Operating a business in Singapore often requires a high degree of agility, especially when managing a diverse and professional international workforce. As your company grows or adapts to market changes, you may find it necessary to adjust the salaries of your foreign professionals holding an Employment Pass (EP). However, because the EP is strictly tied to specific salary thresholds and professional qualifications, any change to a pass holder’s compensation is not merely an internal administrative matter. Instead, it represents a formal change to the conditions of their work pass, which necessitates immediate and precise regulatory action to avoid severe legal repercussions.
Essential Steps for Notifying the Ministry of Manpower
When you decide to increase or decrease the fixed monthly salary of an EP holder, your primary obligation is to inform the Ministry of Manpower (MOM). For salary increases, employers generally have the flexibility to update these details during the annual pass renewal process. However, if the salary increase is intended to qualify the employee for Dependant Pass (DP) privileges, you must submit the update via the myMOM Portal or EP eService before filing the DP application. Prompt notification ensures that the government records accurately reflect the employee’s current economic status and eligibility for various family-related benefits.
Conversely, downward adjustments are subject to much stricter timelines and scrutiny by the authorities. If you intend to reduce an employee’s salary, you must notify the Controller of Work Passes at least one month before the change takes effect. This notification is critical because a lower salary might cause the employee to fall below the minimum qualifying salary required for their specific age and sector. In 2026, the benchmarks have become more stringent, with a base requirement of S$5,600 for general sectors and S$6,200 for financial services, increasing progressively for older professionals.
Maintaining Internal Records and Statutory Compliance
Beyond updating the Ministry of Manpower, you must also ensure that all internal employment documentation aligns with the revised compensation package. Under the Employment Act, every employer in Singapore must provide a written record of Key Employment Terms (KETs) to their staff. When a salary adjustment occurs, you must issue an updated letter of offer or an addendum to the employment contract that clearly outlines the new figures. This documentation serves as a vital safeguard for both the employer and the employee, providing a clear legal basis for the new terms of service.
Furthermore, Singapore law mandates the provision of itemised payslips for all employees covered under the Employment Act. Your payroll department must ensure that these payslips accurately reflect the adjusted basic salary, allowances, and any relevant deductions. Failure to provide accurate payslips is a breach of employment regulations and can lead to administrative penalties or disputes during labor audits. By maintaining meticulous records, you demonstrate your commitment to transparency and ensure that your business remains in good standing with the local regulatory bodies.
| Requirement Type | Action Required | Platform/Document |
| Salary Increase | Update at renewal or immediately for DP | myMOM Portal / EP eService |
| Salary Decrease | Notify MOM 1 month in advance | myMOM Portal / EP eService |
| Employment Terms | Issue updated KETs or Addendum | Internal Contract |
| Payroll | Issue itemised payslips | Payroll Software / Manual |
| Tax Reporting | Report annual earnings (Form IR8A) | IRAS myTax Portal |
Implications of Non-Compliance and False Declarations
The Singapore government takes a very serious view of “proscribed manpower-related practices,” which includes declaring a high salary to secure an EP while intending to pay a lower amount. If an employer fails to pay the salary agreed upon in the contract, they are deemed to have broken the contract of service. Such breaches allow the employee to seek legal redress through the Employment Claims Tribunals (ECT). Furthermore, providing false or misleading information regarding salary is a criminal offence under the Employment of Foreign Manpower Act (EFMA).
The penalties for such violations are significant and can severely impact your business operations and reputation. Convicted employers may face fines of up to S$20,000, imprisonment for up to 2 years, or both for each charge. Additionally, the Ministry of Manpower may impose a debarment, preventing the company from hiring new foreign workers or renewing existing passes for a specified period. Consequently, it is imperative to ensure that every salary adjustment is bona fide and that your corporate filings with IRAS for annual tax assessments perfectly match the figures reported to MOM.
Navigating these regulatory nuances requires expertise and constant vigilance to ensure your business remains compliant while you focus on growth. At Raffles Corporate Services, we specialise in helping business owners manage their work pass applications and compliance needs with ease and precision.
Navigating these regulatory nuances requires expertise and constant vigilance to ensure your business remains compliant while you focus on growth. At Raffles Corporate Services, we specialize in helping business owners manage their work pass applications and compliance needs with ease and precision.
If you have questions about adjusting your employees’ salaries or need assistance with MOM notifications, please reach out to us. You can contact the Singapore Employment Agency team via email at [email protected].
Yours sincerely,
The editorial team at Singapore Employment Agency