EPs to be targeted by 2013 Singapore budget

At a time when the community is staging mass demonstrations against overpopulation, and the Government’s tightening of the labour force, it comes as no surprise that the 2013 Budget included a reform of the S-Pass.

The S-Pass, or Skilled-Pass is designed for those holding a diploma qualification or less. Most affected will be industries where S-Passes have traditionally been a workforce cornerstone - food and beverage, personal services and technical services.

Confirmed changes for S-Pass applications in February 2013

• Minimum salary requirements up 10%;
• Quota requirements increased by 5%;
• Monthly levies payable on each S-Pass on average increased by $90

The future of Employment Passes

The Government is expected to unveil its reshape of the Employment Pass sometime this year. Based on changes made to the S-Pass, we are expecting to see some aspects of the EP changed.

• Minimum salary hikes as high as 20% across all three categories (P1, P2 and Q1).
• Quotas unlikely to be introduced. Expect the current system of no formal quota requirements on Employment Passes to continue. It works well because certain companies have unique skill set requirements that when subject to a quota requirements, make it impossible to function.
• Expect more appeals, slowly processing and more document requirements during Employment Pass applications.
• No levies are expected - a continuation with current policy.
• Tougher examination of the relevance of the education and experience to the job to be performed.
• All companies expected to submit hiring plans that include adequate local staff members on payroll.