Raising the Pay Levels for Employment Passes

[Barnsley]

According to the local news outlets the salary levels are going up again in the near future.

Apparently its due to stagnant wages for graduates coming out of the local educational establishments.

[sundaymorningstaple]

Yep, saw that as well. The writing is on the wall for a lot of folks.

[Barnsley]

A few companies will be having a rethink also I suspect.

Its another case of wait and see

Singapore does like to keep you on your toes it seems.

[ScoobyDoes]

To what kind of levels are we talking about here?

Any excuse to give myself an increase!

[gailwynand]

I wonder if they will ever get rid of the Q1 pass. It seems to be in an awkward spot between the S Pass and the higher-tier EPs.

I would guess they will increment the minimums the same as the last couple of go-arounds, i.e. something like $500 higher for P2 and $1000 for P1. Probably not an issue for most who are coming from developed countries but people at the lower end will certainly get hit hard..

More generally it is bad for business to keep changing the system like this. It creates a lot of uncertainty for firms. If they want to raise the minimums step by step to a certain level by 2016 fine, just be explicit about it so firms can plan accordingly.

[BillyB]

This place is pricing itself out of reality and I hope we see some common sense applied to interest rates and the housing market - they are the elephants' in the room that the Government is choosing to ignore.

Jacking up salaries for graduates isn't the answer - that just creates a vicious circle. How do two graduates each earning 3-4k afford to buy property that's worth 500k? Unless they have a large down payment, or are willing to be leveraged up to the hills, the simple answer is they can't. Singapore has to curb inflation, reduce the value of the dollar, raise interest rates, accept a round of cooling and the likelihood there will be some defaults and get it's house in order.

You can't run a country based on sentiment - something has to give.....

[AngMoG]

I wonder if they will ever get rid of the Q1 pass. It seems to be in an awkward spot between the S Pass and the higher-tier EPs.

Now that you are saying it... the Q1 pass seems to be making less and less sense. Seeing as the lower end of the Q1 bracket sees high rejection rates and conversion to S Pass. An interesting twist would be if they put S Pass max salary up to $4,500, drop Q1, keep P2 and raise P1 to $9,000 (or even $12,000 in line with PEP). That would put current Q1 EP holders under S-Pass quota going forward, and probably put a few companies out of business. And in the process, do next to nothing for young graduates

More generally it is bad for business to keep changing the system like this. It creates a lot of uncertainty for firms. (...) just be explicit about it so firms can plan accordingly.

That is what I have been thinking for a while. That is especially an issue for bigger companies, who were planning for a permanent APAC seat here, and who are planning for the long term. But if there is no planning certainty, and if they cannot hire the right people, ... (I'll leave it up to you to complete this phrase)

[zzm9980]

Any links to anything with substance? Or tell me what i can google for to find the articles?

[gailwynand]

Any links to anything with substance? Or tell me what i can google for to find the articles?

Google for "Minimum pay for employment pass to rise"

[zzm9980]

Any links to anything with substance? Or tell me what i can google for to find the articles?

Google for "Minimum pay for employment pass to rise"

Thanks. When I did this yesterday, i only found a Straits link that wants me to subscribe to read more than a paragraph. Actually looks like all of the other articles just reference that one.

I find it interesting they're just saying this, and not quoting the source of this new info. They quote "analysts" who give an opinion on who it will affect and how, but no actual source. I love the journalism here...

[bgd]

...More generally it is bad for business to keep changing the system like this. It creates a lot of uncertainty for firms. If they want to raise the minimums step by step to a certain level by 2016 fine, just be explicit about it so firms can plan accordingly.

I know of one international bank that moved a substantial project to KL due to the current uncertainy in the labour markets.

[AngMoG]

I know of one international bank that moved a substantial project to KL due to the current uncertainy in the labour markets.

Others are moving parts of their backoffice out. But it is not just the uncertainty in the labor market, it is also the ever increasing cost.

Sadly, the only place my employer wants to relocate me to is Hong Kong, and without any raise to boot.

[zzm9980]

Sadly, the only place my employer wants to relocate me to is Hong Kong, and without any raise to boot.

If you're single, I think you can live much better in HK on the same salary as you could in Singapore. HK has affordable housing options of all sizes in most areas. You can get a nice 1bedroom 400sq/ft in mid-levels for less than you'd pay to rent a 3-room HDB in ulu ulu here. And if you prefer something Ulu Ulu instead of being on the Island, you can get something nice in a place like Tsuen Wan *and* a car for still less than you'd pay for that Ulu Ulu HDB in Singapore

[kevintong85]

Found a link to perhaps a more complete article on this topic

http://www.stjobs.sg/career-resources/h ... e/a/115701

[zzm9980]

Here are the only 'facts' out there, every other quote is just from analysts speculating:

Their comments follow Acting Manpower Minister Tan Chuan-Jin's remarks in a Business Times report published yesterday, that the minimum salary for all three tiers of EP will be changed.

The aim: to help local professionals, managers and executives (PMEs), who face competition from foreigners with lower pay demands.

Mr Tan said: "Should $3,000, for example, be the threshold where we admit in people on the Employment Pass? I think the numbers will go up… I don't think it should be $3,000." He was referring to the current minimum salary for the lowest Q1 tier.

For the higher-tier P1 and P2 passes, he said: "I think the levels would go up." The minimum pay for P1 is $8,000 and for P2, $4,500. Mr Tan, however, did not specify the size of the increase as the review of the EP framework has yet to be completed.