In recent times, the salary of white collar Singaporean workers has gone up. It therefore becomes vital to raise the salary threshold of foreign employees so that both these groups can compete for jobs on an equal footing.
(PRWEB) March 30, 2011
The Singapore government has recently raised the minimum salary threshold for the two main types of work passes namely Employment Pass - a work visa for skilled foreign employees and S Pass - work visa for mid-skilled foreign employees. According to http://www.GuideMeSingapore.com, the principal motivation behind the revisions is to reduce Singapore’s dependency on foreign workers and to also enhance the quality of foreign professionals who are admitted into Singapore. The move is also expected to raise the productivity of Singapore’s labor force over the long term.
Singapore Employment Pass visa scheme is designed for foreign staff in the professional category and does not impose any quota restrictions. Currently, the main eligibility criteria to apply for an Employment Pass in are a) good educational qualifications, b) credible professional experience and c) a minimum monthly salary of S$2,500. Applicants with a monthly base salary of above S$7,000 will be issued with a P1 Pass, those with a monthly base salary in the range of S$3,500-S$7,000 will receive a P2 Pass while applicants whose monthly base salary is between S$2,500 and S$3,500 will be issued with a Q1 Pass. Under the new changes, the minimum monthly salary thresholds for P1, P2, and Q1 passes will be increased to S$8,000, S$4,000 and S$2,800 respectively.
Besides the Employment Pass, the authorities have also raised the salary threshold from S$1,800 to S$2,000 for the S-Pass, a quota-based work permit that is designed for mid-skilled foreign workers. Furthermore, employers will have to pay between S$190-S$300 more as a levy for employing S-Pass holders. According to GuideMeSingapore.com, the higher salary threshold and increased levy will result in more competitive salaries for Singaporean counterparts of the S-Pass workers. It will also drive companies to raise their productivity levels and engage in alternative solutions rather than opting for the easy way out of employing easily available and affordable foreign labor.
Commenting on the new changes Ms. Jacqueline Low, the Director of Singapore company registration agency Janus Corporate Solutions - the parent of GuideMeSingapore.com site said, “Increasing the salary threshold for foreign professionals in managerial and executive posts is an effort by the Singapore authorities to level the playing field between local and foreign employees. In recent times, the salary of white collar Singaporean workers has gone up. It therefore becomes vital to raise the salary threshold of foreign employees so that both these groups can compete for jobs on an equal footing. The move will also prompt employers to choose more highly qualified and capable foreign talent who can make positive contributions to the economy.”
The revised Employment Pass and S-Pass rules will be effective from July 1, 2011.
GuideMeSingapore.com is a unit of Janus Corporate Solutions Pte Ltd - a leading Singapore-based firm that provides quick and cost-effective Singapore company incorporation services to small and mid-size business worldwide.