On 4 March 2024, the Ministry of Manpower (“MOM“) announced updates to its foreign workforce policies as set out below: (a) Increase in the Employment Pass (“EP“) qualifying salary; (b) Raising of the Local Qualifying Salary (“LQS“); and (c) For the Marine Shipyard sector: - · Reducing the Dependency Ratio Ceiling (“DRC“); and
- · Increasing the levy payable for each Work Permit Holder (“WPH“).
Increase in EP Qualifying Salary The EP qualifying salary is benchmarked to the wages of the top one-third of local PMETs (Professionals, Managers, Executives, Technicians). As local PMET wages have increased, the EP qualifying salary is likewise being increased to ensure a level playing field for local employees. Accordingly, the qualifying salary will be updated as follows: (a) All sectors except the financial services sector: increased from S$5,000 to S$5,600 per month, up to S$10,700 for a candidate in his mid-40s. (b) Financial services sector: increased from S$5,500 to S$6,200 per month, going up to S$11,800 for a candidate in his mid-40s. This is in light of the higher wage norms for this sector. The above will take effect from 1 January 2025 for new EP applications and 1 January 2026 for renewal EP applications. Raising of LQS Firms hiring foreign workers must pay all local workers at least the LQS or the Progressive Wage Model wages, where applicable. As first outlined in the Budget Statement 2024, the LQS will be raised as follows: (a) For full-time local workers: at least S$1,600 per month. (b) For part-time local workers: at least S$10.50 per hour. The computation of a firm’s foreign worker quota will correspondingly be adjusted as follows: (a) One local workforce count per local worker paid at least S$1,600 a month; or (b) 0.5 local workforce count per local worker paid at least S$800 but less than S$1,600 a month. The above will take effect on 1 July 2024. Marine Shipyard Sector To encourage the marine and offshore engineering sector to pivot to higher-skilled, higher-value activities and reduce its reliance on foreign manpower, MOM will implement the following changes. Reduction of DRC from 77.8% to 75% The DRC will be reduced from 77.8% to 75%. In other words, a firm must have a ratio of one local employee to three WPHs, instead of 3.5 WPHs. Firms exceeding the new DRC will be allowed to retain their existing WPHs and S Pass holders until their work passes expire. However, they will not be able to renew or apply for new WPHs and S Pass holders until they are within the new DRC. Increase of levy payable for each WPH (a) For “Basic Skilled” R2 WPHs: increased from S$400 to S$500. (b) For “Higher Skilled” R1 WPHs: increased from S$300 to S$350. Both the above changes will take effect on 1 January 2026 for all WPHs, including existing WPHs. Click on the following links for more information (first two sources available on the MOM website at www.mom.gov.sg): | 
