Why Singapore raised employment pass salary criteria to $4,500? What are the reasons and who will benefit from it?
Covid-19 & Local Employment in Singapore
Covid-19 pandemic has stressed global economy in many ways. Countries like Singapore are trying to cope up with this disruption. It has caused the unemployment rate in Singapore to increase from 2.3% to 2.4% in Q1 of 2020. The rate is expected to rise and has caused Singapore government to take some steps to protect the livelihood of its local population.
For the last couple of decades, Singapore proved to be one of the best destinations for professionals from all over the globe. It still is. And the government still welcomes qualified foreign professionals. However, Covid-19 pandemic has forced it to prioritize welfare and job security of its local workforce.
The foreign managers, executives, specialists, and professionals who want to work in Singapore needs Singapore employment pass, a work visa. For more details on the eligibility requirements, approval criteria, application process and timeline, go through an employment pass guide.
Changes in Employment Pass Salary Criteria
Today, the government wants to keep foreign recruitment absolute essential. To ensure it, it has raised Singapore employment pass criteria to S$4,500 from S$3,900. It came into effect on 1st September 2020.
Now, Singapore companies wanting to hire foreign employees must pay a minimum of S$4,500. As per the Ministry of Manpower, this change in the policy will affect older and experienced foreign employees as they will need to earn higher salaries. They will now have to earn double salaries than younger applicants.
MOM has also announced an industry-based criterion for Singapore employment pass applicants in the financial sector. They, from 1st December 2020, will have to earn a minimum salary of S$5,000.
The government has also increased qualifying salary for the S pass workers in Singapore. Now, they will have to earn a minimum of S$2,400 instead of S$2,500. It means older and experienced S pass employees will need to earn a higher salary.
Learn about employment pass guide in Singapore here https://www.sbsgroup.com.sg/singapore-employment-pass-ep-guide/