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Decoding COMPASS: Enhancing Your Employment Pass Strategy in Singapore

At Counto, we are dedicated to guiding SMEs, small business owners, and entrepreneurs through Singapore’s Employment Pass (EP) framework, particularly the Comprehensive Assessment Framework (COMPASS). Understanding how to navigate COMPASS can significantly impact your success rate in securing EPs for your prospective hires.

What is COMPASS?

​​COMPASS is a critical element in the process of securing an Employment Pass (EP) in Singapore. It introduces a structured and holistic method to assess both potential and current foreign professionals through a points-based system, ensuring that they are well-aligned with Singapore’s economic and workforce needs.

Employment Pass (EP) eligibility criteria

To qualify for an EP under this framework, a candidate must successfully navigate through two distinct stages:

Stage 1: Salary Requirements

  • Candidates must meet the EP qualifying salary, which is determined based on age, qualifications, and the industry sector they will be working in. This stage ensures that the salaries offered are competitive and commensurate with local standards.

Stage 2: Scoring Points in COMPASS

  • In this stage, candidates must accumulate at least 40 points to pass. Points are awarded based on a variety of factors that assess both the individual’s qualifications and the potential contributions to the local economy.
  • These factors include professional experience, educational background, salary level, and the strategic relevance of their skills to sector-specific demands. (See table below)

 

overview of COMPASS for EP

Understanding COMPASS Criteria

C1: Salary of the candidate (Individual attribute)

COMPASS evaluates your candidate’s salary against local PMET salaries within the same sector, separate from the basic EP qualifying salary.

Points Allocation:

  • 90th percentile and above: 20 points
  • 65th to less than 90th percentile: 10 points
  • Below 65th percentile: 0 points

☞ Candidates must meet the EP qualifying salary to be considered, and those falling below will not qualify for an EP regardless of their potential points under C1.

C2: Qualification Assessment (Individual attribute)

Points are awarded based on the candidate’s educational background.

Points Allocation:

  • Degrees from top-tier institutions (e.g., Top 100 QS World University Rankings): 20 points
  • Degree-equivalent qualifications (assessed comparable to a UK bachelor’s degree): 10 points
  • No degree-equivalent qualifications: 0 points

☞ Verification proof of qualifications is required if points from this criterion are needed for the application.

C3: Workforce Diversity (Firm-related attribute)

This criterion assesses the diversity of nationalities within your firm’s PMET workforce.

Points Allocation:

Less than 5% of a specific nationality: 20 points

  • 5% to less than 25%: 10 points
  • 25% or more: 0 points

☞ Companies with fewer than 25 PMETs automatically receive 10 points, fostering a diverse and inclusive workforce.

C4: Support for Local Employment (Firm-related attribute)

COMPASS measures the share of local PMETs compared to the sector.

Points Allocation:

  • 50th percentile and above: 20 points
  • 20th to less than 50th percentile: 10 points
  • Below 20th percentile: 0 points

☞ Companies  that maintain a local PMET share of at least 70% are guaranteed at least 10 points, ensuring that sectors with higher local employment are not disadvantaged.

C5: Skills Bonus also referred to as Shortage Occupation List (Bonus attribute)

The Skills Bonus recognises jobs requiring specialised skills that are currently in short supply within the local workforce. This bonus is awarded through a detailed evaluation process that considers industry needs and efforts to develop the local workforce.

How to Earn Points in C5:

  • 20 Bonus Points: Applications for candidates whose occupations are listed on the Shortage Occupation List (SOL) receive 20 bonus points, significantly enhancing their chances of qualifying for an Employment Pass.
  • Reduction to 10 Points: If the concentration of the candidate’s nationality within the company’s PMET workforce is 33.333% or higher, the bonus points awarded are reduced to 10. This adjustment ensures a balanced approach towards diversity in the workforce.

Special Provisions for Tech-Related Occupations:

Candidates applying for tech-related roles featured on the SOL have the opportunity to secure a 5-year Employment Pass, contingent upon specific criteria:

  • Salary Requirement: The candidate must earn a fixed monthly salary of at least $10,500. This amount scales with age, reaching up to $13,500 for candidates aged 45 and above.
  • Minimum COMPASS Score: The application must achieve at least 10 points in the C3 (Diversity) category of COMPASS, affirming the candidate’s contribution to workforce diversity.

You can find the list of occupations on the Shortage Occupational List here. Note that occupations are added or removed from the SOL annually to stay aligned with changing market conditions.

☞ Note on Redeployment: Candidates requiring SOL bonus points for their EP or those granted a longer duration must strictly work within their designated shortage occupation, as stated in their IPA letter. Any changes in employment to a different job role require reassessment by MOM.

C6: Strategic Economic Priorities Bonus (Bonus attribute)

The Strategic Economic Priorities (SEP) Bonus under the COMPASS framework rewards firms that align closely with Singapore’s strategic economic goals. This bonus is designed for companies engaged in significant activities across various sectors, supporting the government’s vision for a dynamic and innovative economy.

Eligibility and Scoring for SEP Bonus:

  • Eligible Activities: To qualify for the SEP bonus, firms must be involved in ambitious investment, innovation, internationalisation, or workforce transformation activities in partnership with designated economic agencies or endorsed by the National Trades Union Congress (NTUC).
  • Commitment to Local Development: Firms must also demonstrate a commitment to developing the local workforce or ecosystem.
  • Points Award: Eligible firms receive 10 bonus points for every Employment Pass application, enhancing their likelihood of approval.

Supporting Agencies and Program Participation:

  • Relevant Agencies: The bonus is awarded at the discretion of supporting agencies such as the Economic Development Board (EDB), Enterprise Singapore (ESG), Infocomm Media Development Authority (IMDA), Maritime and Port Authority (MPA), Singapore Tourism Board (STB), and NTUC.
  • List of Programs: Firms can view the list of government programs that qualify for the SEP bonus through the Ministry of Manpower’s official document on eligible programs.

Validity and Maintenance of SEP Bonus:

  • Duration: The SEP bonus is valid for the duration of the company’s participation in an eligible program or up to three years, whichever is shorter.
  • Renewal Criteria: To maintain the SEP bonus beyond three years, companies must score at least 10 points in the C3 (Diversity) and C4 (Support for Local Employment) criteria in the last three months before the renewal assessment.

Utilise the Workforce Insights Tool 

Use the Workforce Insights tool on myMOM Portal to check your organisation’s sector classification and the share of nationalities among your PMETs. This important tool aids in planning and improving your COMPASS scores by providing up-to-date workforce profiles and sector benchmarks.

Using an incorporation service as an extension of your team

Navigating the complexities of the EP application process can be challenging. At Counto, we excel in streamlining this journey for SMEs and entrepreneurs. Our dedicated team offers comprehensive support, from company incorporation to facilitating your EP application through a trusted employment agent. Connect with us today via our chatbot, email us at [email protected], or reach out using our contact form.

 

Here are some articles you might find helpful:

Employment Act

Sole proprietorship vs Pte Ltd

Guide to applying for Employment Pass (EP)

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