Keeping Up with Singapore's Work Pass Changes: A Guide for Business Owners

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Singapore is known for its robust business environment and attractive policies for foreign companies to set up operations in the city-state. However, as with any country, there are regulations that businesses must adhere to, including obtaining the appropriate work passes for their employees.

Recently, there have been several changes to Singapore's work pass processing guidelines that business owners and operators hiring foreign talent should be aware of. Below, we outline four of the most important workplace process changes you need to know about.

1. Financial Turnover Data Now Required for Work Pass Submissions

The Ministry of Manpower (MOM) has made it mandatory for companies to update their annual turnover information in the Employment Pass Online portal (EPOL) before they can submit new work passes. 

To avoid work pass application rejections and processing delays, employers should update the financial turnover information early in the year. 

2. New Work Pass Category: Overseas Network & Expertise Pass (ONE Pass)

The MOM has introduced a new work pass category called the Overseas Network & Expertise Pass (ONE Pass), which aims to attract top talent to launch, operate, or work for companies in Singapore. 

The ONE Pass is a five-year work pass, renewable in five-year increments. General applicants must demonstrate that they have earned a minimum fixed monthly salary of SGD 30,000 within the last year and will earn a minimum fixed monthly salary of at least SGD 30,000 in Singapore. In addition, candidates based overseas must demonstrate that they are working for an “established company” outside of Singapore or will be working for an “established company” in Singapore, defined as one that has a minimum of $500 million (SGD 716 million) market cap or minimum $200 million (SGD 286 million) annual revenue.

Applicants with extraordinary ability in arts and culture, sports, science, technology, research, and academia may also qualify for the ONE Pass without meeting the minimum qualifying salary. Applications for this new work pass category opened on January 1, 2023.

3.   New COMPASS Framework

The Complementarity Assessment Framework (COMPASS) for Employment Pass framework is a new initiative that enables employers to select high-quality foreign professionals while improving workforce diversity and building a strong local core. The points-based framework allocates values to applicants and company attributes regarding qualifications, diversity, and more. MOM then uses the point system to qualify an EP application. 

Bonus points can also be allocated to applicants with rare skills that support Singapore’s strategic economic priorities and contribute to job creation for the market as a whole.

The framework will kick in on September 1, 2023, and more details will be released in the months leading up to September.

 
4.   Changes to Dependent Pass and Letter of Consent

The dependent pass (DP) and letter of consent (LOC) are essential documents that allow the spouses and children of employment pass holders to live and work in Singapore. In the past, dependents were allowed to work with a LOC and were not required to secure a separate work pass. 

However, this changed in May 2021, and all dependents who wish to work for an employer must obtain a separate work pass (Employment Pass, S Pass, or Work Permit).

Under the current scheme, dependents who were previously granted LOCs were allowed to use the remaining term on their LOC and subsequently transition to a work pass if they would like to continue working. Dependent Pass holders who are business owners were allowed to continue running their business on a LOC but had a different set of eligibility criteria to fulfill to renew their LOC. 

For this group, to renew their LOC, they must be able to meet the following criteria or transition to a work pass:

• The DP holder is a sole proprietor, partner, or company director with at least 30% shareholding in the business; and 

• The business hires at least one Singaporean/Permanent Resident who earns at least the prevailing Local Qualifying Salary (currently $1,400) and receives CPF contributions for at least three months.

Why You Should Outsource Your Work Pass Processing

Work pass regulations change periodically, and it can be burdensome for business owners and operators to keep abreast of the changes in real time. Often, they only become aware of changes when it’s time to renew or apply for new work passes, which results in processing bottlenecks. 

The benefits of working with a work pass processing service provider include the following:

Expert Knowledge: Not only do we have specialist knowledge of existing regulations, but our extensive experience means we can help business owners anticipate challenges and navigate the rules early enough to ensure they comply.

Time-Saving: We can handle the entire application process on behalf of the business owner, freeing up your time to focus on other aspects of your business.

Risk Mitigation: Your business has enough risk in its core operations. Handing these administrative processes over to the experts reduces the likelihood of administrative delays, mistakes, and fines. 

If you’d like to discuss outsourcing your Work Pass processing to Accela Talent, we’re happy to connect: at [email protected].