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How much does it cost to sponsor a foreign employee?

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childofprodigy
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How much does it cost to sponsor a foreign employee?

Postby childofprodigy » Tue, 04 Jan 2011 4:23 am

Hi guys,

How much does it cost in administrative/legal fees etc in sponsoring a foreign employee on an employment pass from the employer's point of view?

Thanks in advance

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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 04 Jan 2011 6:44 am

Nothing. As long as the employee doesn't get into trouble. EP's do not have any levies so there is no monthly costs. The only thing may be whatever you provide in additional benefits, e.g., housing, and other allowances, if any.

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ecureilx
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Postby ecureilx » Tue, 04 Jan 2011 11:54 am

There is a 60 $ administrative fee .. and the medical, MOM recommends, should be borne by the employer

Paperwork - if you have Singpass - submit it yourself - and avoid the agencies admin fee - good agencies just charge 1,000 $ for the submission, follow through, and assisting the employee on clearing the ICA paperwork .. and the others - bully the employee in paying upto 3 months for 'placement' fee .. plus demand one month from the employer - for an employee you sourced :D

As for sponsoring - Singapore doesn't have 'sponsorship' - I hope you understood that part - .. unlike some countries where you sponsor a driver / maid / assistant / PA etc. etc. ..

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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 04 Jan 2011 2:38 pm

ecureilx wrote:There is a 60 $ administrative fee .. and the medical, MOM recommends, should be borne by the employer

The administrative is only $10. I refer you to page one of the application:

http://www.mom.gov.sg/Documents/service ... _Form8.pdf

If successful, there is subsequently a $30 charge for issuance of the EP and an additional $30 to have a multi-entry visa.

The medical can be up to around $50 or as low as $30 if the employee has been employed in Singapore before. So, it could be all up around $60 and not $60 plus medicals. However, in some instances, a medical may not even be required, depending on what country you are coming from. A lot of western applicants are required to only fill out the Health Declaration Form: http://www.mom.gov.sg/Documents/service ... ration.pdf

So it could be as low as $40 (without a multi-entry visa and no medical required) and a high around $120 depending on where you are from and what pass you are getting.

Paperwork - if you have Singpass - submit it yourself - and avoid the agencies admin fee - good agencies just charge 1,000 $ for the submission, follow through, and assisting the employee on clearing the ICA paperwork .. and the others - bully the employee in paying up to 3 months for 'placement' fee .. plus demand one month from the employer - for an employee you sourced :D

Actually, they may try to charge the job seeker, but in Singapore it is against the law for an agency to charge the them any "recruitment fee" at all if they are successfully placed. By law they are only allowed to charge a nominal "administrative" fee. (better agencies don't charge anything at all). If you are charged and take it to MOM, the agency will lose their license. The recruitment fee is normally anywhere from 60% of one months salary (body shop) up to 33% of per annum salary (top tier headhunter) for a placement dependent on the type of position and salary being offered. (this is paid by the client and not the job seeker). The problem is, as most job seekers are desperate to find a job in Singapore, they stupidly pay the agent these fees. However, most low-class llocal agencies are smarter than that, so they work through an intermediary agency in the country they are sourcing from (usually funded by them anyway, but without any direct link) and the fees are charged by that agency in the home country over which Singapore/MOM has no control.

Bad agencies charge you upwards of $1000 to file the paperwork for you, not good agencies. Good agencies, if they did the recruitment, will do it for no charge or if the client is a good existing client. I've never charged a client for processing an EP if we did the placement. It's rather simple and easy to get registered with MOM and do it yourself.


As for sponsoring - Singapore doesn't have 'sponsorship' - I hope you understood that part - .. unlike some countries where you sponsor a driver / maid / assistant / PA etc. etc. ..

The employer themselves are the sponsor for Employment Pass holders. This is to ensure that there is somebody responsible for the person in the event of death, repatriation, and so forth. I refer you to pages 8 & 9 Parts 10-12 of the application:

http://www.mom.gov.sg/Documents/service ... _Form8.pdf


sms

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ecureilx
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Postby ecureilx » Tue, 04 Jan 2011 5:51 pm

sundaymorningstaple wrote:The administrative is only $10. I refer you to page one of the application:


Probably I mixed up the EP fees with admin fees :D Sorry ..

Actually, they may try to charge the job seeker, but in Singapore it is against the law for an agency to charge the them any "recruitment fee" at all if they are successfully placed. By law they are only allowed to charge a nominal "administrative" fee. (better agencies don't charge anything at all).



Not many people know that, and end up being bullied .. :( no comments .. and those who decide to go to MOM were begged not to by the other co-workers in the fear of them all being jobless - it's a vicious cycle - yah, but it does exist - especially targeting certain country people .. not all

[quote/I've never charged a client for processing an EP if we did the placement. It's rather simple and easy to get registered with MOM and do it yourself.[/quote]

Good to know that - nah - I am not in the agency line, but have helped source agents, and the one's I know too are direct and clean, no hidden charges or forcing the candidate to stay in 'recommended' dorms etc. and milk them .. :D

[color=blue]The employer themselves are the sponsor for Employment Pass holders. This is to ensure that there is somebody responsible for the person in the event of death, repatriation, and so forth. I refer you to pages 8 & 9 Parts 10-12 of the application:
sms


Got it - I was contrasting with some other countries, where your cousin, aunty, neighbour, or your loyal monkey can be your sponsor - unlike in Singapore where you are tied to the employer !!

Cheers, and you got a lot of patience to clear up .. keep it up ..


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