A new Complementary Assessment Framework (COMPASS) for evaluating applications for Employment Pass in Singapore (EP) will come into effect from September 2023 and would enable employers to select highly qualified foreign talents and diversify the workforce.
COMPASS will be applicable for new EP applications starting 1st September 2023, and renewal of EP applications from 1st September 2024. The Singapore Ministry of Manpower (MOM), for the first time, rolls out a points-based system for evaluating Work Passes for foreign nationals.
Of late, the MOM also introduced stricter advertising requirements for jobs to help promote transparent employment practices with employers. The new system reaffirms the continued effort on the part of the Singapore government to protect the local labour market amidst weaker job prospects and uncertain employment growth forecasts.
Under COMPASS, the passing score for the applicants will be 40 points which will be based on four Foundational and two Bonus criteria considering severals employee and employer-related factors including Salary, Qualifications, levels of Nationality Diversity, Support for local employment by the employer, Skills Bonus and Strategic Economic Priorities Bonus. COMPASS evaluation will be applied in addition to the minimum standard salary requirement about Singapore employment pass. The new COMPASS framework evaluates EP applications using a points-based system to ensure complementarity with local Singapore workers.
Salary is an employee-related foundational criterion and COMPASS will account for sectoral salary differences. If sector-specific benchmarks for local professional, managerial, executive and technician (PMET) salaries are met, the EP applicant will earn points. The MOM periodically updates labour market statistics, including residential income and salary trends.
Qualification is also an employee-related foundational criterion and all Graduates of the top 100 universities based on international rankings will earn 20 points; those with degree-equivalent qualifications will earn 10 points, and those with no degree-equivalent qualifications will earn zero points.
Diversity is an employer-related foundational criterion and COMPASS will consider whether the candidate improves nationality diversity in the firm. Higher points will be granted to applications where the candidate’s nationality forms a small share of the firm’s PMET employees. If the candidate’s nationality forms the major share of its PMET employees, no points are earned by the firm.
Support for local employment is employer-related foundational criteria and more points are awarded for applications if the employer has more number of Singaporean PMETs relative to other employers in the same sector.
Skills Bonus is an employee-related bonus criterion and is based on the Shortage Occupation List (SOL). More points are given if an EP application is made for a role that is on the SOL. It is expected that an SOL will be published by the MOM by March 2023.
Strategic Economic Priorities Bonus is employer-related bonus criteria and more points are awarded if a company undertakes innovative and/or international projects in partnership with the Singapore government and is supportive of job creation for the local Singaporeans.
Candidates not meeting the 40-point passing score deadline can earn extra points by surpassing standards in specific categories or by gaining bonus points. The EP applications will, however, be rejected if the 40-point threshold is not reached.
The existing Fair Consideration Framework (FCF) job advertising requirement continues to be in full effect. Candidates will be exempted from COMPASS subject to fulfilling any of the following conditions.
- Earning a minimum of SGD 20,000 fixed salary per month.
- Applying as an overseas intra-corporate transferee under the World Trade Organisation’s General Agreement on Trade in Services or any Free Trade Agreement that applies to Singapore.
- Working on a short-term basis, i.e. 1 month or less.
With COMPASS being in effect, the MOM would introduce a Pre-Assessment Tool (PAT) to help employers with an indicative
COMPASS score on each criterion for the prospective EP applicant before applying online.
COMPASS is not only about employment pass as the Singapore government mulls over introducing a similar point-based system to other Work Pass categories including the S Pass whenever appropriate.
