To help employers better understand Singapore work pass applications and renewals, the Ministry of Manpower (MOM) has last week issued brochures on Singapore Employment Pass as well as S Pass applications and renewals. The brochures are issued to help Singapore companies employ foreign workers in a timely manner as well, says SingaporeCompanyIncorporation.sg. This is because they provide detailed guidelines on how employers can apply for or renew an S Pass or an Employment Pass (EP).
Salary and education criteria for new applications or renewals
The brochures clearly set out the minimum salaries of an S Pass or an EP holder. An S Pass holder should be a diploma or a degree holder with a minimum fixed salary of $2,200 per month. Similarly, the EP holder should be a degree holder with a minimum fixed salary of $3,600 per month, if they are fresh graduates (effective 1 January 2017). Older applicants that have accumulated extensive work experience are expected to command higher salaries so as to reflect the skills and work experience they bring on the table.
S Pass Quotas
The brochure specifies that if a company is applying for or renewing an S Pass, it needs to ensure that it has the quota to do so. In essence, the number of S Pass holders a company can employ is capped at a sub-Dependency Ceiling (sub-DC) which corresponds to the total headcount in a company. For example, the sub-DC for service industry companies is 15% of total headcount and 20% of the total headcount for remaining industries.
The brochures on Employment Pass and S Pass applications and renewals will help companies the recruitment process of foreign workers. This will ensure that foreign workers with skills-in-demand will help complement employer’s local manpower.
“The brochure on work pass applications and renewals will bring greater transparency in recruitment of foreign workers. Singapore companies will benefit from the clear guidelines mentioned in the brochures,” explained Ms. Cheryl Lee, Operations Manager at SingaporeCompanyIncorporation.sg.
Skilled foreign workers still required
Since Budget 2012, Singapore has announced that it will pursue a more sustainable quality growth instead of the rapid economic growth experienced over the last decade. While it will still maintain an open door policy with regards to businesses and talent, it has to be more discerning as to which work passes it will approve and renew. Along with this new strategic thrust, Singapore has been encouraging companies and workers alike to move up the value chain through technology adoption, training and innovation. This is to ensure that Singapore remains attractive to businesses as it undergoes economic restructuring.
“Singapore companies want to maintain a dynamic pool of workers by complementing a local pool with workers from overseas. To that end, the Singapore government still maintains an open door policy towards overseas talent. However, this openness has been redefined to align with country’s productivity and inclusive growth goals. The detailed guidelines presented in these brochures reflect these changing realities and help companies understand who and how they can hire from overseas. In a way, this manages the expectations of employers and helps them plan their hiring in the coming year,” added Ms. Lee.
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To view MOM’s brochures on EP and S Pass applications and renewals, please visit http://www.mom.gov.sg/statistics-publications/others/brochures/Pages/brochures.aspx
