Singapore raises salary criteria for hiring foreign professionals

SINGAPORE: Singapore has announced tightening rules for hiring foreign executives and professionals. Starting January next year, the salary criteria for employment passes, typically granted to high-paid professionals, will increase.

Currently set at S$5,000, the new threshold will require foreigners to earn S$5,600 or more per month to qualify for employment passes. For professionals in the financial sector, the qualifying salary will see a steeper hike, rising from S$5,500 to S$6,200.

These adjustments aim to ensure that Employment Pass (EP) holders contribute significantly to the workforce, with the Ministry of Manpower painting the move as a bid to prioritize high-quality foreign talent and address concerns about foreign labor and competition for job opportunities among the local population.

Singapore has been a favoured location for regional headquarters of foreign firms. However, the influx of foreign workers has been a persistent concern for locals.

The Ministry of Manpower explained that these adjustments are essential to “maintain a level playing field for locals.”

As of June last year, Singapore had 197,300 foreigners on employment passes out of a total foreign workforce of about 1.5 million in a country with a population of 5.9 million.

The government has raised the salary floor for hiring foreigners three times since the onset of the pandemic in 2020, with the most recent adjustment, from S$4,500 to S$5,000, taking effect in September last year.

The latest change has been positioned to continue Singapore’s approach to managing its labour market amid global uncertainties.