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IMPACT – MEDIUM
What is the change? The minimum salaries required for Employment Pass and S Pass holders to sponsor family members will increase by 20 percent over the current levels starting on Jan. 1.
What does the change mean? Employees must earn a minimum fixed monthly salary of 6,000 Singapore dollars (about US$4,450) to sponsor a spouse or child on Dependent’s Passes and S$12,000 to sponsor parents on Long-Term Visit Passes.
Background: Under current criteria, expatriate employees must earn a fixed monthly salary of S$5,000 to sponsor a spouse or children under 21 and S$10,000 to sponsor a parent.
BAL Analysis: Employers and individuals should factor in the changes when planning assignments. The increases may be prohibitive for some employees and could pose challenges for employers seeking to attract and retain foreign employees to Singapore. Companies may need to review and make necessary adjustments to current foreign employees’ salaries so that they may retain passes for their dependents.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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