding Costs- Compliance and Costs- Hidden.

On top of the stickers and levies, effective sponsorship means compliance based expenditures, which are usually ignored during initial budgets.

Skills Development Levy (SDL): This is a compulsory monthly fee imposed upon all employees (including those in the EP holders). This is computed as 1/4 of monthly salaries (min S1.50, max S8.41).
Free Advertisement: My Careers Future does not charge any fee to be listed; however, advertising during 14 days is mandatory, and the cost of internal HR to execute it is high.
Pr-Employment Medical Check-up: HIV, TB and syphilis are standard check-ups that are between S$40 and S120 per individual.
Settling-In Programme (SIP): This is a mandatory orientation of first time migrant workers in some sectors and it is about S$90.

FAQ

May I then transfer the S Pass levy to my employee?

No. The levy of foreign workers and insurance premiums on the salary of an employee are illegal to recover. They are strictly costs of the employer.

Is it necessary that I purchase insurance on EP holders?

MOM does not require insurance of EP holders, though most of competitive employers do include it in a package of benefits to draw talent.

What is going to happen once my quota is filled?

You will not be able to issue new S Passes/ Work Permits. You have to recruit more of the locals to boost your DRC or consider the Employment Pass, which is non-quota however with a lot higher salary demands.

Final Thoughts

The hiring option is usually a mirage in 2026. Although a Work Permit or S Pass requires less base salary, the harmonization of levies along with the increased insurance cost make the cost of ownership very similar to that of the Employment Pass compared to years past. The Quota Strategy should be aimed at by employers leaders to maintain the levy levels in the lower ranges by creating higher-paid EP specialists and localized teams.

Disclaimer:

The article is informational and educational. It is recommended that the readers should ensure that they confirm the information provided by authoritative sources, including the Ministry of Manpower (MOM) or a registered Singapore recruitment consultant to make a financial or employment choice.