Employment Pass vs EntrePass vs S Pass – Which One Do You Need?

As a foreign professional, an entrepreneur or a skilled worker who wants to establish a career or business in Singapore, one must know about the different work passes that can be issued. Based on the qualifications of an applicant, kind of work, and business position, the Ministry of Manpower (MOM) offers a number of options.

Some of the most popular ones are the Employment Pass (EP), EntrePass and S Pass. Although each of the three legalizes foreigners to work in Singapore, they are all designed to do so with different purposes and have different eligibility requirements, benefits and limitations. In this article, their differences have been divided and you could decide on which would best suit your professional or business objectives.

The Realization of the Main Work Passes in Singapore.

The work pass system in Singapore is aimed at attracting international talent, investors, and entrepreneurs who can help to improve the economy and innovation situation in the country. Employment Pass, EntrePass and S Pass address the various professional classes and are thus versatile in sectors and skills.

To companies that recruit foreign talent or individuals intending to move, these differences are very important in order to eliminate compliance problems and facilitate visa application.

Employment Pass: Executive and Professionals.

Employment pass (EP) is a pass that is targeted at foreign professionals, managers, and executives with qualified qualifications and a job offer in a company registered in Singapore.

The general requirement among the applicants is to receive a predetermined monthly salary that must be within the current threshold set by MOM (at present, SGD 5,000 per month in the majority of industries and even more in financial services). Moreover, the education level and experience of the applicant is evaluated in order to see whether he or she is eligible or not.

The EP enables the holders to work, live and bring with them the dependents (spouse and children) on the Dependant Pass or Long-term Visit Pass. It is renewable and may culminate to permanent residency upon uninterrupted employment.

Nonetheless, the procedure of application is tough, companies need to explain why they need a foreign professional and demonstrate the attempts to promote local talent using the Complementarity Assessment Framework (COMPASS).

EntrePass: As a Foreign Entrepreneur.

The EntrePass is aimed at foreign investors who have a desire to establish and run innovative ventures in Singapore. The Entrepass does not need an existing job offer, as opposed to the Employment Pass, which targets the innovativeness, scalability, and economic benefit of the business concept. Many startup founders even take a finance course for entrepreneurs in Singapore to better manage funding and business growth while applying for this pass.

The applicants are required to satisfy certain criteria pertaining to a type of the company, paid-up capital, and operations. As an example, they are required to apply to ACRA to incorporate a private limited company that is not more than six months old. One of the approved industries that the company should be engaged in includes, technology, research and social enterprise.

The EntrePass users are allowed to renew their pass provided they comply with the renewal requirements by MOM which put into consideration the amount of business that the company spends, the number of local workers employed, and the milestones that the company has achieved.

This pass is specifically designed to suit the startup founders in case they intend to open regional head offices or innovation-focused business in Singapore competitive ecosystem.

S Pass: Mid-Skilled Employees.

S Pass is targeted to middle-skilled foreign workers, technicians and specialists who possess a set of salaries and qualifications requirements.

To be eligible, the applicant must have a minimum earnings of SGD 3,150 per month (according to the current MOM guidelines) and the applicant must also have the relevant qualifications or work experience. The S Pass permits its holders to work in Singapore but has a quota and levy system restricting the amount of foreigners a company can employ.

The employers must also offer the S Pass holders medical insurance as well as ensure fair employment practices.

Although S Pass holders are less privileged compared to Employment Pass holders, they are not deprived of several privileges, including being allowed to apply to Dependant Pass or Long-Term Visit Pass on behalf of the family members (with income limits)

Comparison of the Three Work Passes.

In order to illustrate the decision better, the following is a summary of some important differences:

• Employment Pass (EP): This is in case of the professionals, executives and managers who are more qualified and earn a higher salary.
• EntrePass: This is a pass granted to foreign entrepreneurs who are opening new businesses or startups in Singapore.
• S Pass: The employees are in the positions of technicality or support and are on the middle level of skill.

Every pass has its own segment of the workforce and your decision will be on whether you are either joining a company, starting up a business or employing foreign workers.

Choosing the Right Pass for Your Situation

The process of choosing the right Singapore work pass for business owners and employees depends on your specific role and business objectives.

• The Employment Pass will normally be the most suitable in case you are a foreign professional who wants to work in an existing company either in managerial or specialist positioning.
• In case you are intending to open your own business or start-up, the EntrePass is flexible and has features that suit entrepreneurs.
• The S Pass would be the most suitable option to companies that want to hire technical or mid-skilled positions.

Another point of interest is that periodically MOM experiences a review and revisions of the eligibility requirements to keep the local workforce in Singapore safe and to only allow the skilled and qualified foreigners to be approved. It is important to maintain the pace with such changes so that the process of applications and renewal can be easy.

Compliance and Employer Responsibilities

For employers, understanding the employment pass comparison guide for foreign professionals in Singapore helps ensure that hiring practices align with government regulations.

Employers must:

• Obtaining of the right pass is determined by the qualifications and job position of the employee.
• Follow the fair considerations framework (FCF) whereby local employees should be given fair consideration before employing foreigners.
• Renew is made before their expiry and reports any change in employment status to MOM.
• Keep proper documentation of employee information to be checked when the need arises.

Non-compliance may lead to fines, work pass suspension or blacklisting. It would therefore be best that the companies collaborate with an employment agency that is licensed or companies with a human resource that would understand the procedures of the work pass in Singapore.

Advantages of the Work pass System in Singapore.

The work pass system in Singapore provides balance between global and local talent attraction and safeguarding of jobs. It is open, process driven and effective, as well as enabling the employers and the applicants to monitor the applications via online systems at MOM.

Also, the multiple work pass options allow flexibility in the industries, in any case, a foreign executive becomes part of a multinational company, or a tech start up.

This is also a well-organized strategy that makes Singapore competitive as a business destination in the region due to the healthy blend of innovations, investments, and skilled workers.

Typical Obstacles and the way to deal with them.

Meeting the salary and qualification requirements is one of the greatest difficulties experienced by the applicants, particularly those who are first-time Employment Pass applicants. To cover up your application, make sure that your position, duties, and educational experience are compatible with the demands of MOM about professionals.

The applicants of EntrePass tend to be questioned on their business intentions. The proposal should show distinct innovation, scalability, and contribution towards the Singapore economy. Chances of approval can be enhanced by the provision of supporting documents like proof of funding, patents or endorsements.

In the case of S Pass applicants, the companies need to control the quotas. Companies ought to strategize the work force alignment in order to prevent stalling or rejection.

Conclusion to Employment Pass vs EntrePass vs S Pass Which One Do You Need

As a would-be entrepreneur, an accomplished professional, or an employer who wants international talent, it is essential to have an insight into the various work passes available in Singapore. The different needs are met by the Employment Pass, EntrePass and S Pass which provide an elastic system that promotes the economic growth and equitable employment policies.

With the help of understanding the employment pass comparison guide of foreign professionals in Singapore and becoming conversant with how to select the appropriate Singapore work pass, both business owners and employees, you can make an informed choice that will meet your career or business objectives as well as ensuring that you do not violate the employment regulations in Singapore.