Forum: Uniform Employment Pass salary threshold works better in current climate
Sign up now: Get ST's newsletters delivered to your inbox
We thank Mr Goh Eck Hong for his letter, “ Fine-tune new Employment Pass salary thresholds based on industries
The Employment Pass (EP) qualifying salary is benchmarked to the top one-third of local professional wages. This standard applies uniformly across all sectors except for the financial sector where median salaries are significantly higher.
Mr Goh suggested setting different salary thresholds for different industries. However, doing so will make it cheaper to hire foreign workers in relatively less productive sectors that are weaker in creating good jobs for Singaporeans, while making it harder in higher productivity sectors where foreign professionals genuinely complement and create opportunities for locals. A uniform threshold works better in the current climate because it steers EP holders towards sectors and firms where they can add the most value.
Firms that want to hire foreign workers who cannot meet the EP criteria can consider the S Pass which is intended for skilled mid-level hires. Businesses can also apply for additional S Pass quota under the Manpower for Strategic Economic Priorities (M-SEP) scheme if they meet the requirements.
Zhuo Gangwei
Divisional Director, Manpower Planning and Policy Division
Ministry of Manpower
