Singapore tightens employment pass eligibility requirements

New employment policy will maintain the foreign share of the workforce at only one-third.

The Singaporean Government is committed to managing the size of the foreign workforce, as part of its broader strategies to achieve productivity-driven economic growth, as well as to ensure that Singaporeans remain at the core of a diverse and globally competitive workforce. Its aim is to avoid increasing dependence on foreign workers over the long term, by keeping the foreign share of the workforce at about one-third.

Over the last two years, the Ministry of Manpower (MOM) has introduced significant measures to moderate the inflow of Work Permit and S Pass holders, including raising the foreign worker levy and tightening the levy tiers significantly, in phases, up to July 2013. The qualifying salaries for S Pass and Employment Pass (EP) were also raised to keep pace with rising salaries of the local workforce, according to a government report.

The demand for EPs has increased rapidly since the economic recovery in 2010 and is likely to keep growing. The government is therefore introducing measures which tighten the eligibility requirements for those entering lower and mid-level professional, managerial and executive jobs. The more stringent requirements will include better educational qualifications and higher qualifying salaries.

These moves will ensure that as salaries of locals rise as they gain in experience and progress in their careers, they will not be disadvantaged by EP holders coming in at lower wages.

Key Features of the EP Changes
The key features of the EP changes are:

i. Q1 Pass: We will tighten the educational qualifications requirements so that only those from good quality institutions will be eligible. We will also move away from the single qualifying salary of $2,800 today. Instead, the applicant will have to earn a salary of at least $3,000, with the requirements depending on his qualifications and experience:

a) Young graduates from good institutions could qualify if they earn at least $3,000

b) Older applicants would have to command higher salaries to qualify, commensurate with the work experience and quality they are expected to bring

ii. P2 Pass: The qualifying salary will be raised from $4,000 to $4,500.

iii. P1 Pass: There will be no change in the qualifying salary for P1 Pass which remains at $8,000.

The new EP framework will retain the flexibility for MOM to consider, on a case-by-case basis, applicants with proven track records and exceptional skills-sets, but who may not have the qualifications required by the enhanced EP framework.

The enhanced EP framework will apply to all new EP applications from 1 January 2012. Thereafter, the qualifying EP salaries will be reviewed regularly to keep pace with the rising quality of the local workforce.

The changes amount to a significant shift in the EP framework. They aim to ensure that employers who need to augment their workforce hire foreigners with the right calibre, so that these employees add needed expertise and complement an increasingly qualified local workforce.