Singapore Raises Minimum Salary Requirement for Work Visas

Singapore, known for its status as a regional economic powerhouse, is set to implement higher minimum salary requirements for Employment Passes (EPs) or Work Visas starting January next year.

The move, announced by Manpower Minister Tan See Leng in parliament on Monday, will require companies hiring foreign professionals to meet elevated salary thresholds.

New Minimum Salary Requirements

The minimum monthly salary for a new applicant seeking Singapore Employment Pass (EP)/ Work Visas will be raised to SG$ 5,600, up from the current SG$ 5,000.

For the financial services sector, the bar is even higher, with companies needing to pay recruits at least SG$ 6,200 a month, up from SG$ 5,500.

Justification for the Increase

Manpower Minister Tan See Leng stated in parliament that regularly adjusting the qualifying salaries based on wage benchmarks ensures a fair environment for local professionals. He further explained that the minimum salary requirement for EP or Work Visas holders will also continue to rise progressively with age.

Impact on Foreign Workers and Companies

Singapore, heavily reliant on foreign workers, is adjusting its criteria to maintain the quality of foreign hires and safeguard local employment opportunities.

The island nation has consistently raised the minimum salary threshold over the years, with the last adjustment occurring in September 2022.

As of June, there were approximately 1.48 million foreign workers in Singapore, with 197,300 holding EPs. These passes, which employers must apply for, are subject to the new salary requirements.

Singapore Work Visa (Employment Pass)

The Employment Pass (EP) is a work visa issued to foreign professionals seeking employment in Singapore. Employers must sponsor and apply for the EP on behalf of the foreign employee.

Requirements for obtaining an EP:

The qualifying salary for EP applicants is based on the top one-third of salaries for local professionals, managers, executives, and technicians, with increases for older workers.

For instance, individuals in their mid-40s may see a minimum monthly salary requirement of up to SG$ 10,700.

• Valid passport
• Educational certificates
• Employment contract
• Meeting the minimum salary threshold based on age, industry, and other factors

Must Read: Singapore Seeks 260,000 Foreign Workers: In-Demand Skills and Work Visa Options

Additional Considerations

Since September 2023, Singapore has implemented a point-based system called COMPASS to assess foreign professionals’ compatibility with the local workforce.

Applicants for specific professions in designated industries can earn bonus points under the COMPASS system.

This point-based criterion evaluates the extent to which an EP candidate complements Singapore’s workforce across various factors, including salary, qualifications, and company diversity.

Conclusion

The revised minimum salary requirements for EPs in Singapore aim to strike a balance between attracting global talent and fostering opportunities for local professionals. Companies planning to relocate employees to Singapore should be aware of these changes and adjust their compensation strategies accordingly.