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Singapore raises Employment Pass salary requirement effective January 2025
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Singapore raises Employment Pass salary requirement effective January 2025
With the recent unveiling of Budget 2024 on 16 February 2024, Mr Lawrence Wong, Deputy Prime Minister, and Minister for Finance outlined Singapore's strategic focus on a shared economy, underscoring the nation's commitment to sustainable growth and innovation.
Aligning with the above, the Ministry of Manpower (MOM) has announced significant revisions to the qualifying criteria for Employment Pass (EP) applicants. Effective from January 2025, the minimum monthly qualifying salary for EP applicants will increase. However, for EP renewal applicants, the new qualifying salary will not take effect until 1 January 2026, as indicated in the table below:
EP applicants | Existing minimum qualifying salary | New minimum qualifying salary |
| General | S$5,500 | S$6,200 |
| Financial services sector | S$5,000 | S$5,600 |
The last EP increase was in September 2022, when the minimum qualifying salaries for the two categories were raised by S$500. This adjustment reflects the government's responsiveness to evolving wage norms and ensures equitable opportunities for both local and foreign professionals.
In parallel with these regulatory updates, MOM introduced the Overseas Networks & Expertise (ONE) Pass in 2023, to attract high-achieving individuals to Singapore. With nearly 4,200 approved applications, it's become a pathway for top-tier talent to contribute to the economy.
Additionally, the government's commitment to nurturing local talent is exemplified through initiatives such as the Global Business Leaders Programme and the Overseas Market Immersion Programme. These initiatives offer Singaporeans invaluable opportunities to gain overseas work experience, develop leadership skills, and contribute to the internationalisation of Singaporean businesses.
Any increase in the minimum salary requirement for the EP is set to significantly influence various facets of businesses operations. From recalibrating recruitment strategies to revising budget allocations and day-to-day functioning, organisations are facing multifaceted challenges.
With regards to recruitment, businesses must now reassess the viability of acquiring or extending employment passes for foreign talent. This process involves navigating potential hurdles such as protracted application procedures, rejections, and subsequent appeals, which could delay the fulfilment of manpower needs.
Furthermore, the upward adjustment of the minimum salary threshold is expected to exert considerable pressure on smaller enterprises. Aligning with revised salary norms poses a substantial financial challenge, potentially impacting overall profitability and squeezing already narrow profit margins.
We can help your business prepare for these new adjustments and navigate through the ever-changing policies. Contact us today to learn more.
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