Singapore (Commonwealth Union)_ In a significant update to its foreign workers’ policy, Singapore’s Ministry of Manpower (MOM) has unveiled a revised salary structure for Employment Pass applications. This new work policy, which will come into effect on January 1, 2025, aims to elevate the caliber of foreign talent while balancing the interests of local workers. Accordingly, the revised salary benchmarks, announced in August 2024, are based on the Ministry’s annual Comprehensive Labour Force Survey conducted by the Manpower Research and Statistics Department (MRSD). These adjustments reflect Singapore’s ongoing commitment to maintaining a competitive and fair employment environment.
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The updated salary benchmarks introduce different requirements for various sectors. For most sectors outside of financial services, the minimum salary required for Employment Pass qualification starts at S$5,000. This figure will progressively increase based on the applicant’s age, reaching up to S$10,500 for individuals aged 45 and above. For the financial services sector, the starting minimum salary is set higher at S$5,500, with increments also based on age. For those in this sector who are 45 years old or older, the maximum required salary will be S$11,500.
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The new salary benchmarks will apply to initial Employment Pass applications as of January 1, 2025. For renewals, these benchmarks will be applicable to passes that expire on July 1, 2025. Meanwhile, the current salary benchmarks, introduced in May 2023, will continue to apply to initial applications filed until December 31, 2024, and renewals for passes expiring from September 1, 2024, to June 30, 2025.
Under the new work policy, the Complementarity Assessment Framework (COMPASS) will play a crucial role in evaluating Employment Pass applications. Specifically, to qualify under the COMPASS salary criterion (category C1), employers must ensure their foreign employees meet the new minimum salary requirements. Failure to meet these benchmarks will result in no points being awarded in category C1, potentially impacting the applicant’s ability to gather the necessary 40 points for obtaining or renewing an Employment Pass. Additionally, analysts have highlighted that meeting the C1 salary criterion is essential for securing a successful Employment Pass application or renewal. If the foreign workers’ salary falls short of the specified thresholds, they will need to compensate by meeting other COMPASS criteria to achieve the required points.
Furthermore, Singapore’s updated salary benchmarks reflect a strategic move by the Ministry of Manpower to attract high-quality foreign talent while safeguarding local employment interests. By adjusting salary requirements, the new work policy seeks to ensure that the foreign workforce contributes positively to the Singaporean economy, aligning with the nation’s long-term labor market goals. As the implementation date approaches, employers and foreign talents alike must prepare to comply with these new standards to facilitate smooth transitions and continued success in the competitive Singaporean job market.
