MOM Increases Singapore EP Minimum Qualifying Salary

MOM Increases Singapore EP Minimum Qualifying Salary

The Ministry of Manpower increased the minimum monthly qualifying salary for the Employment Pass.

August 03, 2016 ( datsyn.com) – The Ministry of Manpower (MOM) has announced on Tuesday that the minimum qualifying salary for the Singapore Employment Pass will be raised to S$3,600 effective 1 January 2017.

According to the Manpower Ministry, this change is part of its plan to tighten qualifications for Singapore EP in order to ensure the quality of Singapore’s foreign workforce. Increasing the minimum compensation will also allow the ministry to keep pace with the local wages and improve complementarity to Singapore’s local labour force.

MOM has previously increased the minimum qualifying monthly salary from S$3,000 to S$3,300 in January 2014. Starting 1 January 2017, MOM will only be considering Employment Pass applications from candidates who can command a monthly compensation of at least S$3,600. Given that the applicants also fulfil other qualifications for the pass.

“The Singapore Employment Pass is intended for foreign individuals who are handling executive, managerial, or specialised work positions. There is no quota to the number of Employment Pass holders that companies registered in Singapore can hire as each application is evaluated by the MOM based on the qualifications of both the Singapore employer and candidate. The candidate must meet the following minimum qualifications if you intend to apply for an Employment Pass:  a job offer from an employer based in Singapore, a managerial, executive, or specialised, good educational background, professional experience and specialist skills, and a job offer that satisfies the minimum qualifying monthly salary,” mentioned a consultant from company registration specialist Richmond Corporate Advisory Pte. Ltd.

Companies that are registered in Singapore will be given lead time to help them adjust to the change. In this regard, current Employment Pass (EP) holders that will expire:

  • Before 1 January 2017: Employment Pass holders will be able to renew, for a duration of up to three years, based on existing EP criteria.
  • Between 1 January 2017 and 30 June 2017 (both dates inclusive): Employment Pass holders will be able to renew, for a duration of one year, based on the existing EP criteria.
  • 1 July 2017 onwards: Employment Pass holders will have to meet the new criteria for renewal, for a duration of up to three years.

The Ministry encourages both the employers and candidates to try the Self-Assessment Tool (SAT) in order to gauge if the candidate satisfies the minimum requires for the EP. If the SAT results are positive, this is an indication that the application has a higher likelihood of approval. In its press release, the Ministry indicated that the SAT will be updated on September 2016 in order to reflect the upcoming salary increase.

Richmond Corporate Advisory Pte. Ltd. (www.rbcrca.com.sg) offers cost-effective and expert Singapore company registration, offshore company formation, Singapore branch office setup, accounting, secretarial, bookkeeping, and taxation services to small and medium-sized private limited companies in Singapore.

 

Source: PR