The Latest in Work Pass Processing: Q1 2022 Updates
In our last update on the status of work passes in Singapore, we recapped changes in 2021 including greater restrictions on the qualifying salaries for work passes, tighter quotas for businesses and the move to abolish the Letter of Consent (LOC).
Now with the start of the new year (and on the heels of the recent Budget announcement) we’re seeing some additional updates for employers and employees alike to keep in mind. Read on for a recap from our Work Pass Processing team of the most relevant highlights.
Company turnover updates
Moving into 2022, Ministry of Manpower (MOM) now requires FY2021 company turnover to be updated either for a new pass application or for a renewal. This must be done internally by the company, so we suggest confirming this has been handled in advance to avoid delays and requests for additional documents.
This has added significantly to the average processing times, as well as to the workload of the companies applying for work passes.
Renewals vs. new applications
In our last update, we noted that most work pass applications are rejected in their first round - new applications and renewals renewals. We noticed a shift in this already in 2021, however moving into the new year, the government has confirmed they will refine how EP applications are processed to improve diversity in the workforce and to increase certainty and transparency for businesses. While we’re still seeing challenges with new applications, renewals now seem to be a much smoother process.
Minimum qualifying salaries
Per the Budget 2022 statement, the minimum qualifying salary for EP and S Pass across financial and non-financial sectors will all increase from 1 September 2022 in an effort to “ensure that EP and S-Pass holders are of the right calibre and quality”. For renewals, the new salary requirements will commence from 1 September 2023.
These changes will bring further challenges in attracting and retaining foreign talent and could be particularly detrimental to SMEs which aren’t able to sustain the high minimum salaries.
S Pass levies
The Tier 1 S Pass levy (the lowest levy rate) is also set to increase progressively until 2025 to almost double the current rate. This update will also bring further challenges and penalties to companies employing this type of pass holder.
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If you need help finding great talent in Singapore or submitting a work pass application, don’t hesitate to get in touch with our friendly team at Accela Talent.