PEP application questions from outside SIN

[thefly]

As this is my first post in this forum I reach out to the community and say hello to everyone.

I have read through various posts already and while some answered my questions in part, I didn't find a comprehensive answer. Therefore, I took the liberty to open a new topic.

I'm currently looking into the details of how a PEP application works. I believe I checked the MOM website extensively, if however, I have missed any information there that I'm asking for now, please accept my apologies in advance.

The requirements state that, in order to qualify as an oversees applicant, the last drawn fixed salary needs to be S$8,000 at least. This specific term was not that common to me but from what I understand this is the basic salary excluding all benefits such as car allowance, bonus etc. Correct?

Also I understand that overtime compensation doesn't count as well. However in my case I receive some sort of a structural overtime compensation. The reason for that is the way the work contracts (MNC with >100.000 employees) are structured. All contracts have 36 hours/week as a basis due to the Collective Labour Agreement with the union. However, in my contract it is stated that I permanently work 40 hours/week. Therefore, I receive a 'top-up' to my salary. It is the same amount every month and, personally, I wouldn't consider this an overtime payment in the usual sense (I can still clock in overtime on top of that) and also not a bonus or allowance payment. However, both salary items are listed separately on my payslip. So I'm wondering if I could still declare this as my basic salary as well? I read somewhere on the MOM site that overtime is considered working in excess of 8 hours a day, which in that case I also didn't.

Would it make sense otherwise trying to get a statement from my employer where both items are merged in one sum?

According to the MOM website there are no further documents required at the point of filing the application. Does it make sense though to include supporting documentation already? And if so, which ones. I don't want to overload the application and provide sufficient information on the other hand. Is work certifcate from employer including the salary and employment period, university degree, passport copy and latest CV sufficient?

Furthermore, and this might be a silly question, on what exchange rate can I base the calculation? On the application form there are three fields (basic & fixed monthly salary, and gross annual salary) and when filling those in should I use the EUR-SGD exchange rate valid the day of my application or some sort of average or the rate valid at the time I received my last salary?

To complete the picture, some facts concerning my current situation:

- German nationality, in my early 30s
- employed with MNC in The Netherlands for almost 5 years
- university degree in Germany from one of the MOM approved/listed universities

So, I believe that I have fair chances for an approval of the application. Knowing that I cannot be sure of that, of course.

Last question: does it make a difference if I use one of those professional agencies to submit my PEP application or is it a waste of money? I will be in SIN myself in the coming weeks and also have friends/colleagues who would provide their address and mailbox for the purpose of the application procedure.

Sorry for the many questions but I thought I put them all in one post right aways...

Thanks for your help.

[zzm9980]

The requirements state that, in order to qualify as an oversees applicant, the last drawn fixed salary needs to be S$8,000 at least. This specific term was not that common to me but from what I understand this is the basic salary excluding all benefits such as car allowance, bonus etc. Correct?

Correct. Base salary. No commissions, bonuses, allowances, or any other variables. Yes if you're a sales guy, this probably screws you over.

Also I understand that overtime compensation doesn't count as well. However in my case I receive some sort of a structural overtime compensation. The reason for that is the way the work contracts (MNC with >100.000 employees) are structured. All contracts have 36 hours/week as a basis due to the Collective Labour Agreement with the union. However, in my contract it is stated that I permanently work 40 hours/week. Therefore, I receive a 'top-up' to my salary. It is the same amount every month and, personally, I wouldn't consider this an overtime payment in the usual sense (I can still clock in overtime on top of that) and also not a bonus or allowance payment. However, both salary items are listed separately on my payslip. So I'm wondering if I could still declare this as my basic salary as well? I read somewhere on the MOM site that overtime is considered working in excess of 8 hours a day, which in that case I also didn't.

Tricky, but it probably won't work out in your favor.

Would it make sense otherwise trying to get a statement from my employer where both items are merged in one sum?

You can try, but it may or may not matter. I'm leaning towards it won't.

According to the MOM website there are no further documents required at the point of filing the application. Does it make sense though to include supporting documentation already? And if so, which ones. I don't want to overload the application and provide sufficient information on the other hand. Is work certifcate from employer including the salary and employment period, university degree, passport copy and latest CV sufficient?

Include it if you feel it will make a very large difference or is very relevant to convincing Singapore they need you.

Furthermore, and this might be a silly question, on what exchange rate can I base the calculation? On the application form there are three fields (basic & fixed monthly salary, and gross annual salary) and when filling those in should I use the EUR-SGD exchange rate valid the day of my application or some sort of average or the rate valid at the time I received my last salary?

I would use the one on the day of the calculation.

To complete the picture, some facts concerning my current situation:

- German nationality, in my early 30s
- employed with MNC in The Netherlands for almost 5 years
- university degree in Germany from one of the MOM approved/listed universities

So, I believe that I have fair chances for an approval of the application. Knowing that I cannot be sure of that, of course.

How much do you make? That's really all that matters. Based on all of the questions above, I'm guessing your salary is very border-line to hitting the S$8k/month mark? If it's not, and you're already significantly over, don't worry about all of this little fluff, none of it matters.

Last question: does it make a difference if I use one of those professional agencies to submit my PEP application or is it a waste of money? I will be in SIN myself in the coming weeks and also have friends/colleagues who would provide their address and mailbox for the purpose of the application procedure.

It's a huge waste of money, they provide zero benefit if you already have a local who can do it for you.

[thefly]

[...] It's a huge waste of money, they provide zero benefit if you already have a local who can do it for you.

Thanks for all your answers. My very base salary is above 8k but I thought if I can add my "overtime add-on" it could help my application. Along the lines of: more is better

I simply asked the questions based on some topics I read here in the forum and because I want to make sure to file my application absolutely correctly and with the right supporting documents, if any are needed.

[zzm9980]

If your base is over 8k, you're probably fine so I wouldn't worry.

[friendlybossy]

[...] It's a huge waste of money, they provide zero benefit if you already have a local who can do it for you.

Thanks for all your answers. My very base salary is above 8k but I thought if I can add my "overtime add-on" it could help my application. Along the lines of: more is better

I simply asked the questions based on some topics I read here in the forum and because I want to make sure to file my application absolutely correctly and with the right supporting documents, if any are needed.

you are well qualified, why do you need to worry about that, they do check every piece of info you submit and even you do not clarify they know what are basic and what are allowance for the salary you have . As a German, young, well educated, good experience, I do not see why your application would not be approved. Anyway, just try it, you lose nothing other than the application fee. And do not waste your money on those "professional agency", just do it yourself, Singapore applications are as easy as ABC and you can always email the authority to ask any question that you have

[thefly]

you are well qualified, why do you need to worry about that, they do check every piece of info you submit and even you do not clarify they know what are basic and what are allowance for the salary you have . As a German, young, well educated, good experience, I do not see why your application would not be approved. Anyway, just try it, you lose nothing other than the application fee. And do not waste your money on those "professional agency", just do it yourself, Singapore applications are as easy as ABC and you can always email the authority to ask any question that you have

Thanks a lot I will hand in my application in the coming weeks and report here of course on the outcome.

One last follow up question. And you actually seem to give the answer already.

If, for whatever reason, the application is denied, does it it have a negative effect on a potential EP application (via employer) at a later time?

[zzm9980]

If, for whatever reason, the application is denied, does it it have a negative effect on a potential EP application (via employer) at a later time?

No one knows for sure, but the conventional wisdom is that it will probably at least be looked at. If your PEP is denied, I would try to make sure the salary on the EP application is a fair bit higher at least. 10-20% more than you had on the PEP application.

[kikeo]

Sorry to jump in this conversation, I just want to say thanks to zzm9980 and friendlybossy for the crystal clear explanations.
You guys are great !