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IMPACT – MEDIUM
What is the change? The Ministry of Manpower has said it will only accept requests to update employee salary information during the employment pass renewal process unless the salary reaches the level required for the pass holder to sponsor family members. Employers who do raise salaries in order for an employee to bring a dependent to Singapore will be required to use the iSubmit system to submit the request.
What does the change mean? Employers who raise an employee’s salary in order to apply for dependent must use iSubmit and should be prepared to submit (1) a written request on company letterhead that is signed by the employer and pass holder, (2) the pass holder’s payslips for the previous three months and (3) a copy of the pass holder’s IRAS statement.
Background: Until now, employers were able to update salary information at renewal, but could also submit requests at any point. With the new change, however, salary updates will only be accepted at renewal or if the salary change affects a pass holder’s ability to sponsor a family member. Singapore recently raised the minimum salaries required for employment pass and S pass holders to sponsor family members. Employees are now required to earn a minimum fixed monthly salary of 6,000 Singapore dollars (about US$4,585) to sponsor a spouse or child on dependent’s passes and 12,000 Singapore dollars to sponsor parents on long-term visit passes.
BAL Analysis: Employers will only be able to submit requests to update salary information during the pass renewal process or in cases where the employee reaches the threshold required to sponsor a family member. Employers should be prepared to gather the required documentation and submit salary change requests via iSubmit.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
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