Singapore Changes Expat Hiring Rules

Due to increased political pressure over residents competing with Expats, Singapore has introduced new measures to curb the amount of foreign workers.

London, UK (Pryce Warner International) August 17th, 2011 – After May elections that saw the opposition party make considerable gains, the ruling People’s Action Party is taking steps to reduce the amount of Expats seeking employment.

Local residents have long called for reforms as they are facing considerable pressure from foreign workers for mid-level jobs.

This led to a rise in the minimum qualifying salary for immigration from S$2500 to S$2800 per month.

The minimum salary will now go up to S$3000 (£1500) per month from January 2012.

It is hoped that the new legislation will reduce the countries dependence on foreign workers and keep the percentage of Expats in the workforce at roughly 33%. There is currently an issue with locals being priced out of the market after they gain some experience by foreigners willing to work for less.

Though individuals that do not qualify under the new regulations will still be able to work in Singapore, their employers will have to meet several quotas and levies. The government will give businesses a window to make all necessary changes by phasing in the new rules over a one-to-two year period.

It is expected that the new rules will affect roughly one-in-five of current foreign workers, who presently account for about 35% of the population.

David Retikin, Director of Operations at Pryce Warner International, a Financial Services Provider for Expats, commented: “Though this new rule is designed to reduce the amount of low and mid level employees in Singapore, it will naturally have a know on effect on most Expats in the country. Young graduates and those with less experience will now have a much harder time seeking employment in Singapore. Anyone currently earning under the necessary required amount will also have to ensure that their company raises their salary by January.

Pryce Warner International Group Provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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