Reminder: S Pass qualifying salaries set to increase

IMPACT – MEDIUM

What is the reminder? Employers are reminded that on Jan. 1 qualifying salary requirements for new S Pass applicants will increase from $SG2,300 to $SG2,400 (from about US$1,689 to US$1,763).

• Implementation time frame: The new salary minimum will take effect for new S Pass applicants on Jan. 1; it will take effect for renewal applicants on July 1, 2020.
• Visas/permits affected: S Passes (new and renewal applications).
• Who is affected: Employers sponsoring S Pass employees.
• Business impact: Businesses may see an increase in labor costs because of the new salary threshold.

Additional information: The Jan. 1 increase is the second part of a two-step wage hike after the Ministry of Manpower increased the qualifying salary to SG$2,300 on Jan. 1, 2019. Fixed monthly allowances (if it is paid directly to the employee and reflected on their payslip) can be included when calculating an employee’s salary. Employees must be paid according to their experience, and experienced employees will likely need to be paid above the salary minimum in order to qualify for an S Pass.

Analysis & Comments: The Jan. 1 qualifying salary will mark a 4.3% increase over this year’s level and a 9.1% increase over the 2018 level. Employers should factor the new salary requirements into their planning.

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