Understanding the New Employment Pass Criteria

Significant changes to the Employment Pass (EP) salary requirements in Singapore took effect from 1 January 2025. These updates are designed to attract highly skilled professionals while promoting fair job opportunities for local residents.

Key Changes on New Employment Pass Criteria:

• Updated Minimum Salary Requirements:

  • For new EP applicants across all sectors, the minimum qualifying salary will increase from SGD 5,000 to SGD 5,600 per month. In the financial services sector, this threshold will rise from SGD 5,500 to SGD6,200.

• Enhanced Salary Criteria for Experienced Professionals:

  • The salary requirements increase progressively with age, reflecting greater experience and seniority expectations.

  • For those aged 45 and above, the qualifying salary for all sectors will be SGD 10,700, while professionals in the finance sector will need to meet a threshold of SGD 11,800.

  • This age-adjusted approach ensures that salary expectations align with the level of expertise and responsibility typically associated with older professionals.

Implications for Employers and Foreign Professionals:

• For Employers:

  • Companies will need to reassess their compensation packages to meet the new EP criteria, which may lead to increased operational costs and internal equity concerns. Employers are encouraged to invest in training programs to elevate the skills of local employees, aligning with national workforce development goals.

• For Foreign Professionals:

  • Prospective EP applicants must ensure their offered salaries meet the updated thresholds. Those currently holding EPs should be aware that renewal applications may also be subject to the new criteria, necessitating discussions with employers about potential salary adjustments.

Note: This information is accurate as of the point of publishing.

For more information, please visit here.

For any support on employment pass, contact us today.

Upcoming Changes to Central Provident Fund (CPF) Contribution Rates for Senior Workers

Singapore is preparing to implement significant changes to the Central Provident Fund (CPF) contribution framework, with the aim of enhancing retirement savings for its workforce. These adjustments focus particularly on senior workers, ensuring they are better equipped for financial stability in their post-retirement years.

Key Changes for Central Provident Fund (CPF)

Effective January 1, 2026, CPF contribution rates for senior workers aged 55 to 65 will increase by 1.5%. This adjustment includes a 0.5% rise in employer contributions and a 1% increase in employee contributions. These changes are designed to strengthen retirement savings for Singapore’s aging workforce. For more details on these revised rates, please visit the CPF Board's official website.

Implications for Employers and Employees:

• For employers:

  • Companies will need to adjust their payroll systems to accommodate the revised CPF contribution rates.

  • Ensuring adherence to these new regulations is essential to avoid penalties and maintain smooth payroll operations.

• For employees:

  • Employees should expect changes to their take-home pay, as a larger portion of their earnings will now be allocated to CPF accounts. While this may slightly reduce immediate disposable income, it will significantly enhance long-term retirement savings.

Conclusion

By confirming contribution rate adjustments for older workers, the government facilitates greater accumulation of retirement funds, promoting long-term financial security. Both employees and employers should prepare for these adjustments to fully benefit from the enhanced CPF contribution structure.

Note: This information is accurate as of the point of publishing.

For HR and Payroll services, contact us today.

Upcoming Changes to Central Provident Fund (CPF) Ordinary Wage Ceiling

Singapore is poised to implement significant changes to the Central Provident Fund (CPF) contribution framework, aimed at bolstering retirement savings for workers. These progressive updates are designed to align CPF contributions with current wage levels, allowing individuals to better prepare for retirement.

Key Changes to Central Provident Fund (CPF):

These adjustments will be phased in over several years, beginning with an increase in the CPF Ordinary Wage ceiling from SGD 6,400 in September 2023 to SGD 6,800 in January 2024. The ceiling will then rise to SGD 7,400 in January 2025 and ultimately reach SGD 8,000 by January 2026.

𝐂𝐏𝐅 𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐖𝐚𝐠𝐞 𝐂𝐞𝐢𝐥𝐢𝐧𝐠 𝐰𝐞𝐟 𝟏 𝐉𝐚𝐧 𝟐𝟎𝟐𝟔 = $𝟏𝟎𝟐, 𝟎𝟎𝟎 − 𝟏𝟐 𝐌𝐨𝐧𝐭𝐡𝐬 𝐱 𝐎𝐫𝐝𝐢𝐧𝐚𝐫𝐲 𝐖𝐚𝐠𝐞 (𝐜𝐚𝐩𝐩𝐞𝐝 𝐚𝐭 $𝟖, 𝟎𝟎𝟎)

Implications for Employers and Employees:

• For employers:

  • Employers will need to update their payroll systems to accommodate the new wage ceilings and any adjustments to CPF contribution rates.

  • Companies must ensure compliance with these new regulations to avoid penalties while maintaining smooth payroll operations.

• For employees:

  • They should prepare for changes to their take-home pay as a higher proportion of their earnings will be allocated to CPF accounts.

  • While this may slightly reduce immediate disposable income, the increase in CPF contributions will significantly enhance long-term retirement savings.

Conclusion:

These changes to the CPF contribution framework reflect Singapore's commitment to ensuring retirement savings keep pace with wage growth and demographic shifts. Both employees and employers should prepare for these adjustments to fully benefit from the enhanced CPF contribution structure.

Note: This information is accurate as of the point of publishing.

For HR and Payroll services, contact us today.