Edited by Rivermore Academy
Confused about Work Permit, S Pass, and E Pass?
Anyone aspiring to work in Singapore must hold a valid work visa (also known as a work pass) to engage in employment. The Singapore Ministry of Manpower offers various types of work visas for foreign individuals. The following will provide a detailed overview of the distinctions among the primary work visa categories.
| Employment Pass | S Pass | Work Permit |
Target Audience | Work visa designed for foreign professionals (managers, supervisors, specialized positions). | Work visa tailored for foreign workers with professional skills and experience. | Work visa intended for non-technical or semi-technical foreign workers. |
Existing Threshold | Minimum monthly salary of at least 4500; 5000 for the financial industry. The minimum salary requirement will increase with age. | Minimum monthly salary of at least 3000; 3500 for the financial industry. The minimum salary requirement will increase with age. | No minimum monthly salary requirement. |
Education Level | Recognized degree certificate; Bachelor's degree or above. | College diploma or higher education; Technical qualification certification. | No education level requirement. |
Quotas | Unlimited quota. | Limited quota (10% for service industry; 15% for construction, manufacturing, marine shipyard, and process sector). | Limited quota. |
PR Application | Yes | Yes | No |
Dependant's Pass or Long-Term Visit Pass Application | Yes | Yes | No |
Among these three work visas, Employment Pass (EP) and S Pass are undoubtedly the most sought after by foreigners. Those holding these two work visas generally enjoy higher salaries and have the opportunity to become Singaporean citizens, qualifying for Permanent Residency (PR) application. In contrast, foreign individuals holding a Work Permit have the lowest threshold and can work in Singapore, but they do not possess various rights. Moreover, even marriage with a Singaporean citizen requires approval from the Ministry of Manpower, and those suspected by the Singaporean government could be deported directly.
According to immigration data reports from the Singaporean government, the number of individuals gaining Singaporean citizenship has consistently remained above 25,000 per year, reaching a peak of 34,000 in 2021. Therefore, it's not difficult to imagine that a considerable number of foreigners are becoming Singaporean citizens through work visas, with many even migrating from Malaysia.
However, the Singaporean government will implement new policies starting in September 2023, which will restrict the number of work visas issued, particularly EP and S Pass. As a result, whether you are planning to apply, currently in the process of applying, or need to renew your work visa, you need to familiarize yourself with this new policy.
New Criteria for EP and S Pass
In the Singaporean government's latest policy release, significant transformations have been introduced to both the EP and S Pass, two types of work visas.
Regarding the S Pass, the impact is primarily centered around the monthly salary threshold. As per the original regulations, applicants in non-financial sectors were required to ensure a minimum monthly salary of SGD 3000, while applicants in the financial sector had to attain SGD 3500.
However, starting from September 2023, the minimum monthly salary for applicants will see an increase of SGD 150. This translates to a requirement of SGD 3150 for non-financial sectors and SGD 3650 for the financial sector. Additionally, the monthly foreign worker levy, or "head tax," for each S Pass holder will be raised from SGD 450 to SGD 550. Consequently, employers will need to allocate an additional cost of SGD 3700 per foreign employee per month, and for those in the financial sector, the expense will be higher, reaching SGD 4200. This adjustment prompts employers to exercise extra consideration when recruiting foreign employees.
It is noteworthy that the minimum monthly salary requirement and the head tax for the S Pass will be raised again in 2025, with an increase of SGD 150 and SGD 100 respectively. By that time, the minimum monthly salary requirement for non-financial sectors will be raised to SGD 3300, and for the financial sector, it will be SGD 3800; the head tax will ultimately be escalated to SGD 650.
In contrast, the impact on the EP is even more pronounced. Apart from needing to fulfill the existing monthly salary requirements of SGD 5000 for non-financial sectors and SGD 5500 for the financial sector, starting from September 2023, applicants must also successfully pass the COMPASS (Complementarity Assessment Framework) scoring system to secure an EP visa. This new requirement will introduce higher thresholds and challenges for EP applications.
What is COMPASS?
COMPASS is a points-based scoring system, and only applicants who score at least 40 points will be eligible for an EP. The scoring criteria consist of two parts: Basic Criteria and Bonus Criteria. Basic Criteria include C1 salary, C2 educational qualifications, C3 workforce diversity, and C4 support for local employment. Bonus Criteria encompass C5 skill bonus and C6 strategic economic priorities bonus.
Here's a more concise chart:
From the table above, foreign job seekers can safely disregard C3, C4, and C6. As for the Bonus Criteria, while C5 can also be considered, it may not apply to the majority of job seekers since their desired occupations might not fall under the list of critical roles. Hence, this factor can be judiciously omitted.
Therefore, as job seekers, we are left to focus primarily on C1 and C2.
Remember! To successfully apply for an EP, you must accumulate a total of 40 points!
So, how can we achieve at least half, or even two-thirds, of these points through C1 and C2? First, we need to understand how the points are allocated for C1 and C2:
C1 Salery | C2 Qualifications | Points |
≥ 90th percentile | Top-tier Institution | 20 |
65th to < 90th percentile | Degree-equivalent qualification | 10 |
< 65th percentile | No Degree-equivalent qualification | 0 |
As evident from the above, as long as job seekers have the opportunity to attain higher salaries or education qualifications, and even reach the maximum points for both aspects, they can achieve a successful EP application score through their own efforts. However, this is by no means an easy task, as many job seekers may not even possess a diploma, holding only an SPM qualification.
Nevertheless, the modern society provides numerous adaptive courses for working professionals, with some educational institutions offering exceptional quality comparable to the "Top-tier institution graduates" specified in the C2 requirements. Job seekers possessing such qualifications naturally stand a strong chance of securing high-paying positions in Singapore, meeting the C1 points criteria.
Hence, it is clearly evident that education qualifications play a crucial role in the process of applying for work visas and permanent residency. Individuals with higher educational backgrounds not only have an advantageous position during salary negotiations, but are also more likely to meet the minimum points requirements for various work visas such as the EP and S Pass. These visas not only signify better remuneration and career opportunities, but also encompass the opportunity to integrate into Singaporean society and even become permanent residents of the country. On the other hand, individuals without superior education qualifications may encounter greater challenges, limiting their career development and quality of life within the workplace.
For those job seekers who have not yet met the required educational standards, there is no need for discouragement. The modern education system offers a plethora of flexible options, including online learning, vocational training, and further education courses. Actively elevating one's educational qualifications not only aids in meeting visa requirements, but also opens up broader career prospects and future development opportunities.
In a fiercely competitive and ever-evolving globalized society, education qualifications are not merely pieces of paper, but rather the key to unlocking doors to professional success and personal growth. Therefore, whether it is to attain better job opportunities or to achieve success in a new international environment, the importance of valuing education qualifications goes without saying.
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