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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).
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.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
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