Singapore increases minimum salary for Employment Pass to S$5,600 and S$6,200 for financial sector

The Singapore government announced plans to increase the minimum monthly qualifying salary for new Employment Pass (EP) applicants.

Starting next year, the threshold will be raised from the current S$5,000 to S$5,600 (approximately US$4,200). The financial services sector, known for its higher wage norms, will see an even more substantial increase, with a new minimum of S$6,200 a month, up from the current S$5,500.

This adjustment marks the first increase since September 2022 when the qualifying salaries for new applicants were raised by S$500. The change is said to be part of the government’s effort to ensure fair competition for local workers by aligning foreign professionals’ salaries with the top one-third of wages for local professionals, managers, executives, and technicians.

Manpower Minister Tan See Leng, who announced the changes on Monday (4 Mar) in the Committee of Suppy debate, emphasized the importance of regularly updating these thresholds. “By regularly updating the qualifying salaries based on the set wage benchmarks, we ensure a level-playing field for locals,” Dr. Tan stated during the ministry’s Budget debate.

For those looking to renew their Employment Pass, the new salary requirements will be implemented a year later, starting January 1, 2026. According to the Ministry of Manpower (MOM), the majority of current EP holders already exceed the new salary criteria and will not be affected by the upcoming adjustments.

In addition to the EP changes, Dr Tan highlighted the success of the Overseas Networks & Expertise (ONE) Pass, introduced in January 2023 to attract global talent to Singapore.

With nearly 4,200 applications approved, the ONE Pass targets high earners and achievers, offering them the flexibility to live in Singapore without a prior job arrangement. The pass requires a minimum monthly salary of S$30,000, though exceptions are made for those with outstanding achievements in various fields.

Dr Tan described ONE Pass holders as “rainmakers” vital to creating opportunities and generating employment in growth sectors such as finance and information and communications technology.

Furthermore, the government is set to introduce two initiatives aimed at encouraging Singaporeans to gain overseas work experience.

The Global Business Leaders Programme and the Overseas Market Immersion Programme are designed to support Singaporean professionals in securing overseas positions and training opportunities, with more details expected later this year.

The ministry reassured that the potential for Singaporeans to remain overseas after such stints is not a concern, highlighting the overall benefit to the economy from the skills and experiences gained abroad. This approach builds on the Global Ready Talent programme launched in 2019, which offers overseas internships and positions to young Singaporeans, aiming to prepare them for senior regional roles and support local companies in their international expansion efforts.