SDS: Recruitment Agency
specialising in recruitment services for japanese speaking job seekers in Singapore

Overreacted PEP criteria change?

More than 4 times increase in income, effective from next month

It was five years ago when the Personal Employment Pass (PEP) was introduced as a top-tier work visa for foreign talent who had been working in Singapore with Employment Pass (EP) earning S$34K yearly for certain years.

Those who got an invitation letter from MOM to apply for PEP would be the envy of others, as it was effective for five years (two years for EP), and it enabled the holders to change jobs freely within the period, much more flexible than the condition under EP.

However, the PEP criteria is announced to be tighten up effective from this December 1. They have to earn at least S$144K per year which is nearly 4 times as the current income. The validity period will be cut down to three years.

"Employers are now at their mercy," a struggling voice of local employer was introduced on the forum corner of the Straits Times newspaper.

"The Manpower Ministry (should) review the practical issues arising from new policy on foreign labour", the voice refers to the 80% salary increase within two years for the employer to apply for EP. In fact, it became harder for foreigners to get EP, and those who are disqualified have been on the rise.

Mrs Andrea Ross, managing director for Singapore, Malaysia and Vietnam for recruitment consultancy Robert Walters, said to MyPaper that the new PEP measures would result in high-skilled foreign talents' shifting toward neighbouring countries instead of working in Singapore consequently.

It seems that more tightened policy against foreign labours are on way to be effective in the near future. Both of local employers and foreigners need to be on the alert for the coming updates.