Factors affecting your Work Permit upgrade in 2024
Career progression isn’t just about professional growth for Work Permit holders in Singapore—it’s crucial for stability, salary increases, and future opportunities, including Permanent Residency (PR) eligibility. Many work pass holders in 2024 share a common goal: upgrading to an S Pass or E Pass to unlock long-term benefits.
In recent years, lack of career progression has overtaken low salary as the top reason for resignation among foreign workers. This trend highlights the importance of upskilling and staying ahead of evolving policies. Here’s a closer look at the current landscape for Work Permit holders and what it takes to upgrade to an S Pass or E Pass.
Current Landscape of upgrading Work Permit in 2024.
The landscape for upgrading work permits in Singapore is challenging due to stringent criteria. The Ministry of Manpower (MOM) has raised salary and qualification requirements, making it harder for Work Permit holders to qualify for higher-tier passes.
Challenges for Work Permit Holders: 2024 Updates
From 2019 to 2020, Singapore saw a sharp decline in Work Pass holders due to the COVID-19 pandemic, though numbers have rebounded with economic recovery. Still, S Pass holders remain fewer than Work Permit and Employment Pass (E Pass) holders, primarily due to strict quotas for S Passes. In Singapore, companies are limited in the number of foreign employees they can hire on S Passes to ensure that local candidates are given priority.
For many Work Permit holders, qualifying for an S Pass is actually more challenging than qualifying for an E Pass, despite the different eligibility requirements:
- S Pass: The S Pass has strict quotas, meaning only a limited percentage of a company’s workforce can hold this pass. Additionally, S Pass holders must meet minimum salary and educational qualifications, which have been steadily increasing to reflect market rates.
- E Pass: The E Pass does not have quotas, making it more flexible for companies to hire as many E Pass holders as they need. However, this pass has higher salary and qualification requirements, typically requiring a recognized degree and meeting a minimum salary threshold, which is set to increase further.
In short, while the E Pass has no quota restrictions and offers more flexibility to companies, it demands higher salary and qualification standards, suiting highly skilled roles. The S Pass, accessible to skilled workers with slightly lower qualifications, is limited by company quotas, making it more competitive to obtain.
Factors affecting Work Permit holders from upgrading in 2024.
1. Stringent Requirements
The requirements for S Pass and E Pass applications are becoming increasingly stringent as the Ministry of Manpower (MOM) raises qualifying salary thresholds and tightens criteria to prioritize highly skilled candidates.
For the S Pass, the minimum qualifying salary was increased to $3,000 in September 2023. This will further rise to $3,150 by September 2024 and is projected to reach $3,300 by 2025. These adjustments aim to align with the current market rates for skilled workers and ensure that only well-qualified individuals are eligible.
For the E Pass, the salary requirement will also increase from the current $5,000 to $5,600 by September 2025. This trend of rising salary thresholds makes it increasingly challenging for Work Permit holders aiming to upgrade to an S Pass or E Pass. Considering these changes, Work Permit holders are encouraged to upskill and apply sooner rather than later to meet the growing qualifying thresholds before they increase further.
2. Focus on Local Workforce
Concerns about job competition with foreign workers have long been prevalent among Singaporeans, driving the government to implement policies that increasingly prioritize local employment. This approach has led to a significant reduction in Permanent Residency (PR) approvals since 2010, as well as a tightening of work pass criteria and quotas for foreign hires.
To hire foreign talent, employers must demonstrate that local candidates with the required skills aren’t available, making it tougher for Work Permit holders to upgrade without demonstrating strong qualifications.
The overarching goal is to build a competitive and inclusive workforce that maximizes local talent and reduces reliance on foreign labor. To achieve this, the government has rolled out various frameworks and policies that encourage businesses to prioritize local workers, such as:
Hiring through the Fair Consideration Framework, COMPASS model, and Dependency Ratio Ceiling (DRC) policies helps to collectively foster a competitive yet inclusive job market, supporting Singapore’s vision of a skilled local workforce while selectively supplementing it with foreign talent where necessary. Hence it is important to ensure your skills sets stay relevant till date.
3. Economic Recovery and Workforce Demands
While the economy has rebounded, the demand for foreign workers varies significantly across different industries. This is particularly evident with the implementation of the Shortage Skill Occupation list in Singapore. Sectors such as Agritech, Infocomm, Healthcare, and the Green Economy have a notable demand for foreign talent. Work Permit holders in these fields may encounter increased opportunities for upgrading to S Pass or E Pass, but they must still navigate a highly competitive landscape.
This is why it's beneficial for individuals to broaden their skill sets and knowledge, even if it means exploring different sectors. Continuous learning not only enhances your qualifications but also opens up valuable connections, which can be instrumental in navigating career opportunities and making meaningful advancements in your professional journey.
4. Educational and Professional Qualifications
To successfully upgrade from a Work Permit to an S Pass or E Pass, applicants must showcase relevant educational qualifications and professional experience. The Ministry of Manpower (MOM) places strong emphasis on the quality of education and the relevance of work experience to the position being applied for. Holding recognized degrees, certifications, and significant experience in specialized fields will greatly enhance an applicant's chances of securing an upgrade.
It's important to consider the recognition of the school and the programs offered. Some institutions and degree or diploma courses are more favorably viewed by MOM, potentially helping applicants achieve a higher COMPASS score. A higher score brings them one step closer to an E Pass upgrade. Moreover, having a recognized qualification can strengthen their position when negotiating with employers for higher roles or salaries. Our immigration specialists can provide guidance on how to leverage these qualifications effectively in discussions with potential employers.
Work Permit holders without a recognized diploma are ineligible for an S Pass upgrade, while a recognized degree is necessary for an E Pass upgrade. Without these essential qualifications, Work Permit holders cannot advance. If you're looking to upgrade your educational qualifications while continuing your full-time job, consider consulting our work pass solution experts to learn more about our programs.
5. Employer’s Role
Employers play a vital role in the process of upgrading Work Permits. They must justify hiring foreign workers by demonstrating that the skills needed for a job are not readily available in the local labor market. Additionally, companies are required to adhere to the Fair Consideration Framework, ensuring fair hiring practices and giving local candidates an equal chance.
However, employers may hesitate to support upgrades for Work Permit holders for several reasons:
- Quota Limitations: Companies face restrictions on how many foreign workers they can hire, complicating the upgrade process.
- Cost Considerations: Many employers do not receive the same government subsidies for hiring foreign talent as they do for local workers, which can discourage upgrades.
- Paperwork and Delays: The upgrade process involves extensive paperwork, justification, and waiting periods, making it cumbersome for employers, especially if there's no immediate need for a higher-tier position.
- Preference for Higher Qualifications: In a competitive job market, employers are inclined to favor candidates with stronger educational credentials and certifications, which are seen as valuable assets.
To navigate these challenges effectively, Work Permit holders should focus on aligning their skills and experience with employer expectations, making themselves more appealing candidates for upgrade opportunities. One effective strategy is to have open conversations with their employers about the specific expectations and skill sets required for advancement. By understanding what employers are looking for, Work Permit holders can take targeted steps to enhance their qualifications and demonstrate their value in the workplace. This proactive approach not only improves their chances for an upgrade but also positions them as committed and valuable team members.
How can you upgrade your Work Permit?
Unlike Permanent Residency (PR) applications, which often lack clarity on rejection reasons, the application process for S Pass and Employment Pass (EP) is more straightforward. The Ministry of Manpower (MOM) has set clear requirements, helping applicants understand their standing.
However, one of the biggest hurdles for Work Permit holders is the lack of educational qualifications. Employers must now verify the educational credentials of all EP holders to ensure that work passes are not granted based on fraudulent qualifications. Therefore, having accredited qualifications is essential for those seeking upgrades.
For Work Permit holders looking to advance in their careers, continuous skill improvement is crucial. Singapore is prioritizing "Skilled Foreign Workers" rather than just "foreign talents." By enhancing their educational qualifications, Work Permit holders can boost their chances of obtaining a higher-tier work pass, increase their earnings, and even become eligible for PR.
To learn more about how you can upgrade to a S Pass, check out our previous blog!
Why should you consult a work pass solution agency?
Upgrading your work pass can be complex, with individual requirements depending on industry, salary benchmarks, and educational credentials. Consulting a Work Pass Solution Specialist can help tailor an upgrade plan for your unique needs, ensuring that your application aligns with MOM’s criteria.
Kenneth & Co offers professional guidance for Work Permit holders, providing continuous support and personalized advice based on your specific circumstances. This support can make a significant difference in navigating the complex requirements and increase your chances of successfully upgrading to an S Pass or E Pass. Moreover, our continuous support will help ensure you do not feel alone in your journey.
Conclusion
No worker in Singapore, including Singaporeans, remains stagnant in their career. Without upskilling, career progression becomes increasingly difficult. Factors such as the rising cost of living and changes in work pass regulations can impact your future if you don't strive for advancement. While an S Pass or E Pass may seem like just a work permit, they offer significant benefits, such as eligibility for Permanent Residency (PR). This opens up opportunities like buying public housing, accessing CPF, and having the flexibility to switch jobs without the fear of losing your right to live in Singapore. All these advantages become accessible by upgrading your educational qualifications. To learn how to get started, click here.
Disclaimer: All information provided is accurate as of 2024 and is intended for informational purposes only. Information and data may change after this date, and readers are encouraged to verify the accuracy and relevance of the information independently before making any decisions. The content provided by Kenneth & Co. does not constitute professional advice from the government, and readers are advised to consult with qualified professionals for specific guidance tailored to their individual circumstances. Kenneth & Co. disclaims any liability for any harm, loss, or inconvenience caused by the use of the information provided.
