The Latest Changes to Employment Pass in Singapore – Higher Minimum Salary
Have you been considering a move to Singapore lately? If you want to work in Singapore or open up a business there, then listen up! To support the opportunities of locals, some changes have been made to the Employment Pass and S Pass requirements. Read on for the summary of changes and our expert opinion on how this will affect you.
Increase in employment pass minimum monthly salary
Starting 1 September 2020, the minimum monthly salary requirement for new employment passes will become S$4,500, compared to the S$3,900 it used to be. If a candidate is more experienced, then they must receive a higher salary accordingly. For those who have signed up for renewals, this new requirement will apply to you from May of 2021.
Increase in employment pass minimum monthly salary for the Financial Services Sector
Following the previous point about the increase of minimum salary for EP applicants, the minimum monthly salary for new applicants from the Financial Services Sector will become S$5,000 starting 1 December 2020. Of course, candidates who are more experienced should be receiving higher salaries. For those who have applied for EP renewals in the Financial Services Sector, this requirement will only apply to you from 1 May 2021.
Increase in S Pass minimum monthly salary
Starting 1 October 2020, the minimum monthly salary for all S Pass applicants will be S$2,500 instead of S$2,400, with those who have more experience requiring higher salaries. For renewal applicants, this rule will take effect starting 1 May 2021. S Pass levies and quotas remain the same.
Considerations for employment pass and S Pass applications
The Ministry of Manpower stated that in light of the Coronavirus pandemic, employers should try to build and maintain a core group of Singapore employees. They also announced that they will be taking into account the following when considering pass applications:
- Whether the employer has supported local professionals, managers, executives and technicians (PMETs) in their employment; and
- Whether the employer has been active in the government efforts to help hire and train more Singaporean PMETs.
Fair consideration framework
Currently, the fair consideration framework requires employers to advertise their job vacancy on MyCareersFuture for two weeks and consider local applicants before submitting a new employment pass application. Starting 1 October 2020, the framework will require the vacancy to be left on MyCareersFuture.sg for EP and S Pass applicants for 28 days, and that the advertisement will extend to new S Pass applications too.
If an employer’s PMET workforce profiles show a bias against local talent, the Ministry will place them on the fair consideration framework watchlist and will observe their EP and S Pass applications with greater scrutiny.
What all of this means
These rules may sound daunting at first, but they will actually work to the locals’ advantage. The increase in the minimum salary of employment pass and s-pass applicants will positively impact you if you are a local and will help you earn more money. The additional time of job postings left online will also give employers more time to find experienced locals and applicants before they hire a foreigner.
As an employer, you can always hire an expert visa consultant to help you understand the laws of the fair consideration framework and find the perfect applicant while avoiding being put on watch-lists by the Ministry.
In conclusion, Singapore is only moving forward. Employers will start aiming to hire high-quality foreigners with more experience, and they will receive a higher salary. If all this seems like a good fit for you, then contact our immigration consultant at +65-63854386 or firstname.lastname@example.org to help you with your visa applications today!