MOM tightens criteria for premium employment passes
Amid the global economic uncertainties, it will soon be more difficult for highly-skilled foreigners to remain in Singapore for an extended period if they find themselves out of a job.
While this privilege is currently enjoyed by a small group of eligible foreigners – about 12,000, or less than 7 per cent of the 174,000 Employment Pass holders – the number is set to get smaller.
Starting next month, foreign professionals applying for a personalised employment pass (PEP) – which among other things, allows them to stay here continuously for six months while being unemployed – will have to meet more stringent criteria that includes a minimum annual fixed salary of S$144,000, up four-fold from the existing S$34,000 a year.
The validity of PEPs – which are non-renewable – will also be reduced from five years to three years.
The new criteria was put up recently on the Ministry of Manpower’s (MOM) website. The MOM said that the changes ensure that the PEP “remains a premium pass for top-tier foreign talent working in Singapore and is in line with recent moves to raise the quality of Employment Pass holders”.
It added: “Foreigners with in-demand expertise and skills should be able to secure a job and obtain an Employment Pass before too long a period.”
Under the changes, apart from the higher minimum annual salary and shorter validity period, only P1 Pass holders – or the top tier of Employment Pass holders – who earn a fixed monthly salary of at least S$12,000 and overseas-based foreign professionals whose last drawn fixed monthly salary was at least S$18,000 may apply for the PEP. New PEP holders can also bring in their parents, spouses and children.
The MOM will give all existing PEP holders until Dec 31, 2014, to meet the revised minimum annual fixed salary requirement.
Responding to TODAY’s queries, an MOM spokesperson said that PEP holders whose passes are due to expire within six months after Dec 31, 2014, will be allowed to remain until expiry.
“Those who are not eligible under the revised PEP criteria can continue to work and live in Singapore on an Employment Pass or S Pass, subject to the prevailing assessment criteria,” she added.
Unlike the Employment Pass, the PEP is tied to the individual instead of a specific employer.
It was introduced in 2007 to “strengthen Singapore’s attractiveness to highly-skilled foreigners and facilitate their continued stay and contributions here”, according to the MOM.
While PEP holders whom TODAY spoke to did not think that MOM’s latest move would diminish the attractiveness of Singapore as a destination for foreign professionals, they were concerned about the shorter validity period amid the uncertain economic climate.
Said a Canadian professor who is teaching at a university here: “To some… (they) like a degree of certainty. Five years was reasonable because at the end of it, you can decide if you want to stay to become a resident or not. Reducing it would deter some people, but not everyone. It depends on their objectives and if they want to work in Singapore for a long time.”
Mr Joel Hides, Associate Director of recruitment consultancy firm Robert Walters Singapore, noted that many foreigners who relocate to Singapore on an Employment Pass would subsequently apply for PEP “because they may want greater flexibility in employers”.
The changes could come at a time when there is greater clamour for a PEP, he noted. “The fact that foreigners have to leave the country within a month of their Employment Pass ceasing, encourages a lot of people to apply for PEPs, particularly in the currently uncertain outlook,” Mr Hides added.
Still, recruitment firm Kelly Services Vice President Mark Hall felt that the more stringent criteria were “unlikely to discourage the majority of people from working in Singapore”. “In terms of relocating for career purposes, Singapore remains very attractive,” he said.
Welcoming the changes to the PEP regime, Members of Parliament whom TODAY spoke to reiterated that they would further differentiate top foreign talent, although Chua Chu Kang GRC MP Zaqy Mohamad felt that they may “impede our ability to attract top talent to Singapore”.
He said: “If they want to relocate their families here, they might find that three years is a bit too short or disruptive.”
Still, he added: “This will differentiate top talent against ordinary workers and give local PMETs some certainty in terms of stability and prospects.”
Agreeing, Ang Mo Kio GRC MP Inderjit Singh said: “(The PEP) can be subjected to abuse where people may just be exploring opportunities without being firm about staying here. I’d rather someone who’s got a firm offer be given a pass than someone who’s just here to test the market.”
Ref:http://www.dutchcham.sg/mom-tightens-criteria-for-premium-employment-passes
Amid the global economic uncertainties, it will soon be more difficult for highly-skilled foreigners to remain in Singapore for an extended period if they find themselves out of a job.
While this privilege is currently enjoyed by a small group of eligible foreigners – about 12,000, or less than 7 per cent of the 174,000 Employment Pass holders – the number is set to get smaller.
Starting next month, foreign professionals applying for a personalised employment pass (PEP) – which among other things, allows them to stay here continuously for six months while being unemployed – will have to meet more stringent criteria that includes a minimum annual fixed salary of S$144,000, up four-fold from the existing S$34,000 a year.
The validity of PEPs – which are non-renewable – will also be reduced from five years to three years.
The new criteria was put up recently on the Ministry of Manpower’s (MOM) website. The MOM said that the changes ensure that the PEP “remains a premium pass for top-tier foreign talent working in Singapore and is in line with recent moves to raise the quality of Employment Pass holders”.
It added: “Foreigners with in-demand expertise and skills should be able to secure a job and obtain an Employment Pass before too long a period.”
Under the changes, apart from the higher minimum annual salary and shorter validity period, only P1 Pass holders – or the top tier of Employment Pass holders – who earn a fixed monthly salary of at least S$12,000 and overseas-based foreign professionals whose last drawn fixed monthly salary was at least S$18,000 may apply for the PEP. New PEP holders can also bring in their parents, spouses and children.
The MOM will give all existing PEP holders until Dec 31, 2014, to meet the revised minimum annual fixed salary requirement.
Responding to TODAY’s queries, an MOM spokesperson said that PEP holders whose passes are due to expire within six months after Dec 31, 2014, will be allowed to remain until expiry.
“Those who are not eligible under the revised PEP criteria can continue to work and live in Singapore on an Employment Pass or S Pass, subject to the prevailing assessment criteria,” she added.
Unlike the Employment Pass, the PEP is tied to the individual instead of a specific employer.
It was introduced in 2007 to “strengthen Singapore’s attractiveness to highly-skilled foreigners and facilitate their continued stay and contributions here”, according to the MOM.
While PEP holders whom TODAY spoke to did not think that MOM’s latest move would diminish the attractiveness of Singapore as a destination for foreign professionals, they were concerned about the shorter validity period amid the uncertain economic climate.
Said a Canadian professor who is teaching at a university here: “To some… (they) like a degree of certainty. Five years was reasonable because at the end of it, you can decide if you want to stay to become a resident or not. Reducing it would deter some people, but not everyone. It depends on their objectives and if they want to work in Singapore for a long time.”
Mr Joel Hides, Associate Director of recruitment consultancy firm Robert Walters Singapore, noted that many foreigners who relocate to Singapore on an Employment Pass would subsequently apply for PEP “because they may want greater flexibility in employers”.
The changes could come at a time when there is greater clamour for a PEP, he noted. “The fact that foreigners have to leave the country within a month of their Employment Pass ceasing, encourages a lot of people to apply for PEPs, particularly in the currently uncertain outlook,” Mr Hides added.
Still, recruitment firm Kelly Services Vice President Mark Hall felt that the more stringent criteria were “unlikely to discourage the majority of people from working in Singapore”. “In terms of relocating for career purposes, Singapore remains very attractive,” he said.
Welcoming the changes to the PEP regime, Members of Parliament whom TODAY spoke to reiterated that they would further differentiate top foreign talent, although Chua Chu Kang GRC MP Zaqy Mohamad felt that they may “impede our ability to attract top talent to Singapore”.
He said: “If they want to relocate their families here, they might find that three years is a bit too short or disruptive.”
Still, he added: “This will differentiate top talent against ordinary workers and give local PMETs some certainty in terms of stability and prospects.”
Agreeing, Ang Mo Kio GRC MP Inderjit Singh said: “(The PEP) can be subjected to abuse where people may just be exploring opportunities without being firm about staying here. I’d rather someone who’s got a firm offer be given a pass than someone who’s just here to test the market.”
Ref:http://www.dutchcham.sg/mom-tightens-criteria-for-premium-employment-passes
Foreign Workforce Numbers
Pass Type Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Jun 2014 Employment Pass (EP) 114,300 143,300 175,400 173,800 175,100 176,600 S Pass 82,800 98,700 113,900 142,400 160,900 164,700 Work Permit (Total) 851,200 865,200 901,000 942,800 974,400 980,800 - Work Permit (Foreign Domestic Worker) 196,000 201,400 206,300 209,600 214,500 218,300 - Work Permit (Construction) 245,700 248,000 264,400 293,300 318,900 321,200 Other Work Passes2 5,200 6,000 7,600 9,300 11,300 14,700 Total Foreign Workforce 1,053,500 1,113,200 1,197,900 1,268,300 1,321,600 1,336,700 Total Foreign Workforce
(excluding Foreign Domestic Workers) 857,400 911,800 991,600 1,058,700 1,107,100 1,118,400 Total Foreign Workforce
(excluding Foreign Domestic Workers & Construction) 588,300 638,900 699,100 731,300 748,100 753,700
You can download the 
Foreign Workforce Numbers file.
Notes:
1. Data may not add up to the total due to rounding.
2. Other Work Passes’ includes Letter of Consent (LOC) holders and Training Work Permit (TWP) previously included in published Work Permit (WP) figures. Training Employment Pass (TEP) was included in 'Other Work Passes' from Mar 2014 onwa
- See more at: http://www.mom.gov.sg/statistics-publications/others/statistics/Pages/ForeignWorkforceNumbers.aspx#sthash.rfP2QRrK.dpuf
............
| Pass Type | Dec 2009 | Dec 2010 | Dec 2011 | Dec 2012 | Dec 2013 | Jun 2014 |
|---|---|---|---|---|---|---|
| Employment Pass (EP) | 114,300 | 143,300 | 175,400 | 173,800 | 175,100 | 176,600 |
| S Pass | 82,800 | 98,700 | 113,900 | 142,400 | 160,900 | 164,700 |
| Work Permit (Total) | 851,200 | 865,200 | 901,000 | 942,800 | 974,400 | 980,800 |
| - Work Permit (Foreign Domestic Worker) | 196,000 | 201,400 | 206,300 | 209,600 | 214,500 | 218,300 |
| - Work Permit (Construction) | 245,700 | 248,000 | 264,400 | 293,300 | 318,900 | 321,200 |
| Other Work Passes2 | 5,200 | 6,000 | 7,600 | 9,300 | 11,300 | 14,700 |
| Total Foreign Workforce | 1,053,500 | 1,113,200 | 1,197,900 | 1,268,300 | 1,321,600 | 1,336,700 |
| Total Foreign Workforce (excluding Foreign Domestic Workers) | 857,400 | 911,800 | 991,600 | 1,058,700 | 1,107,100 | 1,118,400 |
| Total Foreign Workforce (excluding Foreign Domestic Workers & Construction) | 588,300 | 638,900 | 699,100 | 731,300 | 748,100 | 753,700 |
You can download the Foreign Workforce Numbers file.
Foreign Workforce Numbers file.
Notes:
1. Data may not add up to the total due to rounding.
2. Other Work Passes’ includes Letter of Consent (LOC) holders and Training Work Permit (TWP) previously included in published Work Permit (WP) figures. Training Employment Pass (TEP) was included in 'Other Work Passes' from Mar 2014 onwa
- See more at: http://www.mom.gov.sg/statistics-publications/others/statistics/Pages/ForeignWorkforceNumbers.aspx#sthash.rfP2QRrK.dpuf
............
WORK PERMIT (WP) HOLDERS
WP holders are semi-skilled and lower-skilled foreign workers such as construction workers. The number of WP holders that a company can hire is subject to various control mechanisms including source (nationality) restrictions and a Dependency Ratio Ceiling (DRC) that sets a cap on the number of foreign workers the company can employ. In addition, employers have to pay monthly levies to hire WP holders.
We have introduced significant measures to moderate the inflow of WPholders, including significant increases to the foreign worker levies in phases. The chart below is an example of how foreign worker levy rates imposed on employers hiring WP holders in the services sector have increased over the last two years with further announced increases to be phased in till July 2013.
From July 2012, the DRCs for the services (from 50% to 45%) and manufacturing (65% to 60%) sectors will be reduced. The construction sector, which employs more than one-third of all WP holders will also see further adjustments to moderate foreign manpower demand.
S PASS HOLDERS
S Pass holders are mid-level skilled manpower such as associate professionals and technicians. They must earn a fixed monthly salary of at least $2,000 and are assessed on a points system based on multiple criteria. The number of S Pass holders a company can employ is capped at a sub-quota, or sub-DRC of the company’s total workforce. Employers have to pay monthly levies to hire S Pass holders.
Significant measures to moderate the inflow of S Pass holders, including raising the levies in phases, have been introduced. The qualifying salary for S Pass was raised in July 2011 to keep pace with the rising salaries of the Singaporean workforce. The sub-DRC for S Pass holders has also been reduced from 25% to 20% in July this year. (Table 1 below illustrates the changes in qualifying salary for S Pass holders).
EMPLOYMENT PASS (EP) HOLDERS
EP holders are higher-skilled foreign professionals, managers, executives and specialists (PMEs). To qualify, the applicant must meet these basic requirements:
| Pass type | Examples of eligibility criteria |
|---|---|
| P1 Employment Pass |
|
| P2 Employment Pass |
|
| Q1 Employment Pass |
|
Some EP holders are eligible to bring in their family members on either a Dependant’s Pass (DP) or Long-Term Visit Pass (LTVP).
The qualifying salaries for EP holders were also raised in July 2011 to keep pace with the rising salaries of the Singaporean workforce. We have tightened eligibility requirements for EP holders entering lower and mid-level professional, managerial and executive jobs since January 2012. The more stringent requirements include better educational qualifications and higher qualifying salaries. The table below illustrates how the qualifying salaries have been increased.
| Table 1: Increased Salary Criteria for S Pass and EP Holders | ||
|---|---|---|
| Year | Pass Type | Minimum Qualifying Salary (Per Month) |
| 2010 | P1 | S$7000 |
| P2 | S$3500 | |
| Q1 | S$2500 | |
| S Pass | S$1800 | |
| Jul 2011 | P1 | S$8000 |
| P2 | S$4000 | |
| Q1 | S$2800 | |
| S Pass | S$2000 | |
| Jan 2012 | P1 | S$8000 |
| P2 | S$4500 | |
| Q1 | S$3000 | |
| S Pass | S$2000 | |
Employment Pass - Before you apply
From 1 August 2014, as part of the Fair Consideration Framework, firms that wish to hire Employment Pass (EP) holders must first advertise that position in the Singapore Workforce Development Agency’s Jobs Bank. The advertisement must be open to Singaporeans, comply with the Tripartite Guidelines on Fair Employment Practices and run for at least 14 calendar days. EP applications which do not meet this advertising requirement will not be accepted.
From 1 August 2014, as part of the Fair Consideration Framework, firms that wish to hire Employment Pass (EP) holders must first advertise that position in the Singapore Workforce Development Agency’s Jobs Bank. The advertisement must be open to Singaporeans, comply with the Tripartite Guidelines on Fair Employment Practices and run for at least 14 calendar days. EP applications which do not meet this advertising requirement will not be accepted.
About the Pass
The Employment Pass is a work pass for foreign professionals working in managerial, executive or specialised jobs.
The Employment Pass is a work pass for foreign professionals working in managerial, executive or specialised jobs.
Who is eligible
Advertising requirements for employers
As part of the Fair Consideration Framework, firms submitting new Employment Pass applications may be required to advertise these job vacancies on the Jobs Bankadministered by the Singapore Workforce Development Agency (WDA) prior to application.
Requirements for foreigners
Foreigners who are interested to work and has a job offer in Singapore may apply for an Employment Pass. The applicants will need to earn at least $3,300 and possess acceptable qualifications.
Examples of eligibility criteria:
Young graduates from good institutions could qualify if they earn at least $3,300.
Older applicants would have to command higher salaries to qualify, commensurate with the work experience and quality they are expected to bring.
Information for foreign job-seekers
Foreign job-seekers may refer to our Strategic and Skills-in-Demand List which compile jobs expected to be high in demand in Singapore over the next few years.
Self-Assessment Tool
Employers are encouraged to use the online Self-Assessment Tool (SAT) to check if the applicant meets the requirements. This tool gives you a preliminary indication of whether the applicant qualifies.
The SAT is accurate. If the SAT indicates that the candidate is not eligible, you should not send the Employment Pass application as it will be rejected. If the SAT indicates that the candidate is eligible, 9 out of 10 of such applications will be approved. The rejections that occur even when the SAT says yes are due to factors that the SAT cannot consider, such as poor company profiles and applicants with adverse records.
Advertising requirements for employers
As part of the Fair Consideration Framework, firms submitting new Employment Pass applications may be required to advertise these job vacancies on the Jobs Bankadministered by the Singapore Workforce Development Agency (WDA) prior to application.
Requirements for foreigners
Foreigners who are interested to work and has a job offer in Singapore may apply for an Employment Pass. The applicants will need to earn at least $3,300 and possess acceptable qualifications.
Examples of eligibility criteria:
Young graduates from good institutions could qualify if they earn at least $3,300.
Older applicants would have to command higher salaries to qualify, commensurate with the work experience and quality they are expected to bring.
Information for foreign job-seekers
Foreign job-seekers may refer to our Strategic and Skills-in-Demand List which compile jobs expected to be high in demand in Singapore over the next few years.
Self-Assessment Tool
Employers are encouraged to use the online Self-Assessment Tool (SAT) to check if the applicant meets the requirements. This tool gives you a preliminary indication of whether the applicant qualifies.
The SAT is accurate. If the SAT indicates that the candidate is not eligible, you should not send the Employment Pass application as it will be rejected. If the SAT indicates that the candidate is eligible, 9 out of 10 of such applications will be approved. The rejections that occur even when the SAT says yes are due to factors that the SAT cannot consider, such as poor company profiles and applicants with adverse records.
| Employment Pass Self-Assessment Tool | Check Online |
|---|
Who can submit
The employer or the appointed agent may submit the Employment Pass application.
Note to overseas employers
If the applicant’s employer is based overseas and does not have a registered office in Singapore, another Singapore registered company can act as the sponsor and submit the application on behalf. Find out how you can apply.
The employer or the appointed agent may submit the Employment Pass application.
Note to overseas employers
If the applicant’s employer is based overseas and does not have a registered office in Singapore, another Singapore registered company can act as the sponsor and submit the application on behalf. Find out how you can apply.
Passes for Family Members
Successful applicants can bring in their families under one of these passes:
Successful applicants can bring in their families under one of these passes:
| Qualifying criteria | Passes for family members |
|---|---|
| Fixed monthly salary = $8,000 and above |
|
| Fixed monthly salary = between $4,000 and $8,000 |
|
A separate application for each family member should be submitted. The application can be submitted together with the Employment Pass application or separately.
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