Starting January 1, 2025, future Singapore Employment Pass (EP) applicants and renewals will face an adjusted monthly salary requirement.
This adjustment marks a departure from the status quo, with the minimum qualifying wage set to rise to $5,600 from the current standard of $5,000, VisaGuide.World reports.
Effective immediately, individuals working in financial services must meet an increased monthly salary threshold of $6,200, a significant increase from the previous standard of $5,500.
Significant Rise in Minimum Qualifying Wages for Mid-40s Professionals & Financial Sector Employees
Manpower Minister Tan See Leng, speaking during the Ministry of Manpower’s (MOM) budget debate on March 4, said the qualifying wage for Employment Pass applicants will gradually increase with age.
For experienced professionals in their mid-40s, the minimum qualifying wage shows a notable increase, reaching $10,700. Similarly, those in the financial services field will reach up to $11,800.
With the strategic timing of these policy adjustments, companies housing existing EP holders are given an extended runway, potentially extending to 2028.
Even as we continue to attract top talent to grow our economy, our work pass framework needs to be strengthened to ensure that firms develop their local workforce and treat locals fairly.
Sector’s DRC Drops to 75%, Tightens Foreign Worker Ratio
Under the revised guidelines, the EP remains valid for up to two years for initial holders and up to three years for renewals. However, while adjustments are being made to the EP criteria, there will be no immediate changes to the S Pass qualifying salary and fee in 2024. Instead, these changes are planned for 2025, following a series of increases with phases described in the 2022 budget.
Moreover, as part of the broader restructuring efforts, the sector’s dependency ratio ceiling (DRC) will gradually be lowered from 77.8 percent to 75 percent. This translates into a reduced maximum ratio of foreign and domestic workers, from 3.5 to 3.
The tax adjustments also include the fee for work permit holders with basic skills in this sector, which will increase from $400 to $500, and for counterparts with higher skills, it will increase from $300 to $350.
Additionally, implementing the Compass framework since September 2023 has marked a significant milestone in assessing EP applications, with 20 percent of new EP holders using bonus points to navigate the assessment process. This framework will be extended to EP renewals from September 2024, further streamlining and standardizing the assessment process.