Paying more for foreign talent

The monthly salary thresholds for Employment Pass (EP) holders and S Pass holders have been raised in an attempt to ease Singapore’s growing dependence on foreign talent. EP holders are typically foreign professionals while S Pass holders are mid-skilled foreign workers.

With effect from July 1 this year, the qualifying pay thresholds for Q1, P2 and P1 EPs will increase from $2,500 to $2,800, $3,500 to $4,000 and $7,000 to $8,000 respectively. For the S Pass, the salary threshold will be raised from $1,800 to $2,000.

‘Given the tight market for PMETs (professionals, managers, executives and technicians), it is not surprising that salaries of local PMETs have moved up in recent years. We need to raise the qualifying salary thresholds for EP and S Pass applicants accordingly to keep pace with the local PMETs and to encourage companies to be more selective in hiring foreign talent who can contribute to our economy,’ explained Manpower Minister Gan Kim Yong during the budget debate on his ministry.

Member of Parliament Ho Geok Choo, who is also CEO of Human Capital Singapore and President of the Singapore Human Resources Institute, said that it was a logical move that opens Singapore to only the best and brightest of foreign talent.