Navigating Complementarity through COMPASS and the ONE Pass

Complementarity is very much the bedrock of Singapore’s immigration policy, and this has been reinforced by the recent changes announced by the Singapore Ministry of Manpower (MOM), which aim to further strengthen Singapore’s position as a global business hub. Key among them are the introduction of the Overseas Networks & Expertise Pass (ONE Pass) and the implementation of the Complementarity Assessment Framework (COMPASS).

In this update, we take a closer look at these new changes, as well as the impact they are likely to have on businesses from a manpower and resourcing perspective.

COMPASS

Under the current regime, Employment Pass (EP) applications must satisfy the minimum qualifying salary, which is benchmarked against the salaries of the top one-third of local professionals, managers, executives, and technicians (PMETs) within the relevant industry. The qualifying salary increases progressively with age, to reflect years of work and experience. Additionally, companies are also required to comply with the requirements of the Fair Consideration Framework by, amongst other things, considering all candidates fairly and ensuring they maintain a strong Singaporean core of employees.

With effect from 1 September 2023, all EP applications must additionally satisfy the requirements of COMPASS, which is a points-based system that aims to holistically assess a candidate’s complementarity with Singapore’s local workforce through an assessment of the candidate’s individual attributes and the employer’s firm-related attributes. A candidate must score at least an aggregate of 40 points to pass COMPASS, which can be earned under four foundational criteria and two bonus criteria:

The implementation of COMPASS is a welcome development insofar as it outlines with greater clarity the various criteria which the MOM will be taking into consideration when assessing EP applications. This is especially so in respect of the hitherto unpublished local-to-foreigner “ratio” which employers are pegged against. A comprehensive and transparent framework is likely to give employers greater insight into the areas they need to improve on, thereby enabling them to take concrete steps to improve the likelihood that their candidates will be granted an EP.

Foreigner ratios

Possibly the most contentious part of COMPASS, the MOM has since clarified that foreign employees who hold personalised work passes (i.e. work passes which are not tied to a single employer, such as the ONE Pass or the Tech.Pass) will not be counted for the purposes of determining a company’s diversity or local-to-foreigner ratio. This is a welcome clarification as it gives employers greater flexibility (and confidence) to hire more of such employees, who are often granted such passes because they are highly skilled or qualified in a particular field, and allow companies to glean from their capabilities without being concerned that the company’s ability to hire EP holders will be adversely affected.

“Diversity”

In relation to this firm-related attribute, it appears that the MOM intends to nip in the bud any discriminatory hiring practices preferring a certain nationality of foreign employees over another, by making it a requirement under COMPASS that employers hire employees of different nationalities. Importantly, employers should take note that the MOM will consider the nationalities of Singapore Permanent Residents under this attribute, and not merely foreign employees who are in Singapore on a work pass.

“Support for local employment”

Although Singapore’s immigration policies have seen a discernable shift towards encouraging highly skilled and qualified foreign professionals to come and work in Singapore, this firm-related attribute makes clear that the MOM still expects employers to maintain a strong Singapore core of employees, which has in any event been the predominant focus for the past few years through the Fair Consideration Framework.

However, as the MOM recognises that certain countries tend to have a larger proportion of foreign talent specialized in a particular field, it has taken a measured approach by benchmarking firms against their industry or sector-specific peers under this attribute (as opposed to against Singapore’s workforce as a whole, which may unfairly prejudice employers in certain niche industries).

Exemptions from COMPASS

Although COMPASS will apply to the majority of EP candidates, the MOM has carved out an exemption for candidates who: (a) earn a fixed monthly salary of at least S$22,500; (b) are intra-corporate transferees; or (c) are employees filling a short-term role of less than 1 month.

In relation to (a), the figure of S$22,500 is pegged to the salary of the top 10% of EP holders, and consists mostly of senior management and senior professionals. The Minister of Manpower has explained that the rationale for such an exemption is to encourage global companies to operate in Singapore, by giving them certainty that they will be able to hire their key personnel. The Minister further explained that in any event, such individuals would generally have no issues passing COMPASS given their calibre, such that this is not likely to adversely affect Singapore’s focus on local-foreigner complementarity.

The ONE Pass

The ONE Pass is a personalised pass tied to the individual which will allow the pass holder to concurrently start, operate and work for multiple companies in Singapore at any one time. The ONE Pass is designed to attract and anchor top talent from all sectors, who will help to grow Singapore with their various expertise, and as a result create more opportunities for Singaporeans.

To be eligible for the ONE Pass, the applicant must earn a fixed monthly salary of at least S$30,000 from one employer, and show one of the following:

• that they will be working for an established company in Singapore;
• that they have been working for an established company overseas for at least one year (for overseas candidates); or
• that they have been working in Singapore for at least one year (for existing work pass holders).

Individuals who do not meet the qualifying monthly salary of S$30,000 can still qualify for the ONE Pass if they possess “outstanding achievements” in arts and culture, sports, or in academia and research. Individuals who have demonstrated a high level of achievement in scientific research or other academic research, with a proven record of impactful outcomes from research conducted may apply under the academia and research track.

Benefits of the ONE Pass

Benefits of the ONE Pass include the following:

• The ONE Pass is a personalised pass which is not tied to any employer. As such, the ONE Pass holder will not need to reapply for a new pass if they decide to change their job.
• The ONE Pass has a validity period of five years, which can subsequently be renewed for successive five year terms.
• Spouses of ONE Pass holders can obtain a Letter of Consent to work in Singapore.

Close scrutiny of ONE Pass Holders

The MOM will closely scrutinise ONE Pass holders to ensure that they do not abuse the pass as a visit or travel document, and that they are utilising the pass to contribute meaningfully to Singapore. The MOM will also request for the following information from ONE Pass holders each year:

• Details on their professional activities over the past year.
• The annual salary which they have earned from all their professional activities.

The above information will also contribute to the MOM’s assessment of the ONE Pass holder’s eligibility for renewal of their ONE Pass.

Key benefits to employers

The key difference between a ONE Pass and an EP is that a ONE Pass is personal to the employee. As such, ONE Pass holders would not count towards the company’s quotas under the firm-related attributes under COMPASS (i.e. “diversity” and “support for local employment”). By moving applicable employees on to the ONE Pass, employers may be able to more fully utilise their workforce composition to bring in the necessary foreign talent.

However, as ONE Pass holders are able to easily move from one job to another without reapplying for a new work pass, a workforce with too many ONE Pass holders may result in greater instability, as the ONE Pass holders can change jobs with more ease. However, this risk can be mitigated by the inclusion of the relevant clauses in an employment contract.