IMPACT – MEDIUM

What is the change? Singapore will soon increase the monthly minimum salary for Employment Pass holders from SG$3,600 to SG$3,900, while older and more experienced candidates are expected to be paid at a higher rate commensurate with their skills and experience. The Ministry is also focusing on the tightening of the Fair Consideration Framework, and will broaden advertising requirements for Employment Passes to include jobs paying up to SG$20,000 per month.

  • Implementation time frame: The changes are set to take effect May 1, 2020. The salary minimums will initially only be applicable for first-time applicants, but will apply to renewals beginning on May 1, 2021.
  • Visas/permits affected: Employment Passes.
  • Who is affected: Companies sponsoring foreign workers on Employment Passes.
  • Next steps: Employers should update their policies and budget for the higher salaries as necessary.

Additional information: The increase to the Employment Pass salary minimum will be the first such increase since 2017, when the minimum was increased from SG$3,300 per month to the current SG$3,600. Officials also announced that beginning May 1, 2020, they will require all jobs paying up to SG$20,000 per month to be advertised on the jobs portal MyCareersFuture.sg for at least 14 days before an Employment Pass application can be submitted. Currently, only jobs paying up to SG$15,000 per month must be advertised.

Separately, the “local qualifying salary” or the minimum salary a local worker must earn to count towards a company’s quota for hiring foreigners on Work Permits and S Passes will be raised from SG$1,300 to SG$1,400 beginning July 1, 2020.

Analysis & Comments: Employers should update their policies and budget for the higher salaries as necessary. Employers should also note that new advertising requirements will take effect from May 1, 2020, and that all jobs paying up to SG$20,000 per month must be advertised locally before they can be opened up to foreign employees.

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