Singapore Enhances Work Pass Framework: Can This Make Singapore More Competitive In The Race For Global Talent?
As a country with few natural resources, Singapore’s greatest asset is our human capital. This makes attracting and retaining talent paramount to Singapore’s long-term success. With our tight labour market and falling birth rates, Singapore cannot afford to ignore the importance of foreign talent to the success of our economic growth. To balance the need for manpower and retain the Singapore identity, the government manages the inflow of foreign labour and talent though the Work Pass framework.
In the current environment of the Great Resignation and quiet quitting, where employees and employers are renegotiating work, the race for talent is even more competitive, both locally and globally.
On 29 Aug 2022, Ministry of Manpower (MOM) announced enhancements to the Work Pass Framework to make Singapore a global hub for talent, making it easier to attract top talent.
What Is Singapore’s Work Pass Framework?
Most employers hiring foreign manpower would be familiar with the Work Permit for migrant workers, S Pass for skilled workers and Employment Pass (EP) for professionals, managers and executives.
The different passes have different eligibilities and salary requirements: at least $3,000 for S Pass and at least $5,000 for EP
Read Also: Guide To Work Passes In Singapore: Work Permits, S Pass and Employment Pass (EP)
However, there are also additional work passes available for specific groups of top talent. The EntrePass is targeted at foreign entrepreneurs who are keen to start and operate a business in Singapore that is venture-backed or possesses innovative technologies while Personalised Employment Pass (PEP) is meant for high-earning existing Employment Pass holders or overseas foreign professionals and it offers greater flexibility than an Employment Pass.
MOM is also introducing a new Overseas Networks & Expertise Pass from 1 January 2023. This is meant for top talent across all sectors and is less restrictive than the existing EP, EntrePass or PEP work passes available for professionals.
Processing For Employment Passes Will Be Faster
Efficiency is something Singaporeans can take pride in, and our government is not sitting on its laurels in the race for global talent. Companies can expect Employment Pass applications to be processed more swiftly from 1 September 2022. This will enable companies to be more responsive to business needs.
The Fair Consideration Framework job advertisement duration will be restored to 14 days, down from 28 days. EP applications will be processed, or an update given to employers within 10 business days.
This improvement in processing time will help companies be more responsive in their recruitment and hiring processes, improving their chances in the global competition for talent.
Read Also: Understanding TAFEP Guidelines On Fair Employment Practices & Fair Consideration Framework
Top 10% Of Employment Pass Holders (Earning More Than $22,500) Will Be Exempted From Certain Requirements
Typically, EP applicants will be subject to the requirements of FCF job advertising and COMPASS. However, EP applicants who are comparable to the top 10% of EP holders, have and will continue to be exempted from these two requirements. These top 10% of EP holders are also eligible for PEP. Currently, this threshold is fixed at those earning a monthly salary of $22,500 and above.
To align to a single benchmark, MOM will raise the bar for exemption from FCF job advertising requirement and COMPASS from $20,000 to $22,500. They will also raise the salary criterion for PEP from $12,000/$18,000 to $22,500. This will apply from 1 September 2023.
Longer Employment Pass Option For Experienced Professionals Fulfilling Skill Shortages
Currently, a typical Employment Pass (EP) duration is about 2 to 3 years. For experienced tech professionals with skills in shortage, they can be offered an option of a 5-year EP.
The longer pass duration will give greater certainty to these professionals for their personal planning and to businesses in their workforce planning. This will allow Singapore to anchor tech capabilities while developing the local pipeline.
This would apply to EP applicants who fill specific tech occupations on the COMPASS Shortage Occupation List (SOL), earn a monthly salary of at least $10,500 (or more depending on their age) and pass COMPASS with at least 10 points on the Diversity criterion. This will apply from 1 September 2023, with the roll-out of COMPASS.
Singapore Is Actively Attracting Top Global Talent
With these enhancements, Singapore is signalling the intention to join the race for top global talent. The relaxation of requirements only at the highest tier is a targeted measure to woo only the top talent and not to open the floodgates for foreign manpower.
As the regional hub connecting Asia to the rest of the world, Singapore has been seen as a competitor to Hong Kong for top talent. These enhancements could possibly be the carrot needed to attract high-quality professionals who are looking for a new home in Asia.
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