The Ministry of Manpower has announced several updates to foreign workforce policies for 2024. These changes aim to maintain a high-quality workforce, support industry transformation, and uplift lower-wage workers.
Starting January 1, 2025, the minimum qualifying salary for Employment Pass (EP) holders will rise from $5,000 to $5,600 per month. This increase ensures EP holders remain in the top third of local professional wages. The qualifying salary will continue to increase with age, reaching $10,700 for candidates in their mid-40s.
For the Financial Services sector, which typically has higher salaries, the minimum EP qualifying salary will increase from $5,500 to $6,200 per month, rising to $11,800 for mid-40s candidates.
These changes will apply to:
This timeline gives businesses time to adjust to the new requirements.
To encourage more productive and efficient practices in the Marine Shipyard sector, the following changes will take effect on January 1, 2026:
Dependency Ratio Ceiling (DRC) reduction:
Levy increases:
To minimize disruptions, firms exceeding the new DRC on the implementation date can keep their existing Work Permit and S Pass holders until their passes expire. However, they won't be able to renew or apply for new passes until they meet the 75% DRC requirement.
The government offers support initiatives to help with sector transformation. You're encouraged to plan ahead for these changes.
To keep pace with wage growth and support lower-wage workers, the LQS will increase from $1,400 to $1,600 per month starting July 1, 2024. This affects firms hiring foreign workers, who must pay all local workers at least:
The foreign worker quota computation will also change:
| Local Worker Pay | Workforce Count |
|---|---|
| At least $1,600/month | 1 |
| $800 to $1,599/month | 0.5 |
These adjustments aim to uplift lower-wage workers while maintaining effective foreign workforce controls.
You might be concerned about rising costs due to these policy changes. Here's what you need to know:
The EP qualifying salary increase aligns with current wage trends and shouldn't affect most EP holders who already earn above the new threshold.
The marine shipyard sector changes are announced two years in advance to give you time to adapt. Government support is available to help you transform your business models.
The LQS increase reflects ongoing efforts to support lower-wage workers. Previous increases were paused from 2021 to 2023 to allow businesses time to adjust to new requirements.
The Progressive Wage Credit Scheme helps offset wage increases for lower-wage workers, providing transitional support as you adapt to new requirements.
These policy updates aim to balance the needs of businesses, workers, and the overall economy. By focusing on productivity, skills development, and fair wages, you can build a more competitive and resilient workforce for the future.
Remember to review your hiring practices, salary structures, and business models to align with these new policies. Proactive planning will help you navigate these changes successfully and position your business for long-term growth in Singapore's evolving economic landscape.
You should be aware of two key points:
• PMET roles include professionals, managers, executives, and technicians.
• A 15% sub-quota applies to S Pass holders, who also count toward the overall Dependency Ratio Ceiling.
These rules affect how you can structure your workforce. Plan carefully to meet the quotas.
