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Budget 2022: Minimum qualifying salary for new EP, S Pass applicants to go up by S$500 from September

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Mr Wong said the Government will aim to ensure that incoming EP holders are comparable in quality to the top one-third of the local professional, managerial, executive and technical (PMET) workforce.

Beyond the qualifying salary, Mr Wong said the Government will refine how EP applications are assessed to improve the “complementarity and diversity” of Singapore’s foreign workforce, and to increase “certainty and transparency” for businesses.

“EP holders should be professionals and senior executives who can contribute to our economy, sharpen the skills of those they work with, and strengthen our workforce,” he said.

“To ensure that EP holders are of the right calibre, we adjust the minimum qualifying salary from time to time, because how much the employer is prepared to pay is a practical indicator of the quality of the EP holder.”


Likewise for S Passes, Mr Wong said the minimum qualifying salary helps ensure those coming in are “of the right quality”.

The Government will aim to ensure that S Pass holders are comparable in quality to the top one-third of local associate professionals and technicians, he said.


Moving on to work permits, Mr Wong said the dependency ratio ceiling – the proportion of work permit holders a firm can employ – in the construction and process sectors will be reduced from the current 1:7 to 1:5 from Jan 1, 2024.

This means that the proportion of work permit holders in these sectors will be reduced from 87.5 per cent to 83.3 per cent.

“The current Man-Year Entitlement (MYE) framework will be replaced with a new levy framework that will encourage firms to support more offsite work and employ more higher-skilled work permit holders,” he said.

The MYE framework refers to the number of work permit holders a main contractor is entitled to employ based on the value of projects or contracts awarded by developers or owners. It is allocated based on the number of “man-years” required to complete a project.

Mr Wong said these moves will further improve productivity and support manpower-efficient solutions, as well as transform sectors that have been more heavily dependent on foreigners.


Overall, Mr Wong said the foreign worker policy adjustments will apply mainly to the broad middle of the workforce.

“This is where we have Singaporeans doing the jobs, but we need to continually adjust our rules to ensure better complementarity between our foreign and local workforce,” he said.

At the higher end of the workforce where there are “acute” skill shortages, Singapore will continue to bring in professionals with the right abilities, he added.

Mr Wong stressed that Singapore will continue to stay open and welcome talent from around the world.
“By combining local and foreign professionals, we form the best teams in Singapore to create value together,” he said.

“This gives us that extra advantage to excel amidst intense global competition, and to create many more good jobs and career choices for Singaporeans.”

This content was originally published here.

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