Is your organization presently employing foreign personnel in Singapore via the Employment Pass (EP) program? If the answer is affirmative, it is crucial to stay informed about the following noteworthy modifications.

Two substantial alterations have been implemented concerning the eligibility criteria for individuals seeking employment or already engaged in Singapore through the Employment Pass (EP) program. One of these changes was enacted in 2022, with the other slated for implementation in 2023.

What is an Employment Pass

The Employment Pass (EP) essentially serves as a work visa permitting foreign professionals, managers, and executives to engage in employment within Singapore, provided they meet the specified eligibility criteria.

Candidates are required to earn a minimum of $5,000 per month, which is set in accordance with the top one-third of local professional, managers, executives, and technicians (PMET) salaries based on age. This threshold progressively rises from $5,000 at age 23 and increases to $10,500 for individuals aged 45 and above.

The aforementioned minimum EP qualifying salary is applicable across all sectors, except for the financial services sector, where candidates are required to earn a minimum of $5,500 per month instead of $5,000. Similarly, this threshold increases progressively from $5,500 at age 23 and reaches $11,500 for individuals aged 45 and above.

For first-time applicants, the EP will be valid for a duration of up to two years. In contrast, for EP renewals, it can be valid for up to three years. Experienced technology professionals possessing skills currently in high demand in Singapore may be eligible for an extended five-year pass.

How and who can apply for an EP

Only an employer or an authorized third party has the authority to initiate an Employment Pass (EP) application on behalf of a candidate. If you are an overseas employer without a registered office in Singapore, you will require the services of a Singapore-registered company to act as a local sponsor and submit the application on your behalf.

One critical aspect of the EP application process that employers must be well-informed about pertains to advertising requirements. In a commitment to fostering equitable employment practices and enhancing transparency in the labor market, the Ministry of Manpower (MOM) has established a set of advertising criteria that employers are obligated to meet.

All employers are subject to compliance with the Fair Consideration Framework and are expected to adhere to the Tripartite Guidelines on Fair Employment Practices.

Employers undertaking EP applications must first advertise the job on MyCareersFuture, keeping applications open for a minimum of 14 consecutive days. This extended period ensures that job seekers have ample time to review and apply for the vacancy, with certain exemptions applying. The objective is to guarantee that employers have considered all potential candidates fairly before the approval of an EP application can be granted.

Revised Employment Pass Criteria

Starting from September 1, 2022, first-time EP applicants are required to meet an elevated qualifying salary in order to qualify for an EP. These updated salary thresholds will be applicable to EP renewals starting from September 1, 2023.

For individuals employed in sectors other than financial services, the minimum qualifying salary has been raised from S$4,500 to S$5,000. Meanwhile, for those employed in the financial services sector, the minimum qualifying salary has been raised from S$5,000 to S$5,500. As previously mentioned, the minimum qualifying salary incrementally increases with age.

Points-based Complementarity Assessment Framework (COMPASS)

Starting September 1, 2023, EP applicants will need to successfully navigate a two-stage eligibility assessment to be eligible for an EP. In addition to satisfying the previously mentioned EP qualifying salary requirements, candidates must achieve a certain score in the points-based Complementarity Assessment Framework (COMPASS).

Applications will receive points based on four fundamental criteria, provided they meet or exceed the specified benchmarks. These criteria encompass both individual attributes such as 'Salary' and 'Qualifications,' as well as firm-related attributes like 'Diversity' and 'Support for Local Employment.'

Furthermore, applicants have the opportunity to earn additional points in accordance with the bonus criteria if their application satisfies the relevant qualifying conditions.

40 points are required to pass COMPASS — Refer to the here for more details and case studies on how the scoring system works.

Exceptions from COMPASS comprise:

· Candidates with a minimum fixed monthly salary of $22,500.
· Candidates applying as overseas intra-corporate transferees under the World Trade Organisation's General Agreement on Trade in Services or a relevant Free Trade Agreement to which Singapore is a signatory.
· Candidates temporarily occupying a role for a period of one month or less.

Starting from September 1, 2024, all EP renewals will be subject to the COMPASS framework.

What it means to existing EP holder?

Presently, the recent changes will not impact existing EP holders; however, they will come into effect when it's time for these holders to renew their EPs.

To ensure employers have sufficient time to adapt and make necessary preparations, the Ministry of Manpower has introduced a gradual timeline for the implementation of these changes.

What's next?

Navigating the intricacies of the new Employment Pass requirements can be complex, and we understand that you may have questions or require personalized guidance.

Our team of experienced consultants is here to help you every step of the way. Whether you're an employer seeking clarification or a foreign professional looking for support, don't hesitate to reach out. We're here to assist you in ensuring a smooth and successful transition. Contact us today to discuss your specific needs and concerns.

Your success is our priority. Let's work together to achieve it.