Strengthening Local-Foreign Workforce Synergy
Update of S Pass salary criteria, changes to Fair Consideration Framework (FCP) job advertising requirements among MOM’s plans to strengthen local-foreign workforce synergy.
05 Mar 2018
Manpower Minister Lim Swee Say laid out the Ministry of Manpower’s plans to strengthen local-foreign workforce synergy in his Committee of Supply speech on 5 Mar 2018.
- The Fair Consideration Framework job advertising requirements will be broadened to cover more employers and more jobs.
- Update of S Pass salary criteria
- Extension of period of employment for experienced Workpass holders in certain sectors
- Increased funding support for the Capabilities Transfer Programmes (CTP)
Changes to FCF job advertising requirements
The current Fair Consideration Framework (FCF) job advertising requirement on national Jobs Bank before EP application will be broadened to cover more employers to ensure fair access to more and better jobs.
The change will see a requirement of smaller companies with 10 or more employees, and jobs paying less than $15,000 to advertise on the national Jobs Bank. This is updated from the current 25 employees, and jobs salary of up to $12,000 requirement. The change will take effect from 1 July 2018.
Update of S Pass salary criteria
The minimum entry level salary for S-pass applicants will be increased by $200, from $2,200 to $2,400. The increase will be done in two steps:
- $100 from January 2019
- Next $100 from January 2020
Following current practices, more experienced S-pass applicants will need to meet higher salary thresholds to qualify.
A transition period for existing S Pass holders will also be provided. For Work Permit Holders, there will be no further tightening at the moment, hence there will be no change to the dependency ratio ceiling (DRC) and levy.
Extension of period of employment for experienced Workpass holders
Currently, work permit holders at basic skill level (R2) from non-traditional sources (NTS), PRC are allowed to work here for maximum of 10 years. Those with higher skills (R1) in Services and Manufacturing are allowed to stay up to 18 years, and those working in Construction, Process and Marine Shipyard can work up to 22 years.
Moving forward, the maximum period of employment will be extended by another 4 years and will be applied to all sectors, for both R1 and R2 skill levels. The change will take effect from 1 May 2018.
More pathways will also be given to employers to improve the quality of their foreign workers such skills certification and those who are more experienced with higher pay can also be upgraded from R2 to R1. This is currently allowed for Construction, Process and Services sectors but will now be extended to the Manufacturing and Marine Shipyard sectors. It will take effect from 1 Sep 2018.
Increased funding support for CTP
Funding support for the Capabilities Transfer Programmes (CTP) currently range from 30%, 50% and 70% of the cost of capability transfer. This includes the salary cost of expert local and foreign trainers, cost of living allowance in Singapore and overseas, and training equipment for the industry.
Funding support will now be increased to 90% or up to $300,000 per project. Projects costing more than $300,000 will be assessed on a case by case basis.