Your guide to Singapore Work Permits, S Pass, and Employment Pass
Thinking of starting a new chapter in Singapore? You’ll need official documents from the Singaporean government to stay and work. Depending on your occupation, salary, and more, you may be required to get a Work Permit, S Pass, or an Employment Pass. In this Pacific Prime Singapore article, we’ll go over the latest criteria for obtaining the 3 types of work passes. Read on to find out how and which one you should apply for.
Update to work passes in Singapore post-COVID-19
In August 2020, the Ministry of Manpower (MOM) raised the work pass criteria to retain and increase local employment. Basically, Singaporean workers take priority in filling local job vacancies over foreign workers. This is one of the government’s post-COVID-19 measures to encourage employers to retain a core of Singaporean employees. Employers of businesses based in Singapore must consider two key points when considering Employment Pass (EP) and S Pass applications:
- Has the business supported local PMETs (i.e. professionals, managers, executives, and technicians) in their employment?
- Has the business helped recruit and train more Singaporean PMETs?
Fair Consideration Framework
According to the Fair Consideration Framework (FCF), all Singapore-based employers are required to consider local applicants fairly for both new Employment Pass and S Pass applications. What’s more, they must advertise job vacancies on MyCareersFuture.sg for at least 28 days. This is with effect from 1 October 2020.
Types of work passes in Singapore
The 3 major types of work passes in Singapore are mainly categorized by the employee’s education, job type, and salary. As an expat working in Singapore, your employer will need to help you apply for your pass or permit. In this section, we’ll go over the latest criteria and requirements for Work Permit, S Pass, and Employment Pass.
1. What is a Work Permit?
Work Permits (WP) are for semi-skilled foreign workers from a pre-approved list of countries. Just to name a few, WPs are issued to Asian countries such as Malaysia, Hong Kong, South Korea, India, Thailand, and China. Despite each sector having its own list of approved countries, Malaysians applying for their WP are given more leeway. Your employer or appointed agent can apply for a WP online. WP Online can track applications and often process them within 1 working day.
Usually, WP-holders work in labor-intensive sectors. Examples include construction, marine shipyard, manufacturing, and the service sector. Though there is no minimum qualifying salary, there is a cap on the maximum length of employment and age limits. Once your application is through, your WP is renewable and can last up to 2 years.
Work Permit requirements for employers
Besides the FCF, Singapore-based employers must also adhere to the Dependency Ratio Ceiling (DRC) for WP applications. These are percentage quotas placed on each industry on how many expats should make up your total workforce. For instance, in the Services Sector, there will be a drop of SRC from 38% to 35%, effective 1 January 2021.
In addition, employers must pay a monthly levy for each foreign worker on top of providing mandatory medical insurance for them. This may further affect your employer’s hiring decisions.
2. What is an S Pass?
Mid-level skilled staff from all nationalities should apply for an S Pass. To qualify, you need a relevant degree, diploma, or specialized technical certificates. Moreover, you need multiple years of work experience to back this up. As of 1 January 2020, a job that pays at least SGD $2,400 worth of monthly salary is also required. Of course, the minimum salary requirement for obtaining an S Pass also increases for more experienced and older applicants. Once acquired, it’s renewable, and valid for up to 2 years.
S Pass requirements for employers
The Ministry also places a DRC quota on the number of S Pass holders allowed in each company. Soon, these percentages will decrease further. For instance, in the Service Sector, it will drop from the current 13% to 10% starting on 1 January 2021. In all other sectors, it’ll drop from 20% to 15%, effective 1 January 2023.
Similarly, your employer must pay a monthly levy for S Pass holders. Depending on the tier, it costs either SGD $330 or SGD $650. Didn’t work for a full calendar month in Singapore? They’ll calculate your levy based on a separate daily rate.
3. What is an Employment Pass?
High-paying expats of all nationalities who work in managerial, executive, or specialized roles may qualify for an Employment Pass (EP). First, you must earn a minimum monthly salary of $4,500 (from 1 September 2020). This requirement nearly doubles for older individuals with more experience. Even higher is the minimum qualifying salary for expats in the Financial Services Sector.
You will also need a good university degree, professional qualifications, or possess specialist skills. Note that there are no DPC quotas or levies for EP holders. Once obtained, your EP is valid for 2 years and can be renewed for 3 years at a time. Apply through Employment Pass Online or manual application with an application form from MOM via Singpost. Upon submission, the processing time is 3 weeks and 8 weeks respectively. Both WP holders and EP holders need to pay income tax to the Singaporean government.
Both EP and S Pass holders may apply for a Dependent Pass for their spouse, children, and parents to join them in Singapore. This is open to all nationals around the world, though certain nationals may be required to provide additional documents. To sponsor your dependents, you must earn at least a fixed salary of SGD $6,000 per month.
New minimum salary requirements for work passes in Singapore
As announced in September 2020, MOM increased the minimum salary requirements for EP and S Pass. Thus, the difficulty of acquiring both passes also increased. A work permit doesn’t have salary limits since it is the only visa for unskilled labor. At a glance, this section shows the newest updates on the minimum salary requirements for work passes in Singapore. You’ll also see the new requirement effective dates for reapplicants. (updated as of 13/11/2020).
|Minimum qualifying monthly salary||S-pass (SGD)||Employment pass (SGD)|
|Current salary requirement for new applicants||$2,500
(as of 1 October 2020)
|$4,500 with exceptions**
(as of 1 September 2020)
|Previous salary requirement||$2,400||$3,900|
|Change effective date for renewal applicants||1 May 2021||1 May 2021|
$5,000 for EP applicants in the Financial Services Sector will take effect from 1 December 2020.
Protect yourself with international health insurance in Singapore
Medical insurance is a requirement for all WP and S Pass holders in Singapore. While this is optional to expats with an EP, it’s always best to protect yourself with expat health insurance. International health insurance ensures you have access to the best possible medical treatment no matter where you are in the world. You also won’t have to worry about paying a sky-high medical bill out-of-pocket.
With over 20 years of experience in the insurance brokers industry, Pacific Prime Singapore is happy to help you find your best insurance solutions. Contact our team of expert insurance advisors today for impartial advice! Alternatively, use our online quotation system for a free quote!
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