Personalised Employment Pass(PEP)

[Rekha]

Hi All !

I have just been in Singapore for last 4 months on P1 and now I have received mail form MOM regaridng PEP.Any idea what are the benefits and drawbacks over P1?The communication says it's valid for 5 years but non-renewal.What is the meaning of "Non-renewal"?Any catch there.

Hoping good response from all you expats or experts.

Thanks and best regards.

[EADG]

Pro: POM - if you loose your job you still have a visa (for 6 months or until you get a new job). Without a visa you can't get an apartment, phone, etc.

Con: Cost - between $200-$300; time spent at MoM, doing the paperwork, etc.

I converted over a year ago when things were looking shaky at work. It was worth the relatively minimal effort and cost. The MoM online system is pretty efficient.

[blownalot]

Hi

I understand that by non-renewable they mean that it's a one time only pass i.e. after the 5 years are up you need to apply for a normal EP.

[Strong Eagle]

Hi

I understand that by non-renewable they mean that it's a one time only pass i.e. after the 5 years are up you need to apply for a normal EP.

Well, this is true; however, by this time you might just want to apply for PR instead... employers are not always impressed with PR because of the added CPR liability but for the individual PR allows a lot more freedom... technically can be unemployed, at least until your next exit visa needs to be renewed, and you can start any kind of business you want, buy landed properties (with specific permission).

PEP is a good way to go... and I think an entrance to a PR if you want to make Singapore your long term home.

[sundaymorningstaple]

... employers are not always impressed with PR because of the added CPR liability

Yeah! They really balk at mouth-to-mouth resuscitation part of CPR!

You rarely leave anybody an opening so I thought I'd grab the opportunity that so rarely appears.

[Rekha]

Hi All !


Thanks a lot for inputs.A bit clear about pros but not sure about paper work,does it require a day at MOM to complete all formalities.

Any way thanks a lot.If any body have more better idea,do pour in.

Thanks.

[EADG]

everything you need to know is here:

http://www.mom.gov.sg/publish/momportal ... tpass.html

[bigfilsing]

Hi ....just picked up my PEP ( personal emploment) pass last week. after being a normal EP P1 holder for 11 years. Just left my employer in August and as such had to hand in my EP.

Applied for the PEP online ...took about 5 mins. You do need a Singpass thou to access online application. You can get a singpass at any HDB office ( if i remember rightly as it was some years ago i got the singpass in order to file my tax return online)

Took 12 days to process my application.
Once you recieve the in principle letter of approval you have to go to the MOM to submit your documents ( the approval letter tells you which docs you need)
upon arrival use the ticket queue dispenser on the ground floor( you need an E ticket) This took just over an hour of waiting.
Takes 2 and a half hours to process after which you go back to MOM and get a H ticket to pick up. Pick up was a 15 min wait.
Done

Costs 10 bucks to submit online and 150 bucks to get the pass ( take cash as this avoids any hassle at pick up)

Very efficient system

CPF funny ! While in the cab on the way to MOM. The taxi driver told me how following one of LKY's speeches about retirement age and how people should work as long as possible that CPF now stood for Coffin Purchase Fund !!!

[Mi Amigo]

I got a PEP when it was first introduced last year. Got a letter from MOM inviting me to apply and the process was very quick and easy, as others have mentioned above. It suits me just fine - more security in case of being made redundant, etc. No need to worry about PR, CPF, etc. (which I may do one day, but it wasn't the right time then). Five years validity (longer than my previous EPs had been).

One other thing I find much easier with the PEP compared to EP is the business of getting the stamp changed to a new passport, updating of address details, etc. As the PEP is in your name (not your employer). you can do everything yourself (online, by fax or in person, depending on the change). Previously I always had to get a letter from my employer to do anything like that, which was just a bit tedious.

So for the sake of a couple of hours work and the fee, I'd say it's well worth it.

BTW, I have to say that I have always found the MOM fantastic to deal with. Very efficient and helpful. Maybe not everyone's experience, but I'm always impressed whenever I have any dealings with them.

[kman]

I've just begun working for a Company here a few weeks ago and am yet to receive my first paycheck. I am on a PEP which I was granted in October by the MOM. From cruising the forum, and from what I can gather, there is no CPF obligation for PEP holders? Below is a some info I found from the CPF Board website: Can anyone please confirm this for me ??

Q: Are there any exceptions to the payment of CPF contributions for employees?

A:

Yes, please refer to the list of exceptions below:

a) Foreigners on Employment Pass, Professional Visit Pass or Work Permit

CPF contributions are not allowed for foreigners. Both the employer’s and employee’s contributions for foreign employees on Employment Pass, Professional Visit Pass or Work Permit will be rejected.

b) Partners, sole proprietors or self-employed

All Singapore citizens or Singapore Permanent Residents who derive income from Singapore or from outside Singapore through any trade, business, profession or vocation excluding employment under a contract of service are considered self-employed. Unlike employees, they do not contribute to all 3 CPF accounts. Instead, they are only required to contribute to their Medisave, which is computed based on their annual net trade income earned.

c) Employees working overseas

CPF contributions are not mandatory for Singaporean employees who work overseas. If you wish to continue making CPF contributions for your existing employees who are posted overseas, you may have to register for a new employer reference number before making a voluntary contribution.

Overseas employers are required to register for an employer reference number to make voluntary contributions for their Singaporean employees.

The above is only applicable for employees who are Singaporeans and Singapore Permanent Residents. The contribution is subject to the limit of $26,393 per calendar year.

Someone please confirm this for me.. Thanks!

[sundaymorningstaple]

Confirmed.

As a long-timer here, I had an EP back in the days when even EP holders were required to submit (pre-'96). After quitting that practice, now ONLY Citizens or PR can/have to contribute to CPF. PR's have a graduated rate the first two years (24 months) of their PR, after which it becomes the same rates as a regular citizen.

This is always good to know if you are an EP holder and thinking about PR and how your employer will react to the additional burden of Employer's contribution to CPF. (It is against the law to force you to pay both the employee & employer's share of the contributions - but I know of instances where it has been done)

If the employer has a reduced rate the first year of 4% and 9% the second year before going to the full rate of 14.5% in the third year, the first year is not too bad. They can make up the difference when it's time for a salary review the second & third years to offset increase costs to the company.

Remember, when you give up your PR (unless you give it up for citizenship!) and go home, you can withdraw all your CPF which includes the ordinary account, special account & medisave account as well as all accrued interest up to the time of withdrawal. Upon notification of PR having been canceled, the CPF board will transfer, via wire transfer, all proceeds to the bank of your choice anywhere in the world within 10 working days. This is a fact.

Remember though, should you go the PR route and subsequently give it up and return to your country of origin or any other country, and you withdraw all, if you later want to return to Singapore you can do so as a Tourist but getting an EP will be hard, if not impossible. Getting your PR back will only be allowed IF you return all withdrawn CPF & Interest PLUS the equivalent amount of funds to the interest that would have compounded during the time between withdrawal and your wanting to return the funds. This is a pretty stiff situation as risk on risk, I don't believe there is anything out there that will give you the returns that CPF does as it's guaranteed by the government. The Ordinary Account earns at 2.6% and the Special & Medisave accounts earn at 4%. The combined amount will also draw an extra 1% on the first 60K on deposit.

EP holders are now forbidden to contribute. For a few years they were allowed to voluntarily contribute but the contributions were not tax deductible like the normal contributions are. (another nice benefit) You also are not taxed when it's withdrawn and the interest is tax exempt just like POSB interest is.

sms

[kman]

Thanks for the quick reply SMS..

So PEP basically falls under regular EP rules when it comes to CPF and the likes.

Thanks, now I can recalculate my budget for housing, now that I know I don't have to give 20% of my salary to CPF!

Thanks again.

Cheers!

[santosh_mtv]

I understand as per MOM website it says for foreigner that your monthly salary should be >= 7000 SGD.
However MOM also says that they will be considering the decision on case by case basis


I wish to apply fro PEP from India.


I was in Singapore till Aug 2008 on P2 pass with monthly salary of SGD 6250 for 6 months and 6400 for next 6 months.

I was earlier working with Top Bank in Singapore.

I am an Qualified Chartered Accountant & Bachelors of Commerce.

My Query is
a) given the above information is there any chance of getting PEP. or any other way out ???

Thanks

Cheers
Santosh