In addition to complying with dependency ratio requirements, migrant workers in the construction and process sectors, excluding those from Malaysia and North Asian source (NAS) countries/regions, are obligated to meet Man-Year Entitlement (MYE) criteria.
MYE serves as a Work Permit allocation system specifically designed for workers from non-traditional source (NTS) countries/regions and the People’s Republic of China (PRC).
NTS countries/regions include:
– India
– Sri Lanka
– Thailand
– Bangladesh
– Myanmar
– Philippines
The MYE signifies the total number of Work Permit holders a primary contractor is entitled to employ based on the value of projects or contracts awarded by developers or owners. This allocation is expressed in terms of the number of “man-years” necessary to complete a project.
A primary contractor, in this context, is a company directly contracted for a project by the developer or owner. It is imperative to note that primary contractors cannot transfer their MYE to other contractors unrelated to the same project or trade MYE with any other contractors. Violation of this rule will result in a prohibition from applying for new Work Permits in the future.
Key MYE Details:
– 1 man-year equates to 1 year of employment under a Work Permit.
– The maximum renewal period for an MYE is 2 years at a time.
MYE Application Requirements:
At the time of MYE application, the primary contractor must adhere to the following:
– Possess a valid Central Provident Fund (CPF) account for construction Work Permit applications in the company’s name.
– The project must have a remaining period of at least 1 month.
– The total remaining contract value must be a minimum of $500,000.
The primary contractor is permitted to aggregate projects to meet the minimum contract value requirement, provided each combined project fulfills the following criteria:
– A remaining value of less than $500,000.
– A balance period of at least 1 month.
MYE Waiver:
The MYE waiver grants firms in the construction and process sectors the flexibility to apply for or renew Work Permits without mandatory MYE compliance. However, firms opting for the MYE waiver are subject to higher MYE waiver levy rates.
Construction Sector Requirements:
To employ NTS or PRC workers, construction sector firms must satisfy both of the following criteria:
– Possess a valid Building Construction Authority (BCA) or Singapore List of Trade Subcontractors (SLOT) registration certification.
– Solely engage in construction activities.
*Note: Commencing from January 1, 2024, the MYE framework will be abolished, and firms will no longer be required to apply for MYE or Prior Approval (PA) before applying for a Work Permit for NTS or PRC workers.*
If you have any company-related queries, you may email us at [email protected]. When in doubt, seek legal advice or consult an experienced licensed Employment Agency with the Ministry of Manpower.
Yours Sincerely,
The editorial team at Singapore Employment Agency
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