Announced in February, by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam, the
Ministry of Manpower (MOM) will enforce a number of changes to the Foreign Manpower Policy. These modifications will directly impact the S Pass application process and related levies. The revisions are due to take effect in July of 2013 and foreign worker levies for S Pass Holders (SPH’s) and Work Permit
Holder’s (WPH’s) will continue to increase until 2015. These measures mentioned in the 2013 Budget
Statement are designed to stimulate the growth of Singapore’s economy and create a higher wage base for Singapore nationals.
Below are some key points:
S Pass Qualifying Salary Criteria
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Benchmarks are raised from $2,000 to $2,200 and higher (effective from 1 July 2013 for all new applications).
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Applicants who are more experienced will need to qualify at higher salaries that are commensurate with their work experience and the skillsets they bring.
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MOM will allow some exception during the transition: o Passes expiring before July 1, 2013 will receive a one-time renewal of up to one year based on the pre-July 2013 S Pass criteria. o Passes expiring between July 1, 2013 and December 31, 2013 will also receive a onetime renewal of up to one year based on the pre-July 2013 S Pass criteria. o For passes that expire on or after January 1, 2014, the new S Pass criteria will apply.
Foreign Worker Monthly Levy Rates

MOM has instilled a progressive levy increase for SPH’s and WPH’s to take place in all work sectors over the next three years.
Dependency Ratio Ceilings
** The maximum number of foreign workers a company can hire is calculated as a percentage of the maximum total workforce allowed based on the sectorial Dependency Ratio Ceiling (DRC).**

Taking effect July 1, 2013, the services sector ratio will decrease from 45% to 40%.
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The S Pass sub-dependency ratio ceiling will decrease from 20% to 15%. o The MOM will not approve a new S Pass application (filed after July 1, 2013) if the company’s quota of 15% has not been reached. o This does not affect existing workers however starting July 1, 2014, companies that fall under the Services sector will not be allowed to retain any S pass holders above the 20% quota. o An S Pass can still be renewed for up to two years but by July 1, 2015 companies will be required to observe the new quota requirements.

For more information on the topic please visit the Ministry of Manpower’s website at www.mom.gov.sg
.
Please note this is general information only and not intended as advice on a specific matter. Please feel free to contact Fakhoury Global Immigration directly with questions exclusive to your situation.