What is the man-year entitlement
Besides fulfilling dependency ratio requirements, foreign workers in the construction and process sector who are not from Malaysia and North Asian source (NAS) countries will need to fulfil MYE requirements as well.
The MYE is a Work Permit allocation system for workers from non-traditional source (NTS) countries and the People’s Republic of China (PRC).
The NTS countries are:
- India
- Sri Lanka
- Thailand
- Bangladesh
- Myanmar
- Philippines
The MYE reflects the total number of Work Permit holders a main contractor is entitled to employ based on the value of projects or contracts awarded by developers or owners. It is allocated in the form of the number of “man-years” required to complete a project.
A main contractor is defined as a company that contracts a project directly from the developer or owner.
Main contractors cannot allocate their MYE to other contractors not involved in the same project or sell their MYE to any contractors. Main contractors that do so will be barred from applying for new Work Permits in future.
1 man-year = 1 year of employment under a Work Permit.
MYE requirements
At the time of the MYE application:
- The main contractor must have a valid Central Provident Fund (CPF) account for construction Work Permit applications in the company’s name.
- The project must have a balance period of at least 1 month.
- The total remaining contract value must be at least $500,000.
The main contractor is allowed to combine projects to meet the minimum contract value requirement, provided each of the combined projects has:
- A remaining value of less than $500,000.
- A balance period of at least 1 month.
For building projects under $10 million:
|
Project value
|
MYE
|
|
Less than $500,000
|
0
|
|
First $1 million
|
1.325 man-years per $100,000 value
|
|
Next $9 million
|
7.950 man-years per $1 million value
|
For building projects of $10 million or more:
|
Project value
|
MYE
|
|
Less than $500,000
|
0
|
|
First $1 million
|
1.223 man-years per $100,000 value
|
|
Next $9 million
|
7.338 man-years per $1 million value
|
|
Next $20 million
|
4.892 man-years per $1 million value
|
|
Next $70 million
|
3.261 man-years per $1 million value
|
|
Next $100 million
|
2.446 man-years per $1 million value
|
For civil engineering projects:
|
Project value
|
MYE
|
|
Less than $500,000
|
0
|
|
First $1 million
|
0.543 man-year per $100,000 value
|
|
Next $9 million
|
3.261 man-years per $1 million value
|
|
Next $20 million
|
2.174 man-years per $1 million value
|
| Remaining balance above $30 million |
1.087 man-years per $1 million value
|
The MYE allocated will be rounded off to the nearest whole number.
A $100 million building project will get an MYE of 404 after rounding down from 404.382.
Man-Year Adjustment Factor
To address the impact of fluctuating tender prices, the MYE allocation for all project categories is adjusted with the Man-Year Adjustment Factor (MYAF). This will be effective from 1 January each year for the whole year.
The actual MYE allocated for MYE applications made in 2017 or 2018 would be based on the calculated MYE multiplied by the corresponding MYAF for the year.
This is an example of:
- A building project
- $100 million project value
- Calculated MYE of 404
| |
MYE applications submitted from 1 Jan to 31 Dec 2017 |
MYE applications submitted from 1 Jan to 31 Dec 2018 |
| Man-Year Adjustment Factor (MYAF) |
0.989 |
1.040 |
| Actual MYE allocated |
404 X 0.989 = 400 |
404 X 1.040 = 420 |
Note: Please check back at the end of each year for MYAF updates.
You may refer to BCA website or email BCA at bca_fwp@bca.gov.sg to find out more.
For building projects under $10 million:
| Project value |
MYE |
| Less than $500,000 |
0 |
| First $1 million |
1.650 man-years per $100,000 value |
| Next $9 million |
9.903 man-years per $1 million value |
For building projects of $10 million or more:
| Project value |
MYE |
| Less than $500,000 |
0 |
| First $1 million |
1.523 man-years per $100,000 value |
| Next $9 million |
9.141 man-years per $1 million value |
| Next $20 million |
6.094 man-years per $1 million value |
| Next $70 million |
4.062 man-years per $1 million value |
| Next $100 million |
3.047 man-years per $1 million value |
For civil engineering projects:
| Project value |
MYE |
| Less than $500,000 |
0 |
| First $1 million |
0.677 man-year per $100,000 value |
| Next $9 million |
4.062 man-years per $1 million value |
| Next $20 million |
2.708 man-years per $1 million value |
| Next $70 million |
1.354 man-years per $1 million value |
| Next $100 million |
Case-by-case basis |
The MYE allocated will be rounded off to the nearest whole number.
A $1 million building project will get an MYE of 17 after rounding up from 16.5.
Only main contractors can apply for man-year entitlements.
All sub-contractors must get their MYE allocation from the main contractor.
To apply, complete the Application for MYE. Mail the form and other required documents to:
Construction and Process 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.
MYE and prior approval
Man-year entitlements are allocated to your company when you apply for prior approval (PA).
For main contractors applying for PA, MYE deductions are made according to the number of foreign workers and type of Work Permits applied for and approved by the Work Pass Division.
Log in to WP Online to see the MYE balance.
For a sub-contractor’s PA application, the main contractor supplying the MYE must indicate the MYE allocation in the sub-contractor’s PA application form. When approved, the main contractor’s MYE will be deducted accordingly.
How long an MYE is valid
An MYE will expire on the stated project completion date.
You can use the MYE in a prior approval application anytime before the MYE expires.
If a project’s completion date is 12 August 2013, the MYE will be valid until 12 August 2013. Thus, the contractor should submit a PA application before 12 August 2013.
To get a duplicate copy of an MYE certificate, submit your letter of request either online or by post.
If submitting online, go to iSubmit and attach a scanned copy of your letter of request. Under Request Type, choose 6. Work Permit Application Matters for Business Sectors.
If submitting by post, send your letter to:
Construction and Process Section
Work Pass Division
Ministry of Manpower
18 Havelock Road
Singapore 059764
The duplicate copy of the MYE will be mailed to the company.
Change of main contractor for a project issued with MYE allocationShow
To change the main contractor for a project that has been allocated MYEs, the new contractor has to submit these documents:
- A completed MYE application form and the required documents stated on the form.
- A letter of request (using the company’s letterhead) from the main contractor stating the developer, owner or architect has terminated the old main contractor’s project under that MYE certificate number, and that his company has been appointed as the new contractor.
- A letter from the developer, owner or architect confirming the termination of the old main contractor’s contract, and the award of the contract to the new contractor.
- The original and photocopy of the Novation Agreement, and any other relevant documents between the developer, owner or architect, the old main contractor and the new main contractor.
Send the required documents by to:
Construction and Process Section
Work Pass Division
Ministry of Manpower
18 Havelock Road
Singapore 059764
As a main contractor, you can request to extend the MYE if the project’s completion date has been extended.
You will need to submit these documents:
- A letter requesting an extension for the MYE. Include the MYE certificate number, project description and new project completion dates.
- A photocopy of the letter from the developer or architect to the main contractor stating the existing and new completion date, as well as the project description.
- The original MYE certificate.
Send the required documents to:
Construction and Process Section
Work Pass Division
Ministry of Manpower
18 Havelock Road
Singapore 059764
If the extension is approved, the new project completion date will be indicated in the original MYE certificate, and this will be sent to the main contractor within 14 working days.