Employment Pass
What you can and cannot do....
An Employment Pass or EP holder allows a foreign individual to work here in Singapore. The position the Employment Pass applicant holds in the company must be unique and of a certain seniority whereby a set of specific skills, or experience, is required to ensure the success of the employing company or some may call them the EP sponsors.
Through the years, and after working in Singapore for a period of time, the EP holder may consider applying for the Personalized Employment Pass (PEP) or even a Permanent Resident (PR) status in Singapore if he/she should fulfil the requirement. Due to the ease of doing business here in Singapore, many EP holders even explore the chances of setting up their own business and consider permanently residing in this country. In this article, you will find out if that is possible and also some information on Employment Pass Do's and Don't to take note of to ensure you don't cross the line and jeopardize your career and investment here in Singapore.
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If you are still uncertain about your chances of getting an Employment Pass, do connect with us to seek further clarity and also a free evaluation of your chances on getting an EP.
Top 4 consideration for an Employment Pass applicant
Minimum Salary
Based on the recent announcement by the Ministry of Manpower (MoM), the new minimum salary requirement for an EP holder is at least S$4,500 per month. However, it must be noted that the salary should be adjusted to match the seniority, age, skill set and experience of the employee in consideration.
Job offer
There must be a legit job offer clearly indicating the job scope, requirement and also the salary/benefits offered to the EP applicant. It is important to match the experience, or any special skill set considered and match that to the profile of the applicant when submitting the application.
Experience and Skill Set
This is actually one of the most important consideration by the authorities when reviewing an EP application. The position offered to the foreigner must not be a generic role (e.g. general admin, receptionist) that can be simply fulfilled by a local citizen or resident. There must be some unique differentiator in terms of skills and experience that the foreign individual have or can deliver in comparison to the local workforce that is readily available. Chances will be higher if the foreigner has a minimum of at least 3-5 years of relevant experience, and this experience/skill set is critical to ensure the success of the business, closing critical business/knowledge gaps.
Academic Qualification
The applicant must at least hold a degree, or professionally certified for a specific skill set that is relevant to the position that he/she will be employed for.
Paid-Capital
Many companies do not know of this unwritten consideration when submitting an EP application for a potential candidate. The paid-up capital of the company must be of a substantial amount in order to present itself to be able to sustain basic operation and the cost of maintaining the employment of the EP applicant. The amount varies depending on what stage or how established the business is (e.g. startup or established), an experience corporate service provider will be able to advise accordingly.
Purpose of employment
Rule of thumb, the purpose for employing the foreigner must be clear and strong backing the application.
Employment Pass Do's and Don't
Freelance
Work for another company
Work for another company
It is not legally possible for an EP holder to provide freelance services as an EP holder can only work for his/her employer which is tagged to the Employment Pass.
Work for another company
Work for another company
Work for another company
An Employment Pass holder can only work for one employer at any time and not for anyone else in Singapore. If the EP holder should change employer, a new EP is required tagged to the new employer.
Start a new business
Work for another company
Start a new business
It is legally possible for an EP holder to invest and set up a new business in Singapore. The EP holder can only be a shareholder, and not work under the capacity of the business in anyway. The EP holder cannot be appointed as a director in the business he invested in
HOlding directorship
lease an appartment/car
Start a new business
An EP holder qualifies and can be appointed as the Resident Director of the company if his employment falls under the same company. This is commonly adopted for senior executives relocating from head office in a different country/region to head the operation in Singapore.
Dependent pass
lease an appartment/car
lease an appartment/car
The EP holder can apply for additional Dependent Passes in order to relocate his/her family to stay here in Singapore.
lease an appartment/car
lease an appartment/car
lease an appartment/car
This is possible but subjected to the requirements of the developer/landlord of the property, or the leasing company providing the services. Commonly, prove of a valid Employment Pass, employment contract and pay slips may be requested for further evaluation.