Singapore to implement new points system for employment permit applicants from 2023

Singapore will introduce a new points system for Employment Pass (EP) applicants from 2023, in addition to higher salary thresholds.

The government hopes the new system – set up under the Complementarity Assessment Framework (COMPASS) – will improve the ability of Singaporean companies to select high-quality overseas professionals and ensure workforce diversity. .

Prospective EP applicants must score at least 40 points under the COMPASS system, which are awarded based on four attributes and two bonus criteria.

COMPASS will come into effect for new applicants of September 2023 and for candidates for the renewal of September 2024.

Increase in salaries eligible for Pass Emploi

As part of Singapore’s 2022 budget, the government announced a increase in minimum eligible wages for several work permits, mainly the Employment Pass and S Pass permits.

The qualifying salary threshold for EP applicants has been raised to S$5,000 (US$3,694) from S$4,500 (US$3,332). The EP permit is issued to expatriates hired as managers, executives and skilled professionals in Singapore.

For EP applicants in the financial sector, the minimum wage was also raised to S$5,500 (US$4,064) from S$5,000 (US$3,694). The increased requirement will apply to new applicants from September 2022and in September 2023 for renewal candidates.

How COMPAS works

The COMPASS framework assesses EP applications on individual and company-related attributes. These are based on four fundamental criteria where the candidate earns points depending on whether they meet or exceed the expectations.

Candidates can also earn extra points on two bonus criteria – one for candidates in jobs where there is a skills shortage and a second for companies that engage in innovation and internationalization activities.

40 points are required to pass COMPASS.

Pointing compass

The scoring system is highlighted in the following table.

Source: Singapore Ministry of Manpower

PMET: Professionals, managers, executives and technicians.

The skill bonus is reduced to +10 if the share of the candidate’s nationality is greater than or equal to one third of the company’s PMETs.

Small businesses with less than 25 PMET employees score 10 points on C3 and C4 by default.

Case Study 1

Company A meets the four fundamental criteria.

Candidate Attributes

Company A, a marketing consulting firm in the professional services industry, has an EP candidate with a monthly salary at the 70th percentile of local PMET salaries in the industry. 10 points are awarded under the ‘salary’ attribute. In addition, the candidate holds a qualification equivalent to a diploma, which is worth 10 additional points.

Company related attributes

The candidate’s nationality currently forms 20% of the company’s PMET employees, awarding the candidate 10 points.

Finally, the company has a local PMET share at 40^and percentile, assigning them 10 points.

As such, the total points obtained by company A is 40, and the candidate is eligible for the EP permit.

Case Study 2

Company B which is weak on the fundamental criterion but which gains points on the bonus criterion

Candidate Attributes

Company B, a software company in the technology sector, has an EP candidate with a monthly salary of 95^and percentile of local PMET salaries in the sector. As such, 20 points are awarded.

The candidate (artificial intelligence engineer) holds a diploma equivalent to a diploma, sanctioned by 10 points.

Company related attributes

The nationality of the candidate forms 40% of the PMET employees of the company, which means that they do not receive any points. Finally, the company has a local PMET share on the 10^and percentile, which means that the candidate will get no points for this attribute.

However, the candidate gets 10 skills bonus points if their qualifications fill a job that is in short supply in Singapore. They do not benefit from 20 points for the skill bonus because the proportion of the candidate’s nationality among the company’s PMETs is greater than one third.

Who is exempt from COMPASS?

The candidate is exempt from COMPASS if he meets the following conditions:

• Earning a fixed salary of at least S$20,000 (US$14,667) per month;
• Fill a short-term position, one month or less; Where
• Apply as an overseas intra-corporate transferee under the World Trade Organization General Agreement or a free trade agreement to which Singapore is a party.

Further reading