Singapore sets minimum salary requirements for work permits to ensure that foreign workers receive fair pay. These salary levels depend on the worker’s skills and the type of job they have.
Employers must follow these minimum salary rules if they want to hire foreign workers. In this article, we’ll explain about the three types of work passes. If you need to know which pass is needed for different jobs or want the latest updates on work permit salaries for 2024 in Singapore, we have all the details.
What is a Work Permit?
Work Permits (WP) are for foreign workers who are not highly skilled and come from specific countries, mainly from Asia like Malaysia, Hong Kong, South Korea, India, Thailand, and China. Although each job sector has its own list of approved countries.
In Singapore, employers must obtain work permits for workers from other countries to employ them legally. The permit includes areas like construction, shipyards, manufacturing, and certain service jobs. There’s no minimum salary required for these positions, but there are limits on how long you can stay and age restrictions.
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Types of Work Passes in Singapore
In Singapore, there are three main types of work passes, and they are based on how much education the worker has, what job they do, and how much they earn.
Employment Pass (EP):
This is for professionals, managers, and executives. To get an EP, you need to have a job that pays a high salary. The salary requirement for an EP is higher compared to other permits. This pass is for people with recognized qualifications and skills.
S Pass:
This is for mid-skilled workers. The salary for an S Pass is lower than for an EP. This pass is for those with diplomas or equivalent qualifications and skills in their field. It’s suitable for roles like technicians or specialists.
Work Permit (WP):
This is for lower-skilled workers, such as those in construction, manufacturing, or services. The Work Permit has the lowest salary requirement. This permit allows workers with less formal education to work in jobs that do not require high skill levels.
Employers and workers must understand which permit is needed for their specific job and situation, as each permit has different rules and salary requirements.
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2024 Updates for Work Permit Minimum Salary Singapore
As of 2024, the Ministry of Manpower (MOM) in Singapore has updated the minimum salary requirements for work pass holders.
For the Employment Pass (EP) holders, the minimum qualifying salary has been raised to SGD 4,500 per month for applicants in the Financial Services sector and SGD 3,500 for other sectors. This also applies to new applications and renewals.
The minimum qualifying salary for S Pass holders has been increased. For most sectors, the new minimum salary requirement is SGD 2,500 per month. This applies to new applicants and renewals.
The minimum salary requirements for Work Permit holders, which applies primarily to lower-skilled workers, are set at SGD 1,500 per month for the manufacturing sector and SGD 1,800 for the construction sector. These figures are based on the sector and specific job roles.
Employers need to make sure they meet the new salary requirements for Work Permit applications and renewals in Singapore. If they don’t comply, they could face penalties or run into problems with their applications.
The Ministry of Manpower (MOM) periodically reviews and updates these requirements, so it’s important for employers and foreign workers to stay informed about the latest changes. These changes usually take effect on a specific date each year.
Comparison of 2024 Work Permit Minimum Salary Singapore Updates with Previous Years
Here, we inform you how the minimum salary for Work Permit holders in Singapore has changed in 2024 compared to previous years:-
S Pass Holders
2024: The minimum qualifying salary is SGD 2,500 per month.
Previous Years:
- 2023: The minimum salary was SGD 2,500 per month, unchanged from the previous year.
- 2022: The minimum salary was SGD 2,400 per month.
Analysis: The minimum salary requirement for S Pass holders saw an increase of SGD 100 from 2022 to 2023 and remained at SGD 2,500 in 2024.
Employment Pass Holders
2024:
- SGD 4,500 per month for the Financial Services sector.
- SGD 3,500 per month for other sectors.
Previous Years:
2023:
- SGD 4,500 per month for the Financial Services sector.
- SGD 3,600 per month for other sectors.
2022:
- SGD 4,500 per month for the Financial Services sector.
- SGD 3,600 per month for other sectors.
Analysis: The minimum salary for Employment Pass holders in non-Financial Services sectors has been reduced from SGD 3,600 to SGD 3,500 in 2024.
Work Permit Holders
2024:
- SGD 1,500 per month for the manufacturing sector.
- SGD 1,800 per month for the construction sector.
Previous Years:
2023:
- SGD 1,500 per month for the manufacturing sector.
- SGD 1,800 per month for the construction sector.
2022:
- SGD 1,500 per month for the manufacturing sector.
- SGD 1,800 per month for the construction sector.
Analysis: The minimum salary requirements for Work Permit holders have remained unchanged from 2022 through 2024. This stability reflects the government’s strategy to maintain affordable labor costs for lower-skilled workers while encouraging skills development in higher-skilled roles.
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How Will the Work Permit 2024 Minimum Salary Requirements Impact Employers?
In 2024, employers will face significant impacts from the introduction of new minimum salary requirements for work permits. Here’s a simple breakdown of what to expect:
1. Increased Costs:
Employers will have to pay higher salaries because of the new rules. This means businesses will spend more on paying their workers. Some companies might have less money to spend on other things or need to cut costs in other areas.
2. Budget Adjustments:
Companies might need to change their budgets to cover higher salary costs. This could mean moving money from other areas of the business or cutting back on some expenses. Careful planning and budgeting will be important to handle these changes well.
3. Recruitment Challenges:
When salary expectations go up, it can be tough for companies to find the right people. If businesses can’t offer good pay, they might have trouble attracting skilled workers. This could make hiring slower or force companies to offer extra perks to make their jobs more appealing.
4. Employee Retention:
With the new salary rules, employers might need to change how they pay their current staff. They may have to review and update salaries to match the new standards. Doing this can help keep employees happy and reduce the chance of them leaving the company.
5. Business Planning:
Looking ahead will be crucial. Employers need to figure out how these changes fit into their long-term plans and make adjustments as needed. This might mean changing business models, updating pricing, or even expanding operations.
6. Impact on Small Businesses:
Small businesses could feel the changes more than big companies. They usually have fewer resources and less money to play with. Meeting new salary rules might be tough for them, so they might need extra help or find other ways to handle these changes.
In 2024, employers will need to pay higher minimum salaries for work permits. This means they will have to adjust their budgets and hiring plans. Although it might be tough, it’s a chance for businesses to rethink and improve how they pay their workers and plan their operations.
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We hope this article has answered all your questions about the latest salary requirements for work permits in Singapore for 2024. If you’re planning to work for a company in Singapore, use this information to prepare well and avoid any issues with your application.
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