PEP and the 144,000 requirement

[tom_box]

My PEP application was approved in February and I have 6 months to collect it. However, since January, I did not work and if I relocate to Singapore now, I might realistically get a job in May till September.

I just found out about the 144,000 requirement. If I collect my PEP this year and start working as of e.g. in July, would that mean that I must earn 144,000 in 6 months? (as I was unemployed before)

That is my monthly salary would need to be 24,000? And if I get a job in September I would need to earn 144,000 in 4 months and my months salary will need to be 36,000? That is quite an requirement.

Did anyone go through this process and could advise me how MOM will consider this case? Would they by 31.1.2016 cancel my PEP if I don't earn 144,000 in the 4 or 6 months? Or are they more relaxed?

What would then be my options? As you can imagine, moving to a different country, I better understand the rules well and also the options that I would have on 31.1.2016?

Thanks for your kind advice.

[ludwig12]

My PEP application was approved in February and I have 6 months to collect it. However, since January, I did not work and if I relocate to Singapore now, I might realistically get a job in May till September.

I just found out about the 144,000 requirement. If I collect my PEP this year and start working as of e.g. in July, would that mean that I must earn 144,000 in 6 months? (as I was unemployed before)

That is my monthly salary would need to be 24,000? And if I get a job in September I would need to earn 144,000 in 4 months and my months salary will need to be 36,000? That is quite an requirement.

Did anyone go through this process and could advise me how MOM will consider this case? Would they by 31.1.2016 cancel my PEP if I don't earn 144,000 in the 4 or 6 months? Or are they more relaxed?

What would then be my options? As you can imagine, moving to a different country, I better understand the rules well and also the options that I would have on 31.1.2016?

Thanks for your kind advice.

Please read below from MOM. PEP's salary requirement is based on monthly salary.

Employment Pass holders who earn a fixed monthly salary of at least
$12,000 and overseas-based foreign professionals whose last drawn fixed
monthly salary was at least $18,000 will be eligible for the PEP. For
overseas-based foreign professionals, they should not have been
unemployed for longer than a continuous period of 6 months at the point of
application. Correspondingly, the minimum annual fixed salary requirement
will be increased to $144,000.

[tom_box]

Please read below from MOM. PEP's salary requirement is based on monthly salary.

Employment Pass holders who earn a fixed monthly salary of at least
$12,000 and overseas-based foreign professionals whose last drawn fixed
monthly salary was at least $18,000 will be eligible for the PEP. For
overseas-based foreign professionals, they should not have been
unemployed for longer than a continuous period of 6 months at the point of
application. Correspondingly, the minimum annual fixed salary requirement
will be increased to $144,000.

I wish that was the case, however, at the MOM web page they write:

"To keep holding a PEP, you must: Earn a fixed salary of at least $144,000 per calendar year, regardless of the number of months you are in employment."

So I was hopping someone who is or was PEP and has some experience with this reporting of annual salary could give me some advise based on experience.

Reference to the MOM web-page:
http://beta.mom.gov.sg/en/passes-and-pe ... quirements

[Strong Eagle]

Please read below from MOM. PEP's salary requirement is based on monthly salary.

Employment Pass holders who earn a fixed monthly salary of at least
$12,000 and overseas-based foreign professionals whose last drawn fixed
monthly salary was at least $18,000 will be eligible for the PEP. For
overseas-based foreign professionals, they should not have been
unemployed for longer than a continuous period of 6 months at the point of
application. Correspondingly, the minimum annual fixed salary requirement
will be increased to $144,000.

I wish that was the case, however, at the MOM web page they write:

"To keep holding a PEP, you must: Earn a fixed salary of at least $144,000 per calendar year, regardless of the number of months you are in employment."

So I was hopping someone who is or was PEP and has some experience with this reporting of annual salary could give me some advise based on experience.

Reference to the MOM web-page:
http://beta.mom.gov.sg/en/passes-and-pe ... quirements

Once you are on board and working under your PEP you will need to make $144K per year or you will lose your PEP.

But, my money says that any partial year of employment you incur from the time you get your PEP until you are employed, will be treated on a monthly basis. You work for 5 months in 2015, you will need to have made $60,000... $12,000 per month... do that and you are OK.

Once you are sucked into PEP, you'll have to make $12,000 each and every month.

[sundaymorningstaple]

^ I concur. First year would almost certainly be pro-rata. Otherwise, they would lose a lot of potential niche personnel they need just because they were hired in November/December. It would probably be pro-rata from the date the PEP is granted so the longer it takes you to get the position, the higher the baseline would have to be in order to make the 12K/mo minimum. If you had the job offer before applying then 12K/mo would work fine, but if you got the PEP on the 1st of July and didn't get a position until the 1st of September then I reckon your base salary would have to be 18K/mo to satisfy the 6 months you had the PEP.

[tom_box]

Thanks for your replies, I hope it is pro rata in the 1st year. Technically speaking, you do not have to earn the 144,000 per year in Singapore. You could earn 100,000 in the US until June and then earn 50,000 in a New Job in SG as of September, you would get more that 144,000 and they are happy. However, if you did not work in the entire year abroad, you would only earn 50,000 in SG.

Thus, I do not know if I should just ask the MOM to give a interpretation, or just stay quiet and hope for the best by the time we need to report the annual salary next year in January. I could imagine they could be quite flexible in the 1st year, once it is clear that the monthly earning more than 12,000 per month, thus, asking for interpretation would rather work against me. What do you think?

Finally, good point that it could count since PEP was awarded - would you then suggest that I should not hurry to pick up the PEP? We have several months to move to SG and pick up the PEP, so I could either try to get there within a week to get it as fast as possible or do my arrangements here comfortably and pick it up later in the year.

[ludwig12]

Thanks for your replies, I hope it is pro rata in the 1st year. Technically speaking, you do not have to earn the 144,000 per year in Singapore. You could earn 100,000 in the US until June and then earn 50,000 in a New Job in SG as of September, you would get more that 144,000 and they are happy. However, if you did not work in the entire year abroad, you would only earn 50,000 in SG.

Thus, I do not know if I should just ask the MOM to give a interpretation, or just stay quiet and hope for the best by the time we need to report the annual salary next year in January. I could imagine they could be quite flexible in the 1st year, once it is clear that the monthly earning more than 12,000 per month, thus, asking for interpretation would rather work against me. What do you think?

Finally, good point that it could count since PEP was awarded - would you then suggest that I should not hurry to pick up the PEP? We have several months to move to SG and pick up the PEP, so I could either try to get there within a week to get it as fast as possible or do my arrangements here comfortably and pick it up later in the year.

Your PEP requirements starts ticking the moment you pick up your PEP. Unless you have urgent need to be in Singapore well in advance of your job actually starts, I don't see why you want to pick up your PEP now. Your IPA is sufficient for you to start moving.

[tom_box]

Thanks. Based on what you say, I shall hurry to apply for jobs in SG (even from abroad) but not necessarily hurry to pick up the PEP. Would you say, I could also start living on and off in a hotel or a furnished flat in SG and looking for a job while I have the IPA but while not yet picking up the PEP until it's due?

I do not need Visa to enter and re-enter Singapore for 30-days so I could be on the lookout for jobs ahead of settling in SG on a longer-term and picking up the PEP for good --- would that make sense? Finally, do you know if I need to physically live and rent flat in SG once I pick up the PEP (or ahead of it)?

[ludwig12]

Thanks. Based on what you say, I shall hurry to apply for jobs in SG (even from abroad) but not necessarily hurry to pick up the PEP. Would you say, I could also start living on and off in a hotel or a furnished flat in SG and looking for a job while I have the IPA but while not yet picking up the PEP until it's due?

I do not need Visa to enter and re-enter Singapore for 30-days so I could be on the lookout for jobs ahead of settling in SG on a longer-term and picking up the PEP for good --- would that make sense? Finally, do you know if I need to physically live and rent flat in SG once I pick up the PEP (or ahead of it)?

You should definitely start applying for jobs. Without knowing your personal circumstances, i.e. industry, expectation, etc, here are a few factors for you to consider:

1. While IPA is good for you to start moving your stuff to SG and sign a TA etc, it will not give you extended stay in Singapore. If you expects to be in SG multiple times to secure an offer, maybe you will have to take up PEP first to avoid being seen as making visa runs.

2. Since you are responsible for PEP instead of the employer, you will need to provide an actual copy of the PEP before commencing your employment.

3. PEP holders are also responsible for their own DPs and the processing time is 5 weeks just to get IPA. You may want to apply for IPA for your partner/children early if you would like them to accompany you from the beginning.

Hope it helps, good luck!

[tom_box]

Thanks for the reply, that is very useful.

How long does it take to get the PEP once I use the IPA to get it? Same day, few days or few weeks? As I will need to provide the PEP to the employer, I do not want to end up waiting several weeks for the MOM to send it to me. Do they hand me the PEP or do they mail it to my address?

A few further questions:

1. To get the PEP do I already need to have a rented accommodation with an address in Singapore that I will fill in the form? Or can I get the PEP even with no residence in SG a the time?

2. By TA you mean temporary accommodation? Is there any rule that I should show the IPA to the real estate agent so he could rent me the flat? Can I rent even on short-term tourist visa?

3. I can pick up the PEP within 6 months and once the PEP starts ticking I must show sufficient income - would it then not make sense to for me to pick up the PEP later rather than sooner?

4. When I look for a job, is it sufficient that I am IPA or would some headhunter or companies look down at me for not being PEP? In my view it should not matter, but it's better to re-confirm.

5. When applying for jobs, would it make more sense if I buy and list a SG phone number, even I might not yet be in SG or only on an on-and-off basis? Or would using a German number be still cool?

6. In Europe,most hiring stops during June and August (Summer) and also during December (Christmas). Is that similar in SG? Or in SG it's different months or rather full business all months?

7. At my IPA, the MOM list a FIN. Is this my final SG identification number? Will this FIN stay with me forever? Some application required me to fill in my ID, thus it would be nice if this was my final FIN.

Thanks again for your kind advice as this is very useful for a newcomer.

[ludwig12]

Thanks for the reply, that is very useful.

How long does it take to get the PEP once I use the IPA to get it? Same day, few days or few weeks? As I will need to provide the PEP to the employer, I do not want to end up waiting several weeks for the MOM to send it to me. Do they hand me the PEP or do they mail it to my address?

A few further questions:

1. To get the PEP do I already need to have a rented accommodation with an address in Singapore that I will fill in the form? Or can I get the PEP even with no residence in SG a the time?

2. By TA you mean temporary accommodation? Is there any rule that I should show the IPA to the real estate agent so he could rent me the flat? Can I rent even on short-term tourist visa?

3. I can pick up the PEP within 6 months and once the PEP starts ticking I must show sufficient income - would it then not make sense to for me to pick up the PEP later rather than sooner?

4. When I look for a job, is it sufficient that I am IPA or would some headhunter or companies look down at me for not being PEP? In my view it should not matter, but it's better to re-confirm.

5. When applying for jobs, would it make more sense if I buy and list a SG phone number, even I might not yet be in SG or only on an on-and-off basis? Or would using a German number be still cool?

6. In Europe,most hiring stops during June and August (Summer) and also during December (Christmas). Is that similar in SG? Or in SG it's different months or rather full business all months?

7. At my IPA, the MOM list a FIN. Is this my final SG identification number? Will this FIN stay with me forever? Some application required me to fill in my ID, thus it would be nice if this was my final FIN.

Thanks again for your kind advice as this is very useful for a newcomer.

The PEP is issued via EP-online on the MOM web site, then you book an appointment to pick up. It is a few days if my memory serves me correctly.

Many of the answers to your questions can be found on this forum, you can search for additional information. Here a few responses:

1. TA= tenancy agreement, you can't rent an apartment on a tourist visa.
2. For PEP level job, it's your qualification that matters the most. I am sure you are not new to the job market, common sense will prevail here like other places.
3. FIN number will not change.

You obvious have a good paying job to qualify for PEP, perhaps you can provide more details about yourself and what you are looking for in SG, then the folks on this forum may be able to give you specific pointers.

[tom_box]

Thanks to all for this fantastic advice.

One more question, if I may: I understand that as a PEP I need to earn 12,000 or more per month, which is fine with me. However, I was wondering if in the meantime (while searching for job) during my 6 months max. unemployment period, I would be allowed to do some low-paid par-time job (e.g. working 4 hours on weekends in a public library, or something along the lines) .

Or simply work in a short-term job that does not pay as much , but that can be interesting to learn more about SG work culture and environment in the meantime. Would that be fine up until 31 January, or would MOM somehow interfere and disallow me to work as par-time in a librarian for 250 SGD per month or short-term employee for 7,000SGD per month? Or would they not care up until 31 January?

I am making an extreme example here, to better understand the rules. I do not have any intention as of now to take a short-term job or work in a social-beneficial part-time job. However, I wanted to clarify how to rules work. Would I be as PEP allowed to work in any type of normal job in SG (excluding doctors, pharmatics, etc.) irrespective of salary, until I find the standard job?