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As Singapore’s economy continues to grow, the requirements for foreign professionals are also increasing. Recently, the Ministry of Manpower (MOM) announced that starting in 2025, salary requirements for the Employment Pass (EP) will be raised across the board. This policy shift is a significant adjustment for many businesses and self-employed EP holders. What are the new salary thresholds? How should businesses and individuals prepare? This article provides a comprehensive analysis.

(Source: Internet)

New EP Salary Requirements

According to MOM’s latest announcement, from 2025 onwards, the minimum monthly salary for all industry EP applicants will be increased to SGD 5,600. For the financial services sector, the threshold will be even higher, rising from SGD 5,500 to SGD 6,200. Additionally, salary requirements will increase with age. For example, the SGD 5,600 threshold applies to applicants aged 23 and below in non-financial industries, while a 40-year-old applicant will need a minimum monthly salary of SGD 9,541.

(Source: Internet)

Key Factors for EP Renewal

With the revised salary requirements, EP renewal will also become more stringent. Here are the key factors to consider during the renewal process:

1. 1. Financial Health Review: MOM will assess a company’s financial health, including revenue, profit, and cash flow, to ensure long-term operational stability.
   2. Salary Compliance: Employers must provide legitimate and reasonable salary proof. Falsified salary information can severely impact renewal success.
   3. Business Authenticity: Companies must submit supporting documents such as client contracts, marketing activity records, and operational data to prove genuine business activities in Singapore.
   4. Local Economic Contribution: While hiring Singapore citizens or permanent residents is not mandatory, doing so can significantly enhance the likelihood of a successful renewal. A company’s tax compliance is also a key indicator of stability.
   5. Industry Consistency & Business Development Plan: MOM will check whether a company’s current business operations align with its originally declared industry during EP application. If there are significant business changes, companies must submit a detailed transformation plan in advance.

How to Respond to the Salary Requirement Increase?

With the higher EP salary thresholds and stricter renewal criteria, both businesses and individuals need to be well-prepared.

• • For Businesses:
    • Adjust salary structures in advance to meet new standards.
    • Maintain sound financial health, ensure transparent operations, and comply with local hiring and tax regulations.
  • For Individuals:
    • Self-employed EP holders should ensure their salaries meet the new requirements and prepare all necessary renewal documents.
    • Keep track of the company’s operational and financial status to avoid renewal issues due to corporate-related concerns.

EP Renewal Process and Required Documentation

To ensure a smooth EP renewal, businesses are advised to begin preparing six months before the EP expiry date. Required documents include:

• • Financial statements
  • Salary proof
  • Business operation records

Applications should then be submitted via MOM’s EP Online system, along with all necessary supporting documents. The processing time for renewals typically ranges from 3 to 6 weeks, depending on the company’s circumstances.

Conclusion

The increased EP salary requirements in Singapore present new challenges for foreign professionals and businesses. Understanding the policy changes and adopting effective response strategies will be critical for a successful EP application or renewal. We hope that all foreign professionals and businesses striving in Singapore can successfully obtain or renew their EP and continue their journey in this dynamic and vibrant environment.