New Rules for Foreign Workers in Singapore: Points System Shakes Up Employment Pass
Singapore is implementing significant changes to its Employment Pass system starting this September. The new points-based framework aims to prioritize local talent while maintaining the nation's status as a global business hub.
Singapore, a magnet for global talent, is making significant changes to its Employment Pass (EP) regulations, aiming to prioritize local talent while maintaining its status as an international business hub. These adjustments reflect the government’s efforts to balance economic needs with public sentiment regarding foreign workers.
The New Employment Pass Framework
Points-Based System
Starting September 2024, Singapore will implement a points-based system to evaluate EP applications. This system assigns points based on several criteria:
- Salary: Applicants earn points if their salary exceeds that of local employees in similar roles.
- Education and Skills: Points are awarded based on the candidate’s educational qualifications and professional skills.
- Diversity Contribution: Points are given if the applicant’s nationality contributes to the firm’s diversity.
Minimum Salary Threshold
To qualify for an Employment Pass, applicants must meet a new minimum salary requirement. The minimum monthly salary for EP holders has increased from S$5,000 (US$3,700) to S$5,600 (US$4,140). In the financial sector, the bar is set even higher, with the minimum salary rising from S$5,500 (US$4,100) to S$6,200 (US$4,600).
Existing Rules for Employment Pass
Qualification Criteria
Under the old system, the primary criteria for Employment Pass approval were the applicant’s educational background, professional qualifications, and a minimum salary threshold. While the minimum salary varied by age and industry, the evaluation process was less structured and transparent than the new points-based system.
