In Singapore, the Employment Pass (EP) is a key work visa designed for foreign professionals wishing to work in the country. The COMPASS framework introduced in 2023 has overhauled the process for EP applications, adding a points-based approach to assess applications more comprehensively. This new system evaluates whether hiring a foreign worker complements the local workforce while promoting local employment and contributing to the economic development of Singapore. Through this article, we’ll dive into the COMPASS framework, its core components, how it functions, and its impact on both employers and employees.
What is the Employment Pass (EP) in Singapore?
The Employment Pass (EP) is a work visa for foreign professionals, managers, and executives who wish to live and work in Singapore. To qualify for the EP, applicants must meet certain eligibility criteria, including a qualifying salary, relevant professional qualifications, and job experience. The approval of an EP application is also subject to their potential to contribute to Singapore's economy.
The COMPASS framework shifted the EP approval process from being solely qualification-based to a points-based assessment. This new approach not only evaluates salary and qualifications but also the candidate’s complementarity with the local employment market. It aligns with Singapore’s goal to strike a balance between foreign workers and the local workforce while supporting the country’s long-term economic strategy.
What is the COMPASS Framework?
The COMPASS (Complementarity Assessment Framework) was introduced as a points-based system for evaluating Employment Pass applications. It assesses the candidate’s EP application across four fundamental criteria: salary, qualifications, support for local employment, and industry demand. This approach ensures that foreign professionals complement the local workforce and contribute to economic growth without displacing local talent.
Through the COMPASS framework, the Ministry of Manpower (MOM) aims to ensure that foreign workers play a complementary role in Singapore’s economy, enhancing industries where there is a shortage in the local workforce.
Key Components of the COMPASS Framework
The COMPASS framework comprises four core components, which are designed to evaluate whether an EP application supports local employment goals while benefiting Singapore's long-term workforce development.
1. Salary
A central aspect of the COMPASS framework is the EP qualifying salary. To pass, candidates must meet or exceed the minimum qualifying salary set by the MOM. The salary criteria vary by job role, but generally, the fixed monthly salary should be competitive within the industry. Meeting the EP qualifying salary not only boosts the applicant’s score but signals the applicant’s qualifications and potential to contribute to the workforce.
2. Qualifications
The qualifications of the candidate also play a crucial role. Highly qualified professionals with recognized degrees (such as a degree in the UK system) or relevant certifications are likely to score higher. However, candidates need to pass the COMPASS assessment by demonstrating that their skills are in demand in the local labor market, ensuring that foreign workers are not replacing local talent unnecessarily.
3. Diversity
This criterion evaluates the potential impact of hiring a foreign worker on local employment. If a foreign worker is filling a role with small share in nationality among organisation’s PMETs, this will result in a higher score for the EP application. Conversely, roles where many same nationality workers are already employed may score lower or zero in this component, as the goal is to ensure a diverse mix of nationalities can enrich firms with new ideas and networks, and contributes to a more inclusive and resilient workforce.
4. Support for Local Employment
The support for local employment component rewards employers who demonstrate a commitment to developing and hiring local talent. For example, employers can earn points for implementing local employment initiatives such as training programs, hiring local workers, and providing career development opportunities. Companies that support local employment efforts create a more inclusive work environment while also ensuring they aren’t overly dependent on foreign workers.
How Does the COMPASS Framework Work?
The COMPASS framework works by assigning points to each of the four components based on how well the EP application aligns with the established criteria. Points are awarded for factors such as salary, applicant's qualifications, diversity of the hiring firm, and whether the company supports local workforce development.
Once the points are tallied, the total score determines whether the EP application is approved. The candidate must achieve a COMPASS score that meets or exceeds the required threshold, which is typically at least 40 points. If an EP application meets these criteria, the candidate will be eligible for an EP. If not, the employer may need to reconsider their application and make necessary adjustments to meet the requirements for EP eligibility.
The Role of the Workforce Insights Tool in COMPASS
The workforce insights tool is a valuable resource for employers seeking to make informed decisions when submitting EP applications. The tool provides data on industries and sectors where there is a shortage in the local workforce. It helps employers align their hiring practices with Singapore’s local employment priorities, enabling them to hire foreign workers where the local workforce is insufficient. Employers can use the workforce insights tool to ensure they are contributing to Singapore’s workforce goals, particularly in areas where there are gaps in the availability of skilled local talent.
Exemptions from COMPASS
Certain EP applications may be eligible for exemptions from COMPASS, such as cases where the role is highly specialized or vital to Singapore’s economy. For example, senior executives, entrepreneurs, or highly skilled professionals in critical industries might be exempt from the COMPASS framework if their contribution is seen as crucial to the country's development. The COMPASS guidebook outlines detailed information regarding exemptions from COMPASS, ensuring clarity for employers who wish to understand when exemptions are applicable.
Bonus Criteria and Meeting the EP Qualifying Salary
Employers can earn additional points by meeting specific bonus criteria under the COMPASS framework. For instance, employers who demonstrate significant local workforce development efforts or contribute to high-priority sectors may receive bonus points. Additionally, candidates must ensure they meet the minimum qualifying salary for EP, which is a key element in passing the COMPASS assessment.
How COMPASS Affects Employers and the EP Application Process
The COMPASS framework has a significant impact on the way employers submit EP applications. Companies are now required to align their hiring practices with Singapore's economic goals. Employers must carefully consider how their applications impact the local workforce and make adjustments to meet the criteria in the COMPASS framework. They must also use the self-assessment tool to determine whether their EP application is likely to meet the points threshold.
Conclusion
The COMPASS framework represents a fundamental shift in the way Singapore assesses Employment Pass applications. By introducing a points-based complementarity assessment framework, the government ensures that foreign talent complements, rather than displaces, local workers. Employers must consider the eligibility criteria, salary levels, qualifications, and local employment support initiatives in their EP applications to ensure they meet the minimum required points. Using tools like the workforce insights tool and self-assessment tool can help guide this process. Ultimately, the COMPASS framework aims to strengthen the local workforce while fostering a balanced and sustainable labor market in Singapore.
Comments