Key Updates in Singapore Workforce Policies in 2024
Since 2024, the Minister of Manpower (“MOM”) Singapore had made several important announcements for Singapore workforce policies.
This article aims to provide an update for Kaizen’s existing clients or potential clients for the new requirements of MOM.
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Increase Compensation Limits Under the Work Injury Compensation Act (“WICA”)
Unless the individual is independent contractors, self-employed, domestic worker, or uniformed personnel, otherwise the individual who is under a contract of service [1] will be covered under Work Injury Compensation Act (WICA), regardless of salary, age or citizenship.
It is mandatory for employers to purchase approved Work Injury Compensation (“WIC”) insurance from MOM-designated insurers for all employees engaged in manual work, regardless of their monthly salary. Additionally, non-manual employees earning S$2,600 or less per month, excluding overtime and bonus payments, must also be covered. However, all employees, regardless of their insurance status, are still protected under the Work Injury Compensation Act (WICA). Employers remain liable to compensate employees for valid claims, even if they are uninsured.
With consideration to enhance protections for employees who is under contract of service, MOM has announced to increase the compensation limits for death and permanent incapacity (“PI”) for more than 19% and also increase the compensation limit for medical expenses more than 17% with effect from 1 November 2025. The revised compensation limits are tabled below:
|
Type
|
Limits
|
Current Limits
|
New Limits
|
|
Death
|
Minimum
|
S$76,000
|
S$91,000
|
|
Maximum
|
S$225,000
|
S$269,000
|
|
Permanent Incapacity
(PI) [2]
|
Minimum
|
S$97,000
|
S$116,000
|
|
Maximum
|
S$289,000
|
S$346,000
|
|
Medical Expenses
|
-
|
S$ 45,000 or medical expenses
incurred up to 1 year from the date of the accident, whichever reached first
|
S$53,000 or medical expenses
incurred up to 1 year from the date of the accident, whichever reached first
|
Notes:
[1]
|
The Employment Act 1968 defines “contract of service” as an agreement, including apprenticeship agreements, whether by written or oral, express that one party agrees to employ another party as employee, and the other party agrees to serve as an employee to the employer.
|
[2]
|
The maximum limits only applies for total PI cases or 100% PI. If the PI percentage is lower than 100%, the minimum and maximum compensation sums will be adjusted proportionally. The amounts stated also exclude the additional 25% compensation that is paid for total PI, which is to offset the cost of care for injured employee.
|
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Revised COVID-19 Vaccination Requirements for All Pass Holders
With effect from 1 March 2024, MOM has announced that the COVID-19 Vaccination requirements are no longer required for all pass holders. However, MOM still encouraged the pass holders to get COVID-19 vaccination, to protect from severe illness and minimise risk of transmission.
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Revised Employment Pass (“EP”) Qualifying Salary
On 4 March 2024, MOM announced revisions to the Employment Pass (EP) qualifying salary for both new applications and renewals.
The implementation of the new EP qualifying salary will only take effect from 1 January 2025, for new EP applications and from 1 January 2026, for EP renewals that expire from that date onwards.
Please refer to the table below for details in the adjustment of Qualifying Salary:
|
Sector
|
Age
|
Current
Qualifying Salary
|
Revised
Qualifying Salary
|
|
Financial Services
|
≤23
|
From S$5,500
|
From S$6,200
|
|
≥45
|
S$11,500
|
S$11,800
|
|
Other Sectors
|
≤23
|
From S$5,000
|
From S$5,600
|
|
≥45
|
S$10,500
|
S$10,700
|
The amount for Qualifying Salary will increases progressively in line with the applicant’s age and up to the Qualifying Salary stated in the table above in their mid-40s.
-
Increase Local Qualifying Salary Threshold
On the same press release, MOM has announced the raising of Local Qualifying Salary (LQS) threshold, in line with efforts to enhance the Progressive Wages initiative.
With effect from 1 July 2024, firms hiring foreign workers will be required to pay all their local workers at least $1,600 per month, up from the previous threshold of $1,400. This increase aims to keep pace with wage growth, uplift lower-wage workers, and maintain controls on the foreign workforce. Additionally, part-time local workers must now be paid a minimum of $10.50 per hour.
The foreign worker quota will be adjusted with the new LQS correspondingly with effect from the same date, as follows:
[1]
|
1 local workforce count: For each local worker who is paid at least S$1,600 per month; or
|
[2]
|
0.5 local workforce count: For each local worker who is paid at least S$800 but less than S$1,600 per month.
|
All the information and requirement are revised periodically and may be subject to change from time to time by the Singapore government authorities without prior notice. Please consult with Kaizen Consultants for more information.
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