Foreign workers applying for an Employment Pass (EP) in Singapore will have to earn sufficient points under a new points-based system to qualify for an EP.
Called the Complementarity Assessment Framework (COMPASS), the system will be implemented alongside existing qualifying salary criteria.
Manpower Minister Tan See Leng introduced the framework in Parliament during Ministry of Mapower’s (MOM) Committee of Supply debate on 4 March 2022.
The introduction of COMPASS comes after the NTUC-SNEF PME Taskforce recommended a points system for EP applications on 21 October 2021.
NTUC Assistant Secretary-General Patrick Tay reiterated the call on 1 March 2022 during his budget debate speech.
“COMPASS is a points-based system that considers both individual and firm-related attributes to holistically evaluate an EP applicant’s complementarity. It is designed to be a transparent system, so that businesses have clarity and predictability for manpower planning,” said Dr Tan.
According to MOM, COMPASS will evaluate EP applications based on individual and firm-related attributes. This will allow companies to select high-quality foreign professionals, while encouraging firms to enhance workforce diversity to build a strong Singaporean core.
COMPASS will apply to new EP applications from 1 September 2023, and to renewal applications from 1 September 2024.
Under COMPASS, EP applications will be assessed based on four foundational criteria.
They are the candidate’s salary relative to local PMET wages within the sector, the candidate’s qualifications, the firm’s nationality diversity and if the candidate improves it, and lastly, the firm’s support of local employment compared to other industry players.
Beyond the four foundational criteria, Dr Tan said that MOM will be mindful to scenarios which may warrant special exceptions.
The exceptions include when the candidate possess skills that the local workforce lacks, or when the firm is undertaking ambitious projects in partnership with the Government.
“In such cases, it would be in Singapore’s interest to allow the firm to bring in this candidate. So, we will accord bonus points for these two areas,” said Dr Tan.
He added that MOM will work closely with tripartite partners like NTUC and Singapore National Employers Federation (SNEF), as well as other economic agencies to assess industries’ needs to keep COMPASS relevant.
Employment Pass Holders
Meanwhile, Dr Tan added that the Government will focus on ensuring that EP holders are comparable in quality to the top one-third of the local PMET workforce.
This will be done by benchmarking the EP qualifying salaries according to the top one-third of local PMET wages.
As announced by Finance Minister Lawrence Wong in his Budget speech, the EP minimum qualifying salary will be revised from $4,500 to $5,000, save for the financial services sector which will be raised from $5,000 to $5,500.
The changes to the qualifying salary for new applications will take place from 1 September 2022, with renewal applications coming into effect from 1 September 2023.
To reflect the years of work and experience of the applicant, the qualifying salary will also be raised according to their age.
Dr Tan said: “We need to bring in highly skilled foreign professionals, as part of a strong team of locals and foreigners, to grow our economy, and create more good jobs. Hence, we do not set quotas or levies on EPs. Instead, we focus on ensuring quality.”
S Pass Holders
To help level the playing field for local workers performing specialised, technical roles, the Government will also raise the qualifying salaries for S Pass applicants.
From 1 September 2022, the S Pass minimum qualifying salary will be raised from the current $2,500 to $3,000. The financial services sector will once again see a higher qualifying salary of $3,500.
Subsequently, the minimum qualifying salary will be reviewed and raised a year later in September 2023, and once again in September 2025.
Dr Tan also shared that MOM will also progressively increase the S Pass Tier 1 levy rate from $330 to $650.
Dr Tans said that while recognised that migrant workers take on important roles of which locals are not keen to take up, the COVID-19 pandemic showed that it is not sustainable to rely heavily on foreign manpower, especially at the semi-skilled level.
“Excessive reliance will leave businesses vulnerable to various disruptions. In order for our businesses to survive and thrive, they need to transform, increase their productivity, and reduce their reliance on Work Permit holders,” he said.
Therefore, to support businesses’ transformation efforts, the Government will make further changes to the foreign workforce policies for the Construction and Process sectors from 2024.
Changes include the reduction to the Dependency Ratio Ceilings (DRCs) for the Construction and Process sectors from 1:7 to 1:5. The Government will also remove the existing Man-Year Entitlement framework, and it will revise the levy structure of the construction and process sectors.
Additionally, Dr Tan also touched on how the Government will help older workers with their retirement adequacy through the adjustment of the Basic Retirement Sum, and the implementation of increased CPF contribution rate for senior workers.
Through the adjustment to the Basic Retirement Sum between 2023 to 2027, the Government expects to provide members with higher monthly payouts to keep pace with long-term inflation and rising standard of living.
“We expect more members to receive at least the Basic Retirement Sum payout, with about 8 in 10 active CPF members turning age 55 in 2027 being able to do so, up from 67 per cent for the cohort that turned 55 in 2021,” he said.
On 1 January 2023, for senior workers aged between 55 to 70, their CPF contribution rates will increase between 3 to 4 per cent.
This increase will be fully allocated to members’ Special Account, so that senior workers can save more for retirement.
