Why Construction and Marine Employers Face a Different Quota System
Most Singapore employers who hire Work Permit holders work within the Dependency Ratio Ceiling (DRC) framework: a fixed ratio of foreign workers to local employees, calculated per company. Construction, marine shipyard and process sector employers do not use the DRC system in the same way. Instead, the number of foreign workers from Non-Traditional Sources (NTS countries) and the People’s Republic of China that a construction or marine company may hire is controlled by a separate allocation known as the Man-Year Entitlement, or MYE.
MYE is easy to misunderstand because it is allocated per project, not simply per company, and because the rules were tightened in 2025 in a way that has real budgeting consequences for contractors bidding on new work in 2026. This article sets out how the MYE system actually works, who it applies to, and where the common planning mistakes happen.
What a Man-Year Entitlement Actually Is
One Man-Year Entitlement represents one year of foreign worker entitlement from an NTS country or the PRC, allocated to a specific construction or process sector project. The Building and Construction Authority (BCA) allocates MYE to construction projects at the point the project is awarded, based largely on the contract value of the project. A contractor cannot simply apply for more foreign Work Permit holders because it wants to grow headcount; the entitlement has to trace back to a specific, awarded project with sufficient contract value to justify it.
This is fundamentally different from the DRC model used in services, manufacturing and most other Work Permit sectors, where the quota follows the company’s local headcount rather than a specific project. For a general overview of how Work Permit quotas work outside construction and marine, see our guide to the Work Permit quota, levy and renewal framework.
The 2025 Tightening That Still Matters for 2026 Bids
MOM tightened the MYE allocation formula with effect from projects awarded on or after 1 April 2025, reducing the MYE allocated per S$1 million of project value by around 15% compared with the previous formula. Contractors who priced 2026 tenders using an older MYE-per-dollar assumption are at risk of under-provisioning for foreign labour on the project, which then forces a scramble to either restructure the labour mix towards more local and higher-skilled workers, or accept a slower build programme. Anyone preparing a tender for a project likely to be awarded in 2026 should confirm the current MYE formula with BCA before finalising the labour cost assumptions in the bid, rather than relying on a formula used for an earlier, already-completed project.
MYE-Exempt vs MYE Workers, and Why the Levy Differs
Not every NTS or PRC worker on a construction site counts against the project’s MYE. MOM distinguishes between workers who draw down against the project’s Man-Year Entitlement and those who are MYE-exempt (broadly, higher-skilled or specific-scheme workers who fall outside the standard MYE count). The distinction matters because the Foreign Worker Levy rate differs between the two categories, with MYE-drawing workers generally attracting a higher monthly levy than MYE-exempt workers in the same basic-skilled tier. Getting this classification wrong on a levy declaration is a common source of both overpayment and, more seriously, compliance exposure if MOM finds a worker was wrongly classified as exempt.
Marine Shipyard and Process Sector: Related but Distinct
The marine shipyard sector and the process sector (chemicals, refining and pharmaceuticals manufacturing) sit alongside construction as the other sectors permitted the highest foreign-to-local worker ratios in Singapore, and both interact with MYE-style planning in similar ways, though the specific quota mechanics differ by sector guideline. Budget 2026 also raised Basic-Skilled levy rates in both the marine shipyard sector and the process sector, with the process sector facing the steeper increase, phased in from 2028. Employers in these sectors should treat MYE or equivalent quota planning and levy budgeting as a single exercise done at the same time each project cycle, not two separate compliance tasks handled by different teams.
Practical Table: MYE at a Glance
| Feature | Detail |
|---|---|
| Applies to | Construction sector (and analogous quota mechanics in marine shipyard/process) |
| Allocated by | Building and Construction Authority (BCA), at project award |
| Basis | Project contract value, not company headcount |
| Worker source | Non-Traditional Source (NTS) countries and the PRC |
| 2025 change | Formula tightened for projects awarded from 1 April 2025 (roughly 15% less MYE per S$ million of project value) |
| Levy impact | MYE-drawing workers generally attract a higher levy tier than MYE-exempt workers |
Common Planning Mistakes
- Pricing a tender using an outdated MYE-per-dollar assumption instead of confirming the current BCA formula before submission.
- Treating MYE as a company-wide quota rather than a project-specific allocation, leading to workers being wrongly assigned across projects.
- Misclassifying MYE-exempt workers, which distorts both levy budgeting and compliance declarations.
- Failing to plan the labour mix (local versus NTS/PRC, and MYE versus MYE-exempt) at the same time as the tender pricing exercise, rather than after the project is already won.
Frequently Asked Questions
Is MYE the same as the Dependency Ratio Ceiling?
No. DRC is a company-level ratio used across most sectors. MYE is a project-level allocation used in construction (with analogous mechanics in marine and process), based on project contract value.
Who allocates MYE?
The Building and Construction Authority allocates Man-Year Entitlement to construction projects at the point of project award.
Does the 2025 formula change affect projects already underway?
The tightened formula applies to projects awarded on or after 1 April 2025; earlier-awarded projects generally continue under the formula in force when they were awarded.
Do MYE-exempt workers still require a Work Permit?
Yes. MYE-exempt status affects levy classification and quota drawdown, not the underlying requirement to hold a valid Work Permit.
How Raffles Corporate Services Can Help
Through our associated employment agency, we help construction, marine and process sector employers plan Work Permit quota and levy budgets against actual project awards, review MYE and MYE-exempt classifications, and keep foreign worker compliance current alongside the company’s broader ACRA and IRAS compliance calendar.
This article is for general information only and does not constitute legal advice. For advice specific to a project or tender, please consult MOM’s or BCA’s current guidelines directly, or speak with our team.
The Editorial Team, Raffles Corporate Services