Last month (effective 1^st September 2023), the Ministry of Manpower (MOM) in Singapore introduced a fresh approach to the assessment of Employment Pass (EP) applications – the Complementarity Assessment, or COMPASS for short. This encourages the development of a local talent pool and fosters diversity within the workforce.

Navigating the COMPASS Framework: A Comprehensive Guide for Employers

In this article, we look into the details and methodologies behind the COMPASS framework, providing insights on how to meet the criteria effectively.

Stage 1 – EP Qualifying Salary

At least $5,000 for all sectors except financial services (increases progressively with age from age 23, up to $10,500 at age 45 and above)

At least $5,500 for the financial services sector (increases progressively with age from age 23, up to $11,500 at age 45 and above)

Note: only if the application meets the salary criteria above will it be progressed to the COMPASS assessment Eligibility for Employment Pass.

Stage 2 – COMPASS Understanding the Points System

To secure approval under the COMPASS system, an application must hit  a minimum of 40 “points.” These points are allocated based on attributes for both the employee and employer. Companies can utilise the Workforce Insights tool (WFI) to find out their score for C3 – Diversity and C4 – Support for Local Employment.

This table underscores that companies with a substantial local workforce and those hiring candidates from non-traditional nationalities enjoy greater flexibility in setting salary and qualification criteria. Conversely, enterprises with a limited local workforce and roles overlapping with a significant number of existing professionals of the same nationality as the candidate face more stringent salary and qualification requirements unless they qualify for bonus awards.

This table underscores that companies with a substantial local workforce and those hiring candidates from non-traditional nationalities enjoy greater flexibility in setting salary and qualification criteria. Conversely, enterprises with a limited local workforce and roles overlapping with a significant number of existing professionals of the same nationality as the candidate face more stringent salary and qualification requirements unless they qualify for bonus awards.

Impact on Salary and Qualifications

Employers seeking new Employment Passes need to ensure that the Salary and Qualifications categories contribute to their points tally. Currently, within the Natural Resources industry, shortage occupation bonuses are primarily applicable to, Agritec (Alternative protein food application scientist), Green Economy (Carbon project/program manager, Carbon standards and methodology analyst, Carbon trader, Carbon verification and audit specialist), Infocomm Technology (Applications/systems programmer, Cybersecurity architect, Data scientist) and Maritime (Marine superintendent).

Salary assessment is contingent on the “fixed monthly salary,” inclusive of food and housing allowances, excluding pension contributions. The salary benchmarks are percentile-based, offering ten points for salaries above the 65th percentile and twenty points for those exceeding the 90th percentile, with adjustments for age. It is noteworthy that the interaction between salary percentiles and other requirements can impact the points awarded. Some sector and age combinations necessitate a minimum salary below the 65th percentile, ensuring that candidates meeting this minimum earn at least ten points in this category. In cases where the 90th percentile exceeds SG$33,000 per month, candidates qualify for 20 points under the COMPASS system and may also be eligible for the ONE program.

Regarding qualifications, a list of “top-tier institutions” comprises institutions ranked by QS Global rankings and additional high-quality Asian institutions recognised by Singaporean authorities. While many target schools for the Natural Resources industry are included, it is essential to verify the specific institutions on the list.

Streamlining Processing Time

The MoM website pledges a ten-day turnaround time for processed or updated Employment Pass applications submitted online. However, additional time may be required for educational qualifications verification, depending on the application’s points dependency on this criterion.

Verification for COMPASS must adhere to specific formats and can be obtained through online verification portals of local governments and educational institutions, digital certificates on the OpenCerts portal, or background screening from approved vendors. The MoM anticipates that third-party qualification verification will typically take around two weeks.

Exploring Alternatives

Not all expat vacancies require Employment Pass issuance under the COMPASS framework.

1. The Overseas Networks and Expertise (ONEPass) framework provides an alternative route for employees earning a fixed monthly salary of S$30,000 in the past year or moving to positions in Singapore with this salary level.
2. Applicant with a fixed monthly salary of at least $22,500 (similar to the prevailing Fair Consideration Framework (FCF) job advertising exemption from 1 September 2023.
3. Overseas Intra-Corporate Transferee remain exempt from the COMPASS system, provided the candidate has a minimum one-year tenure with the transferring company.
4. Employer filling the role for 1 month or less

The introduction of the COMPASS framework signifies a significant shift in Singapore’s approach to Employment Pass assessments. Employers must adapt to these changes to attract and retain top talent while navigating the evolving landscape of workforce regulations in Singapore.

Sami Jacobs

Consultant

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+65 3165 0710

sami@aurexgroup.com

EA 18S9493 | R2092031