Singapore Enforces Higher Minimum Wages for Expat Workers A Balancing Act – Wage Fairness – Leveling the Playing Field for Local and Foreign Talent

The Singaporean government has implemented stricter regulations for foreign workers to address concerns over income inequality and ensure better integration into the local workforce.

The minimum monthly salary required for an employment pass has been raised to US$4170 from US$3700, aiming to attract skilled professionals while balancing the needs of local and foreign workers.

Additionally, a new “local qualifying salary” requirement mandates that firms hiring foreign workers must pay their Singaporean employees a minimum monthly salary of S$1400.

These measures are part of Singapore’s efforts to maintain its status as a premier global employment hub while ensuring fair treatment and opportunities for both local and foreign talent.

Singapore’s minimum monthly salary requirement for employment passes will be raised to US$4170 in 2025, a significant increase from the current US$This aims to attract higher-skilled foreign professionals and maintain a balance between local and foreign workers.

Firms hiring foreign workers will now be required to pay their Singaporean employees a minimum monthly salary of S$1400, a new “local qualifying salary” policy to ensure fair treatment of local talent.

Singapore has announced a new Overseas Networks and Expertise Pass program to further strengthen its position as a global talent hub, catering to highly skilled foreign professionals.

Despite their valuable contributions, foreign workers in Singapore often face discrimination, exploitation, and even violence, highlighting the need for improved legal protections and fairer treatment.

The government regularly updates the qualifying salaries for employment passes to ensure that foreign workers are of the highest quality and to maintain a level playing field for local talent.

Singapore’s tighter foreign worker policy is seen as a calibration to strike a balance between attracting global talent and ensuring fair employment opportunities for both local and foreign workers, driven by a focus on productivity and efficient job redesign.

Singapore Enforces Higher Minimum Wages for Expat Workers A Balancing Act – Balancing Global Competitiveness and Worker Protection

Singapore is attempting to strike a delicate balance between maintaining its global competitiveness and ensuring adequate protections for local workers.

By raising the minimum salary threshold for foreign workers and introducing a “local qualifying salary” requirement, the government aims to attract high-skilled talent while addressing concerns over job competition and income inequality.

This move is part of Singapore’s broader efforts to calibrate its foreign worker policies to remain an attractive global hub while addressing the needs and interests of its domestic workforce.

Singapore’s population declined by 3% in 2020, the first drop since 2003, due to travel curbs and job losses, highlighting the need to carefully manage the influx of foreign workers.

The government has implemented a “calibration” of its foreign worker policies to ensure that only the highest-quality foreign talent is attracted, in order to maintain global competitiveness while protecting local jobs.

Singapore’s foreign worker quota system has a profound impact on the country’s economy and competitiveness, as it determines the balance between attracting global talent and addressing local concerns over job competition.

Despite Singapore’s efforts to attract top foreign talent, Singaporeans remain divided on whether the nation has struck the right balance between bringing in foreign workers and protecting local jobs.

The government has introduced measures to encourage companies to recruit more locals instead of relying on lower-skilled foreign workers, in an effort to upskill the domestic workforce.

Singapore has ranked 3rd out of 63 economies based on factors like business efficiency, economic performance, government efficiency, and infrastructure, underscoring the importance of maintaining a balanced approach to foreign talent.

The introduction of the Overseas Networks & Expertise pass is seen as a move to further strengthen Singapore’s position as a global talent hub, catering to highly skilled foreign professionals while addressing local concerns.

Singapore Enforces Higher Minimum Wages for Expat Workers A Balancing Act – Tackling Exploitation – Minimum Wage Safeguards for Foreign Workers

Singapore has implemented new minimum wage safeguards for foreign workers in an effort to address concerns over low-wage exploitation and improve the living conditions of vulnerable migrant laborers.

The monthly minimum salary required for an employment pass has been raised to US$4,170, and firms hiring foreign workers must now pay them at least the established minimum wage or the Progressive Wage Model wages.

Discussions are underway to enhance legal frameworks and enforcement mechanisms for these minimum wage regulations, as part of the government’s broader initiatives to prevent exploitation and ensure fair treatment of foreign workers.

The new monthly minimum salary requirement for an employment pass in Singapore will be raised to US$4,170 in 2025, a significant increase from the previous US$3,This aims to attract higher-skilled foreign professionals while addressing concerns over low-wage exploitation.

Firms hiring foreign workers in Singapore will now be required to pay their Singaporean employees a minimum monthly salary of S$1,400 under a new “local qualifying salary” policy, ensuring fair treatment of local talent.

Singapore has recognized the need for legal and policy reforms to enhance the protection of migrant workers’ rights and prevent exploitation, with discussions underway to strengthen legal frameworks and enforcement mechanisms.

Measures are being taken to address discrimination and negative perceptions that migrant workers often face in Singapore, as these perceptions can perpetuate unfair treatment and exploitation.

The enforcement of higher minimum wages for foreign workers is part of Singapore’s efforts to prevent exploitation and ensure fair labor practices, with employers facing penalties and fines for non-compliance.

Singapore’s population declined by 3% in 2020, the first drop since 2003, due to travel curbs and job losses, highlighting the need to carefully manage the influx of foreign workers.

Despite Singapore’s efforts to attract top foreign talent, Singaporeans remain divided on whether the nation has struck the right balance between bringing in foreign workers and protecting local jobs.

Singapore has ranked 3rd out of 63 economies based on factors like business efficiency, economic performance, government efficiency, and infrastructure, underscoring the importance of maintaining a balanced approach to foreign talent.

Singapore Enforces Higher Minimum Wages for Expat Workers A Balancing Act – Progressive Wage Model – Securing Decent Incomes Across Industries

The Progressive Wage Model (PWM) in Singapore aims to increase wages for workers by tying wage increases to skill upgrading and productivity improvements.

Sectors that have implemented the PWM, such as waste collection and materials recovery, have seen steady wage growth without negatively impacting workers’ livelihoods.

The PWM is currently implemented in various sectors, including cleaning, security, and landscaping, and the Tripartite Workgroup has recommended expanding its coverage to uplift more local lower-wage workers.

The Progressive Wage Model (PWM) has been implemented across various sectors in Singapore, including cleaning, security, landscape, and lift & escalator, benefiting over 221,000 full-time lower-wage workers.

The PWM wage schedule for the security sector was updated in 2024 to include wages for work done beyond the 44-hour regular workweek and cap extra working hours at 72 hours per month, providing better protections for security workers.

The PWM basic wage floor was raised to SGD 2,650 in 2024, ensuring that lower-wage workers in the covered sectors receive a higher minimum income, even after factoring in employee Central Provident Fund contributions.

A 2021 report by the Tripartite Workgroup on Lower-Wage Workers recommended expanding the PWM approach and coverage to uplift more local lower-wage workers, highlighting the model’s success in improving incomes.

Sectors that have implemented the PWM, such as waste collection and materials recovery, have seen wages rise at a steady pace without negatively impacting the livelihoods of workers, demonstrating the model’s effectiveness.

The PWM benefits workers by mapping out a clear career progression pathway, with wage increases tied to skill upgrading and productivity improvement, incentivizing workers to invest in their professional development.

The quantum of wage increase under the PWM may appear lower than a minimum wage of SGD 1,300 in take-home pay, but the model’s approach of considering employee Central Provident Fund contributions results in higher floor wages in sectors like cleaning and security.

The PWM is designed as a collaborative effort between unions, employers, and the government, ensuring that the needs of all stakeholders are taken into account in the policymaking process.

The successful implementation of the PWM in various sectors has made it a model that other countries are looking to emulate, as they seek to address income inequality and improve the livelihoods of their lower-wage workers.

Singapore Enforces Higher Minimum Wages for Expat Workers A Balancing Act – A Phased Approach – Singapore’s Gradual Salary Qualification Increases

Singapore has announced a phased approach to increasing the minimum qualifying salaries for Employment Passes (EP).

Starting in January 2025, the minimum monthly salary for new EP applications will rise to S$5,600, up from the current S$5,000, with higher thresholds for the financial sector.

This gradual increase is part of the government’s efforts to attract high-skilled foreign talent while ensuring fair wages and opportunities for both local and foreign workers.

The Singaporean government has also implemented other measures, such as raising the Workfare payout for lower-wage senior workers and increasing the local qualifying salary for companies that hire foreign workers.

These steps aim to support local workers and address concerns over income inequality as the country enforces higher minimum wages for expat employees.

The minimum monthly qualifying salary for new Employment Pass (EP) applications in Singapore will increase from S$5,000 to S$5,600 in January 2025, except for the financial services sector where it will rise to S$6,

For EP applicants in their mid-40s, the minimum salary will increase to S$10,700, and to S$11,800 for those working in the financial services sector.

The S Pass qualifying salary and levy will not be adjusted in 2024 but will continue to follow the incremental increases announced in the Singapore Budget of 2022, with the latest increase to S$3,000 and S$3,500 from September 1,

The Local Qualifying Salary for full-time local workers at companies that hire foreign workers will be raised from S$1,400 to S$1,600, with a minimum hourly rate of S$50 per hour.

The Workfare payout for lower-wage senior workers in Singapore will be increased from S$4,200 to S$4,900 as an additional measure to support local workers.

The National Wages Council’s (NWC) guidelines recommend an annual wage growth range for low-wage workers, with a minimum dollar quantum increase, to ensure fair and equitable wage growth.

The NWC’s recommendations specify that wage growth should provide lower-wage workers with a built-in wage increase at the upper bound of 55-75% of their gross monthly wage or a wage increase of at least 85-105%, whichever is higher.

The implementation of the Progressive Wage Model (PWM) in sectors like cleaning, security, and landscaping has resulted in steady wage growth for lower-wage workers without negatively impacting their livelihoods.

The Tripartite Workgroup has recommended expanding the coverage of the PWM to uplift more local lower-wage workers, highlighting the model’s success in improving incomes.

The PWM’s approach of linking wage increases to skill upgrading and productivity improvement has incentivized workers to invest in their professional development, contributing to the model’s effectiveness.

Singapore Enforces Higher Minimum Wages for Expat Workers A Balancing Act – Talent Development – Incentivizing Investment in Local Workforce

To address the lack of local talent, the Singapore government is launching new initiatives through various agencies to develop and grow the pool of skilled workers.

This includes continuing education, training, and skills development programs, as well as the Career Conversion Programme to help mid-career workers undergo skills conversion.

The government is encouraging companies to invest in local talents and provide opportunities for career development.

Additionally, the Monetary Authority of Singapore has enhanced its talent development schemes to promote financial institutions to send Singaporeans abroad to gain international experience.

These efforts aim to create more opportunities for Singaporeans to progress in their careers and strengthen job and social protection for citizens.

The Singapore government will enhance co-funding support for wage increases for workers earning up to $2500 a month, aiming to incentivize companies to invest in their local workforce.

To address the lack of local talent, the government is launching new talent initiatives through the Singapore Economic Development Board (EDB), SkillsFuture Singapore (SSG), and Workforce Singapore (WSG) to develop and grow the pool of skilled workers.

Companies in Singapore are encouraged to invest in local talents and provide opportunities for career development, as the government aims to create pathways for Singaporeans to progress in their careers.

A survey found that up to 85% of business leaders in Singapore faced challenges in building their workforce, including restrictions on global mobility, lack of talent, and high attrition among workers with specific skills.

The Monetary Authority of Singapore has enhanced its talent development schemes to promote financial institutions to send Singaporeans abroad to gain international experience, helping to build a globally competitive local workforce.

The government’s initiatives to develop and grow the local workforce, including talent development programs and continuing education efforts, are part of its broader strategy to strengthen job and social protection for Singaporean citizens.

Singapore’s “local qualifying salary” requirement, which mandates that firms hiring foreign workers must pay their Singaporean employees a minimum monthly salary of S$1600, aims to ensure fair treatment and opportunities for local talent.

The government’s efforts to incentivize talent development and investment in the local workforce are complemented by the Progressive Wage Model, which has successfully uplifted incomes in sectors like cleaning, security, and landscaping.

Despite the challenges, Singapore remains open to global talent to attract businesses and foreign investment, recognizing that this provides good jobs and career opportunities for Singaporeans.

The government’s initiatives to develop the local workforce, such as the Career Conversion Programme and the expansion of the Progressive Wage Model, have drawn interest from other countries looking to emulate Singapore’s approach to addressing income inequality and improving livelihoods of lower-wage workers.