S’pore hikes wage criteria for hiring of foreign specialists
SINGAPORE: Singapore will raise the salary criteria for foreign managers and specialists that companies can hire starting next year, a move that may add to the competitive challenges faced by local firms amid slowing economic growth.
The qualifying monthly salary for employment passes (EP) would be raised by nine per cent to S$3,600 (RM10,780) from S$3,300 starting January 1 next year, said the Ministry of Manpower yesterday.
Firms must apply for the passes when hiring foreigners in managerial, executive or specialised jobs.
“This change is part of the Ministry of Manpower’s regular updating of the EP qualifying salary to keep pace with rising local wages, maintain the quality of our foreign workforce and enhance their complementarity to the local workforce,” said the ministry, adding that it was the first such update since January 2014.
The change was likely aimed at preventing the salary criteria from becoming too low compared with rising wage levels seen in Singapore in the past few years, said economists.
The nominal median gross monthly income from work for fulltime employed residents rose by 4.7 per cent year-onyear as of June last year, after rising 1.8 per cent the previous year, according to official data.
The latest change could add to the cost burden that companies face, especially small and medium enterprises (SMEs), said Francis Tan, an economist for UOB. The Ministry of Manpower said firms would get to use the old criteria when renewing existing employment passes that expire by June 30 next year.
Singapore has been making it harder for firms to hire foreign workers to reduce its dependence on lowcost overseas labour, as well as to address complaints by citizens concerned about overcrowding and increased competition for jobs. Reuters
Ministry of Manpower