1. Introduction
2.2 The Main Types of Work Passes
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worker to 5
Foreign Workers Unskilled 330 10.85
Source: Ministry of Manpower, 2012
2.2 The Main Types of Work Passes
Given the historical ties, Malaysian workers are subject to fewer restrictions than workers of other nationalities. Malaysians can find work while they are already in Singapore, and are generally treated better than other migrant workers in terms of wages, working hours and conditions. All other foreign workers have to apply for a work pass from the Ministry of Manpower (MOM) before they can work in Singapore. Before September 1998, foreigners working in Singapore were divided into 2 main categories:
employment pass holders (EP) who were skilled professional/managerial workers, and work permit holders (WP) who were low-skilled/unskilled migrant workers. In Singapore, the work permit process is managed by the Ministry of Manpower. There are several kinds of work permit, and the type awarded generally depends on the salary range of the job.
Currently there are four main types of work passes13 as follows:
1. Employment Pass (EP)14:
The pass is the main type of work permit meant for company owners or skilled employees that will be working in Singapore. With effect of 1 January 2012, the applicant‘s fixed monthly salary must be more than S$3,00015 (previously S $2,800) and should be a degree holder from a reputable university. Foreign executives, professionals, manager directors as well as shareholders who want to work in Singapore can apply for
13 Source: http://www.contactsingapore.sg/visas_and_passes/for_employment/, accessed on 2 March 2013.
14 There are three types of Employment Passes (P1, P2 and Q1). The P Pass is for foreigners seeking professional, managerial or executive and specialist jobs.
15 With effect from 1 January 2012, the salary threshold for the corresponding passes will be as follows:
˙P1 Pass: for a base salary above S$8,000 a month.
˙P2 Pass: for a base salary between S$4,500 and S$8,000 a month (previously between S$4,000 and S$8,000 a month).
˙Q1 Pass: for a base salary between S$3,000 and S$4,500 a month (previously between S$2,800 and S$4,000 a month).
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the Employment Pass or EP. Singapore immigration permits foreign entrepreneurs to apply for employment passes or visas only after they have established their company in Singapore. This Employment Pass is provided to facilitate the stay and entry of entrepreneurs who are ready to begin new business in Singapore. The Singapore Employment Pass has a validity period of two years and can be renewable up to three years.
2. Personalised Employment Pass (PEP)16:
The pass is for professionals earning an annual salary more than S$144,000 (previously S $34,000) and the change in validity of PEP from 5 years to 3 years; it is a special type of Employment Pass that is not tied to a specific employer. The biggest benefit of having a PEP work permit is that you can switch jobs without re-applying for a new employment pass provided that you are not unemployed for more than six months. The biggest downside is that you are not allowed to start your own company as a PEP holder;
instead you must be employed by a third-party employer. PEP is targeted for highly qualified individuals who wish to work and live in Singapore. It is not meant for business owners who wish to operate their own business in Singapore. From 1 December 2012, the qualifying criteria for PEP have been raised and some of its features have been refined. This ensures that the PEP remains a premium pass for top-tier foreign talents and is in line with recent moves to raise the quality of Employment Pass holders.
3. Entrepreneur Pass (EntrePass):
It is a variation of Employment Pass and is the primary type of work pass for owners of newly incorporated (or to be incorporated) Singapore companies who wish to relocate to Singapore to operate their new business. It is designed for foreign entrepreneurs who wish to start a business in Singapore and will have at least 30% of company shares.
16 The PEP is a new scheme to encourage global talent to work in Singapore. Unlike the Employment Pass (EP), the PEP is not tied to any employer and is granted based on the applicant‘s individual merits.
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EntrePass is not required if the person does not plan to relocate to Singapore. It‘s possible to apply for Entrepreneur Pass before incorporating the Singaporean company.
Once the pass is approved, the applicants will generally be given 30 days to incorporate the proposed company and inject the necessary share capital. The Entrepreneur Pass allows foreigners to bring family (spouse and unmarried children under 21) to Singapore by applying for their dependent passes.
4. S Pass17:
With effect of 1 July 2011, S Pass is for mid-skilled employees who earn a fixed monthly salary of at least $2,000 (previously S$1,800). Its applicants are assessed based on employer‘s quota eligibility and applicant‘s qualifications. Instead of a degree, a technical diploma is acceptable for this kind of work pass.
These work passes are generally issued to high-skilled or mid-skilled foreign workers.
For low-skilled or unskilled foreign workers, they need to apply for ―work permit‖ (WP)18. The duration of a Work Permit is generally two years, subject to the validity of the worker‘s passport, the Banker‘s/Insurance Guarantee, and the worker‘s employment period, whichever is shorter. The worker is only allowed to work for the employer and in the specified occupation and is not eligible to apply for permanent residence or citizenship in Singapore.
17 With effect from 1 September 2012, S Pass and Singapore employment pass holders earning at least S$4000 can apply for Dependant Pass.
18 A work permit is issued initially for 2 years and can normally be renewed up to 18 years; from 1 July 2012, basic skilled construction Work Permit workers would be allowed to work up to a maximum of 10 years, while higher skilled workers would be allowed to work up to 18 years (available:
http://www.mom.gov.sg/foreign-manpower/passes-visas/Pages/default.aspx).
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Table 5: Types of Singapore’s Work Permit Schemes Types
Table 6: Types of Singapore’s Work Passes Pass Type Eligibility Criteria
P1 Employment Pass Applicants must earn ≥ SGD $8,000
Applicants must possess acceptable qualification that includes good degrees, professional qualifications or specialist skills-set.
P2 Employment Pass Applicants must earn ≥ SGD $4,500
Applicants must possess acceptable qualification that includes good degrees, professional qualifications or specialist skills-set.
Q1 Employment Pass Applicants must earn ≥ SGD $3,000
Applicants must possess acceptable qualification that includes good degrees, professional qualifications or specialist skills-set.
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Educational qualifications o A degree or diploma
o Technical certifications are acceptable. i.e. Courses that train applicants to be qualified technician or specialist.
These certifications should comprise of at least 1 year of full time study.
Relevant number of work experience required
Work Permit An employer who wishes to employ a Malaysian who already holds a valid WP in Singapore must apply for a separate WP:
Workers from North Asian Sources/Non-Traditional
Source/People's Republic of China cannot be in Singapore when their WP applications are being submitted.
Under the Employment Act, the minimum age for an employee is set at 16 years old. For the purpose of Work Permit application, Malaysians must be below 58 years old while non-Malaysians must be below 50 years old at the time of the application.
Source: http://careers.jobstreet.com.sg/job-search/singapore-employment-pass-scheme, accessed on 2 March 2013
Table 7: The numbers of foreign workforce
Pass Type Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Jun 2012
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Source: Ministry of Manpower of Singapore, 201219