Higher S Pass qualifying salary of S$3,300 from Sep 1; levy raised to S$550
This is the third in a series of wage threshold rises announced in Budget 2022
IN THE third hike in three years, Singapore’s minimum qualifying salary for S Pass applicants will be raised to S$3,300, from S$3,150 previously.
The qualifying salary will continue to increase progressively with age, up to S$4,800 for those in their mid-40s, said Manpower Minister Tan See Leng on Thursday (Mar 6), confirming changes that had been tentatively announced in Budget 2022.
Wage thresholds will remain higher for S Pass holders in financial services, given its higher wage levels. The sector’s qualifying salary will be raised to a minimum of S$3,800, from S$3,650 before, and progressively rise to S$5,650 for those in their mid-40s.
The higher qualifying salaries apply to new applicants from Sep 1, 2025, and renewals from Sep 1, 2026.
From Sep 1, 2025, the Tier 1 S Pass levy will also rise to S$650 from S$550 before, making it equal to the Tier 2 levy.
The government seeks to ensure that S Pass holders are comparable to the top third of local associate professionals and technicians. In the last two hikes, the minimum qualifying salary was raised to S$3,000 in 2022, then S$3,150 in 2023. For financial services, it was raised to S$3,500 in 2022, then S$3,650 in 2023.
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EP holders
Responding to questions from Members of Parliament, Dr Tan also gave an update on the Complementarity Assessment Framework (Compass), which assesses Employment Pass applicants.
Since Compass was introduced in September 2023, about 30 per cent of the current EP stock has gone through it.
Applicants score points across different criteria, including “diversity”, which considers the share of the applicant’s nationality among the employer’s PMET (professionals, managers, executives and technicians) workforce.
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Due to this diversity criteria, the share of firms with “higher dependence” on foreigners of a single nationality has fallen by 7 per cent, said Dr Tan. The share of firms with “higher dependence on foreigners generally” has decreased by 15 per cent.
These firms have also created 4,000 more PMET jobs for locals, he added.
M-SEP changes
Also enhanced was the Manpower for Strategic Economic Priorities (M-SEP) scheme, which provides foreign labour flexibility.
The M-SEP scheme currently allows firms to access additional work permit and S Pass holders for two years, if they fulfill two conditions. First, they must contribute to Singapore’s economic priorities through investment, innovation or internationalisation activities. Second, they must commit to hiring and training locals, in one of three ways.
From May 1, the scheme’s support duration will be extended to three years.
There will be an added fourth way to satisfy the local workforce condition: by committing to send locals on overseas programmes for exposure or leadership.
And there will be more programmes under which firms can meet the eligibility criteria, though these have not yet been specified.
With these changes, firms will get a longer runway to tap on the manpower flexibilities, better supporting their growth and development plans, said MOM. Meanwhile, local workers will benefit from overseas training opportunities.
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