The minimum salary will increase by $600
Singapore will raise the salary criteria for foreign workers as part of the government’s updated foreign workforce policies.
On March 4, the government announced that the Employment Pass qualifying salary would increase from $5,000 to $5,600 per month, continuing to rise progressively with age, up to $10,700 for a candidate in their mid-40s.
In the Financial Services Sector, the EP minimum qualifying salary will increase from $5,500 to $6,200 per month, capping at $11,800 for a candidate in their mid-40s.
The new qualifying salary will apply to new EP applications from Jan. 1, 2025, and to renewal applications from Jan. 1, 2026, according to the press release.
According to the Ministry of Manpower, updates to the foreign workforce policies will “maintain a high quality and complementary foreign workforce; support industry transformation to achieve a more productive, manpower lean foreign workforce and create better jobs for locals; and uplift lower-wage workers and maintain the effectiveness of foreign workforce controls.”
The press release also noted that the majority of EP holders will not be affected by the changes, as most already earn above the new qualifying salary.
The MOM also announced it will be increasing the local qualifying salary for firms hiring foreign workers from $1,400 to $1,600 per month.
Firms hiring foreign workers will have to pay all local workers at least the LQS at a rate of at least $1,600 per month for full-time local workers and at least $10.50 per hour for part-time local workers.
“The LQS is regularly reviewed to keep pace with wage growth, maintain the effectiveness of foreign workforce controls and ensure that our lower-wage workers continue to be uplifted alongside the rest of Singapore. In fact, we have raised the LQS four times since 2017, with the last increase to $1,400 taking place in 2020,” the press release said.
As of June 2023, Singapore had 197,300 foreign workers on Employment Passes out of a total foreign workforce of 1,488,000. Meanwhile, 1,084,600 foreign workers are on work permits and 177,200 are on S passes.
