Singapore EP Salary Increase or Decrease Process and Considerations (MOM Requirements)

In Singapore, as an employer, if you plan to adjust the salary of an Employment Pass (EP) holder, whether increasing or decreasing it, you need to follow certain procedures and pay attention to relevant regulations. This article will detail the process and considerations for EP salary changes.

1. Who is Responsible for EP Salary Change Application

EP salary modifications are the employer's responsibility. The employer must notify the Ministry of Manpower (MOM) before the salary change and ensure that the changed salary meets Employment Pass requirements.

2. Process and Considerations for Salary Reduction

1. Submit Application in Advance
   If you plan to reduce an EP holder's salary, you must submit an application at least one month before the scheduled salary reduction date.
2. Ensure EP Holder Meets New Salary Standards
   After the salary reduction, the EP holder must still meet current work pass requirements. If the holder no longer qualifies after the salary reduction, you need to cancel the existing work pass and reapply for a work pass based on their new qualifications.
3. Impact on Dependant's Pass (DP) or Long-Term Visit Pass (LTVP) Eligibility
   If the EP holder no longer meets the salary requirements for Dependant's Pass (DP) or Long-Term Visit Pass (LTVP) after the salary reduction, MOM will cancel any existing DP or LTVP linked to the work pass.

3. Process and Considerations for Salary Increase

1. No Need to Notify MOM Immediately
   If you increase an EP holder's salary, there is no need to notify MOM immediately unless you plan to apply for a Dependant's Pass (DP) or Long-Term Visit Pass (LTVP). In this case, you can update the salary information during EP renewal.
2. Applying for Dependant's Pass (DP) or Long-Term Visit Pass (LTVP)
   If you have increased the salary and plan to apply for a Dependant's Pass or Long-Term Visit Pass, you need to submit an application and upload the following documents:
   • The holder's past 3 months of payslip details.
   • A clear copy of the latest Inland Revenue Authority of Singapore (IRAS) tax return.

4. Important Considerations

1. Ensure EP Holder Meets New Salary Standards
   Whether increasing or decreasing salary, the EP holder needs to meet the corresponding work pass requirements, especially salary requirements. EP salary standards may vary for different ages and industries, and employers should adjust according to specific circumstances.
2. Update Salary Information Promptly
   If salary changes involve dependant pass applications or renewals, ensure that required documents and information are prepared before submitting the application to avoid delays in the application process.
3. Salary Changes May Affect Other Benefits and Rights
   Salary changes may affect other benefits for the EP holder and their dependants, such as medical insurance and housing allowances. Employers should fully assess potential impacts before making adjustments.

5. Summary

In Singapore, EP salary changes are possible but must follow MOM's relevant procedures and regulations. Employers should carefully review pass requirements before making adjustments and ensure that EP holders still qualify after salary changes. Additionally, timely submission of applications and required documents can help ensure the salary change process proceeds smoothly.