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PEP Guidelines - Need more clarity on rules

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sanjumalani
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PEP Guidelines - Need more clarity on rules

Postby sanjumalani » Mon, 11 Feb 2013 9:05 am

Thank you for reading my post. Need some more clarity on the following questions for a PEP holder.

Thanks.

1. Can PEP holder work on multiples jobs and can these be CONTRACT based roles? Can the jobs be PART TIME jobs? Can I take up part time or contact employment (for a month or two) and restart the 6 month clock on my PEP (i.e. cannot remain unemployed for more than 6 months at a time)?

2. If I work for a small entrepreneur who has formed a company in Singapore is there a minimum requirement (i.e. min number of local employees, etc) for me to work for this company as a PEP holder?

3. Is fixed pay / month required on a PEP?

4. Does the MoM contact the employer to verify employment once I have notified MoM I am on PEP?

Thank you so much!
S

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zzm9980
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Postby zzm9980 » Mon, 11 Feb 2013 9:43 am

1) You cannot work freelance without a direct employer. If you intend to hop around and work small jobs collecting direct checks, that's not allowed. You need an employment contract and they have to tell MOM/IRAS/whoever.

2) No

3) You must earn X/year. X is currently $144,000. I don't think it matters if you earn that at 12k/month, or earn 72k a month with five month hiatuses in between.

4) The employer also has a separate form where they are required to report they have hired you.

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Postby sanjumalani » Mon, 11 Feb 2013 9:53 am

Thanks a lot. My responses below:

1. Understand. What I meant is secure an employment letter but will that let me still do part time jobs and contract based roles under PEP? I may not be able to meet the salary criteria but will deal with that at the end of 2014 when I come up against it.

2. So I can work for a small consulting firm (incorporated in Singapore with one shareholder and one director) employing no locals? I can get an employment letter from them with a fixed salary per month and full time employment.

Thanks!

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Postby zzm9980 » Mon, 11 Feb 2013 12:13 pm

1) As long as each role has an employment letter, yes.

2) To the best of my knowledge, yes.

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Postby sanjumalani » Mon, 11 Feb 2013 5:01 pm

Thank you. Any other feedback From you or ther members highly appreciated.

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Postby sundaymorningstaple » Mon, 11 Feb 2013 7:41 pm

If all the members of the firm and all are foreigners and from the same company, it's going to raise a red flag as to whether or not the figures are correct, e.g., reporting one thing and paying taxes on it, but actually paying another. With S pass holders it's a bit different because the employers are required to deposit the salaries via giro. But in the case of EP holders they can actually pay in cash/cheque/GIRO etc. There have been cases that have been caught where the employer claimed paying salaries of x amount and the employer actually getting much much less. The IRAS has the correct amount on the IR8As and the CPF contributions are probably already hitting maximum so no big deal there. So the employee/employer basically is only having to pay the additional income tax and are lying to MOM/IRAS. Of course, when they get caught, deportation, jail, and various and sundry measures, including the possibility of not just the employee, but both being ejected from the country, if it's foreigner owned.

forewarned it forearmed.

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Postby sanjumalani » Tue, 12 Feb 2013 4:10 pm

Hi thank you all for your responses although I'm not sure how this last one addresses my question.

The consulting firm i am referring to is owned by a PR (indian origin) and there are no other employees. He will be getting mandates from clients and having me work on them.

Since I am on PEP and my PR is approved (but on hold since I am not employed), I am not eligible for CPF. My employer will have an employment letter and pay me via GIRO and not cash thereby leaving sufficient legit trail (there is no illegal activity that I am proposing - simply need to understand what is legit before I sign up).

On a separate topic it would be ideal if I can get a job that gets my PR issued - although it is approved I was unemployed when they approved it and my extension runs out within a month. Not sure how likely it is for MoM to extend again for 2 months.

Thoughts welcome.
Thank you

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Postby zzm9980 » Tue, 12 Feb 2013 8:07 pm

sanjumalani wrote:Hi thank you all for your responses although I'm not sure how this last one addresses my question.

The consulting firm i am referring to is owned by a PR (indian origin) and there are no other employees. He will be getting mandates from clients and having me work on them.

Since I am on PEP and my PR is approved (but on hold since I am not employed), I am not eligible for CPF. My employer will have an employment letter and pay me via GIRO and not cash thereby leaving sufficient legit trail (there is no illegal activity that I am proposing - simply need to understand what is legit before I sign up).

On a separate topic it would be ideal if I can get a job that gets my PR issued - although it is approved I was unemployed when they approved it and my extension runs out within a month. Not sure how likely it is for MoM to extend again for 2 months.

Thoughts welcome.
Thank you


Well it is better than no job at all when you go back to MOM next month. Please keep us updated and good luck.

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Postby sundaymorningstaple » Tue, 12 Feb 2013 9:13 pm

sanjumalani wrote:Hi thank you all for your responses although I'm not sure how this last one addresses my question.

The consulting firm i am referring to is owned by a PR (indian origin) and there are no other employees. He will be getting mandates from clients and having me work on them.

Since I am on PEP and my PR is approved (but on hold since I am not employed), I am not eligible for CPF. My employer will have an employment letter and pay me via GIRO and not cash thereby leaving sufficient legit trail (there is no illegal activity that I am proposing - simply need to understand what is legit before I sign up).

On a separate topic it would be ideal if I can get a job that gets my PR issued - although it is approved I was unemployed when they approved it and my extension runs out within a month. Not sure how likely it is for MoM to extend again for 2 months.

Thoughts welcome.
Thank you


It has been done before and until you are actually a PR, you are still a PEP and will have to meet the requirement for your annual gross income to keep it valid as well. There have been incidences of what I suggested could happen that have already transpired. Not saying such is the case for you, but it's something that IRAS/ICA/MOM will look for is all are of the same race and non-Singaporean. Shall we say, it raises a red flag? Nothing implied, but something to beware of.

I'm also sure you have hear the grouses about foreign HR personal showing distinct preferences for their own countrymen as well, as it's been in the press enough lately. Just sayin'

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Postby Wd40 » Tue, 12 Feb 2013 9:24 pm

Agree with SMS. If the company has no employees and you will be their 1st and only employee, that surely sounds very suspicious even to us, leave alone the ICA. In fact even MoM may frown upon it as a stunt to keep your PEP.

Having giro for salary is not enough for trail. You could very well remit it to an Indian account and from there it can flow back to the employer. There is no way this can be caught. Not saying this is being done but just giving you an example.

But all that is secondary. Are you confident that the company you are talking about will be able to get work for you? Do they have a track record and done any business before?

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Postby sanjumalani » Tue, 12 Feb 2013 9:39 pm

Well this company is not formed yet and will be formed by an ex banker / finance professional with significant experience who is confident of securing consulting mandates. He needs my help at a junior level to execute these consulting mandates. So although this is like another job the company is in growing stage will probably hire more employees in six months to twelve months time.

He will have work for me and I will be given an employmewnt letter with a fixed salary (around 4k pretty low per month).

Hope this clarifies. The company doesn't have a track record bu the founder does.

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Postby Wd40 » Tue, 12 Feb 2013 9:56 pm

sanjumalani wrote:Well this company is not formed yet and will be formed by an ex banker / finance professional with significant experience who is confident of securing consulting mandates. He needs my help at a junior level to execute these consulting mandates. So although this is like another job the company is in growing stage will probably hire more employees in six months to twelve months time.

He will have work for me and I will be given an employmewnt letter with a fixed salary (around 4k pretty low per month).

Hope this clarifies. The company doesn't have a track record bu the founder does.


This will probably raise red flag at MoM, but if your future employer will be able to come out clean, you don't have to worry. So yes, you should be able to keep your PEP, but the PR, I doubt it based on what you mentioned that they need you to get a job of matching profile to your earlier job.


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