New Salary Thresholds for Foreign Workers in Singapore: What does it mean to you?

To keep pace with increases in local’s wages and to encourage companies to be more selective when hiring foreign talent, the Ministry of Manpower (MOM) will raise the salary thresholds for the Employment Pass and the S Pass.

From July 1, to qualify for an S Pass, an applicants’ monthly salary will have to be S$2000 or more, up from S$1800.

Similarly, the qualifying salary thresholds for the three categories of Employment Pass holders – Q1, P2 and P1 – will be raised to S$2800, S$4000 and S$8000 respectively.

Employers of existing Employment Pass and S Pass holders will be given one time renewal of up to 2 years to meet the salary thresholds. Further renewal will be subjected to the new salary criteria.

Source: Today Newspaper

Recently, they announce additional levy to foreign workers ranging from few hundred dollars. To those who are not aware what levy is, its money paid by a company to employ a foreigner.

The new announcement is another expense for the company and another blow for those foreign workers seeking employment in Singapore. Small companies may find it too much, thus hiring local talents instead. In which, Singapore government is enforcing though they cannot eliminate their dependence in foreign workers.

For existing S Pass holders, it could only mean few things. Raise your salary to qualify for the new threshold, or the worst part is letting you go. Few will resort to under the table negotiations, where the salary the foreign workers receive is lower that what they stated in the work pass applications. This only happens if both parties agreed to it, though a bit risky because it is not legal. I know some who are practicing this method.

I wonder if everything will be the same again since I first arrived in Singapore. Plenty of jobs for foreigners, competition is not tough and government is willing to do everything to lure foreign talents.

Now it seems everything is changed, we are heading for tougher times. Brace yourself and keep employed.

ministry of manpower

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About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at) or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

One comment

  1. Thanks a lot for the article. Awesome.

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