Difference Between Employment Pass And Work Permit In Singapore

It’s a common question that I often get asked by my clients and friends. What’s the difference between a S-Pass or Employment Pass in Singapore? Work Permit Vs Employment Pass, Employment Pass in Singapore, Work Permit In Singapore. Well, let us tell you what’s the difference between employment pass and work permit in Singapore.

The difference between Employment Pass and Work Permit can be a bit confusing at first. Do you not have a clue what is the difference between these two types of passes? Whether you are new in country or an existing expat, it is important to know how this matter. Both of the employment pass and work permit are short term pass; however, there are many significant differences when comparing these two types of employment passes. Understanding the differences will help you with application as well as ensure that you have valid employment pass in Singapore.

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Difference Between Work Permit And S Pass In Singapore

So you’re thinking about working in Singapore? Perhaps you got a good offer and thus are keen to pack your bags, or perhaps you want to move here on your own accord. You know you can work here, but are unsure which permit will allow you to do this. Yes, there are actually two working permits one can apply for — the Employment Pass (EP) and the Work Permit. With the recent changes in the Work Permit scheme, more people are leaning towards the EP. But what’s the difference between the Employment Pass and Work Permit?

Are you planning to work in Singapore? If yes, be ready with your Employment Pass (EP) and Work Permit (WP). I know how confusing it is to understand which one you should apply for especially if you are a foreigner who has never worked in Singapore before. Though both EP and WP involve employment-based application but still, there are differences between the two.

Working in Singapore is a privilege that not everyone gets. Only those foreigners who have their employment passes and S Passes can work here. There are very specific criteria and conditions to fulfill in order to get these passes.

The work permit, S pass, and employment pass are all names for the same kind of thing in Singapore. This is a permit that gives non-residents the right to work in Singapore either for a company or independently.

Many people come to Singapore with Employment Pass and Work Permit. Both of these permits allow you to work in Singapore. Of course both passes with certain distinction from each other. This article will demystify you with the differences between Employment Pass and Work Permit.

You are likely to look down on the government for its inconsiderate, unproductive, and ineffective policies; you may evoke what others will think. In your mind’s eye, Singapore may be an island full of tiny houses, shark fins and durians. Yet you’ll come across others who will say Singapore is a modern metropolis filled with expensive boulevards and new skyscrapers. You may observe the rise of culture and the abatement of poverty in Singapore; the streets are clean and safe to walk at night. The apartments are cheap, comfortable and clean. The people generally have low crime rates so it won’t have to worry about theft or violent crimes that often occurs in cities as viewed in America or Europe.

Types of Singapore Work Visas

The Singapore work visas are divided into:

• Singapore work visas for professionals.
• Singapore work visas for skilled and semi-skilled workers.
• Singapore work visas for trainees and students.
• Short-term work passes.

Singapore Work Visas for Professionals

The types of Singapore work Pass (work visa) you can get if you are a professional worker are:

• Employment Pass – available to foreign managers, executives, and professionals. You will have to make at least S$3,600 a month.
• Personalized Employment Pass – available if you are a high-earning foreigner or current Employment Pass holder. The PEP offers more flexibility than other work Passes.
• EntrePass – available to investors or entrepreneurs who want to start a business in Singapore.

No foreign worker quotas and levy apply to any of the aforementioned Passes.

Work Permit Singapore Salary

The Difference between the Work Permit and the Employment Pass

The Employment Pass fits high-paid and highly educated overseas professionals, managers and company directors (PME) who arrive in Singapore for a fresh start in their career or business venture. The government welcomes foreign talents especially in growing sectors of the local economy, but still sets stringent demands for them: PME talents must possess valuable knowledge and expertise as well as skills which are scarce on the Singaporean job market landscape.

The Work Permit is for unskilled foreign manpower that are hired from certain approved countries. They are usually employed in industries such as construction, manufacturing, service, marine etc. The government does not expect this manpower to showcase any valuable skills or knowledge, and the WP requirements are mostly applicable to the employer that hires the individual.

Salary

The Employment Pass has a minimum salary requirement. On the other hand, the WP doesn’t have salary limits as it is the only visa for unskilled manpower and it is already separated from other visas by restrictions it contains.

The EP is a stratified visa. The minimum salary that allows a foreign professional to seek employment in Singapore on the EP is 3,600 SGD. This is a necessary requirement for all nationalities except for Malaysians. Malaysian are able to be granted EP status at a lower salary.

Nationality

The Employment Pass is open for all nations around the world; the government does not apply special requirements or incentives for specific nationalities, but still certain nationals may be required to provide additional documents.

The Work Permit is issued only for workers arriving from special approved Asian countries such as Malaysia, Hong Kong, South Korea, India, Thailand, People’s Republic of China (PRC) just to name a few. Each sector of the economy has its own list of approved countries. Malaysians who are working on the WP are given more flexibility. In the event that a Malaysian national would like to change employers, the new employer can process a new WP while the Malaysian worker is still working for the current employer while other nationalities must first quit their jobs before proceeding to apply for the WP. 

Quota & Levy

The quota (a certain ratio of foreign manpower to local manpower amongst the staff) is not applied to foreigner professionals and directors who work in Singapore on the Employment Pass. It does not mean that Singaporean employers are not controlled in their hiring of foreign manpower. The government requires them to advertise the job position for the locals prior to opening up the position to foreign individuals. Moreover, the authorities carefully monitor all local companies for discriminatory hiring practices and penalize them if the local manpower is mistreated. The EP is not subject to a levy (compulsory amount of money the employer has to pay for a foreign worker).

Employers planning to apply for Work Permits are subjected to both quota and levy. The intensity of these restrictions depend on the sector of the economy (the quota is 15% for service niche and 20% for others) and the worker’s qualification (the levy is higher for lower-skilled employees). Furthermore, the employers that hire foreigners on the WP must pay a security bond for them unless these foreigners are Malaysian.

Opportunity to Change Jobs

Although both the EP and the WP are visas that are tied to specific employers, EP holders are given more flexibility in changing employers. If they had found another job that suits their liking whilst at their current job, they can participate in a new EP application without termination. In the event the EP gets cancelled, EP holders have an opportunity to get a Short Term Visit Pass and stay in the country for one more month that can be used for job-hunting and a new EP application.

WP holders are deprived of such privilege of easy job swapping unless they are Malaysians. After the WP is cancelled, the individual must leave the country within a week. 

Processing Time & Visa Duration

Singapore is famous for its streamlined and automated services that link the authorities and people. The procedures of visa applications were moved online in order to shorten the processing time. Such electronic services as EP Online and WP Online allow not only submitting applications and the required documents but also tracking the application and finding out the result.

If the Employment Pass application was lodged online, the government processes the request in 7 working days. Manual applications are considered slower – within 5 weeks. The visa gives a foreigner up to 2 years of stay in Singapore (the exact duration is dependent on MOM’s assessment).

Work Permit applications are processed much faster than Employment Passes – within 1 working day – and the maximum validity set by the MOM is 24 months. Nevertheless, the duration of the visa will depend on a various factors such as the passport’s validity, duration of employment and so on.

Employment Pass Vs Work Permit

One of the most common questions I get from readers is about the options for working and living in Singapore: Employment Pass or Work Permit? Both options allow you to work and live in Singapore on a long-term basis. However, there are significant differences that could make one visa better for your personal situation than the other.

An Employment Pass (EP) is considered to be more desirable among candidates as compared to a Work Permit. It allows one to work for an employer of choice and also gives you the freedom of changing jobs without the need for additional paperwork.

The Employment Pass (also known as an “EP”) and Work Permit are both Government-granted documents that are valid for a year and renewed every year. They are issued to foreigners working in Singapore, who require these documents to work legally.

Singapore work visas for skilled and semi-skilled workers

If you are a skilled or semi-skilled worker, you can apply for one of the following Singapore work visas:

• S Pass – available to mid-level skilled workers who will receive a monthly salary of at least S$2,300. Foreign worker quotas and levy apply.
• Work Permit for Foreign Workers – this is available only to foreign workers from certain countries and allows work only in certain sectors (construction, manufacturing, marine shipyard, process or services sector.) Foreign worker quotas and levy apply.
• Work Permit for Foreign Domestic Workers (FDW) – available only to workers between the ages of 23 and 50 from certain countries, such as Bangladesh, Cambodia, Hong Kong, India, Indonesia, Macau, Malaysia etc.
• Work Permit for confinement nanny – available to Malaysian nannies who can work in Singapore for 16 weeks, beginning from the time a baby is born. The employer has to pay a foreign worker Levy.
• Work Permit for performing artists – available to performing artists who will be working in eligible public entertainment outlets, like bars, nightclubs, or hotels. Foreign worker quotas and levy apply.

Singapore work visas for trainees and students

The Singapore work visas that are available for foreign students or trainees are:

• Training Employment Pass – available to foreign nationals who want to undergo training in Singapore that does not exceed three months. There’s no foreign worker levy or quota.
• Work Holiday Pass – available to foreign nationals who are under the Working Holiday Programme with Singapore (Australia, France, Germany, Hong Kong, Japan, New Zealand, Switzerland, the United Kingdom or the United States). It is available only to nationals aged 18-25 (18-30 for Australians) and valid for up to six months (1 year for Australians). It is non-renewable and the holder can only receive it once.
• Training Work Permit – available to unskilled or semi-skilled foreign students/trainees who will undergo a practical training in Singapore that only lasts up to six months.

Short-term work passes for Singapore

Foreign workers who as on a short-term Visit Pass to Singapore usually cannot take up any work related activities. However, in certain cases (such as in the case of journalists or speakers at public events), the holder can apply for a Miscellaneous Work Pass. it allows the holder to work for a period not exceeding 60 days.

Foreign students who are studying in Singapore with a Study Visa can also work if they meet specific requirements, such as being enrolled at an approved educational institution.

S Pass Singapore

How to Apply for a Singapore Work Visa?

You will first need to find a job in Singapore before you can apply for a work visa. That’s because it is your employer (or an Employment Agency) who is in charge of handling your Singapore work visa application.

Your employer or an Employment Agency can apply to get your Singapore work visa issued via EP Online, the online application service found on the website of the Ministry of Manpower (MOM).

The application process for a work visa for Singapore is as follows:

1. Find a job in Singapore.
2. While you are still in your home country, your employer or an Employment Agency (EA) will submit a work visa application via EP Online. They will have to pay a processing fee.
   • If the application is accepted, your employer will receive an In-Principle Approval (IPA) letter, which you can use to enter Singapore.
   • If the application is rejected, your employer will receive an In-Principle Rejection letter instead. You won’t receive a work visa.
3. Using your IPA letter, you can travel to Singapore.
4. Once you are there, your employer or an EA applies via EP Online to get your Singapore work visa issued. Again, they will have to pay another fee, this time for the work Pass itself.
5. If your work Pass is issued, you will receive a notification letter. This letter holds information about whether you need to get your photo and fingerprints taken. It also allows you to start working and leave and enter Singapore until you get your Employment Card.
6. Within two weeks after your Pass is issued, you must register at the Employment Pass Services Centre (EPSC).
7. After registering, you will get your Pass Card – usually within 4 working days.

Can You Bring Your Family Members With You With a Singapore Work Visa?

Yes, certain professional and skilled workers are allowed to bring close family members (married spouses and children under 21) to Singapore with them through the Dependent’s Pass.

Family members who do not qualify for the Dependent’s Pass can come live with their family members who are working in Singapore through the Long Term Visit Pass (LTVP).

The government allows foreigners working in Singapore to take their nearest and dearest along as dependants but in return, they set a high salary benchmark for sponsorships. A minimum of 6,000 SGD as a salary is required in order to bring lawful spouses, common-law spouses and children younger than 21 years old (including step children and handicapped children) on Dependent Passes. In order to bring parents along with them, a minimum of 12,000 SGD is required for the salary and the parents will be issued a Long Term Visit Pass.

This option is only available to EP holders and does not apply to WP holders.

Employment Pass holders have more private life privileges in comparison to Work Permit holders who are allowed to come to Singapore solely for work purpose. EP holders in Singapore are allowed to marry and have deliver and raise children in Singapore on the condition that their spouse (potential or otherwise) earns no less than 6,000 SGD.  If employed parent earns less than the stated amount, the baby must be deported overseas. The female EP holder can go on maternity leave after delivering a baby but under certain condition: she must work at least 3 months for her employer before giving birth to a baby.

WP holders are not allowed to get married unless their fiancé (fiancée) is a Singapore PR or a citizen. For the latter case, a special approval from the government is needed. A pregnant WP holder is allowed to stay in the country, continue working on the WP, deliver a baby and go on maternity leave only if her husband is either a Singapore citizen or a permanent resident (and the marriage is approved). If she is pregnant and not married to a Singapore PR or citizen, her WP will be cancelled and she will be deported.