This GMS Flash Alert reports that Singapore’s Ministry of Manpower announced recently that the qualifying salary for Employment Pass (EP) applications will be raised with effect from 1 January 2017.
Singapore’s Ministry of Manpower (MOM) announced on 26 July 2016, that the qualifying salary for Employment Pass (EP) applications will be raised from S$3,300 to S$3,600 per month with effect from 1 January 2017.1
Foreign national employees working in Singapore under an EP, effective 1 January 2017, will need to be paid a minimum salary of S$3,600 per month. Employers will need to take note of the new salary criteria effective from 1 January 2017 and the transition period for implementation of the new qualifying minimum salary and plan accordingly for their manpower needs.
Failure to meet the new minimum salary threshold could mean that the EP application or renewal of an existing EP will not be possible.
The current qualifying salary for EP applications is S$3,300 per month. The previous qualifying minimum salary update for EP was in January 2014 when it was raised from S$3,000 to S$3,300 per month.1
[S$1 = US$0.737 | S$1 = £0.553 | S$1 = A$0.975 | S$1 = €0.656]
The change is part of the MOM’s regular update to the EP qualifying salary to maintain parity with increasing local wages. It also serves to raise the overall quality of the foreign work-force to better complement the local work-force. Changes Take Effect from 1 January 2017 From 1 January 2017, EP applicants will need to earn a minimum salary of S$3,600 per month in addition to meeting the other existing criteria on qualifications and work experience. Applicants with more experience are also expected to command higher salaries commensurate with their experience and skill sets as per current requirements.
From 1 January 2017, EP applicants will need to earn a minimum salary of S$3,600 per month in addition to meeting the other existing criteria on qualifications and work experience. Applicants with more experience are also expected to command higher salaries commensurate with their experience and skill sets as per current requirements.
To give employers time to adjust to the new criteria, the MOM will allow lead time as follows:
For existing EP holders whose passes expire:
a) before 1 January 2017: EP holders will be able to renew, for a duration of up to three years, based on existing EP criteria;
b) between 1 January 2017 and 30 June 2017 (both dates inclusive): EP holders will be able to renew, for a duration of one year, based on existing EP criteria;
c) 1 July 2017 onwards: EP holders will have to meet the new criteria for renewal, for a duration of up to three years.
1 For further information, see the MOM’s press release “Update to Employment Pass Salary Criteria” of 26 July 2016.
This article is excerpted with permission from “Singapore Increases Qualifying Salary for Employment Pass Applications Effective 1 January 2017,” in Immigration Alert (Issue 01, August 2016), a publication of the KPMG International member firm in Singapore.
For additional information or assistance, please contact your local GMS or People Services professional* or one of the following professionals with the KPMG International member firm in Singapore:
BJ Ooi, Partner, Head of GMS
Tel. +65 6213 2657
Dennis McEvoy, Partner
Tel. +65 6213 2645
Daniel Seow, Manager
Tel. +65 6213 3388
* Please note the KPMG International member firm in the United States does not provide immigration services.
The information contained in this newsletter was submitted by the KPMG International member firm in Singapore.
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