SERVICES and manufacturing firms will be able to hire work permit holders from non-traditional source countries such as India and the Philippines for specific occupations on a new list, to help them adjust to the stricter S Pass salary benchmarks.

"We recognise that some businesses hire rank-and-file workers on S Passes due to the source restrictions for work permit holders," said Manpower Minister Tan See Leng in Parliament on Friday (Mar 4) during his ministry's Committee of Supply debate.

But once higher salaries for S Passes kick in from September this year, their current salaries may not allow them to qualify. MOM will thus allow services and manufacturing firms sectors to hire some such S Pass holders on work permits.

Currently, the only eligible sources of work permit holders for the manufacturing and services sectors are Malaysia, Mainland China, Hong Kong, Macau, South Korea and Taiwan.

This will change after the Non-Traditional Source Occupation List takes effect from Sep 1, 2023, which is when S Pass qualifying salaries for renewal applications are first set to rise.

Manufacturing and services firms will be allowed to hire work permit holders from the non-traditional sources of Bangladesh, India, Myanmar, Philippines, Sri Lanka and Thailand.

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But this applies only to occupations on the list, which include cooks in Indian restaurants; food processing workers; sheet metal workers; welders and flame cutters; metal moulders and core makers; riggers and cable splicers; and structural metal preparers and erectors.

"We will study carefully if more occupations should be added to the list," said Dr Tan.

Work permit holders hired under this list must be higher-skilled ones and will be subject to a quota.

Get the latest updates on Budget 2022 here: bt.sg/budget22