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November 27, 2024

What is Personalised Employment Pass (PEP)? A Comprehensive Guide

what is personalised employment pass

The Personalised Employment Pass (PEP) is a special work visa for top foreign professionals in Singapore. It provides more freedom than other work passes.

The PEP allows you to work in almost any job sector without being tied to one employer. PEP holders also have to maintain a minimum fixed monthly salary to retain the pass as per MOM.

This pass is for high earning Employment Pass holders and overseas foreign professionals. You need to earn a fixed monthly salary of at least $22,500. PEP is valid for up to 3 years and can only be issued once. You must have all the necessary documents ready such as proof of income and educational qualifications before you start the PEP application process.

In this article, you will learn about the benefits, who can apply, and what supporting documents are required. We will also cover the approval process and timeline to help you decide if this pass is suitable for your career in Singapore.

What is the Singapore Personalised Employment Pass (PEP)

The Personalised Employment Pass is a special work visa for high earning professionals in Singapore. It offers more flexibility than other work passes.

Definition and Purpose

The Personalised Employment Pass (PEP) is a special work visa in Singapore. Not tied to any employer.

You can:

  • Switch jobs without applying for a new pass

  • Stay in Singapore for up to 6 months between jobs

  • Explore new business opportunities

This pass is designed for top talents. To attract and retain highly skilled professionals in Singapore’s workforce. PEP holders can also bring their family members to Singapore through Dependant’s Pass or Long Term Visit Pass under MOM’s sponsorship scheme.

PEP is valid for up to 3 years. You can only get it once in your lifetime. So it’s a one time opportunity for your career growth in Singapore.

Eligibility Criteria

To apply for a PEP, you must meet the income requirements. You need to earn a fixed monthly salary of at least $22,500. Your qualifications, employment testimonials, and proven track record in your field will be assessed.

Specific eligibility criteria include:

  • Employment Status: You must be a current Employment Pass holder or an overseas foreign professional with a salary that is in the top 10% of existing Employment Pass holders.

  • Minimum Salary: $22,500 per month.

  • Age: 45 years or below at the time of application.

Applicants should consult a professional to help in preparing supporting documents like salary slips, employment contract, and personal particulars.

Application Process

pep application process

Applying for Personalised Employment Pass (PEP) involves submitting the required documents and following a process. If you meet the requirements, it’s a straightforward process.

Documents Required

To apply for PEP, you need to prepare the following documents:

  • Copy of your passport

  • Latest resume with updated contact details

  • Educational certificates

  • Salary slips or tax statements for the last 6 months

  • Employer-issued PEP notification form with your job title and salary.

You also need to provide a letter from your current or future employer in Singapore. This letter should state your job title and salary.

For overseas applicants, you need to submit documents to prove your last drawn fixed monthly salary. These can be payslips or tax statements.

Step by Step Process

PEP application is mostly done online. Here’s what to do:

  1. Go to MOM website to start your application.

  2. Fill up the online PEP Application Form with your personal and professional details.

  3. Upload all the required documents.

  4. Pay the application fee.

  5. Wait for the outcome.

If approved, you will receive an in-principle approval letter. Please notify MOM of your local contact annual salary and complete the issuance process within 6 months.

Processing Time

PEP application processing time is about 8 weeks. This is for most cases, but some may take longer.

The Ministry of Manpower will review your application and documents. They may request for more information if needed.

You can check your application status online. Once approved, you will receive an email.

Remember, you cannot work in Singapore until your pass is issued. Plan your move accordingly.

PEP Benefits

Personalised Employment Pass (PEP) offers significant advantages in your career choices and removes common restrictions of traditional work passes.

Career Flexibility

With PEP, you have more control over your career. You can change jobs without having to apply for a new pass each time. This flexibility allows you to explore different industries or roles.

You are not tied to a specific employer or position. You can work for any company in Singapore that hires you. This freedom allows you to take on short-term projects, freelance work, or even start your own business.

PEP also gives you 6 months to find a new job between employment periods. This buffer gives you peace of mind during career transitions.

No Employer Restrictions

Unlike other work passes, PEP is not employer-tied. This means you are not dependent on one company to work in Singapore.

You don’t need your employer’s approval to change jobs. This gives you more bargaining power for salary and benefits.

The pass remains valid even if you lose your job or decide to leave your current position. You can assess new opportunities without visa concerns.

Remember, while PEP has many benefits, you need to maintain a minimum annual salary to keep the pass valid.

No foreign worker levy or quota is required.

Responsibilities and Obligations

personalised employment pass singapore

As a PEP holder, you have specific responsibilities. You need to follow the rules and meet the ongoing requirements to keep your pass status.

Compliance with Singapore Laws

As a PEP holder, you must comply with Singapore laws and regulations. This includes paying taxes on your income and employment rules.

You need to notify MOM of any changes in your job status. This applies when you start or end a job, or if you are unemployed for more than 6 months.

You can work in most jobs. However, some jobs like newspaper editor or religious leader may require additional approval.

You cannot start your own business on this pass. For that, you need to apply for EntrePass.

Renewal and Cancellation Policies

PEP is valid for up to 3 years and is not renewable. Therefore, you have to consider other work passes.

You must cancel your pass if you are unemployed for more than six months or if you have left Singapore permanently; in the latter case, cancellation must occur within one week of departure.

However, cancellation is not required if you change employers (notification suffices), become a Singapore permanent resident, or if your pass has expired, provided you remain in Singapore and request a Short-Term Visit Pass (STVP) to maintain legal stay.

Failure to do so may result in an overstaying fine.

Comparison to Other Work Passes

The Personalised Employment Pass (PEP) is different from other work passes in Singapore. It offers more freedom and flexibility for high earning professionals.

EP vs PEP

PEP gives you more job options than Employment Pass (EP). With PEP, you can work in any sector without having to apply for a new pass each time you change jobs. EP ties you to one employer.

PEP holders can stay in Singapore for up to 6 months to look for a new job, while EP holders have to leave the country soon after their employment ends.

It has higher salary requirements. You need to earn more to qualify for PEP than EP.

It is valid for 3 years and cannot be renewed. EP can be renewed multiple times.

S Pass and Work Permit Considerations

PEP is for higher earning professionals than S Pass or Work Permit. S Pass and Work Permit are for mid-level and lower skilled workers.

Personalised Employment Pass holders have fewer restrictions. You can change jobs freely and bring your family as dependents.

S Pass and Work Permit holders can’t bring family. They need employer approval to change jobs.

PEP does not count towards company quotas. S Pass and Work Permit does, so companies have a limit on how many they can hire.

Challenges and Considerations

pep considerations

Applying for PEP can be tricky. You might face some obstacles and need to meet certain monetary requirements.

Know about these before you apply.

Common Issues

You might find it hard to prove your worth for a PEP. Ministry of Manpower will scrutinize your skills and past jobs.

They want to see that you’re a top talent.

Your pass will be cancelled if you are unemployed for too long. You only have 6 months to find a new job if you lose your current job.

This can be stressful.

You cannot renew PEP. Once it ends, you need to get another work pass.

This means you might lose some of the perks you had with PEP.

Financial Thresholds and Assessment

The financial requirements for PEP are strict. You must earn at least $144,000 a year to qualify.

This is a high bar that not all workers can reach.

Your income is checked annually. If you don’t earn enough, your pass will be cancelled.

This can make your job situation less secure.

The government looks at more than just your salary. They also look at if your skills are rare and valuable.

You need to show how you will contribute to Singapore’s economy.

Renewal of Personalised Employment Pass

The PEP renewal process has its own criteria and timeline. You need to know these to maintain your pass status.

Renewal Criteria

PEP holders cannot renew their pass after it expires. PEP is only given once in a lifetime and is valid for 3 years.

You cannot extend it beyond that.

After your PEP ends, you have options. You can apply for another work pass if you meet the requirements. This could be EP or S Pass.

If you want to stay in Singapore, you need to plan ahead. Look into other pass types before your PEP expires.

Timeline

You don’t need to apply for PEP renewal. Just focus on your next steps as the deadline approaches.

You can stay in Singapore for up to 6 months after your job ends while on PEP. Use this time to look for new work options.

Start looking for new opportunities 3-6 months before your PEP ends. This gives you time to get a new pass if needed.

If you get a new job, your employer can apply for your next work pass. They should do this before your PEP ends to make the transition smoother.

Conclusion

Personalised Employment Pass (PEP) is good for high earning professionals in Singapore. It gives you more job mobility and industry hopping.

You have a lot to consider when applying for PEP. The salary requirement is high and you need to meet strict eligibility criteria. Be sure to seek professional advice from a certified employment agency when in doubt.

But the flexibility it gives can be very useful for your career progression.

In the future, PEP might get even more competitive. Singapore wants to attract top global talent so the requirements might get stricter.

You need to stay ahead of the game to qualify.

Remember PEP is just one of the many work visas in Singapore. Choose the one that suits you best.

A PEP is temporary. Plan your long-term career goals well.

Use your time on PEP to build valuable skills and networks in Singapore’s job market.

FAQs

Personalised Employment Pass (PEP) has its own requirements and rules. Here are the answers to common questions on eligibility, work arrangements, and residency.

What is the minimum salary to qualify for Personalised Employment Pass?
To get a PEP, you need to earn at least $22,500 per month. This puts you in the top 10% of EP holders.

For overseas professionals, your last drawn salary must meet this amount. It should be from the past 6 months before you apply.
Can PEP holders be self-employed in Singapore?
No, PEP holders cannot be self-employed. The pass is for employment.

You must work for a company in Singapore. Starting your own business is not allowed under this pass.
Can PEP holders work for multiple employers in Singapore?
Yes, you can work for more than one employer with a PEP. This is one of the benefits of the pass.

PEP is more flexible than EP. You don’t need to apply for a new pass when you change jobs.
Can I reside outside of Singapore with PEP?

No, you must live in Singapore with a PEP. The pass is for foreign professionals working in Singapore.

If you leave Singapore for more than 6 months, your PEP will be cancelled. You need to work and live in the country to keep the pass valid.

Discover the Personalised Employment Pass (PEP): flexible work options, high salary requirements, and a pathway to career growth in Singapore.

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    WIth over 20 years of professional experience in the HR sector. I strive to provide dedicated HR services that are tailored to your specific needs at affordable prices.

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