Singapore Employment Pass minimum qualifying salary to be raised to S $3,600 from $3,300, effective 1st January 2017

According to Ministry of Manpower announcement, the qualifying salary for Employment Pass (EP) applications is to be raised to S$3,600 from S$3,300, effective 1st January 2017.

This change is to keep pace with rising local wages, to maintain the quality of our Singapore’s foreign workforce and enhance their complementarity to the local workforce.

 

i.e. Starting from 2017, new EP applicants have to command a monthly salary of $3,600 or more, on top of fulfilling all necessary criteria on qualifications and experience.

Candidates with more years of experience are also required to command higher salaries, commensurate with their work experience and skill set.

 

As usual with new policy roll-out, there will be time for businesses to make adjustments. For existing EP holders whose passes are expiring: 

a)    Before 1 January 2017, they can renew for a duration of up to 3 years based on existing EP criteria

b)   Between 1 Jan – 30 Jun 2017, they can renew for a duration of 1 year based on existing EP criteria

c)    After 1 July 2017, they will have to meet new criteria for renewal, for up to 3 years

 

The latest change is implemented with the aim to strengthen the Singapore core and also ensure local PMEs could compete on equal grounds versus foreign employees.

 

More about doing business in Singapore

 

Want to know more about taxation for Singapore companies and funding available to Singapore businesses? Refer to our guides below.

TAX APPLICABLE TO SINGAPORE BUSINESSES

POPULAR GOVERNMENT FUNDING FOR CORPORATES