MOM raises EP minimum qualifying salary to $3,900 per month

The new salary criteria will apply to new EP applicants from 1 May 2020.

The Ministry of Manpower (MOM) has raised the minimum qualifying salary for Employment Passes (EP) to $3,900 per month from $3,600 per month, announced by manpower minister, Josephine Teo in a Committee of Supply debate.

The EP minimum qualifying salary was last raised in 2017 from $3,300 to $3,600 per month.

The increase is in line with MOM’s objective to improve the wages of fresh graduates from local autonomous universities.

The salary criteria for older and more experienced EP candidates will be raised in tandem. Teo noted that this helps ensure a level playing field for experienced local mid-career PMETs.

Teo also advised that following the changes, employers should continue to ensure that they have fair and merit-based pay practices, in line with the Tripartite Guidelines on Fair Employment Practices.

“We have heard of firms that only raise salaries of the EP holders to meet new salary criteria, whilst freezing salaries of the local workers, even if the local workers are better performers. This is wrong, and not in the employer’s best interest,” said Teo.

The new salary criteria will apply to new EP applicants from 1 May 2020.

Those looking to renew their EP will have to apply one year later, from 1 May 2021.