http://sg.yfittopostblog.com/2011/03/10/government-raises-salary-bar-on-foreign-talent/

Government raises salary bar for foreign talent
By Faris – March 10th, 2011
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Mr Gan said that while the government will continue to favour the PMETs, he cautioned against closing the doors to foreigners. (AFP Photo)

Foreign professional and skilled workers will soon have to meet a higher qualifying salary before they can obtain a pass to work here.

Manpower Minister Gan Kim Yong said in parliament on Wednesday that the change — which will take effect from July 1 — is prompted by the improving profile of the local workforce and is meant to encourage companies to hire more qualified foreigners.

For professionals, the minimum monthly pay for getting an Employment Pass will be raised by as much as S$1,000. These pass holders, who often are degree holders working in professional, managerial or specialist jobs, are categorised into three groups: P1, P2 and Q1.

The new qualifying salaries are: $8,000 for P1, up from $7,000; $4,000 for P2 from $3,500, and $2,800 for Q1 from $2,500. The revision is the first since 2001, when the qualifying salary was raised from $2,000 to $2,500.

The S-Pass for mid-level skilled workers such as technicians and retail executives was introduced in 2004, and its salary threshold will go up from $1,800 to $2,000.

Mr Gan’s announcement was in response to the concern raised by Mr Liang Eng Hwa (Holland-Bukit Timah GRC) over Employment Pass holders competing with Singaporeans for jobs.

Acknowledging Mr Hwa’s concern, the minister also noted that the salaries of local professionals, managers, executives and technicians (PMETs) have risen in recent years, reported The Straits Times.

Mr Gan explained, “We need to raise the qualifying thresholds for Employment Pass and S-Pass applicants accordingly to keep pace with the local PMETs, and encourage companies to be more selective in hiring foreign talent.”

The number of Employment Pass holders has jumped by more than 20 per cent in the past year, from 115,000 in 2009, to 142,000 last year. For S-Pass holders, the number rose from 82,000 to 98,000.

Employers of existing Employment Pass and S-Pass holders will be given a one-time renewal of up to two years before they are required to meet the new criteria.

A new salary threshold was introduced below which local workers would be deemed to be working part-time for the purposes of foreign worker allocation. The threshold was $650; it will be $850 from July 1.

The move is to stop employers from hiring local workers on token salaries to meet the quota requirement for hiring foreign workers.

Recruiters like Ms Axer Goh of Robert Walters agency are convinced the higher cost of hiring foreigners will push more companies to consider local hires.

Association of Small and Medium Enterprises (SMEs) president Lawrence Leow said it could also lead to the salaries of locals going up, as companies would have to adjust the pay of their existing staff.

“If I have a local worker who has worked with me for two years and he earns $2,000, and I hire a new S-Pass holder at the same salary, it’s only right to increase his pay to reflect his working experience,” he said.

While Mr Gan stressed that the Government has and will continue to “tilt the balance in favour of local PMETs”, he cautioned against closing the door on foreigners.

“Foreign talent continues to be critical for our growth and these talents will help grow the economic pie, so that everyone will have a bigger share. Otherwise we will lose our attractiveness as an investment destination and we will not be able to create good jobs for locals.”