Workers embraced the year of the horse leaping. They leaped in joy because of the news of wage increase. The republic is positive about the changes in wages. In general, it is said that the growth of wage will be around 4-5%. Apart from that, low unemployment is anticipated in 2014. The inflation is also expected to stabilize around 2-3%. The future of the republic and its people looks bright.
If you want the specifics, you should know the policy changes in the field of manpower. The changes cover:
EP (Employment Rate) applicants can expect higher salaries this 2014. Firms or companies who want to employ foreign professionals should offer a minimum wage of S$3,300 per month compared to the previous wage which was S$3,000. The additional S$300 will be a great help to EP workers. The new rate applies to foreign graduates that are young. If older applicants want to hold EP, they should earn more.
There are amendments in the employment act. The employment act covers every employee here in Singapore regardless of the nationality. The employee should be under a contract with an employer unless they are in executive or managerial position, seaman, domestic worker and those that are employed at the government or Statutory Board. Starting April 1, 2014, rank and file employees with monthly earnings of S$2,500 will be covered by the Employment Act. For managerial or executive positions with monthly earnings of S$4,500 will be safeguarded from unfair dismissal. They will also have other benefits like sick leave.
Foreign Worker Levy
From July of 2014, there will be an increase in the monthly levies for S Passes and Work Permits holder especially those that are employed under the construction, process, marine and service sectors. The increase will cost S$15-S$200.
From August of 2014, there will be stricter policies for firms and companies that wish to hire foreign workers. The firms and companies should make sure that they tried to employ Singaporeans first with the use of advertising through government jobs bank before advertising abroad and hiring foreign workers. However there are exceptions to this advertising rule. Firms or companies with less than 25 employees are exempted. Jobs with a minimum pay of S$12000 per month are also exempted.
These changes will be tight for the labour market. The levy changes for example can create pressure to firms and companies. The building sector will be seriously affected because of the monthly levies that could rise up to S$950 for every low skilled foreign employee. But these changes are for the better.