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July 4, 2024

What is an Employment Pass and How Does it Work?

what is employment pass

An Employment Pass (EP) is a work visa issued by the Singapore Ministry of Manpower (MOM). It allows foreign professionals, managers and executives to work in Singapore. If you want to move and work in a business and tech hub, this pass is for you.

To qualify for an EP, you must earn at least $5,000 a month and meet the criteria. Singapore employers must show that they have considered all local jobseekers fairly before hiring foreign talent.

Singapore employment pass application is done online by the employer or appointed employment agent. The process involves several steps including using the Self-Assessment Tool to check eligibility.

Summary

  • Foreign professionals can work in Singapore.

  • Must earn minimum fixed monthly salary and meet criteria.

  • Employer handles the application and fair hiring practices.

Overview of Employment Passes

Employment Pass (EP) in Singapore is for foreign professionals, managers and executives. You can work in Singapore legally.

Criteria for EP is a minimum monthly salary of $5,000. Your employer must also show that they have considered local jobseekers fairly.

EP Features:

  • Salary Requirement: $5,000 per month.

  • Application: Can be applied online by employer or employment agent.

  • Validity: 1 to 2 years and renewable.

Benefits of having an EP:

  • Family: Dependent passes for eligible family members.

  • Flexibility: Live, work and travel in and out of Singapore without extra entry visas.

  • Exemptions: No foreign worker levy or quota required.

Application:

  1. Check Eligibility: Use the Self-Assessment Tool to check if you meet the criteria.

  2. Prepare Documents: Collect necessary documents such as educational certificates and job offer letter.

  3. Submit Application: Employer or employment agent submits the application online.

  4. Wait for Approval: Ministry of Manpower will process the application.

For more information on requirements and steps, visit this EP page.

Eligibility Criteria

To qualify for an EP in Singapore, you must meet educational, professional, salary and company sponsorship criteria. Know these requirements to succeed.

Educational

Candidates must have a tertiary education. This means a degree from a recognized university. Diplomas or specialized certifications in relevant fields can be considered.

The institution must be reputable. Graduates from well-known universities have higher chances of approval. The more prestigious the school, the stronger the application. So, having both relevant and reputable degree is important.

Professional Experience

Work experience is another key factor. Candidates need several years of professional experience in the field.

Managers or executives require more experience. Specific industries may have different experience requirements. Highlighting successful projects or leadership roles can strengthen the application.

Employers may also prefer candidates with international experience. This shows adaptability and broader skills. The more relevant your experience, the better.

Salary Requirement

A key requirement is the salary threshold. As of now, you need to earn at least SGD 5,000 per month. This may change based on experience and industry.

Higher salaries for banking or IT roles may be expected. Remember that salary offer must match your acceptable qualifications. A competitive salary not only meets the requirements but also shows job value.

Company Sponsorship

EP must be applied by employer or authorized employment agent. Company must also show that they have considered local candidates before offering the job to a foreign applicant.

Employer’s business background and financial situation can affect the application. Company should provide detailed job description that matches the candidate’s qualifications. Make sure your employer follows the right process for a successful application.

Application Process

application process

To get an EP in Singapore, you need to prepare the documents, follow the process and know the processing time before approval and issuance.

Initial Documents

You must collect the documents before you start the application. This includes:

  • Proof of qualification: Degrees, diplomas, or certificates.

  • Employment details: Job title, salary and job responsibilities.

  • Company information: Employer details.

  • Passport: Copy of personal particulars page.

Make sure all documents are in English or translated by a certified translator. You will also need a passport-sized photo taken against a white background.

Submission Process

You can apply for EP online through the Ministry of Manpower’s website. Either employer or employment agent can submit the application.

  1. Register on the Ministry of Manpower (MOM) website.

  2. Login and fill up the application form.

  3. Upload the documents.

  4. Pay the application fee.

The online process is easy but make sure each document is uploaded correctly to avoid delays.

Processing Time

After submission, the application will be processed by MOM.

  • Processing time: 3 weeks for most cases.

  • Complex cases: up to 8 weeks.

MOM may request for additional information or documents during this period so monitor your application status regularly.

Approval and Issuance

If approved, you will receive an In-Principle Approval (IPA) letter.

  • IPA Letter: Valid for 6 months and can be used to enter Singapore if you are not already in Singapore.

  • Medical Examination: If required.

Upon arrival in Singapore, present your IPA letter and go for fingerprinting and other checks. Within a few days, you will receive your EP card which allows you to live and work in Singapore legally.

Follow the instructions carefully to avoid any issues during approval and issuance.

Types of Employment Passes

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EP is for foreign professionals, managers and executives who want to work in Singapore. Here are the main types of EP:

Employment Pass (EP): For foreigners holding professional, managerial or executive positions. You need a job offer in Singapore, meet the salary requirement of at least $5,000/month and have relevant qualifications and experience. More info here.

S Pass: For mid-skilled workers. You need to earn at least $3,000/month and the required qualifications are degree, diploma or technical certificates. Make sure your job offer is in an eligible role and meet MOM requirements which you can check here.

EntrePass: For entrepreneurs who want to start and operate a business in Singapore, the EntrePass is for highly qualified entrepreneurs with innovative business ideas. You need to have a business plan and meet certain investment thresholds. More info here.

Personalised Employment Pass (PEP): For high earning employment pass holders or overseas foreign professionals. It gives more job flexibility and allows holder to switch job without reapplying for new pass. Eligibility criteria is high minimum salary threshold. More info here.

These passes cater to a wide range of talents to work in Singapore for different needs and skills.

Rights and Restrictions

EP allows foreign professionals to work in Singapore with certain rights and restrictions on job scope, travel, mobility, residential and family status.

Job Scope

As an EP holder, you can work as managers, executives and specialists. You need to earn at least $5,000/month. You cannot work for another company outside your specified company without a new EP.

If you want to switch job or change employer, your new employer need to apply for a new EP. Positions in medicine, dentistry and law may require registration or additional qualifications.

Travel and Mobility

EP holders can travel in and out of Singapore without need for additional visas. This gives you more flexibility to manage international business or personal trips.

But you need to return to Singapore within the period allowed by your pass renewal terms. To avoid delays, make sure your pass and other travel documents are valid and comply with immigration rules of destination countries.

Residential and Family Status

A Long Term Visit Pass can be applied to bring in a close family member to Singapore. Spouse, children under 21 and parents can live with you if you meet the eligibility criteria.

You can also rent or buy property like a resident but there are specific rules to follow. Make sure you follow the property laws and regulations set by the authorities. This will enable you to have a stable residential address while you are working in Singapore.

Renewal and Cancellation

Renewing an EP is important if you want to continue employing someone after their current pass expires. Renewal applications can be submitted if the pass is expiring soon. If the pass is expiring from 1 September 2024, the pass holder must meet the new COMPASS requirements.

Steps to Renew:

  1. Submit the renewal application.

  2. Ensure all documents are up-to-date.

  3. Wait for the approval.

More info on how to renew EP here.

Cancelling an EP must be done within 1 week after the last day of notice. You can also submit your cancellation request up to 14 days in advance. This gives you time to settle all matters related to the employee’s exit.

Steps to Cancel:

  1. Notify the Ministry of your intention.

  2. Use EP Online to submit your cancellation.

  3. Collect and return the EP card and passport.

More info on cancelling EP here.

Not renewing or cancelling an EP on time can have legal and administrative consequences. Make sure you follow all guidelines and timelines set by the Ministry of Manpower.

Compliance and Legal Obligations

Understanding compliance and legal obligations is key to managing EP in Singapore. This involves specific responsibilities for employers and employees as well as government audits and penalties for non-compliance.

Employer Responsibilities

As an employer of foreign professionals under the EP scheme, you must show that you have considered local jobseekers fairly before hiring foreign talent. Fair consideration means advertising the job on MyCareersFuture portal for at least 28 days.

You are required to keep records of your hiring practices and compliance. This includes keeping employment records and a fair wage policy, ensuring your employees earn at least the minimum salary required for EP. Employers must comply with all legal and statutory requirements.

Not meeting these requirements can result in penalties by the Ministry of Manpower (MOM) such as fines or revocation of your ability to hire foreign workers.

Employee Duties

As an EP holder in Singapore, you must fulfill various duties and responsibilities. This includes working only in the occupation and for the employer stated in your EP. If you want to change jobs, you must have your new employer apply for a new EP.

Employees must also pay their taxes. Income tax must be paid on income earned in Singapore. You must also comply with any statutory contributions, such as CPF if applicable.

Not fulfilling these duties can result in penalties including cancellation of EP and deportation.

Government Audits and Penalties

The Ministry of Manpower conducts regular audits and inspections to ensure EP compliance. These government audits may involve reviewing your hiring practices, employment records and other relevant documents to verify legal and regulatory compliance.

Penalties for non-compliance can be severe. Employers may face fines, ban on hiring foreign workers and other legal actions. Employees found violating their EP conditions may have their pass cancelled and be deported.

Compliance through self-audits and meeting all legal requirements can help you avoid penalties and a fair working environment.

Role of Employment Agencies

Employment agencies play a big role in getting an EP in Singapore. These agencies help both employers and foreign candidates in the application process.

The agencies help employers navigate the complex requirements. They ensure job advertisements comply with the Fair Consideration Framework.

Agencies also help candidates assess their eligibility. They use the enhanced Self-Assessment Tool (SAT).

Benefits of Using Employment Agencies

  • Expertise: Agencies have experience with MOM guidelines.

  • Efficiency: They speed up the application process.

  • Compliance: They ensure all requirements are met.

Services Offered

  1. Eligibility Assessment: Using SAT to check if candidates qualify.

  2. Document Preparation: Assisting in gathering and preparing documents.

  3. Application Submission: Submitting applications on behalf of clients.

  4. Follow-up: Tracking application status and communicating with MOM.

Employment agencies not only handle the technical aspects but also provide support and guidance throughout the process. They make it easier for employers and employees to comply with all requirements and increase the chances of approval.

Economic Impact of Employment Passes

Foreign professionals are allowed to work in Singapore with employment passes. This has major economic implications.

Foreign workers can fill the gaps in the local workforce. When there are not enough skilled professionals locally, EPs ensure businesses can still operate.

Key Benefits:

  • Skill Transfer: Foreign professionals bring in expertise and knowledge which they can transfer to local employees.

  • Economic Growth: By attracting talent, Singapore can remain a global business hub.

  • Innovation: Diverse talent pools lead to innovation and new business ideas.

But there are also regulatory requirements. Employers must comply with fair hiring practices and consider local candidates before hiring foreigners.

Taxes and Revenue:

  • Income Tax: EP holders may have to pay income tax and contribute to Singapore’s coffers.

  • Consumer Spending: Foreign professionals contribute to the economy through their spending on goods and services.

Family Members’ Impact:

EP holders’ family members can also contribute to the economy. Passes are available for eligible family members to live and sometimes work in Singapore.

Challenges:

  • Wage Pressure: Foreign talent can put pressure on local wages.

  • Job Competition: Locals may feel they are competing with foreigners for jobs.

You need to balance these to get the most out of EPs while addressing the issues.

Challenges and Considerations

Applying for an EP in Singapore has its own set of challenges and considerations that you need to be aware of. Labor market testing, quota and levy systems and local vs foreign talent will all come into play.

Labor Market Testing

Labor market testing requires businesses to show they have made genuine efforts to hire local talent before hiring foreign workers. This means you have to advertise the job to local Singaporeans for a period before considering foreign applicants.

Key steps:

  1. Advertise on national job portals.

  2. Provide evidence of local job applications received.

  3. Show reasons why local candidates were not selected.

Labor market testing means job opportunities are first offered to local residents which can sometimes delay the hiring process.

Quota and Levy Systems

In Singapore, different passes like the S Pass have quotas and levies. The Employment Pass (EP) has no quota but do not forget there are costs associated.

Considerations:

  • No foreign worker levy required.

  • No mandatory quotas for EP holders.

  • Monitor the overall local to foreign staff ratio.

The absence of quota for the Employment Pass makes it easier for employers to hire foreign skilled professionals but you still need to comply with overall workforce regulations.

Local vs Foreign Talent Debate

The debate on hiring foreign vs local talent is a major consideration. There is ongoing policy-making in Singapore to balance the two groups in the workforce.

Factors to consider:

  • Government policies favouring local employment.

  • Public sentiment and social impact.

  • Long term integration and career progression for foreign talent.

Balancing this debate means staying up to date with current policies and ensure your hiring practices support the growth and integration of both local and foreign workers equally. This means contributing to the local economy and a positive work culture.

Recent Changes and Updates

From September 2023, major updates to the Employment Pass (EP) framework.

The new two-stage eligibility framework is in place for new EP applications from 1 September 2023 and for renewal of EPs expiring from 1 September 2024.

Key changes:

  • Salary criteria: The minimum qualifying salary for EP has been revised. You need to ensure your candidates meet the new requirements.

  • Enhanced Self-Assessment Tool (SAT): Employers and employment agents can now use the improved SAT to assess a candidate’s eligibility before application. This tool helps to streamline the process and reduce application errors.

Compass Framework

The new Compass requirements also applies to the existing criteria. This framework looks at:

  • Candidate’s qualifications

  • Employer’s track record

  • Job sector requirements

Government Statements

According to Ministry of Manpower, these changes are to ensure EP holders are of quality and fit for the local workforce. The overall aim is to boost the talent pool in Singapore.

Important Links:

  • Eligibility for Employment Pass - Ministry of Manpower

  • Singapore’s New Employment Pass Regulations Explained

Stay updated with these changes to ensure smooth EP application.

Conclusion

Obtaining an Employment Pass (EP) is crucial for skilled professionals seeking to work in Singapore.

The EP process involves several steps:

  1. Before Applying: Ensure you meet the eligibility criteria.
  2. Application: Submit your application through Singapore's Ministry of Manpower.
  3. After Approval: Arrange for your arrival and begin your employment.

To qualify for an EP, you typically need:

  • A job offer in Singapore.
  • Relevant qualifications and professional experience.
  • A minimum monthly salary of $5,000 (Ministry of Manpower).

Benefits

  • Personal Growth: Experience living and working in a new culture.
  • Professional Advancement: Access job opportunities and career growth.
  • Flexibility: Bring eligible family members and travel easily in and out of Singapore.

Tips for Success:

  • Ensure your application is complete and accurate.
  • Keep track of application status through the Ministry of Manpower's website.
  • Stay informed about any changes in regulations or requirements.

Having an Employment Pass allows you to enjoy numerous benefits, making it an excellent opportunity for those looking to advance their careers and experience life in a thriving city like Singapore. Visit https://pconnectservices.com/ to find out how we can increase your EP application success.

FAQs

Learn about the processing time, key differences between passes, validity period, and common rejection reasons for the Employment Pass in Singapore.

How long does it take to process an Employment Pass?
Processing time for Employment Pass is around 3 weeks. This may vary depending on the volume of applications and completeness of documents.
What are the main differences between Employment Pass and Work Permit?
Employment Pass is for foreign professionals, managers and executives and requires minimum $5,000 salary for all sectors except for financial services sector (increases progressively with age from age 23, up to $10,500 at age 45 and above). Work Permit is for semi-skilled workers who do manual work. Employment Pass has no quota and no levy requirement. Work Permit has both.
How long is the validity of Employment Pass in Singapore?
Employment Pass is usually 1 to 2 years. Renewal is possible and can extend up to 3 years.
Why is my Employment Pass application rejected?
Common rejection reasons are not meeting salary threshold, lack of relevant qualifications or experience and not demonstrating fair hiring practices. Ensure your documents are accurate and complete to increase chances of approval.
Need help with Employment Pass application? Fill in the form below to get started.

Discover how Singapore's Employment Pass empowers foreign professionals in a thriving business hub.

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