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SINGAPORE: Increase in Minimum Salary for Employment Pass and Eligibility Changes for S Pass
March 9, 2022
Beginning 1 September 2022, the minimum salary for EP holders will increase. At the same time, MOM will also be increasing the minimum salary and levies for S Pass holders. Quotas for S Pass will also be updated on 1 January 2023.
Changes to the Minimum Salary for Employment Pass
EP holders will be required to meet a higher salary with effect from 1 September 2022 for new applications. For any renewals from 1 September 2023 onwards, the higher salary requirement will also apply.
Sectors |
Current Minimum Qualifying Salary |
New Minimum Qualifying Salary |
All
|
SGD 4,500 (increases up to SGD 8,400 for candidate in mid-40s) |
SGD 5,000 (increases up to SGD 10,500 for candidate in mid-40s) |
Financial services |
SGD 5,000 (increases up to SGD 9,300 for candidate in mid-40s) |
SGD 5,500 (increases up to SGD 11,500 for candidate in mid-40s) |
Changes to S Pass Eligibility
Salary Changes
The minimum salary requirement for S Pass will increase and the changes will be implemented in phases starting from 1 September 2022.
Sectors |
From 1 Sept 2022 – new applications/From 1 Sept 2023 – renewals |
*From 1 Sept 2023 – new applications/From 1 Sept 2024 – renewals |
*From 1 Sept 2025 – new applications/From 1 Sept 2026 – renewals |
All
|
SGD 3,000 (increases up to SGD 4,500 for candidate in mid-40s) |
At least SGD 3,150 | At least SGD 3,300 |
Financial services |
SGD 3,500 (increases up to SGD 5,500 for candidate in mid-40s) |
At least SGD 3,650 | At least SGD 3,800 |
*The final salary amount will be announced closer to the said implementation date. The amount is expected to change given it will be based on the prevailing local salary for Associate Professionals and Technicians (APT) at the time.
S Pass Levy Changes
The Basic/Tier 1 levy rate will increase in phases as follows:
From 1 Sept 2022 |
From 1 Sept 2023 |
From 1 Sept 2025 |
| SGD 450 | SGD 550 | SGD 650 |
The levy for Tier 2 S Pass holders will remain the same at SGD 650.
S Pass Quota Changes
In addition to the salary increase and levy changes, the quota for S Pass is set to decrease by 3% in certain sectors.
Sector |
From 1 Jan 2023 |
| · Manufacturing
· Construction · Marine shipyard · Process |
Quota will be reduced from 18% to 15% of the total employee population. |
| · Services | No change |
Newland Chase Insights
The increase in minimum salary for EP holders is only the first step of MOM’s plan to further tighten the requirements for bringing in foreign employees into the country. Eligibility requirements for S Pass holders have also been amended to uplift the quality of foreign employees on this type of pass. It may be prudent for companies to ensure that the salary level of their foreign employees is at least at the same level or higher than their local counterparts in the same role within the same industry. The gradual changes in the requirements released by MOM would provide opportunity for the companies to prepare for changes in their workforce planning, if required.
As always, don’t hesitate to reach out to your Newland Chase dedicated contact or submit an inquiry here should you have any specific questions regarding this announcement.
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Case for any case- or company-specific assessments.
