Singapore’s government announced plans to increase the salary requirements for foreign executives and professionals eligible for employment passes starting next year. Effective January 2025, the minimum monthly salary for foreigners seeking employment passes will rise to S$5,600, up from the current S$5,000.
Similarly, individuals working in the financial sector will be subject to a higher qualifying salary of S$6,200, compared to the previous threshold of S$5,500.
According to the manpower ministry, the adjustment aims to uphold the quality of employment pass holders and ensure a fair playing field for local workers.
Singapore, known as a key business hub in Southeast Asia, has traditionally attracted foreign companies for regional operations. However, concerns among the local population regarding competition for job opportunities have made foreign labor a contentious issue.
As of June 2024, Singapore’s employment pass holders numbered 197,300, constituting a significant portion of the country’s foreign workforce, which totals approximately 1.5 million individuals in a population of 5.9 million.
The decision to raise the salary criteria comes amidst ongoing adjustments in response to the COVID-19 pandemic, with the salary floor for hiring foreigners having been raised three times since 2020.
The latest adjustment underscores Singapore’s commitment to managing its labor market dynamics and balancing the needs of foreign workers with those of the local population.
By increasing the salary thresholds for employment passes, the government seeks to ensure that foreign professionals contribute significantly to the economy while mitigating concerns related to job competition and wage disparity.