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Work Permit - Before you apply

Man–Year Entitlement

What are Man-Year Entitlements (MYE)?

Companies are subject to Man-Year Entitlements (MYE) when employing workers from Non-Traditional Source (NTS) countries and the People's Republic of China for construction projects.

MYE reflects the total quota of foreign construction workers allocated to a main contractor* for a specific construction project. Based on the value of projects/contracts awarded by developers/owners, main contractors are allocated a number of man-years** required to complete a project, and a number of foreign workers it is entitled to employ. To correct MYE allocations that are distorted by inflationary tender prices, the MYE formula has been adjusted with the Man-Year Adjustment Factor (MYAF) introduced by the Building and Construction Authority (BCA). 

You may download the pdftable for computation of MYEs.

NTS or PRC construction workers who have worked with any employer for a cumulative period of two or more years in the construction industry, may be hired by main contractors without the need for MYE.

The levy payable for basic skilled worker will be higher than the higher skilled worker, regardless of the MYE. You may view the levy rates.

Note
Main contractors cannot allocate or sell their MYE to other contractors not involved in the same project. Main contractors which do so will be barred from applying for new Work Permits in future.

* A main contractor is defined as a company that contracts a project directly from the developer or owner.

** 1 man-year = 1 year of employment under a Work Permit.

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Who can apply?

Only main contractors may apply for Man-Year Entitlements (MYE).

All sub-contractors must obtain their MYE allocation from the main contractor.

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Application

At the time of applying for Man-Year Entitlement (MYE),

  • The main contractor must have a valid Central Provident Fund (CPF) account for construction Work Permit applications in the company's name;
  • The project has a balance duration of at least one more month; and
  • The total remaining contract value must be at least $500,000*.

* The main contractor can combine projects to meet the minimum contract value requirement, provided each of the projects combined:

  • Has a remaining value of less than $500,000; and
  • Has a balance duration of at least one more month.

The completed pdfMYE Application Form and the required documents should be submitted by post to Construction Permit Section, Work Pass Division, Ministry of Manpower, 18 Havelock Road, Singapore 059764.

The application will be processed within 12 working days, and the outcome will be sent to the main contractor.

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Relationship between Man-Year Entitlement and Prior Approval

Man-Year Entitlements (MYE) are allocated to a construction company through a Prior Approval (PA) application.

For main contractors applying for PA using their MYE, deductions to their MYE are made according to the number of foreign workers and type of Work Permits applied for and approved by the Work Pass Division.

For a sub-contractor's PA application, the main contractor providing the MYE must indicate the MYE allocation in the sub-contractor's pdfPA Application Form. Upon approval of the PA application, the main contractor's MYE will be deducted accordingly.

For example:

No. of PAs/Work Permits
No. of man-years required
PA for 20 workers under 1-year Work Permits
20 workers x 1-year Work Permit = 20 man-years
PA for 20 workers under 2-year Work Permits
20 workers x 2-years Work Permit = 40 man-years

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Validity period and extension

Validity Period

Man-Year Entitlements (MYE) will expire on a project's completion date. The main contractor may allocate the MYE to a Prior Approval (PA) application anytime before the MYE expires.

For example:

  • If a project's completion date is 12 August 2013, the MYE will be valid until 12 August 2013. Thus, the main/sub-contractor should submit a PA application before 12 August 2013.

Extension of MYE

The main contractor may request to extend the MYE validity period if the project's completion date has been extended. In such an event, the main contractor should submit:

  • A letter requesting an extension for the MYE;
    • - State the MYE Certificate number, project description and new project completion dates.
  • A photocopy of the letter from the developer/architect to the main contractor stating the existing and new completion date, as well as the project description; and
  • The original MYE Certificate.

Upon approval, the new validity date will be indicated in the original MYE Certificate, which will be sent to the main contractor within 14 days of the extension request.

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Conversion of unused Prior Approval into Man-Year Entitlement

The unused portion of a Prior Approval (PA) will be returned to the Man-Year Entitlement (MYE) when the PA expires or is successfully withdrawn.

For example:

  • A PA was issued under MYE for 20 workers on 2-year Work Permits.

    Balance of unused PA when it expires: 5 workers
    Man-years returned to the main contractor: 5 workers x 2 years = 10 man-years

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Increase in Man-Year Entitlements when contract value increases

Man-Year Entitlements (MYE) are given based on a project's value. Thus, a main contractor can request for an increase in MYE if the project value has increased due to additional work or variation order(s) awarded by the developer.

To request for an increase in MYE, submit the pdfForm on Variation Order (Request for Additional MYE Allocation) by post to Construction Permit Section, Work Pass Division, Ministry of Manpower, 18 Havelock Road, Singapore 059764.

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Allocation of Man-Year Entitlement to other projects

Man-Year Entitlements (MYE) allocated to a particular project cannot be transferred to another project.

However, construction employers can deploy their Non-Traditional Source (NTS) workers (whose Work Permits have been approved under a MYE) to other projects, provided the workers work in the same capacity and for the same company as stated in their Work Permit cards. The employers must have the Letters of Award or contracts for the construction activities of the other projects.

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Premature termination of main contractor’s contract with sub-contractor

A main contractor who terminates a contract with a sub-contractor prematurely can write to the Work Pass Division to cancel Work Permits issued using its Man Year-Entitlement (MYE). This is provided that arrangements have been made for the affected workers to be re-employed under another employer in the construction sector.

A premature termination of a contract is defined as a contract that is terminated before its completion.

In certain cases, the Work Pass Division may allow the sub-contractor to retain the Non-Traditional Source (NTS) workers by using another main contractor's MYE. Such cases will be decided on a case-by-case basis.

MYE will not be returned to the main contractor if the sub-contractor has already used the Prior Approval to apply for NTS workers.

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Premature termination of main contractor’s contract by developer

The Work Pass Division may withdraw the Man Year-Entitlement and the Prior Approval given should a main contractor's contract be terminated the developer. Such cases will be assessed on a case-by-case basis.

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Obtaining a duplicate copy of MYE certificate

Companies who have misplaced or failed to receive the original MYE Certificate issued and sent more than one week ago, may write in to request for a duplicate copy of MYE Certificate.

Find out more about the procedure.

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Change of main contractor for a project issued with MYE allocation

To change the main contractor for a project that has been allocated MYEs, the new main contractor has to submit the following documents by post to Construction Permit Section, Work Pass Division, Ministry of Manpower, 18 Havelock Road, Singapore 059764.

  • A completed MYE application form and the required documents stated in the pdfApplication for Man-Year Entitlement;
  • A letter of request (using the company's letterhead) from the new main contractor stating:

    • (i) The developer/owner/architect has terminated the old main contractor's project under the MYE certificate number.
      (ii) His company has been appointed as the new main contractor for the project.
  • An original letter from the developer/owner/architect confirming the termination of the old main contractor's contract and the award of the contract to the new main contractor; and
  • The original and a photocopy of the Novation Agreement and/or other documents between the developer/owner/architect, the old main contractor and new main contractor (if any).

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MYE certificate amendment for a project issued with MYE certificate

To make amendments to a MYE certificate, please submit the following documents by post to Construction Permit Section, Work Pass Division, Ministry of Manpower, 18 Havelock Road, Singapore 059764.

a. For Extension of the MYE Completion Date

  • A letter of request (original and using company's letterhead) from the main contractor stating the description of the project, the MYE certificate number, and the request to extend the project completion date;
  • The letter must be signed by the sole-proprietor/partner/director or a senior managerial staff of the company;
  • The original and a photocopy of the Contract Agreement/Letter of Confirmation issued by the developer/owner/architect to the main contractor. The Letter of Confirmation should indicate the description of the project and the new completion date; and
  • The original MYE certificate.

b. Change of the Name of the Developer/Owner

  • A letter of request (original and using company's letterhead) from the main contractor stating the description of the project, the MYE Certificate number, and the request to change the developer/owner;
  • The original and a photocopy of the Letter of Confirmation issued by the current developer/owner to the main contractor that confirms the change in the developer/owner;
  • The original and a photocopy of the Letter of Confirmation from the new developer/owner to the main contractor that confirms the change in the developer/owner;
  • The original and a photocopy of the Novation Order and/or other documents (if any); and
  • The original MYE Certificate.

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Last updated on 04 June 2014 05:20:15