On Monday, Mar. 4, the Singaporean government stated that firms operating in the country would be required to pay higher salaries to foreign executives and professionals beginning in 2025.

Higher Salary Criteria

In order to be eligible for the work permits--better known as employment pass--usually given to well-paid professionals, foreign nationals will need to make S$5,600 ($4,170) or more per month beginning in January next year, up from the current S$5,000 ($3,720), as reported by Reuters. Specifically, the minimum wage requirement has been raised from S$5,500 ($4,090) to S$6,200 ($4,610) for those working in the banking industry.

The manpower ministry said that the action aims to guarantee that individuals holding employment passes are of high quality and to uphold fairness for locals.

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As Financial Powerhouse

For a long time, Southeast Asia has been a preferred site for regional headquarters of international corporations. However, the local community has been wary of foreign labor due to concerns about competition for job possibilities.

There were around 1.5 million foreign workers in Singapore as of June last year, with 197,300 on employment passes. The estimated total population of the nation is 5.9 million.

The minimum wage for foreign workers has increased thrice since the COVID-19 pandemic struck in 2020. The most recent increase was in September 2023, when it was increased from S$4,500 ($3,350) to S$5,000 ($3,720).

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