Singapore Will Introduce New Changes To Its E Pass Program Next Year

By Author: sgtamilan
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Introduction:

The Singapore Ministry of Manpower (MOM) has announced significant changes to the Employment Pass (EP) framework, effective from September 2024. These changes are part of a broader strategy to attract highly skilled global talent while ensuring fair competition within the local workforce. As Singapore continues to develop as a global business hub, these adjustments are aimed at maintaining the country's competitiveness and appeal to top professionals, especially in key industries.

Qualifying Salary and COMPASS for EP Renewals:

The qualifying salary for Employment Pass holders is being adjusted, and individuals renewing their EPs will need to secure COMPASS as part of the renewal process. This reflects the government's commitment to ensuring that EP holders meet financial benchmarks and align with broader strategic goals. Starting from January 1, 2025, the qualifying salary for new EP applications will increase. The minimum salary required to qualify for an EP will rise to $5,600, up from the previous threshold of $5,000. In the financial services sector, the qualifying ...
... salary will be set higher, at a minimum of $6,200. These salary adjustments aim to ensure that only highly skilled professionals who can contribute significantly to the economy are granted Employment Passes.

Impact on EP Renewals:

The revised qualifying salary will apply not only to new applicants but also to EP renewals. Starting from January 1, 2026, any EP holder seeking renewal will need to meet the new salary criteria. This ensures that the standards set for new applicants are consistently upheld, maintaining a high-quality workforce over time. For businesses, this means ongoing assessments of salary structures and talent management strategies will be crucial to ensuring compliance with the new regulations.

COMPASS Points Based System:

Another significant change is the introduction of the COMPASS (Complementarity Assessment Framework) points based system. Starting from September 2024, all new EP applications will be evaluated using this framework. COMPASS provides a more comprehensive assessment of an applicant's suitability for an EP, considering factors beyond just salary. The COMPASS framework assesses EP applicants across four key dimensions: salary, qualifications, diversity, and support for local employment. Each dimension is assigned a specific weight, and applicants must achieve a minimum of 40 points to qualify for an EP.

Salary:

The salary component of COMPASS ensures that applicants are compensated at a level reflecting their skills and experience relative to the local job market. Higher salaries score more points, recognizing the value high earning professionals bring to the economy. This component also aligns salary levels with Singapore's cost of living, ensuring EP holders are financially well-positioned to contribute to the local economy.

Qualifications:

The qualifications dimension evaluates the applicant's educational background and professional credentials. Points are awarded based on the level of education, with higher points given to those with advanced degrees or qualifications from globally recognized institutions. This reflects the importance of formal education in ensuring EP holders have the expertise to contribute effectively to their industries.

Diversity:

Diversity is another critical component of COMPASS. This dimension assesses the extent to which an applicant contributes to workforce diversity in Singapore. Points are awarded based on factors such as nationality, gender, and cultural background. By promoting a diverse workforce, Singapore aims to foster an inclusive work environment that drives innovation and creativity.

Support for Local Employment:

The support for local employment dimension evaluates the impact of the applicant's presence on the local workforce. Points are awarded based on how the hiring of the EP holder will complement the local workforce rather than displace local talent. This ensures that the influx of foreign professionals contributes positively to the development of local human capital and does not undermine employment opportunities for Singaporeans.

Strategic Implications for Employers:

Employers need to offer competitive compensation packages to attract and retain top talent due to increased minimum qualifying salaries. The introduction of the COMPASS framework requires a strategic approach to EP applications, and companies must invest in robust human resource practices. Businesses may also need to reassess their workforce planning strategies to comply with new EP regulations and continue attracting necessary talent for growth and innovation.

Conclusion:

The upcoming changes to the Singapore Employment Pass framework represent a significant evolution in managing foreign talent. By raising the qualifying salary and introducing the COMPASS points based system, the MOM ensures that the EP framework remains responsive to the economy's changing needs while promoting fair competition and inclusivity. For businesses and professionals alike, these changes present both a challenge and an opportunity to align with Singapore's long term strategic goals and continue contributing to its success as a global business hub.