Since 1 September 2022, Singapore has implemented progressive updates to its Employment Pass (EP) eligibility framework, including changes to the minimum EP qualifying monthly salary (i.e., S$5,500 for EPs in the financial services sector and S$5,000 for EPs in other sectors).
From 1 September 2023, the Ministry of Manpower (MOM) will also require EP applicants to pass the Complementarity Assessment Framework (COMPASS), a points-based system that MOM will use to evaluate EP applications and renewals. COMPASS will be introduced progressively to give employers time to adjust to the new requirements. COMPASS will apply to new EP applications from 1 September 2023 and to EP renewals from 1 September 2024.
COMPASS is used to evaluate each EP application based on a holistic set of individual and firm-related attributes, where points are awarded for meeting (10 points) or exceeding (20 points) various foundational and bonus criteria. An EP applicant will require a minimum of 40 points to pass COMPASS.
The table below summarises how points can be earned under COMPASS.
As complementary foreign talent may be required to meet the growing demand for skilled roles, EP applicants can be awarded up to 20 bonus points if they are in any of the listed occupations under the SOL. MOM will impose additional safeguards on EP applicants who require the SOL bonus points to pass COMPASS (e.g., conducting verification checks and imposing conditions restricting the employment to the specific shortage occupation). The SOL will be reviewed every 3 years, but MOM will retain the flexibility to add or remove occupations annually if required by market conditions.
In addition, MOM also recognises firms undertaking ambitious investment, innovation, internationalisation or company and workforce transformation activities through the SEP bonus criteria. To qualify for the SEP bonus, firms must be supported by sector agencies or the National Trades Union Congress and must participate in an eligible programme listed by MOM. Supported firms will be awarded 10 bonus points on COMPASS for each EP application submitted to MOM for up to 3 years. After 3 years, firms are required to meet the firm-related attributes under the COMPASS foundational criteria (i.e., at least 10 points each).
All firms which require foreign skilled talent to complement their local hires should begin planning for their transition to COMPASS and if required, review their current hiring policies to meet these new requirements.
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Disclaimer: This article is for general information only and does not constitute legal advice.
