Minimum qualifying wages to rise, with sector-specific increases for financial services workers

Singapore’s Ministry of Manpower has announced a significant rise in the qualifying salary for S Pass applicants, set to take effect on September 1, 2025. The new minimum salary will be S$3,300, up from S$3,150, marking the third consecutive increase over the past three years.

As part of the changes, individuals in financial services will see a higher salary threshold, with the minimum wage rising from S$3,650 to S$3,800. The salary requirement for those in their mid-40s will progressively increase to S$5,650. These changes will apply to new applicants from September 1, 2025, while renewals will be affected from September 1, 2026.

In addition, the S Pass Tier 1 levy will rise from S$550 to S$650, aligning it with the Tier 2 levy as of September 1.

This update follows a series of previous increases, with the minimum salary for S Pass holders rising from S$3,000 in 2022 to S$3,150 in 2023. Similarly, financial services salaries have seen a hike from S$3,500 in 2022 to S$3,650 in 2023.

Minister Tan See Leng also addressed the Complementarity Assessment Framework (Compass), which evaluates Employment Pass (EP) applicants based on factors such as workplace diversity. Since its implementation in September 2023, approximately 30% of EP holders have been assessed, resulting in a 7% decrease in firms that heavily relied on workers from a single nationality. Overall, companies with a higher reliance on foreign workers have decreased by 15%, while also creating 4,000 additional PMET jobs for locals.

Further updates include changes to the Manpower for Strategic Economic Priorities (M-SEP) scheme. From May 1, 2025, firms contributing to Singapore’s economic priorities will be eligible for an extended three-year period of additional foreign worker access, as long as they meet certain criteria. New options for firms to fulfil local hiring requirements will include sending Singaporean employees on overseas leadership programmes, with additional qualifying programmes to be announced soon.