MOM Latest News for March 2024 | Singapore Raises Employment Pass Salary Requirements: Salary, Retirement, Contracts & More

Posted on 27 March 2024 in Business | Suki Bajaj

Let’s take a look at Singapore’s top HR news, updates and insights for February including adjustments to employment pass salary requirements, retirement policy changes for senior employees, updated guidelines on restrictive clauses in contracts, and more.

Singapore Raises Employment Pass Salary Requirements

Singapore raising employment pass salary requirements from starting January 1, 2025, Singapore will require foreign workers applying for Employment Passes (EPs) to earn a higher minimum salary, from S$5,000 to S$5,600 per month.

This new requirement will apply to new EP applications starting January 1, 2025, and renewals from January 1, 2026.

There will also be a progressive increase based on age, with the highest being S$10,700 for those in their mid-40s.

This increase is part of the government's plan to maintain a strong talent pool and ensure competitive salaries for both local and foreign workers.

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Singapore Gradually Raises Retirement and Re-employment Ages

MOM has announced an increase in Singapore's retirement and re-employment ages. Starting in 2026, the retirement age will rise from 63 to 64 years old. The re-employment age will increase from 68 to 69 years old.

The early announcement aims to give employers ample time to plan for the workforce changes ahead.

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Equipping HR for Singapore's New Workplace Fairness Law

Singapore is introducing a workplace fairness law, expected in late 2024, to protect employees from discrimination.

HR teams can prepare by reviewing their compliance with current fair employment guidelines, which cover hiring, promotion, performance appraisals, and other practices. Aligning with these guidelines minimizes adjustments needed for the new law.

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Warning Issued Against Inflated Job Titles in Singapore

A recent report revealed that nearly half of hiring managers in Singapore are inflating job titles, or considering doing so, to attract and retain talent. This practice involves giving positions titles that overstate the actual responsibilities, seniority, or salary.

Experts warn that inflating job titles can backfire on employers such as dealing with mismatched skills or causing resentment among existing employees - potentially leading to higher employee turnover.

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Singapore Limits Non-Compete Clauses to Protect Valid Business Interests

Singapore's Ministry of Manpower clarifies that non-compete clauses, also known as restraint of trade clauses, in employment contracts can only be enforced if they aim to safeguard a company's legitimate business interests.

These clauses aren't automatically enforceable. The Singaporean courts decide each case on its merits, considering factors like the clause's scope, geographic reach, and duration.

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Singapore Employers Plan Wage Increases and Hiring Surge in Q1 2024

MOM reported a positive outlook for the labor market in the first quarter of 2024. Around one-third (32.6%) of employers in Singapore plan to raise wages during this period.

The report also highlights an increase in hiring intentions. Nearly half (47.7%) of the organizations surveyed plan to expand their workforce in Q1 2024.

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