This report covers new steps Singapore is taking in respect of employers advertising on Jobs Banks, applying for an Employment Pass, and the minimum qualifying salary for the S Pass work visa.
Singapore’s Ministry of Manpower (“MOM”), on 5 March 2018, widened the net for employers who will need to advertise on the Jobs Bank before they can submit an Employment Pass application.1 In addition, the minimum qualifying salary for the “S Pass” work visa for mid-level skilled staff will be increased progressively over the next two years. These measures align with the ministry’s objective of ensuring the local workforce continues to be fairly considered for job opportunities.
The new application questions signify that the MOM is taking further concrete steps to implement its existing guidelines on fair hiring practices and consideration for Singapore citizens and permanent residents.
More employers will be required to advertise vacancies on the Jobs Bank for at least 14 days before they can submit an Employment Pass application. This can pose an inconvenience for employers who may be looking to fill a key position quickly, but first must go through the Jobs Bank advertising procedure. Additionally, employers applying for a new S Pass need to establish that they meet the minimum salary requirement when the new thresholds kick in. The minimum qualifying salary increase could mean higher employment costs for some employers.
With the introduction of the Fair Consideration Framework2 (“FCF”) in 2013, the MOM has placed greater onus on employers to make sure the local workforce (Singapore citizens and Permanent Residents) are considered fairly for job opportunities. Under the FCF, employers are currently required to advertise on the Jobs Bank for at least 14 days. Exemptions are however granted where the company does not have more than 25 employees or the job pays a monthly salary of at least $12,000. (All dollar figures expressed are Singapore dollars.) [S$1 = €0.62 | S$1 = US$0.76 | S$1 = £0.54 | S$1 = A$0.988]
For S Pass applications, the current qualifying monthly salary is $2,200.
So that locals are receiving fair consideration and in keeping up with rising incomes, employers applying for an Employment Pass will be required to advertise on the Jobs Bank unless the company does not have more than 10 employees or the job pays a monthly salary of at least $15,000. The new criteria applies to new Employment Pass applications lodged from 1 July 2018. Where there is a change in employer (for example, transfer to a related Singapore entity) and the MOM requires a new Employment Pass application, the new criteria would apply.
Even where the employer is exempt, the ministry strongly encourages all employers to advertise on the Jobs Bank.
a) New S Pass applicants will need to earn a minimum salary of $2,300 per month from 1 January 2019.
b) New S Pass applicants will need to earn a minimum salary of $2,400 per month from 1 January 2020.
The ministry has announced transitional measures as noted below.
For existing S Pass holders whose passes expire:
Employers are encouraged to use the ministry’s Self-Assessment Tool on its website to assess if their potential S Pass candidates meet the new salary criteria.
The MOM has again highlighted that errant employers who were assessed as “Triple Weak”3 have been placed on the government’s watch-list. Once on the watch-list, work pass applications are subject to greater scrutiny and processing time may take up to three months. Five hundred (500) companies had been placed on the watch-list, but 150 companies have been removed after improving their hiring practices. Those remaining on the watch-list have not shown improvement and have had their work pass privileges curtailed.
What Actions Do Employers Need to Consider Taking?
Employers need to take steps to:
1 See March 5, 2018 Speech by Mr Lim Swee Say, Minister for Manpower, at Committee of Supply 2018.
2 For further information, please refer to the earlier Immigration Alert issues dated 2 October 2013 and 7 August 2015, respectively: “Singapore – Implementation of New Hiring and Employment Pass Application Rules Announced (PDF 58 KB)” and “Singapore – Hiring of Foreigners Gets Scrutiny, Better Opportunities for Singaporeans.”
3 For more details on the Triple Weak concept, please refer to our Tax Alert Issue 17, May 2016: “Further Refinements to the Work Pass Application Process to Strengthen the Global Competitiveness of the Singapore Workforce. (PDF 254 KB)” Tax Alert and Immigration Alert are publications of the KPMG International member firm in Singapore.
Please note that the KPMG International member firm in the United States does not offer immigration services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Singapore.
<p>© 2018 KPMG Services Pte Ltd (Registration No. 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative, KPMG International. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.