New Scoring System for Employment Pass Applicants from September 2023
From September 2023, Employment Pass (EP) applicants in Singapore will have a new scoring system in place.
Any foreign professionals who want to live and work in Singapore will soon need to undergo and pass the new evaluation process. The process is point-based and will take into account certain considerations. These considerations include the foreign professional’s qualification. It will also factor in whether a company that relies too heavily on workers from a single nationality can hire a professional.
Meeting the Points-Based Requirements
There will be several things that the new Employment Pass (EP) applicants must meet under the new scoring system. They must meet the higher income threshold and score enough points under the new system called “Compass” (Complementarity Assessment Framework). These new requirements will commence from September 2023.
According to Singapore’s Ministry of Manpower, these new changes will create a more transparent and clearer process for all employers. Compass is not going to make life more difficult for applicants. However, some businesses will need to make certain changes to assess where the areas of improvement lie.
Two Stages of EP Applications
Applicants for future EPs will undergo two stages. The first stage is to meet the salary requirement. The second stage is scoring at least 40 points under Compass. This is because relying solely on salary threshold requirements alone is not enough to find the right foreign talent.
These changes are in place to help make Singapore’s core stronger and create a diverse and highly qualified foreign workforce.
Every applicant’s salary and qualifications will be evaluated against how relevant they are to the local Professional, Manager, Executive, and Technician (PMET) framework. Their income and qualifications will be measured against the local PMETs within the sector. The company’s workforce diversity also influences the evaluation.
Jobs experiencing a shortage of skilled labour will get bonus points. These sectors include cyber-security specialists and artificial intelligence developers. This will support the Singapore government’s ambitious initiatives on internationalisation and innovation.
The Renewal Process
Compass will be applicable for renewals beginning in September 2024. MOM’s website will contain the scoring rubric for reference. All employers should get an estimate for the score before submitting an application.
This arrangement will not disadvantage small and medium-sized businesses. In fact, with the new arrangement, workforce ratios could change dramatically with a few staff adjustments. If a company has less than 25 PMETs, the authorities will class them as “meeting expectations”.
Where the EP Level is concerned, this new scoring system for Employment Pass applicants is focusing on ensuring that high-quality professionals work in Singapore. The Compass scheme will also help ensure that EP holders in Singapore have salaries that are on par with Singapore’s top one-third local PMETs.
To qualify for the new salary threshold, EP holders must have a salary of $5,000 minimum starting September.
The minimum wage for the financial services sector, which has higher wage standards, will be raised from $5,000 to $5,500. The changes will take effect for renewals in September 2023.
Singapore’s Commitment to The Foreign Workforce
MOM has reassured EP holders that the approval process will remain flexible despite the new scoring system for Employment Pass holders. This will enable global firms to have rotation programmes, sending different employees overseas for their posting. In exchange, the companies must send Singaporeans overseas under the same programme.
Singapore remains committed to welcoming foreign talent that complements the local workforce.
