SINGAPORE - Minimum Salary Levels Set to Increase
The increased minimum salary levels for Employment Passes and S Passes announced by the Ministry of Manpower in March 2011 are due to take effect from 1 July 2011.
What Are The Increased Salary Levels?
Effective 1 July 2011, the following minimum salary levels will apply for all new work pass applicants:
- Employment Pass P1: $8000SGD/month (equivalent to approximately €4600EUR $6500USD). This is up from $7000SGD/month
- Employment Pass P2: $4000SGD/month equivalent to approximately €2300EUR or $3250USD. This is up from $3500SGD/month)
- Employment Pass Q1: $2800SGD/month equivalent to approximately €1600EUR or $2300USD. This is up from $2500SGD/month
- S Pass: $2000SGD/month, equivalent to approximately €1200EUR or $1650USD. This is up from $1800SGD/month.
What Are The Different Categories?
- Employment Passes are for professional, managerial, executive or specialist jobs. The different categories (P1, P2 and Q1) correspond to salary and, broadly speaking, the higher the salary is, the fewer the additional justifying criteria for the issuance of the Pass. In addition, P Pass holders can apply for Long Term Social Visit Passes for non-traditional dependents (e..g common law spouses or parents and parents- in law), while Q Pass holders do not obtain these privileges. More information can be found at the Ministry of Manpower website here.
- The S Pass is for mid-level skilled foreigners (e.g. technicians), and is subject to additional qualifying criteria as well as a quota system, whereby a maximum of 25% of a company’s total workforce may be S Pass holders. In addition, only S Pass holders with a higher salary, of at least $2500SGD/month, qualify to bring dependents to Singapore. . More information can be found at the Ministry of Manpower website here.
What About Existing Work Pass Holders?
The new minimum salary levels apply only to new work pass applications. Existing work pass holders will be given one renewal of up to two years at the previous salary rates before they are required to adjust salaries to meet the new criteria.
Can Allowances Be Included?
The minimum salary levels apply to the “fixed monthly salary”, i.e. the salary paid to the employee each month, exclusive of any variable payments such as reimbursements, variable incentive payments, overtime or bonuses, or pension contributions Travelling or housing allowances may be included as long as these are fixed and non-variable.
- Note the new minimum salary levels, and review upcoming transfers to Singapore to ensure that these are met.
- Review existing work pass holders’ terms and conditions in Singapore, as new minimum salary levels will need to be met; although one off renewals of up to two years will be granted under existing salary levels.