Singapore Employment Pass: The Best Guide for SMEs and Entrepreneurs

In Singapore, the Employment Pass (EP) serves as a crucial bridge for foreign talent aspiring to contribute to and thrive within this dynamic market. This pass plays a critical role in enhancing the city-state’s workforce by integrating global expertise seamlessly.

What is an Employment Pass (EP)?

Key features include:

• Renewability: The EP is initially valid for up to two years and can be renewed for up to three additional years, facilitating long-term contributions to the local economy.
• Flexibility in Hiring: Unlike the S Pass, which has sector-specific quotas, the EP allows unlimited hiring of eligible foreign talent, giving companies greater flexibility.
• Efficiency: The EP application process is streamlined for speed, typically completing within about three weeks when all required documents are properly submitted.

Eligibility Criteria for Singapore Employment Pass Applications

When applying for a Singapore Employment Pass (EP), the Ministry of Manpower (MOM) has specific requirements that must be met to ensure candidates are well-suited to contribute positively to Singapore’s economy. Understanding these eligibility criteria is crucial for a successful application.

Key Factors Influencing EP Eligibility:

• Nationality: Applicants from any country can apply, though nationality may influence application success.
• Job Offer: Applicants must hold a job offer in Singapore for a managerial, executive, or specialised role. Positions in niche industries or roles may enhance the likelihood of approval.
• Salary: The minimum salary requirement is S$5,000 per month for recent graduates from reputable universities, which escalates with age and experience, peaking at S$10,500 for applicants aged 45 and above.
• Qualifications: Essential qualifications include a university degree, professional qualifications, or specialised skills. Starting September 1, 2023, all declared qualifications must be verified by recognized background screening companies.
• COMPASS framework: Pass with at least 40 points at stage 2
• Vaccination: As of February 1, 2022, EP applicants must be fully vaccinated against COVID-19.

What is the COMPASS Framework?

A pivotal aspect of the EP application process is the COMPASS framework. Starting September 1, 2023, the Singapore government has updated the Employment Pass (EP) eligibility criteria for new applications. Candidates must successfully navigate two key stages to qualify:

Stage 1: EP Qualifying Salary Requirements 

The salary criteria for new applications and renewals of the Employment Pass (EP) are as follows:

• General Sectors: A minimum salary of $5,000 is required, which increases progressively with age, starting at $5,000 for those aged 23 and rising to $10,500 for applicants aged 45 and above.
• Financial Services Sector: The minimum starting salary is $5,500, rising with age to $11,500 by the age of 45 and above.

For EPs expiring from September 1, 2024, holders must not only meet these salary requirements but also pass the Complementarity Assessment Framework (COMPASS) to renew their pass.

Starting January 1, 2025, the minimum qualifying salary for new EP applications will increase to $5,600 for general sectors and $6,200 for the financial services sector. These revised salary requirements will also apply to EP renewals expiring from January 1, 2026.

Stage 2: COMPASS

The EP applicant needs to achieve 40 points to pass COMPASS based on the following criteria: 

Key Elements for Success

• Eligibility Check: Use the self-assessment tool on MOM’s website to estimate your chances of approval.
• Comprehensive Document Preparation: Ensure all documents are accurately prepared and translated into English where necessary. From September 2023, verification of post-secondary diplomas and higher qualifications is mandatory.

Documents required for Employment Pass

The Path to Your Employment Pass

The EP application journey differs slightly for foreign professionals versus entrepreneurs, each with its prerequisites and steps.

1. For Foreign Professionals:

Secure a Job Offer: Begin with a job offer from a Singapore-registered company.

Prepare Necessary Documents: Gather your passport, educational certificates, and a completed EP application form.

Application Submission: The application is submitted through the myMOM Portal by the employer.

2. For Entrepreneurs:

Company Incorporation: Establishing your business in Singapore is the first step, laying the groundwork for your EP application. 

This process requires:

• A Company Secretary
• A Local Registered Address
• Shareholders (Individuals or Corporate Entities)
• A Nominee Director (Local Resident) until your EP is approved, recommending a minimum paid-up capital of S$50,000 for entrepreneurs aiming for an EP. Learn more about the role of Nominee Directors here
• Apply for the EP online through myMOM portal or with the help of a registered employment agent.

Tip: Incorporating as a Private Limited (Pte Ltd) company is advisable due to its legal entity status, limiting liability and offering tax benefits. Learn more about Pte Ltd companies here.

Further Considerations for Entrepreneurs Who Wish to Relocate to Singapore

For entrepreneurs looking to move and work in Singapore, understanding the nuances of the Employment Pass (EP) application process is crucial. 

Employment Pass Eligibility for Shareholders and Directors

It’s a common scenario in Singapore for a single individual to incorporate a company and wish to relocate as a shareholder, director, and employee. In such cases, the individual acts in multiple capacities, but key distinctions must be made when applying for an Employment Pass:

• Employer-Employee Relationship: An EP application is only valid under an employer-employee setup.  Being a shareholder or director doesn’t entitle one to an EP. The critical factor is entering into a formal employment contract with the company that specifies roles and responsibilities akin to that of any other full-time employee.
• Professional Background and Salary: The application must demonstrate the individual’s qualifications, professional background, and the salary must comply with the minimum threshold established by MOM.
• Contractual Agreement: Once a formal employment contract is established and signed, an EP application can proceed. This common arrangement underscores the necessity of a clear, employer-employee relationship even if the employee is also a director or a shareholder.

Residing and Working in Singapore as an EP Holder

Successfully approved EP holders are expected to:

• Relocate to Singapore: EP holders must move to and generally reside in Singapore.
• Work Full-Time: They must engage in full-time employment, generally committing at least 40 hours per week.
• Receive and Declare Salary: They will earn a monthly salary and are obligated to pay taxes on that income in Singapore.

Alternatives for Non-Employees

For those who wish to engage with Singapore businesses but do not intend to relocate or work full-time, alternative visa options include:

• Social Visit Visa: This electronic visa is suitable for business visitors and is available to many nationalities. It allows for business-related visits without the provisions of employment.
• Business Visa: For individuals whose circumstances make the social visit visa unsuitable, a business visa may be issued by their company.

How to Renew an Employment Pass in Singapore

Renewing an Employment Pass (EP) in Singapore is a straightforward online process managed through myMOM Portal. Here’s a guide to renewing an EP:

Step 1: Obtain Written Consent

Before beginning the renewal process, obtain written consent from the employee whose EP is up for renewal. This is a crucial first step to ensure compliance with personal data regulations.

Step 2: Submit the Application Online

Log in to the myMOM Portal and complete the following actions:

• Fill out the EP renewal application form online.
• Upload all required supporting documents for the application.

Step 3: Check Application Status

Monitor the status of the EP renewal through the Employment Pass Online (EPOL) system to stay updated on its progress.

Step 4: Receive IPA Letter

Once the renewal is approved, print the in-principle approval letter (IPA) from EPOL and provide a copy to the employee for their records.

☞ Timing: Renewal requests can be submitted up to six months before the EP expires and must be filed at least two weeks before the current pass’s expiration date to avoid lapses in employment legality.

☞ Employers or their designated employment agents are responsible for submitting renewal applications. If the EP is not renewed on time and expires, a new application must be submitted.

What happens if my EP application is rejected?

If your EP application is rejected, the Ministry of Manpower (MOM) will provide specific reasons for the rejection, guiding you on how to appeal the decision. Here’s a concise overview of what to do next:

• Appeal Process: You or your employer have up to three months from the date of rejection to file an appeal.
• Submitting Additional Information: Enhance your appeal by providing further details and documents to MOM, which could address any concerns raised in the initial rejection.
• Expert Assistance: Consider consulting with an employment agent who can analyse the rejection reasons and suggest improvements to strengthen your appeal.
• Appeal Duration: Appeals typically take at least six weeks to process. The progress and status of your appeal can be monitored online.

Common questions answered: 

Can EP holders work part-time?

No, EP holders in Singapore cannot engage in part-time work. The Employment Pass (EP) is intended strictly for full-time employment with a designated employer. According to the Ministry of Manpower Singapore, EP holders are prohibited from working multiple jobs or part-time to supplement their income.

Can I start a company if I am an EP holder?

Yes, as an Employment Pass (EP) holder, you can register a company in Singapore and own 100% of its shares.

Can EP holders serve as directors in companies other than the one sponsoring their pass?

Yes, EP holders can be registered as directors in another company, but they must first obtain a Letter of Consent (LOC) from the Ministry of Manpower (MOM). This is typically granted when the secondary directorship, such as in a subsidiary, is essential to the EP holder’s primary job role.

Which background screening companies are able to verify my qualifications and employment records?

The Ministry of Manpower will only accept verification proof from the background screening companies listed here.

How does an EP holder apply for a Dependant’s Pass?

Once your Employment Pass is approved, you may wish to bring your family members to Singapore. To do this, you can apply for a Dependant’s Pass (DP) for them. The DP allows them to stay in Singapore but does not permit employment. However, they can apply for their own Employment or S Pass if they wish to work. Each family member’s application must be separately submitted by the employer holding the Singapore work visa.

Can EP holders apply for Singapore permanent residency (PR)?

Yes, as an EP holder, you are eligible to apply for permanent residency in Singapore through the Immigration and Checkpoints Authority (ICA). Your application will be evaluated based on the specific criteria set by ICA.

Can I transfer my EP holder to a subsidiary company without making new application?

No. Your subsidiary company needs to apply for a new Employment Pass for the EP holder.

Why was my application for a Letter of Consent (LOC) for secondary directorship rejected?

For eligibility, the primary and secondary companies must have a common corporate shareholder. An LOC cannot be granted if the only link is your individual shareholding. If the shareholding structure changes, you may reapply for the LOC.

How do I check if an EP is cancelled?

You can check if an Employment Pass is cancelled by checking the validity of the pass. 

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.

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