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SINGAPORE: Upcoming Higher Minimum Salary Requirement
August 9, 2016
Any employer in Singapore, who plans to sponsor foreign nationals for employment passes on or after 1st January 2017, should be aware of the upcoming changes to the minimum salary levels. Employers should use the self-assessment tool on the Ministry of Manpower website to assess if the potential employee will meet the new salary level.
From 1st January 2017, Singapore government has announced an increase in the minimum qualifying salary for Employment pass (EP) applications from SGD$3300 to SGD$3600. Those with more years of experience are required to command higher salaries commensurate with their work experience and skill sets, as per current practice.
The previous update to the minimum EP qualifying salary was in January 2014, from SGD$3000 to SGD$3300.
Grace Period for Existing EP Holders:
- Existing EP holders whose passes expire before 1st January 2017 will be able to renew, for a duration of up to three years, based on the existing EP criteria.
- Existing EP holders whose passes expire between 1st January 2017 and 30th June 2017 (both dates inclusive) will be able to renew, for a duration of one year, based on the existing EP criteria.
- Existing EP holders whose passes expire from 1st July 2017 onwards will have to meet the new criteria for renewal.
Advice
Employers in Singapore planning to sponsor foreign nationals for employment passes on or after 1st January 2017 should take into account the upcoming change to the minimum qualifying salary.
Employers are encouraged to use the Self-Assessment Tool (SAT) on the MOM website to assess if their EP candidates will meet the new salary criteria. The SAT will be updated by November 2016.
If you require any additional information regarding the increase in minimum salary requirements for Singapore, please contact a member of our team at [email protected].
