Singapore MOM Update: EORs Can No Longer Sponsor Work Passes

What Singapore’s Ministry of Manpower Clarified in 2024

Work eligibility is one of the foundations of compliant global hiring – yet in the EOR space, it’s also one of the areas where confusion appears most often. A question we hear regularly is: “Can an EOR sponsor a work pass for my foreign hire?”

Because the EOR acts as a legal employer, the answer is usually yes. And that was the case for many years in Singapore, provided the employee met the standard Ministry of Manpower (MOM) requirements. But in 2024, MOM issued a clear clarification that changed this position.

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What Changed?

Until 2024, EORs in Singapore could sponsor foreign nationals for passes such as the Employment Pass (EP), S Pass, or Work Permit, as long as the candidate met MOM’s eligibility criteria (salary, qualifications, experience).

MOM’s 2024 clarification states that work passes are intended only for foreigners employed directly by Singapore-based companies – not individuals working for overseas companies through an EOR structure.

Because an EOR acts as the local employer while the employee ultimately serves a foreign end-client, MOM determined this model doesn’t satisfy the intent of the foreign workforce rules.

From 2024 onward, EORs in Singapore cannot apply for work passes on behalf of foreign nationals.

Singapore’s stance aligns with its broader policy goals:

• Protecting the integrity of work-pass sponsorship
• Ensuring foreign employees have a genuine local employer
• Bolstering the local workforce, a priority highlighted in MOM’s 2025 labour reports (e.g., the “Foreign Workforce Numbers” dataset on MOM’s website)

What This Means for Employers Hiring in Singapore

While Singapore remains an attractive hub for global talent, MOM’s clarification has reshaped how companies can engage workers through an EOR. The impact is different for local hires versus foreign nationals, so it’s important to understand what remains fully allowed and what now requires a different hiring strategy.

Here’s how the new rules affect your ability to build a team in Singapore.

Hiring Singapore Citizens and Permanent Residents via EOR: Fully Allowed

For companies hiring Singapore citizens or permanent residents through an EOR, nothing changes. These workers do not require work passes, so EOR hiring continues as normal.

This model is ideal if you:

• Want to test the Singapore market before setting up an entity
• Need to onboard quickly without HR or legal infrastructure
• Prefer outsourcing payroll, compliance, statutory contributions, and employment administration
• Lack in-house expertise in Singapore labour laws
• Want flexibility without committing to a full office or long-term investment

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With Playroll, you get the tools, expertise and local compliance support to hire confidently – whether through EOR, direct employment, or full entity expansion.

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Hiring Foreign Nationals Who Need Work Passes: Not Allowed Through EOR

If a foreign national requires an EP, S Pass or Work Permit, an EOR can no longer sponsor it. You and your team will need to explore alternative routes.

Let’s say for example, a U.S. software company wants to hire a Malaysian engineer to work in Singapore. Under past rules, an EOR could sponsor the EP. Today, MOM will reject that application because the engineer would technically serve an overseas company.

This doesn’t mean foreign hiring is impossible, it just means that your approach needs to change.

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Options If You Need to Hire Foreign Talent in Singapore

There are still compliant pathways for bringing foreign talent into Singapore. While the EOR route isn’t available for foreign nationals, these options show how you can still hire the talent you need without risking non-compliance.

Option 1: Set Up a Singapore Entity to Sponsor Work Passes

Setting up your own legal entity in Singapore is the most robust long-term solution, but also the most expensive. To take this route, here’s a high level overview of what establishing a legal presence in Singapore usually requires:

• Incorporate a local company, branch office, or representative office
• Apply for the appropriate work passes directly
• Ensure eligibility requirements are met
• Comply with foreign worker quotas and sector rules

Trade-Offs:

Setting up an entity requires time, cost, and ongoing administration: payroll setup, statutory contributions (CPF does not apply to foreigners but other levies may), compliant employment contracts, HR policies, and tax filing.

Option 2: Short-Term Visit Passes (For Short Stays Only)

If your foreign talent only needs to be in Singapore occasionally, say for meetings, conferences, project kick-offs, or corporate events, a Short-Term Visit Pass (generally up to 90 days) may be suitable.

Important to Note:

This is not a substitute for full-time employment. Your team member will be legally prohibited from performing day-to-day work for your business while in Singapore on this pass.

Option 3: Long-Term: Explore Permanent Residency (PR) Routes

For foreign individuals who meet certain criteria – technical skills, family ties, investor profiles  – applying for PR can be a long-term solution.

Key considerations:

• Applications take ~6 months, sometimes up to a year
• Approval is not guaranteed
• Once PR is granted, the individual no longer requires a work pass
• PRs can be hired freely through an EOR

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Why an EOR Is Still a Strong Option in Singapore

Even without foreign-pass sponsorship, partnering with an EOR remains a powerful and compliant solution for companies hiring in Singapore – especially if you are targeting local talent.

EORs can help by:

• Managing payroll, taxes, and statutory contributions
• Issuing compliant employment contracts
• Administering leave, benefits, and employee documentation
• Handling onboarding and termination processes under local law
• Reducing administrative and legal burdens for expanding companies

Singapore’s labour landscape – like its Central Provident Fund (CPF) system, mandatory benefits, and specific working-hour rules – can be complex. An EOR like Playroll can help you remove that friction, letting you focus on growth rather than compliance.

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How Playroll Helps You Navigate Singapore Hiring

At Playroll, we guide global employers through every step of compliant hiring in Singapore. Our team helps you run right-to-work checks across all the countries we operate in, hire Singapore citizens and PRs through our local EOR infrastructure, and understand when you may need to establish a local entity to bring in foreign talent.

We also support you in navigating work-pass rules, short-term visa options, and long-term residency pathways, while keeping you updated on MOM regulatory changes. Our goal is simple: to give you clarity, confidence, and compliance so you can build globally without unnecessary risk.

Book a demo with our team today and let’s chat about how we can help your team start hiring in Singapore.