This is especially so if the foreigner is not bringing enough value to justify the pay increase,” said Dr Tan. “The firm will have ample time to think about alternative options, for instance, finding or training up another local. He added that the higher qualifying salary will only apply to work pass renewals from September 2023, and this could stretch out to 2026, depending on when the S Pass holder is due for renewal. “More productive firms that hire high-quality S Pass holders well above the qualifying salary, will face the same cost increase as less productive firms who are paying just the bare minimum,” said Dr Tan. This will make the levy much higher, and apply equally to all S Pass holders. He has also come across suggestions to load all the increase on levies. And the firm will then have little reason to raise the pay for the other nine locals who are doing the same job.' 'The firm can continue to renew the S Pass holder on the lowest salary required, so long as he is willing to accept it. CONCERNS ABOUT RAISING S PASS SALARIESĭr Tan said there have been questions about whether increasing the S Pass qualifying salary means that foreign S Pass holders will automatically get a pay raise, perhaps at the expense of their local colleagues.īut if the S Pass salary is not raised, then local workers’ salaries will also stagnate, said Dr Tan. The scheme will be available for three years and more details will be provided later. They will also have to commit to developing their local workforce.

To be eligible for the scheme, firms will have to meet criteria such as taking part in selected programmes for research and internationalisation. MOM will also introduce a Manpower for Strategic Economic Priorities (M-SEP) scheme, which provides foreign manpower flexibilities for a period of time to firms that contribute to Singapore’s strategic economic priorities and local workforce development. They can also only perform the occupation stated on their work permit. These workers will need to be higher-skilled and be subject to a quota. I hope that this will reinforce our position as a food paradise supporting the cultural heritage of Singapore,' said the minister.

These include cooks in Indian restaurants, food processing workers, sheet metal workers, welders and flame cutters, riggers and cable splicers, and other such workers in manufacturing and engineering firms. “We will introduce a Non-Traditional Source (NTS) occupation list, which is a tight list of rank-and-file occupations where employers will be allowed to hire NTS foreign workers on work permits,” Dr Tan said.

This is as some firms hire rank-and-file workers on S Passes due to the source restrictions for work permit holders. JOBS EXCLUDEDīut firms will be allowed to hire workers for some jobs on work permits once the higher salary benchmarks kick in on Sep 1 next year. “In addition to quotas, qualifying salaries and levies are in place to ensure that S Pass holders are hired because they fill skills gaps, and not simply because they are cheaper than locals,” said MOM. It is expected to increase to S$650 by Sep 1, 2025. Tier 1 levies, which apply to up to 10 per cent of a company’s workforce, will also go up from S$330 to S$450 from September this year.

Minister of manpower 2022