As Singapore continues to evolve as a global business hub, the government has implemented new measures to ensure that Employment Pass (EP) holders are not only qualified but also aligned with the nation’s economic priorities. The new framework, COMPASS (Complementarity Assessment Framework), is a points-based system introduced to evaluate EP applicants beyond just the qualifying salary. This article aims to shed light on what COMPASS entails, its effective timeline, and how both EP holders and business owners can navigate this new requirement effectively.
What is The New EP Framework COMPASS?
COMPASS is a holistic assessment framework designed to evaluate Employment Pass applications based on a broader set of criteria. While the qualifying salary remains a key requirement, COMPASS introduces additional factors to ensure that EP holders bring significant value to Singapore's workforce. The points-based system assesses candidates across six key criteria:
Individual Attributes:
Salary: Higher salaries reflect higher skills and talent, contributing to more points.
Qualifications: Educational qualifications are considered, with advanced degrees and relevant professional qualifications adding more points.
Business or Organization Attributes:
Diversity: Employers are encouraged to maintain a diverse workforce. Points are awarded based on how well the candidate complements the existing team in terms of nationality diversity.
Support for Local Employment: Companies that demonstrate a commitment to developing and employing local talent will earn more points, reflecting their contribution to Singapore’s labor market.
Role of the Job:
Strategic Economic Priorities: Points are given for roles that align with Singapore’s economic priorities, such as positions in technology, finance, and research.
Industry Benchmarking: The role is compared against industry benchmarks to ensure it is at par with similar roles in terms of impact and importance.
Innovation and Enterprise:
Skills and Technological Contributions: Companies that foster innovation or require specialized skills contributing to Singapore’s economic competitiveness receive additional points.
Skills Bonus:
Shortage Occupation List: Bonus points are awarded for roles that require highly specialized skills, which are in shortage in the local workforce.
Strategic Economic Priorities Bonus:
SEP Bonus: Recognizes companies undertaking ambitious investments or innovation activities, contributing significantly to Singapore's economic landscape.
Effective Timeline
Key Dates:
1 September 2023: COMPASS became mandatory for new EP applications.
1 September 2024: COMPASS will apply to the renewal of existing EPs that are expiring.
1 January 2025: Revision of the EP qualifying salary, applicable to new applications and renewals.
These timelines ensure that both new and existing EP holders comply with the updated requirements, providing a structured and transparent framework for foreign talent management in Singapore.
How COMPASS Impacts Employment Pass Applications
For EP Holders: Understanding COMPASS is crucial for EP holders as it directly affects their eligibility. Candidates must aim to meet the minimum qualifying salary, which is aligned with market standards. However, they must also focus on other aspects such as enhancing their qualifications, taking on roles that contribute strategically to their employer’s industry, and ensuring they bring unique value to the Singaporean workforce.
For Business Owners: COMPASS requires employers to be more strategic in their hiring processes. It’s no longer sufficient to simply meet the qualifying salary threshold. Employers must consider how each potential EP candidate fits into the broader organizational and national framework. This means prioritizing candidates who not only fulfill immediate business needs but also contribute to workforce diversity, innovation, and alignment with Singapore’s long-term economic goals.
Employers may need to:
Review Hiring Practices: Adjust hiring strategies to ensure that candidates meet the broader criteria set by COMPASS.
Enhance Workforce Diversity: Consider the composition of their current workforce and how new hires can contribute to a more balanced team.
Invest in Local Talent: Demonstrating a commitment to local talent development can significantly enhance an employer’s standing under the COMPASS framework.
Preparing for COMPASS: Practical Steps
For EP Holders:
Upgrade Skills and Qualifications: Continuous learning and acquiring industry-relevant certifications can significantly improve your COMPASS score.
Align with Strategic Roles: Seek positions that are aligned with Singapore’s strategic economic sectors, such as technology and finance, to enhance your application.
For Business Owners:
Implement Strategic Workforce Planning: Regularly assess your workforce’s diversity and the roles critical to your company’s long-term success.
Collaborate with Educational Institutions: Partner with local universities and training providers to build a pipeline of local talent that complements your foreign hires.
Conclusion on Understanding The New EP Framework COMPASS
The introduction of COMPASS marks a significant shift in Singapore’s approach to managing its foreign workforce. By focusing on a holistic assessment of EP candidates, the framework ensures that only those who truly add value to the economy are granted passes. Both EP holders and business owners must adapt to this new landscape, understanding that success under COMPASS requires more than just meeting salary benchmarks—it’s about contributing to Singapore’s economic and social fabric in meaningful ways.
By understanding the new EP framework COMPASS, EP holders can enhance their chances of securing an Employment Pass, while business owners can ensure their hiring strategies align with Singapore’s broader economic priorities.
For more detailed information, visit the official Ministry of Manpower Employment Pass eligibility page or reach out to us for a non-obligatory call.
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