Difference Between an S Pass v Employment Pass in Singapore

If you’re running a business in Singapore and considering hiring talent from abroad, you’ll need to secure the appropriate work permits for your employees. The S Pass and the Employment Pass (EP) are two options that enable foreign nationals to work legally in Singapore. In making this decision, you may wonder, “Which is better, S pass or E pass?”

In this article, we’ll explore the difference between S Pass and E Pass in detail to guide you in choosing the one that aligns with your business needs.

Employment Pass: Eligibility & Requirements

It can get confusing when determining the right pass for your employees. To better understand the distinctions between an S Pass vs E Pass, let’s first clarify what an Employment Pass entails and its specific eligibility criteria.

Who it is for:

Individuals with expertise in high-level roles and have been offered a job in Singapore. You may refer to the Ministry of Manpower’s list of standard occupational roles for EPs. 

Eligibility criteria for employees:

• Must have a confirmed employment offer in Singapore.
• Must have a managerial, executive, or specialised job position.
• Has a minimum salary of S$5,000 that increases with the candidate’s age or may vary depending on the specific sector. 

• Holds a recognised university degree and possesses professional skills and qualifications.

Minimum qualifying salary 

Currently, Singapore’s minimum qualifying E Pass salary is S$5,000 monthly, which increases with age. For the financial services sector, it begins at S$5,500. However, starting in January 2025, these figures will rise to S$5,600 and S$6,200, respectively, with potential increases reaching S$10,700 and S$11,800 for applicants in their mid-40s.

Who can apply for an employment pass?

An Employment Pass can be applied for by the employer through an online application or by an appointed employment agent.

What’s the validity period or duration of an employment pass?

• First-time candidates: The Employment Pass is valid for up to two years.
• Renewals: Renewed passes can be valid for up to three years.
• Tech professionals with in-demand skills: May qualify for a five-year pass if they meet the relevant criteria.

Is there a quota for employment pass applications?

There is no quota system for Employment Pass applications.

Is there a levy for E Pass?

There is no foreign worker levy required for E Pass holders. However, E Pass holders may still be required to pay income tax.

S Pass: Eligibility & Requirements

Now, let’s explore below what is S Pass and understand its eligibility criteria:

Who it is for:

Mid-skilled foreign workers seeking employment in Singapore.

S Pass Eligibility Criteria for Employees

• Must have a job offer in Singapore.
• Must earn a monthly salary of at least S$3,150, with higher salaries required for older and more experienced candidates.
• Hold a degree, diploma, or technical certificate requiring at least one year of full-time study.
• Possess relevant work experience for the S Pass job role.

Minimum qualifying salary

Starting from 1 September 2024, the minimum salary for new S Pass applications is S$3,150, increasing progressively with age up to S$4,650 for candidates aged 45 and above. For the financial services sector, the minimum starts at S$3,650, rising to S$5,650 for older candidates. 

These figures are expected to further increase by September 2025, with minimum salaries expected to be S$3,300 for non-financial sectors and S$3,800 for financial services.

Who can apply for an S Pass?

An employer or an authorised employment agent can submit an S Pass application on behalf of the candidate.

Is there a quote for S Pass applications?

Singapore imposes sector-specific quotas to manage the proportion of S Pass holders within companies:

• The services sector in Singapore restricts S Pass holders to up to 10% of the total company workforce.
• In the construction, marine shipyard, manufacturing, and process sectors, the limit is up to 15% of the total company workforce.

Is there a levy for S Pass?

Employers are required to pay a levy for their foreign employees working under an S Pass, beginning on the pass’s issuance date and continuing until it is cancelled or expires.

Minimum Required Documents for the Application

When applying for either an Employment Pass or an S Pass in Singapore, applicants and employers need to prepare these basic set of documents:

• The candidate’s passport’s personal particulars page.
• The most recent business profile or instant information registered with the Accounting and Corporate Regulatory Authority (ACRA).
• Relevant academic qualifications such as degrees or diplomas.

How Much Levy is Required for Hiring an S Pass Holder?

For the services sector, the levy rates for S Pass holders are outlined in the table below:

NOTE: Should your company temporarily exceed the 10% quota for S Pass holders in the services sector due to workforce changes, the Tier 2 levy rate will apply to the additional S Passes. 

For other sectors, the S Pass levy rates are as follows:

What is the daily levy rate?

The daily levy rate only applies to S Pass holders who have not worked a complete calendar month. To calculate this rate: (Monthly levy rate x 12) / 365, and then rounded up to the nearest cent.

Steps To Apply For an Employment Pass or S Pass for Your Employee

Here’s a quick guide for employers to apply for an Employment Pass or S Pass in Singapore:

• Advertise the job: Post the job on a government-approved job portal and ensure the job title and description match those on the qualified Employment Pass or S Pass job application.
• Keep the advertisement active: The job ad must remain active for at least 28 days. If any adjustments are made to the job details, the advertisement must be re-posted for an additional 28 days from the update.
• Submit the application: After the job has been advertised for 28 days, you can submit the application on the 29th day. Applications must be filed within three months of the job being posted.
• Apply online: Use the Ministry of Manpower’s official online portal to apply for an Employment Pass or S Pass.

Navigating Work Pass Applications: Ensuring Compliance and Expertise

As we’ve explored the key differences between S Pass and E Pass, you can now streamline your decision-making process in hiring foreign talent. 

For businesses looking to navigate the complexities of work pass applications effectively, Singapore Corporate Services (SCS) stands ready to assist. Here, we provide expert guidance in managing employee visas, including E Pass and S Pass applications. Additionally, we offer business incorporation services, making the setup of new ventures seamless while aligning with employment and visa requirements. 

By partnering with an experienced corporate service provider like us, you can ensure full compliance with local regulations and optimise your workforce strategy. 

NOTE: The information provided in this article is accurate as of its publication date. As regulations are subject to change, we recommend contacting us for the latest information specific to your needs.

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