FAQs About COMPASS – Complementarity Assessment Framework

1. What is COMPASS, and how does it differ from previous EP regulations?

COMPASS, introduced in 2023, represents a comprehensive overhaul of Singapore’s EP framework. Unlike previous regulations, which primarily focused on salary thresholds and educational qualifications, COMPASS adopts a holistic approach to talent acquisition and retention. It considers factors such as relevant work experience, specialized skills, and potential contributions to Singapore’s economy and society.

2. What are the key changes implemented under COMPASS?

COMPASS introduces several key changes to the EP requirements, including:

• Emphasis on specialized skills and industry expertise.
• Assessment of candidates’ potential to contribute to Singapore’s strategic goals.
• Streamlined application processes to attract top-tier talent efficiently.
• Enhanced support for companies investing in workforce development and upskilling initiatives.

3. How do these changes benefit employers in Singapore?

For employers, COMPASS offers a more tailored approach to talent acquisition. By focusing on specialized skills and potential contributions, companies can attract professionals who align closely with their business objectives. Additionally, the streamlined application processes reduce administrative burdens and expedite the hiring of skilled specialists, thereby enhancing operational efficiency and competitiveness.

4. What are the eligibility criteria under COMPASS?

Under COMPASS, EP applicants are evaluated based on the following six criteria and must earn 40 points to pass:

Foundational Criteria (Each criterion allows for a maximum of 20 points)

• Criterion 1 (C1): Salary Alignment with Local PMET Norms
• Criterion 2 (C2): Qualifications Aligned with Candidate’s Profile and Firm’s Needs
• Criterion 3 (C3): Diversity Contribution to Nationality Diversity within the Firm
• Criterion 4 (C4): Support for Local Employment Relative to Industry Peers

Bonus Criteria:

• Criterion 5 (C5): Skills Bonus for Candidates Addressing Skill Shortages in Job Roles. (Allows for up to 20 points)
• Criterion 6 (C6): Strategic Economic Priorities Bonus for Collaborative Projects with Government in Investment, Innovation, Internationalization, or Company and Workforce Transformation Activities. (Allows for up to 10 points)

Employers and employment agents can utilize the upgraded Self-Assessment Tool (SAT) to verify a candidate’s eligibility before submission of an application.

5. Which occupations are part of the COMPASS Shortage List?

The Shortage Occupation List (SOL) is established through a thorough assessment process considering industry demands and local workforce enhancement endeavours. Occupations on the Shortage Occupation List (SOL) may undergo annual revisions to adapt to changing market dynamics. The next update is scheduled for March 2024, with changes becoming effective from September 2024, ensuring responsiveness to evolving conditions. Refer to the SOL Employer Guide to view the list of shortage occupations.

6. Will the minimum qualifying salary for EP applicants change under COMPASS?

While salary remains an important factor, COMPASS takes a more nuanced approach to compensation. From 1 September 2023, for all sectors except financial services, the minimum qualifying salary starts at $5,000 and increases progressively with age, reaching up to $10,500 for applicants aged 45 and above. In the financial services sector, the minimum qualifying salary begins at $5,500 and follows a similar age-dependent progression, culminating in $11,500 for applicants aged 45 and above.

Applicants who fail to meet these salary requirements will not qualify for an EP, irrespective of the points they might have accrued under COMPASS.

7. Are there any exceptions for COMPASS?

Individuals are exempt from COMPASS if they fulfil any of the following criteria:

• Have a fixed monthly salary of at least $22,500, akin to the prevailing Fair Consideration Framework (FCF) job advertising exemption from 1 September 2023.
• Are applying as an overseas intra-corporate transferee.
• Are filling the role for one month or less.

8. How can employers adapt to the changes introduced by COMPASS?

Employers can adapt to COMPASS by:

• Aligning their recruitment strategies with the program’s objectives.
• Investing in workforce development and upskilling initiatives to nurture local talent.
• Leveraging digital platforms and technology to streamline talent acquisition processes.
• Collaborating with government agencies and industry partners to stay updated on evolving regulations and best practices.

9. What are the long-term implications of COMPASS for Singapore’s economy and workforce?

COMPASS is poised to have far-reaching implications for Singapore’s economy and workforce. By attracting and retaining skilled specialists, the program strengthens key industries, drives innovation, and enhances Singapore’s global competitiveness. Moreover, COMPASS fosters a dynamic and inclusive workforce ecosystem that offers opportunities for both local and foreign talent to thrive and contribute to Singapore’s sustainable growth.

Conclusion

In conclusion, COMPASS represents a significant milestone in Singapore’s efforts to attract and retain top-tier talent. By adopting a holistic and forward-thinking approach to talent acquisition, the program positions Singapore as a preferred destination for skilled professionals seeking exciting career opportunities. With its focus on specialization, innovation, and collaboration, COMPASS sets the stage for sustained economic growth and prosperity in Singapore for years to come.

Additionally, navigating the intricacies of COMPASS and ensuring compliance with its requirements can be a complex task for businesses. This is where the role of a corporate service provider becomes invaluable. Corporate service providers specialize in managing various aspects of business administration, including human resources and immigration matters.

Engaging a corporate service provider in Singapore can assist businesses in efficiently managing their employees’ EP requirements under COMPASS. These professionals are well-versed in the latest regulations and can provide expert guidance on eligibility criteria, documentation processes, and application procedures. Their in-depth knowledge of the local landscape allows businesses to stay abreast of changes and make informed decisions in line with COMPASS requirements.

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It focuses on uplifting every section of society irrespective of gender, age, religion, or nationality. They are trying to build an environment that empowers people and ensures they are given employment based on merit and credibility. Talking about employment and empowerment drives us to an important topic — Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP).

Tripartite Guidelines on Fair Employment Practices

In 2006 Tripartite partners, the Ministry of Manpower (MOM), National Trades Union Congress (NTUC) and Singapore National Employer’s Federation, and the Tripartite Alliance invested the idea of fair and progressive growth in the employment sector as a benefactor to the employer and employees.

The Tripartite Guidelines on Fair Employment Practices (TAFEP) are implemented in Singapore to ensure fairness, progressive growth, and equal opportunities. In addition, it is to create an understanding and coordination between the employers and employees. With so many people immigrating to Singapore every year, this practice prevents discrimination, encourages employers to build a good relationship with their co-workers, and helps stabilize its growth.

Principles of TAFEP

Merit-based

Regardless of ethnicity, age, gender, religion, race, appearance, other personal commitments, and physical issues, the recruitment must be based on the skills, experience, talent, and ability to show efficient work performance.

Fairness to the employees

Give due respect to the employees and implement a progressive human resource management system that would facilitate their growth.

Provide equal opportunities

Every employee should be given equal opportunities to strengthen their abilities through different training and development programs and achieve their full potential. In addition, personal biases should be strictly kept aside.

Honour the employees

Employees must be rewarded for their work based on a fair and square merit system. Their contribution, effort, and performance shown in the workplace should be accounted for and awarded when due.

Abide by labor laws

Every individual, be it an employee or employer, should abide by the guidelines implemented by the Tripartite Alliance and the country’s labor laws. While hiring, companies should also keep in mind that there is a quota on the number of foreigners they can hire based on their CPF account and should adhere to that.

Employment Practices Governed by TAFEP

As much as you need to know how Tripartite Alliance Guideline benefits the employees of Singapore, it is essential to see the employment practices stated.

Job Advertisements

Instructions and criteria should be explicit when creating the job advertisement, in straightforward language, categorizing the skills, experience, and qualifications under the specific vacancies. At the same time, employees should be considerate when applying for a suitable position and should be careful of scams.

❓ When is the right time to start hiring? Read our guide on hiring tips for business.

Age

You are not allowed to limit employees by their age. However, it still depends on what job they need to handle. You could use keywords like preferably young, middle-aged with experience, or able to handle heavy equipment, and such.

Gender

Employers should give equal opportunities to candidates regardless of their gender unless the job demands it. In such cases, you need to mention the reason for hiring a specific gender.

Religion

Religion doesn’t have to be an interference. It should not be a barrier for available job vacancies under any circumstances unless the job is related to cultural and ethnic affairs. The person of that religion might have more knowledge about it. For example, the “Requiring a Muslim teacher who could teach Islam” this kind of criteria must be stated politely under the requirements.

Language

Language can be stipulated as different jobs might require employees to interact with people from that specific region. Linguistic abilities matter when it has to entail the job.

Marital Status

This should not become a barrier and shouldn’t make a difference when applying for jobs. Your personal life doesn’t govern your professional life. This should definitely not be a selection criterion when applying for jobs.

Applications forms for the job

Be vigilant before applying for the job you select. Verify the details, and make sure to choose the relevant field for the job, corresponding to the area of the field of your studies and the required criteria. Of course, candidates have the free will to avoid anything discriminatory, such as marital status and religion. But as stated earlier, employers can add these conditions as long as it’s related to the title and they have enough reasons as to why it’s required. Also, before you provide details for identification, like the NRIC number, passport details, etc., make sure it’s a legitimate job.

Job Interviews

Interviews should be merit-based, fair, and unbiased, with equal rights to the interviewers. This will be the most crucial step in the recruitment process and for employees to get prepared and trained according to the Fair employment practice.

The interview should be recorded. Employees should be faced with one or two interviewers. They must know the Tripartite Alliance Guideline that generates fair employment practices. The selection criteria should not differ from employee to employee, and the interview questions should be directly related to the selection criteria.

Interviewers cannot stipulate or stereotype the employee under any circumstances based on criteria unrelated to the job. The interviewer cannot trigger the employee’s emotions by invading their personal space. The employee must know the mode used to send the interview results and definitely should be informed if they are not selected.

Exams

Some tests need to be taken if required, depending on the job title you apply for. The employer should ensure the candidates are informed about it beforehand.

Employer and Employee’s Role

Employers and employees should be accountable for their actions and abide by the Tripartite Guidelines on fair employment practices (TG. They can create a discrimination-free, respectful, and peaceful working environment by understanding the importance of the guidelines. This helps to boost the performance of the employees. In addition, the staff should also be familiar with the Tripartite Guidelines on fair employment practices to fight for their rights.

This helps communicate and build a strong relationship between the employer and employees to seek grievances from problems arising from discrimination at work. It helps to strengthen fair employment. It’s best to have good communication to understand the roles to contribute to the Tripartite fair employment practices and ensure that candidates are hired to conduct fair recruitment.

Employers and their intermediaries must cooperate and successfully implement the Tripartite fair employment principles in Singapore. This involves changing the mindset of the employment practices, which could be a success through education and promotional efforts. Over time, Singapore’s strong labor-management relations and Tripartite partnership of the tripartite alliance for fair and progressive employment practices will eventually positively impact Singapore’s HR system. It helps stabilize the growth of the organization and the well-being of the employees contributing to organizational excellence.

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The service sector saw a 2% cut (from 40% to 38%) on January 1, 2020, and an additional 3% cut (from 38% to 35%) occurred on January 1, 2021. The share of S Pass saw a 2% cut (from 15% to 13%) on January 1, 2020, and an additional 3% cut (from 13% to 10%) on January 1, 2021. Both the DRC and the S Pass quota remain unchanged for all other sectors.

What do recent Quota Reductions mean for Businesses in Singapore?

Before these recent quota reductions happened, the DRC stood at an astonishing 45% back in 2013. This meant that companies with 20 full-time locals (whether it be citizens or PRs of Singapore) could hire up to 16 foreigners. However, the reduction in DRC means that the number of foreigners that those same 20 full-time locals could hire has been reduced.

Many service sector employers are surprised by the new threshold in foreign manpower as many of them rely on foreign workers to keep their businesses up and running. The Government has stated that the tightened policy encourages firms to revise and improve their work processes, as well as to upgrade the skills of their staff members and remake their existing jobs. When it comes to companies whose workers have exceeded the new thresholds, the DRC applies whenever these companies apply for their permit renewals.

Calculating Foreign Worker Quota

Calculating local employees

The Local Qualifying Salary (LQS) is one of the most important factors. If you want to count one of your local employees towards your quota entitlement, that employee’s LQS must be at least $1,200.

An employee who is working under a contract of service and who is either a citizen or PR of Singapore is counted as:

1. 1 local employee if his/her monthly LQS is at least $1,300
2. 1/2 of a local employee if his/her monthly LQS is anywhere from $650 to just under $1,200

❓ When is the right time to start hiring? Read our guide on hiring tips for business.

Calculating foreign worker quota

A company’s foreign worker quota is based on the company’s CPF account. The employer’s CPF contribution indicates the local workforce hired in the business activity.

Every local staff member who is working as a full-time staff member (or 2 part-time local workers) for a period of one calendar month counts as one headcount for the local workforce. After excluding both the current and the preceding month, a 3-month contribution period will be taken into account. The local manpower can be calculated using the following formula:

Maximum number of foreign workers = (DRC% x local manpower) / (100% – DRC%)

Keep in mind that the maximum number of foreign workers is inclusive of both work permit holders and S Pass holders.

Calculating quota with quota calculator

Employers can go online and use the quota calculator to determine the number of work permits and S Passes that they can apply for. The number of passes allowed based on both the workforce and sector.

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