The new criteria for EP's w.e.f. January 2012

[sundaymorningstaple]

The minimum qualifying salary for young foreign graduates who want to get an EP will be raised to $3000 up from $2800.

It will get harder for older applicants to get a lower-tier EP (Q) as the MOM will look at whether their pay is commensurate with the experience they have (in other words, the criteria will be solely at the discretion of MOM as and when)

The middle-tier EP (P2) salary requirement will also be raised to $4500 from $4000.

Companies employing lower tier EP holders may find that their Q pass holders may no longer be eligible under the new rules.

Currently there isn't any new criteria changes for the P1 pass and will, at this point, be held at $8000/month minimum.

They have 4 options:
-Increase the salary of the EP holder
-substitute a foreign EP holder with a local worker
-hire the EP holder on an S Pass (which has a lower salary requirement)
-hire a new foreign worker with better qualifications and skills and pay him more

The changes will start (for new applicants) from Jan 1 2012

For existing EP holders whose passes expire...

-before Jan 1, 2012 - They will receive a one-time renewal of up to two years, based on the rules that existed before July 1 this year

-between Jan 1 and June 30, 2012 - They will receive a one-time renewal of up to one year, based on the current EP criteria.

-on or after July 1, 2012 - they will be subject to the new EP criteria.

So, if you are a new applicant now (Aug-Dec 2011) you still will be granted under the current new rates but at the first renewal you will have to pass the new criteria for both salary & qualifications. Preferences will be given to those with qualifications from good institutions (this means good in the eyes of the MOM - not in your eyes or in the eyes of your country. This means the majority of correspondence degrees will probably be non-contenders.

This will probably affect around 30K of the 142K EP holder currently here as of December 2010.

[nakatago]

to add, source: http://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=377

[sundaymorningstaple]

Thanks for that, Nak.

I paraphrased it from this morning's local birdcage liner and hadn't had time to go to the source for a link.

Okay stickied.

[singaporeflyer]

SMS,
Can you please sticky this on the Careers and Job in Singapore group also?

[revhappy]

I think the biggest impact is for those with P2. Few months ago it used to be 3500. So about a 28.5 % jump.

Another impact will be a lot people will be downgraded to Q1 and hence their relatives like parents/parent-in-laws will have to leave SG.

[luknsq407]

Thanks Moderator, this is really helpful. I am looking at Jan 2012 for getting an EP.

[poodlek]

NM original question, doesn't matter. I have a question about protocol for filling positions that require P1 passes. There are four positions in a department, two of them vacant. The current employees are on P1 passes receiving the former minimum amount of $7k/month. The new hires will have to be paid $8k. Is it common practice to raise the pay of the other employees at this time to make it equal to their new co-workers? It would be cheaper for the company to do it than to have to find, hire and train new employees if the old ones quit. Plus, the company would have to pay the new salary anyway.

Dovetailing from that, these four employees have a direct supervisor who is paid a few $k more than the minimum. If all his employees are getting a raise of $1000/month, is it not fair for him to ask for the same? Does this happen frequently around this time? How do HR folks handle this in this country? Is it a case of the squeaky wheel gets the grease?

[x9200]

Why the positions require the P1 passes?

[poodlek]

Why the positions require the P1 passes?

Because it's a line of work where a degree means little in comparison to experience/skill. Most/many folks won't hold a degree in this discipline, so it's not a job requirement. AFAIK, the only visa foreigners can get that doesn't require a degree is a P1, no?

[sundaymorningstaple]

PEP doesn't require a degree either. Just 8K plug and a number of other boxes ticked just so....

[x9200]

Yep, but it is rather uncommon not to have a degree nowadays so maybe they will still be accepted under P2 and the problem is solved? O the company would rather not take the risk of possible rejection?

[JR8]

Here is the upside-down take on the higher salaries from a 20-something SGn relative of mine...


'Realise that everything is rising in SG.. Even foreigner's basic salary... But pure SGrean is still earning the same old shit... Cruelty!'


If this is a common belief, it seems the gahmen aren't getting their message through!

[sundaymorningstaple]

'tisnt the gahmen who aren't getting the message. It's the Singaporean employers. And as long as there isn't a minimum wage here (okay, that's the gahmen!) this will continue to be so. Singaporean employers are the ones responsible for all of this. They like to poo-poo that idea, but it's the reality of it.

So, somebody will pipe up with, "well the MNC's do it as well" and that's true. Have you ever seen what staffs the HR offices of MNC's? Local HR personnel. Most MNC home offices don't have a clue about what the local HR does over here as long as the bottom line on the corporate P&L shows more and more profits. And most of the expatriate hires are made from the home offices. Why do you think Apple is using a Chinese manufacturing plant (which has been in the news a lot lately due to low wages). It's only when something catastrophic happens that this craps makes the world news. (The same company had a number of suicides last year as well which first caused it to make the news).

[JR8]

I don't quite follow what you're saying the employees should be doing?

My take on the minimum wage is that like most well meaning liberal fluffy bollock$ government policy it achieves precisely the opposite of it's intention. I.e. the government want to ensure no low paid worker is exploited and struggles on less than a 'living wage'. Reality = companies make do without hiring junior staff they can no longer afford so you have record youth unemployment.

[sundaymorningstaple]

I agree with what you are saying. But the problem is the employer are exploiting the low-end workers anyway.

What would you suggest? Besides a stronger union (NTUC is a freaking joke as it's in cahoots with the gahment anyway). The income disparity is get wider and wider. (not even talking about FWs who only earn $600/month).

The FW issue is one that really gripes my butt. Oh, it's a lot of money where they are from. True. But they aren't home. They still have to pay "Local" rates for everything here for themselves and IF there is anything left they can send it home. FWD's at least are furnished food & lodging.

As long as they continue to think of workers as "Human Capital" it going to be that way. Buy them on sale, run the hell out of 'em, and discard 'em as soon as they start showing signs of wear/stubborness.

I'd like to hear how you would solve the problem. As long as companies only look at the bottom line, you aren't going to see any changes except to get worse.