Singapore, known for its vibrant economy and strategic position, continues to be a prime destination for professionals and entrepreneurs worldwide. Lately, there has been a lot of chatter about the new COMPASS (Complementarity Assessment Framework) rule set to be introduced on September 1, 2023, marking a significant evolution in Singapore’s immigration policy. This points-based system aims to balance the inflow of foreign talent, and though not new, it is similar to systems many other countries use to balance foreign and local workforces. Given Singapore’s more welcoming stance in the past, there have been jitters among some existing employees and employers. Employers now have to work harder to fill certain positions.
For people looking to come to Singapore to work or study, it is important to understand the new points system. They should be able to assess their eligibility even before pursuing a role here.
Here’s a guide to understanding the new COMPASS rule, covering eligibility, requirements, and the application process.
Understanding the COMPASS Framework
COMPASS is designed to offer greater transparency and predictability for Employment Pass (EP) applicants. It evaluates EP applications based on a points-based system, assessing candidates across multiple criteria. Let’s understand what are those components and points against them :
Key Components of COMPASS
The COMPASS framework assesses applicants on six primary criteria. Applicants need a minimum of 40 points to be eligible for an EP (employment pass). Here are those :
- Salary Criterion
- Points Allocation: 0, 10, or 20 points
- Assessment: The applicant’s salary is compared to sector-specific benchmarks. Higher salaries relative to peers earn more points
- Qualification Criterion
- Points Allocation: 0, 10, or 20 points
- Assessment: Academic qualifications are measured against global standards, with higher points awarded to degrees from top-tier universities and recognized vocational institutions
- Diversity Criterion
- Points Allocation: 0, 10, or 20 points
- Assessment: This measures the nationality diversity within the firm. Firms with a balanced mix of nationalities score higher points
- Support for Local Employment
- Points Allocation: 0, 10, or 20 points
- Assessment: Companies that employ a higher percentage of local (Singaporean or Permanent Resident) professionals, managers, executives, and technicians (PMETs) earn more points
- Shortage Occupation List
- Points Allocation: Bonus Points
- Assessment: Extra points are awarded for roles listed in the Shortage Occupation List, reflecting sectors with critical skills gaps
- Strategic Economic Priorities
- Points Allocation: Bonus Points
- Assessment: Applications from firms involved in key economic activities aligned with Singapore’s strategic priorities earn additional points
Eligibility and Requirements
To qualify for an Employment Pass under the COMPASS framework, applicants must meet the following requirements:
- Minimum Qualifying Salary: S$5,000 per month for most sectors; S$5,500 for the financial sector.
- Points Threshold: A minimum of 40 points across the COMPASS criteria.
- Educational Qualifications: Degrees from accredited institutions or recognized vocational qualifications.
Exemptions from COMPASS
Certain applicants may be exempt from the COMPASS requirements if they meet specific conditions:
- High Earners: Applicants with a fixed monthly salary of at least S$22,500 are exempt from both COMPASS and salary eligibility requirements.
- Intra-Corporate Transferees: Under the WTO General Agreement on Trade in Services or applicable Free Trade Agreements with Singapore.
- Short-Term Roles: Positions that last one month or less.
Application Procedure
Step-by-Step Guide for EP Application:
- Pre-Assessment: Use the (Ministry of Manpower) MOM’s Self-Assessment Tool to evaluate potential COMPASS scores and identify areas for improvement.
- Prepare Documentation: Gather all necessary documents, including educational certificates, proof of salary, and other relevant credentials.
- Submit Application: Applications must be submitted through the MOM portal by the employer. Include all required documentation and ensure all information is accurate.
- Verification and Processing: MOM reviews the application, verifying qualifications and assessing the application against COMPASS criteria.
- Decision Notification: Applicants will be notified of the outcome. Successful candidates receive their Employment Pass, allowing them to work and live in Singapore.
Additional Opportunities for Entrepreneurs and Investors
Singapore offers several schemes for entrepreneurs and investors to establish and grow their businesses:
- Entre Pass: For entrepreneurs with innovative business ideas. Requires venture backing or support from recognized incubators.
- Global Investor Programme (GIP): Grants Permanent Resident status to eligible global investors with substantial business track records.
- Overseas Networks & Expertise Pass (ONE Pass): For top talent across all sectors, allowing work with multiple companies in Singapore.
By understanding and navigating the COMPASS criteria, both employers and foreign professionals can unlock significant opportunities for growth and success in Singapore.
If you are looking to come to Singapore and want to chat more about the life here, please feel free to reach out to us and we will connect you with the relevant mentor.
