Beyond the Employment Pass: A Comparative Guide to the Employment Pass, Personalised Employment Pass, Overseas Networks & Expertise Pass, EntrePass, and Tech.Pass

Introduction

Securing a Singapore work pass is instrumental for foreign professionals and entrepreneurs intending to relocate to Singapore. A work pass serves as a long-term immigration facility, which in turn allows its holder to work and reside in Singapore. A work pass also serves as a stepping stone for its holder to relocate family members to Singapore (via Dependant’s Pass (“DP”) and/or Long-Term Visit Pass (“LTVP”) applications), as well as to apply for Singapore Permanent Residency (and subsequently, Singapore Citizenship).

Work passes are generally issued by the Ministry of Manpower (“MOM”), Singapore’s main government ministry responsible for work passes, labour policies, and employment practices.  Where professionals and entrepreneurs are concerned, there are five main types of work passes available for application:

1. Employment Pass (“EP”);
2. Personalised Employment Pass (“PEP”);
3. Overseas Networks & Expertise Pass (“One Pass”);
4. EntrePass; and
5. Tech.Pass.

With different options to choose from, one might wonder which work pass best suits their particular needs. To that, this article aims to provide a comparative guide amongst these five aforementioned work passes.

Consideration #1: Minimum Salary

As with most (if not all) members of the workforce, salary is certainly a matter of important consideration.

• On one hand, individuals would be concerned as to how much they will be minimally paid as a passholder working in Singapore, given that money is critical in sustaining daily needs and lifestyles.
• From another perspective, particularly for high-net-worth (“HNW”) individuals, they may also be concerned with the minimum salary needed to secure their work passes, given that higher salaries may potentially entail higher personal taxes payable.

The minimum salary requirements are currently as follows:

1. EP:
   • All sectors except financial services: S$5,600/month (increases progressively with age from age 23, up to S$10,700/month from age 45 and above)
   • Financial services: S$6,200/month (increases progressively with age from age 23, up to S$11,800/month from age 45 and above)
   • In any case, EP applications are subject to MOM’s points-based scoring system (i.e. COMPASS), which considers other factors such as qualifications, diversity, support for local employment, occupation shortages and strategic priorities. As such, the minimum qualifying salary may exceed the upper bounds stipulated above – this is unique to the overall circumstances surrounding each EP application.
2. PEP: S$22,500/month
3. One Pass: S$30,000/month
4. EntrePass: No stipulated minimum salary.
5. Tech.Pass: S$22,500/month

Solely analysing the minimum salary requirements, the EntrePass technically has the lowest barrier to entry; said barrier progressively increases when subsequently considering the PEP/Tech.Pass, then the One Pass. However, one must also consider the EntrePass’s relatively higher compliance requirements, which will be further detailed below.

Consideration #2: Flexibility in Role & Sector/Industry

Another key concern with members of the workforce and entrepreneurs alike would be the amount of leeway and level of restrictions that come with their work pass, as this directly influences the extent of their professional and/or commercial pursuits in Singapore.

The flexibilities on roles and sectors/industries are currently as follows:

1. EP:
   • Role: Only a single job in Singapore at any point in time. A change in the passholder’s company/employer in Singapore necessitates a fresh work pass application.
   • Sector/Industry: No restriction. All sectors and industries are welcome to apply.
2. PEP:
   • Role:
     • Not allowed to be unemployed for more than 6 months at any point in time. Otherwise, the PEP will be cancelled.
     • Not allowed to work on a freelance basis.
     • Not allowed to be a sole proprietor/partner/director cum shareholder in an ACRA-registered company.
     • Not allowed to work in certain restricted occupations, such as those related to religion and media.
     • Not allowed to start a business or conduct any form of entrepreneurial activity (as this is more suited for EntrePass or One Pass holders).
   • Sector/Industry: No restriction. All sectors and industries are welcome to apply. However, when zooming into the occupation/role level, the restrictions on occupations must be additionally considered.

3. One Pass
   • Role: No restriction. Passholders can concurrently start, operate, and work for multiple companies/employers in Singapore.
   • Sector/Industry: No restriction. All sectors and industries are welcome to apply.
4. EntrePass:
   • Role:
     • Passholders can start and operate a new company in Singapore that is venture-backed and/or possess innovative technologies, but passholders are restricted to their respective companies. Passholders are not allowed to work for companies that are not associated with their passes.
     • The restrictions on sector/industry must be additionally considered.
   • Sector/Industry: The types of businesses detailed below do not qualify for EntrePass application purposes.
     • Certain community dining businesses: Coffee shops, hawker centres, food courts.
     • Certain nightlife businesses: Bars, nightclubs, karaoke lounges.
     • Certain personal care / wellness businesses: Foot reflexology, massage parlours.
     • Certain healthcare businesses: Acupuncture, traditional Chinese medicine, herbal dispending businesses.
     • Employment agencies.
     • Geomancy businesses.
5. Tech.Pass:

• • Role: No restriction. Passholders can concurrently start, operate, and work for multiple companies/employers in Singapore.
  • Sector/Industry: Restricted to the tech industry.

Solely analysing the flexibilities on roles and sectors/industries, it is clear that the One Pass offers the greatest flexibility out of all five passes.

While a Tech.Pass also offers similar flexibility to the One Pass, the initial hurdle to clear lies in the initial application phase, where eligible Tech.Pass applicants need to demonstrate that they possess a substantive tech-related background.

An EP, PEP, and EntrePass are all bound by the “one company/employer in Singapore” restriction, with further specific restrictions tied to the PEP and EntrePass. However, a distinguishing point with the PEP is that it allows for passholders to “job-hop” in Singapore without having to reapply for another work pass.

 

Consideration #3: Pass Duration

Work pass durations are also of vital consideration as this is directly linked to their validity. A work pass’s validity in turn determines whether passholders can continue to work and reside in Singapore. Furthermore, work pass durations also translate to the frequency of work pass renewals, which entails administrative burden that accompanies the renewal process.

Pass durations, which can be split into initial durations and renewal durations, are currently as follows:

1. EP:
   • Initial Duration: Up to 2 years.
   • Renewal Duration:
     • Up to 3 years.
     • Renewals are subject to the abovementioned COMPASS system.
2. PEP:
   • Initial Duration: Up to 3 years.
   • Renewal Duration: None, as the PEP is only issued once. When the PEP expires, the passholder needs to obtain another suitable work pass to continue staying and working in Singapore.
3. One Pass:
   • Initial Duration: Up to 5 years.
   • Renewal Duration:
     • Up to 5 years.
     • Renewal is subject to the fulfilment of either one requirement: A salary requirement (i.e. at least a fixed average of S$30,000/mo over the past 5 years in Singapore); or a local employment requirement (i.e. started and operating a Singapore company employing at least 5 locals, each earning a gross monthly salary that meets EP minimum qualifying salary).
4. EntrePass:
   • Initial Duration: Up to 1 year
   • Renewal Duration:
     • Up to 1 year for the first renewal, up to 2 years for subsequent renewals.
     • It must be noted that renewing an EntrePass significantly differs from the other four work passes, instead taking a more holistic approach by evaluating passholders’ respective Singapore companies. A renewal considers (amongst other factors) passholders’ shareholdings as well as local economic substance (i.e. certain level of annual total business spending and support for local employment).

5. Tech Pass:
   • Initial Duration: Up to 2 years.
   • Renewal Duration:
     • Up to 2 years, but it can only be renewed once. When the Tech.Pass expires, the passholder needs to obtain another suitable work pass to continue staying and working in Singapore.
     • A renewal can be said to entail certain elements of a One Pass renewal and an EntrePass renewal.
       A renewal mainly considers the fulfilment of any one of the following requirements: An assessable income requirement (i.e. S$270,000 which can comprise salaries and/or business income); or a local economic substance requirement (i.e. certain level of annual total business spending and support for local employment); or a Singapore tech business requirement (i.e. incorporated a Singapore business entity that offers a digital/technological core product, and said entity has also secured at least US$10m from certain investment firms in the past 36 months).

Solely analysing pass durations, it is again clear that the One Pass stands out above the other four passes.

Further considering a long-term outlook, the EP can be said to stand second to the One Pass, followed by the EntrePass.

In contrast, the PEP and Tech.Pass can be regarded as short-term/interim options, as passholders will eventually need to switch to another suitable work pass.

Consideration #4: Passes for Family Members

Relocating to Singapore naturally entails ancillary considerations on the part of passholders’ family members. Generally, passholders may consider applying DPs for their unmarried children below 21 years of age (i.e. including legally adopted children) or legally married spouses, as well as applying LTVPs for their parents (i.e. parents-in-law are excluded).

DP/LTVP applications hinge on passholders’ salary requirements, with a notable exception being the EntrePass:

1. EP:
   • DP: EP holder needs to earn at least S$6,000/month.
   • LTVP: EP holder needs to earn at least S$12,000/month.
2. PEP: Eligible to apply for DPs/LTVPs due to the significantly higher PEP minimum salary requirement, in comparison to the EP.
3. One Pass: Eligible to apply for DPs/LTVPs due to the significantly higher One Pass minimum salary requirement, in comparison to the EP.
4. EntrePass:
   • DP and LTVP applications are subject to certain conditions that primarily focus on a local economic substance requirement (i.e. certain level of annual total business spending and support for local employment).
   • For DPs in particular, there are alternative qualifying criteria as well. The authorities may also take into consideration the passholder having founded and sold multiple companies (i.e. venture-backed/owns innovative technologies), or having raised over S$2m for a business, or the possessing multiple deep tech intellectual properties that provides a significant business-competitive advantage.
5. Tech.Pass: Eligible to apply for DPs/LTVPs due to the significantly higher Tech.Pass minimum salary requirement, in comparison to the EP.

Solely analysing passholders’ eligibilities to obtain family passes, this is a straightforward situation when it comes to the PEP, One Pass, and Tech.Pass.

Where the EP is concerned, there is an additional consideration of potential conflicts with the minimum EP salary requirement.

While the other four passes are centred around salary-related requirements, the EntrePass radically differs by adopting a business-centric approach instead, which may complicate matters.

Overview – Suitability of Work Passes for Different Client Profiles

Holistically considering the various factors detailed above, each of the five work passes might be more suited for these individual profiles:

1. EP: Mid-to-senior level professionals, managers, executives, and technicians who are looking for a more straightforward, commonly-used route to obtain a work pass.
2. PEP: Established professionals who are exploring the Singapore labour market for the first time, prioritising the flexibility to change jobs or take a break (up to 6 months) during their initial three years of working in Singapore.
3. One Pass: Highly established professionals, entrepreneurs, HNW individuals who prioritise maximum flexibility.
4. EntrePass: Entrepreneurs with venture-backed ideas/innovative technologies, who are committed to growing their businesses in Singapore – whilst ensuring that corporate funds, which would otherwise form a personal salary expense, can be used to reinvest in the growth and development of said businesses.
5. Tech. Pass: Highly established tech entrepreneurs/venture capital investors who are looking for a relatively straightforward route (specifically tailored to their tech-related background) to first obtain a work pass, before eventually transitioning to another suitable work pass.

Conclusion

As a private client firm, SMTP has assisted many families in meeting their immigration goals in Singapore, which include applying for (and renewing) Singapore work passes. Through our wealth of experience, we provide clients with bespoke advice and guide them through the application/renewal processes, helping to secure (and preserve) their right to live and work in Singapore.

If you or your clients are interested in obtaining a Singapore work pass, please feel free to contact our Business Development team to arrange a meeting with our lawyers. We look forward to working with you.

The content of this publication is owned by Sim Mong Teck & Partners and is protected by applicable laws, including but not limited to copyright laws, in Singapore where Sim Mong Teck & Partners operates, as well as internationally through treaties. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, or broadcast (including any electronic storage, whether temporary or otherwise, for any purpose beyond what is expressly permitted) without prior written consent from Sim Mong Teck & Partners.

Please be aware that while we have taken care to ensure the information in this publication is accurate and up to date at the time of writing, it is intended solely as a general overview and not as legal advice. This publication should not replace specific professional advice, as the details may not align with your unique business or operational needs. We recommend seeking tailored legal advice for your situation. Additionally, the information provided does not establish any legally binding or other professional relationship. Sim Mong Teck & Partners disclaims any responsibility and/or liability for loss and/or damage resulting from reliance on or use of the information in this publication.