E-Pass and S-Pass salary threshold to be raised

SevenEleven SG

To keep pace with increases in locals’ wages and to encourage companies to be more selective when hiring foreign talent, the Ministry of Manpower (MOM) will raise the salary thresholds for the Employment Pass and the S Pass.

From July 1, to qualify for an S Pass, an applicants’ monthly salary will have to be S$2,000 or more, up from S$1,800, Manpower Minister Gan Kim Yong announced yesterday.

Similarly, the qualifying salary thresholds for the three categories of Employment Pass holders – Q1, P2 and P1 – will be raised to S$2,800, S$4,000 and S$8,000 respectively, he told Parliament during the debate on the ministry’s Budget.

Employers of existing Employment Pass and S Pass holders will be given a one-time renewal of up to two years to meet the salary thresholds. Mr Gan said further renewals thereafter will be subjected to the new salary criteria.

Member of Parliament Liang Eng Hwa (Holland-Bukit Timah GRC) had expressed concern that many of the better-paying jobs may be taken up by foreign Employment Pass holders and called for more “concerted” efforts to help Singaporeans achieve the target of increasing their income by 30 per cent in 10 years.

Mr Gan announced that the Government has increased the salary threshold for part-time work from S$650 to S$850, “given the increases in locals’ wages”. This will take effect on July 1. Yesterday’s debate also put the quality of the foreign workforce in the spotlight.

Mr Yeo Guat Kwang (Aljunied GRC) argued that employers need to play their part to ensure that the training and qualifications required of local workers are the same for foreign workers as well. He also urged the Government to provide “stronger encouragement” for employers to bring in “better skilled, more adaptable” foreign workers.

Ms Jessica Tan (East Coast GRC) wanted to know whether the profile of foreign labour has changed and whether they are better skilled, given the increase in foreign worker levy and a focus on increasing productivity. Noting the absence of a dependency ceiling or levy for Employment Pass holders, Mr Liang said there was “almost unrestricted access” to foreigners on Employment Pass status as long as the company is prepared to hire them.

Mr Gan acknowledged the MPs’ concerns that skilled foreigners were competing with Singapore white-collar professionals for jobs but he reiterated that Singapore cannot close its doors to foreign talent.

. by Esther Ng and S Ramesh Source: TODAY Online

SevenEleven SG

Why do I get the feeling that they are doing the "tak koyo" damage control? And at the expense of local businesses. Futhermore, does the salary increase in the E-Pass and S-Pass holders going to convert to more local getting hired?

Assuming if the E-Pass and S-Pass holders were raised, is he saying that our local is going to be happy that finally, with the salary closed up, they are going to be hired or are we going to expect demand of salary increased for the local as well?

All these are going to be increased in cost in doing an honest business in Singapore. Finally, why are problems always solve with money or are they simply bankrupt of ideas?

Wmyongj SG

Who want to pay for expensive products. So imports are cheap FT. We can only compete if we can make ourself cheaper with lower salary.