Budget 2022: Work pass changes expected to hit SMEs more than MNCs

SINGAPORE'S move to tighten work pass requirements could see international firms shifting certain work functions to elsewhere in the region amid rising cost pressures, while they keep their most skilled talent in the Republic, analysts and industry groups told The Business Times.

In his Budget speech on Friday (Feb 18), Finance Minister Lawrence Wong said that the government is raising the minimum qualifying salaries for Employment Pass (EP) and S Pass holders from Sep 1, with each category seeing an increase of at least S$500.

This will bring the minimum salary for EP holders to S$5,000 and that for S Pass ones to S$3,000. The minimum for workers in the financial services sectors is S$500 higher in both categories.