Singapore has announced the implementation of stricter regulations for hiring foreign professional workers, alongside increased salary benchmarks, set to take effect from next year.

Changes in Minimum Qualifying Salary

Effective January 1, 2025, the Ministry of Manpower will raise the minimum qualifying salary for Employment Pass (EP) holders from SGD 5,000 to SGD 5,600 (USD 3,720 to 4,166) per month. This adjustment will be progressive with age, reaching up to SGD 10,700 for candidates in their mid-40s. The Ministry stresses that these changes aim to ensure fairness for local workers across different age groups.

Maintaining High-Quality Standards

The EP qualifying salary benchmark, which aligns with the top one-third of local Professional, Managerial, Executive, and Technical (PMET) wages, ensures that EP holders meet high-quality standards as outlined by the Ministry.

Objectives of the Revisions

These modifications are part of the Ministry’s broader revisions to foreign workforce policies. The objectives include sustaining a high-quality foreign workforce that complements local talent, supporting industry transformation for a more efficient and lean foreign labor force, creating better job opportunities for locals, and improving conditions for lower-wage workers while ensuring the efficacy of foreign workforce regulations.

Sector-Specific Adjustments

In sectors with higher wage standards, such as finance, a higher EP qualifying salary will remain applicable. Specifically, in the financial services sector, the EP minimum qualifying salary will rise from SGD 5,500 to SGD 6,200 (USD 4,092 to USD 4,613) per month, increasing progressively with age up to SGD 11,800 (USD 8,779) for mid-40s candidates.

Progressive Wages Initiatives

Aligning with Singapore’s Progressive Wages initiatives, companies employing foreign workers are mandated to pay all their local workers at least the local qualifying salary (LQS). The proportion of local workers receiving the LQS determines the company’s entitlement to foreign worker quotas. The LQS is regularly reassessed to match wage growth, uplift lower-wage workers, and regulate the foreign workforce. The increase in LQS from SGD 1,400 to SGD 1,600 (USD 1,041 to 1,190) per month, effective July 1, 2024, was initially announced in Singapore’s Budget 2024.

These measures reflect Singapore's commitment to fostering a competitive yet equitable labour market while prioritising the well-being and opportunities of both local and foreign workers.