Singapore Employment Pass New Salary Criteria
As a part of MOM’s continuous review of the manpower needs to support the Singapore economy, MOM have issued a press release updating the employment pass (EP) salary criteria for foreigners to suit the current economic climate and further enhancing the Fair Consideration Framework for the retention and expansion of hiring local talent.
From 1 September 2020, all EP applications must meet qualifications and salary criteria. The qualifying salary for new EP applications will be raised from $3,900 to $4,500 per month. All new EP applications will be assessed on the new qualifying salary subject to meeting other criteria based on academic qualifications and work experience. The current practice of assessing new EP applications for applicants with many years of work experience and the requirement to command double or more in higher salaries will continue.
If you are renewing your EP in 2021, all new renewal applicants will be bound by the new qualifications and salary criteria from 1 May 2021.
From 1 December 2020, the minimum salary criteria for employees in the Financial Services sector will be $5000 per month. EP applicants in their 40’s the salary criteria is a minimum of $10,000 per month. These changes are in line with the MAS efforts to encourage employers in the Financial Sector to employee and train local talent.
Additional considerations for employers when contemplating hiring foreigners are:
The employer has supported of hiring local PMET’s.
The employer is responsive and making efforts to recruit and train more Singaporeans.
If the employer has discriminated against a qualified Singaporeans during the recruitment process. Employers found to have discriminating recruitment or hiring practices will have its work pass privileges cut back and could face prosecution.
With regard to fair hiring practices, to give local talent time to respond to new job and employers to evaluate the applications received, job openings must be open for a minimum 28 days before an EP application can be filed with MOM.
If you have queries regarding the changes to the qualifying salaries for new EP applications and your current EP holder employees, please contact us at CSLB Asia via email at info@cslb-asia.com.
Updated 28/1/21