Singapore Increases Minimum Qualifying Salary for Foreign Workers
The Ministry of Manpower (MOM) in Singapore has recently unveiled substantial revisions to its foreign worker policy, which will impact individuals seeking employment opportunities within the country. These modifications ensure the job market is equitable for local citizens and foreign professionals.
One of the significant changes introduced by the Singapore government is the adjustment of the minimum qualifying salary for Employment Pass (EP) holders. Effective January 1, 2025, the minimum qualifying salary for EP holders will be raised from $5,000 to $5,600 per month. Additionally, the qualifying salary will progressively increase with age, reaching up to $10,700 for individuals in their mid-40s.
The benchmark for determining the EP qualifying salary is derived from the top one-third of local Professionals, Managers, Executives, and Technicians (PMETs) wages. This approach ensures that highly quality EP holders contribute significantly to Singapore’s workforce.
Given the higher wage norms in the Financial Services sector, this industry’s EP minimum qualifying salary will be raised from $5,500 to $6,200 per month. Similarly, the salary requirements will increase with age, reaching up to $11,800 for individuals in their mid-40s.
In tandem with adjustments to the EP qualifying salary, the Singapore government will also raise the qualifying local wage (LQS) limit. Firms hiring foreign workers must pay their local employees at least the LQS. Effective July 1, 2024, the LQS will be raised from $1,400 to $1,600 monthly.
Policy adjustments for the Marine Shipyard sector include reducing the Dependency Ratio Ceiling (DRC) and increasing the levy for Work Permit Holders (WPHs). These changes aim to balance workforce composition and manage labor market dynamics effectively.
These policy changes are expected to have far-reaching implications on Singapore’s employment landscape. While they aim to prioritize local workforce needs and ensure fair employment practices, they also underscore Singapore’s commitment to attracting and retaining high-caliber talent.
As Singapore continues to evolve as a global hub for talent and innovation, these policy adjustments reflect the government’s proactive approach to addressing emerging challenges in the labor market. By fostering an environment conducive to both local and foreign workers, Singapore endeavors to maintain its competitive edge and sustain economic growth in the long run.
