Corporate Immigration — Singapore to raise salary criteria for Employment Pass Holder
Santa Fe publication date
5 March 2024
Overview
The Minister of Manpower announced on 4 March 2024 that the increase of Employment Pass minimum salary will be effective from 2025.
Who will be affected?
- Applicants applying for Employment Pass from 1 January 2025
- Current Employment Pass holder seeking to renew pass from 1 January 2026
- Employers / Local sponsors of Employment Pass
Background
The Minister of Manpower, Dr. Tan See Leng announced recently that the minimum EP qualifying salary will be raised from $5,000 to $5,600 per month. The qualifying salary will incrementally increase with age, reaching up to $10,700 for individuals in their mid-40s. This approach aims to maintain a fair playing field for local workers across all age groups.
For the Financial Services sector, known for its higher wage standards, a higher EP qualifying salary will be upheld. Specifically, the EP minimum qualifying salary for this sector will be heightened from $5,500 to $6,200 per month. This increase will also be scaled progressively with age, up to $11,800 for candidates in their mid-40s.
The revised EP qualifying salary adjustments will be applicable to new EP applications starting from January 1, 2025, and to renewal applications from January 1, 2026. This phased implementation timeline allows businesses ample time to adapt to the upcoming changes.
The Employment Pass (EP) qualifying salary benchmark is determined based on the top one-third of local PMET wages, ensuring that EP holders maintain a high quality standard.
This adjustment marks the first increase since September 2022, when the qualifying salaries for new applicants were raised by S$500.
Impact
The increased salary requirements could lead to a tighter labour market and rising business costs.
Date of implementation
New EP application: 1 January 2025
EP Renewal application: 1 January 2026
Santa Fe recommendation
We recommend businesses adjust their hiring policy and review their current foreign workforce salary benchmarks to adapt to the new qualifying salaries for EP.
Contact us
Please get in touch with us for further information or clarification:
Leesa Abdullah
Immigration Manager — Singapore
Santa Fe Relocation
leesa.abdullah@staging.santaferelo.com
Robert Day
Group Head of Immigration Operations
Santa Fe Relocation
robert.day@staging.santaferelo.com
About our Immigration Services
Our distinguished immigration services oversee a substantial volume of visa applications annually, catering to a diverse array of international corporations. Our seasoned team of immigration experts and accredited migration agents are entrusted with the meticulous management of the entire immigration process on your behalf. We are committed to delivering streamlined reporting and offering comprehensive guidance on all immigration-related affairs, ensuring a smooth and efficient experience for our valued clients.
