As of 1 September 2020, the Singapore’s Ministry of Manpower (MOM) has mandated that the qualifying salary for Employment Pass (EP) applications will be S$4,500. However, MOM will also consider the candidate’s past work experiences, age as well as education background to determine their minimum qualifying salary.
There is a no quota system for Employment Pass and each application is reviewed based on the credentials of applicant and the employing company. MOM closely review other key factor such as proven track records and exceptional skill sets on a case-to-case basis.
The developing history of EP salary requirements
Previously, the qualifying salary for Employment Pass application was S$3,000 per month. As of January 2017, it was raised to S$3,600 and moving on from September 2020, it was raised again to SGD$ 4,500. These recent changes signify MOM’s ongoing commitment to continue promoting the development of a strong Singaporean workforce as part of its Fair Consideration Framework.
MOM has tightened the rules of granting Employment Pass to foreign employees. The strict policy imposed is aimed at moderating the number of foreign forces in Singapore. Also, this regular updating of the Employment Pass qualifying salary is part of MOM’s effort to keep pace with rising local wages, to maintain the quality of foreign workforce and enhance their contribution to the local workforce. Other reasons include:
To ensure fair employment practice – This is to make room for locals to fill positions before employing foreigners and balance the weightage of locals to foreigners in the workforce.
To moderate demand for foreign manpower – Due to limited land, resources and infrastructure, there is a need for more sustainable productivity-driven economy growth, so a significant slowdown is required in the growth of foreign workforce.
To raise the quality of existing workers – Effort to restructure productivity efforts and companies will have to shift towards more skills and capital-intensive ways to grow.
Sebastian Zilim
Successful Employment Pass application
AEB (ASIA PACIFIC) – Logistic Software Company
“All Paul Hype Page personnel have been extremely helpful, responsive and knowledgeable. My EP processes is smooth, fast and very convenient.
AEB is a global enterprise with over 5,000 customers in Europe, Asia, and North America. AEB is based in Stuttgart (Germany) with branch offices in Hamburg, Düsseldorf, Munich and Soest, and development centers in Mainz and Lübeck. AEB has international offices in the United Kingdom (Leamington Spa), Singapore, Switzerland (Zurich), Sweden (Malmö), the Netherlands (Rotterdam), Czech Republic (Prague), France (Paris), and the US. www.aeb.com”
Other Requirements for Employment Pass in Singapore
Along with the salary requirements, there are other criteria that should be fulfilled by the applicant such as:
Have a job offer in Singapore
Work in a managerial, executive, or specialised position
Acceptable university degree, professional qualification, or specialist skill
Relevant work experiences
A candidate may attempt in using MOM’s Self-Assessment Tool to check what is their qualifying salary before proceeding to apply for an EP. The information needed will be:
Position details (may choose from this link )
Fixed monthly salary
Nationality/Citizenship
Date of birth
Work experiences
Education background
Note:
A candidate may look into if their institution is listed in MOM’s database by this tool. If the awarding institute is not listed, there is a possibility that the candidate will need to get a 3rd party global verification report before pursuing the EP application.
Salary Requirement for experienced candidates
Do note that the minimum fixed monthly salary requirement of S$4,500 is typically applicable to fresh graduates from awarding institute whereas older and more experienced applicants are required to command higher salaries which is proportional to their years of work experiences to qualify.
Based on our experiences in Paul Hype Page, those who have worked at least 8 years and is a bachelor’s degree holder, the minimum salary will start from SGD$ 7,500 above.
The key information that a candidate must bear in mind before deciding on the salary are:
EP salary will not be a huge gap difference from the current salary candidate is receiving (EG: Candidate A is currently receiving a salary of SGD$ 10,000. For him to apply an EP, the salary he needs to decide should be within range of SGD$ 9,500 to SGD$ 11,000)
Position applied must be within job scope the candidate had in the past
The Company have sufficient fund to cover the candidate 12 months’ salary payable and business operation expenses
Salary Requirement to Bring in Dependants
As an Employment Pass holder, you can enjoy dependants’ privileges but is subjected to certain criteria.
Those who meet the criteria below are eligible to bring in certain family members:
Earn at least SGD$ 6,000 per month
Earn at least SGD$ 12,000 per month (to bring parents)
Dependent Pass
Legally married spouse (Marriage certificate is needed to apply)
Unmarried children under 21 years old, including those legally adopted
Long Term Visit Pass – Issued by MOM
Common-law spouse
Unmarried handicapped children above 21 years old
Unmarried stepchildren under 21 years old
Parents of EP holder
Separate applications are to be done for each family member and remember that Employment Pass can only be applied by the employer of an employment agent. Hence, it is compulsory for applicants to secure a job first in the country before applying.
Our thoughts
It might be just ONE factor of your EP application, but it is the MOST common rejection reason. Having salary amounts that are too high, not corresponding with your qualifications, not corresponding with the job scope of the position, you could be blindsided by so many things. If one factor can be the downfall of your EP application, can you imagine the rest? Don’t risk it and just work with a qualified and experienced consultant. If your EP is rejected, you lose out on great opportunities in Singapore. We’ll see you soon.
FAQs
No, an Employment Pass Holder does not pay CPF.
You must apply for a new EP if you forget to renew your EP before the deadline.
You can either use the SGWorkPass app or the eServices to check your employment pass validity.
No, there is no quota for the employment pass.
