Budget 2022: Minimum salaries for Employment Pass, S-Pass holders to increase from September

THE government is raising the minimum qualifying salaries for Employment Pass (EP) and S-Pass holders from Sep 1, 2022, said Finance Minister Lawrence Wong on Friday (Feb 18).

This is to ensure that EP and S-Pass holders are of the right calibre and quality, he said in his Budget speech in Parliament.

The minimum qualifying salary for new EP holders will be raised to S$5,000 from S$4,500. For the financial services sector, which has higher salary norms, the minimum will go up to S$5,500, from S$5,000.

The qualifying salaries for older EP applicants, which increase progressively with age, will also be raised in tandem.

For EP renewal applicants, the new salary requirement will be put in place from Sep 1, 2023, to give businesses time to adjust.

The government will also refine how EP applications are assessed "to improve the complementarity and diversity of our foreign workforce, and also to increase certainty and transparency for businesses," Wong said.

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As for S-Pass holders, the raises will be done in phases from 2022 to 2025.

From Sep 1, 2022, the minimum qualifying salary for new applicants will be raised to S3,000 from S$2,500, while the minimum for financial services sectors will be raised to S$3,500.

The qualifying salaries for older S-Pass applicants, wich increase progressively with age, will also be raised in tandem.

Thereafter, the minimum qualifying salaries will be raised in Sep 2023 and 2025, with the specific values announced closer to the implementation date.

In 2023, the government expects the minimum will be raised to at least S$3,150 for all sectors, and at least S$3,650 for the financial services sector.

In 2025, the minimum is expected to be at least S$3,300 for all sectors, and at least S$3,800 for the financial services sector.

Similar to EP renewal applications, the minimum salary requirement for S-Pass renewal applicants will be implemented from Sep 1, 2023 to allow businesses time to adjust.

The Tier 1 levy will also be progressively raised to S$650 from the current S$330 by 2025, to better manage the flow of S-Pass holders.

The government is aiming to ensure that EP holders are comparable in quality to the top one-third of local professionals, managers, executives and technicians workforce, and that S-Pass holders are comparable to the top one-third of local Associate Professionals and Technicians.

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