The Ministry of Manpower (MOM), Singapore has modified the foreign worker policy. As per the modifications, the minimum qualifying salary for foreign workers to become eligible for Employment Pass or EP has been increased from $5,000 to $5,600 per month. It is this EP that allows professionals from outside Singapore to work in Singapore.
This modification will come into effect from 1 January 2025. Applications renewed from 1 January 2026 will also have to follow the same revised norms.
This qualifying salary will continue to increase as the individual ages, and go up to $10,700 for those in the mid-40s. The objective is to ensure a level of parity for the citizens of Singapore, across age brackets.
The benchmark for the EP qualifying salary is decided on the basis of the top one-third of local PMET1 wages. This ensures high-quality professionals get EP. The qualifying salary to receive EP is assessed every year against the benchmark.
However, the EP-qualifying salary will be higher for the financial services sector, where the wages are higher. It will go up to $6,200 per month from the earlier $5,500. As the individual ages, this will increase to up to $11,800 for a person in their mid-40s.
Additionally, the local qualifying salary or LQS limit is also being hiked by the Singapore government. All organisations that hire foreign professionals will have to ensure that the locals in their workforce are paid at least the LQS, which will go up from $1,400 to $1,600 per month. That means, starting July 2024, a minimum of $1,600 per month will be paid for full-time local workers or at least $10.50 per hour for part-timers.
