New points-based system for Employment Pass applications to be implemented

IMPACT – HIGH

The Singaporean government has announced that it will introduce the new Complementarity Assessment Framework (COMPASS) for evaluating Employment Pass (EP) applications in September 2023.

Key Points: 

• Under the COMPASS points system, EP applications will be scored based on four major categories:
  • Salary. Applicants will have to meet the new EP salary requirements. Salary points will be awarded relative to the standard salaries of local professionals, managers, executives and technicians (PMET).
  • Qualifications. Applications will receive points based on the applicant’s qualifications, such as education and related work experience. More information regarding qualifications is available here.
  • Diversity. COMPASS awards more points to applications in which the applicant would make the company more diverse based on his or her nationality.
  • Support for local employment. Applications earn more points if the employing company has a higher share of Singaporean PMETs compared to other businesses in the same industry.
• Applications must earn a minimum of 40 out of 80 points to pass the COMPASS evaluation; applicants who do not meet the 40-point requirement can earn extra points by exceeding standards in specific categories or by earning bonus points. Those who still do not meet the 40-point threshold will be ineligible for Employment Passes.
• COMPASS evaluations will apply to new EP applications beginning Sept. 1, 2023, and renewal EP applications from Sept. 1, 2024.

Additional Information: The current Fair Consideration Framework (FCF) job advertising requirement will continue to apply. Firms with fewer than 25 PMET employees will automatically score 10 points on the Diversity and Support for Local Employment categories. Applicants will be exempt from COMPASS if they earn at least 20,000 Singaporean dollars per month, are filling a short-term role for less than one month or are applying as an overseas intra-corporate transferee. More information regarding COMPASS and how EP applications will be scored is available here.

BAL Analysis: The Singaporean government’s announcement of COMPASS is welcome news as it provides a clear and predictable framework for how EP applications will be assessed and how employers and employees can improve their EP applications.

This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.

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