There are many reasons a business would hire foreigners as compared to local workers. The benefits can range from hiring niche talents, saving costs, diverse international market knowledge as well as diversifying the work environment and ideas. However, as attractive as it may be, there are regulations involved to control the number of foreigners employed in Singapore. This article shares a deeper insight on how to hire foreign employees in 2021.

To work in Singapore, a foreigner has to be issued a Singapore Employment Pass, any individual caught working without the pass will be sent back and barred from entering the country for up to 2 years. Employers will also be issued a hefty fine of up to $20,000 or jailed up to 2 years.  To apply for the employment pass, local companies as well as the candidates will have to meet strict requirements pertaining to quota, qualifications, eligibility and costs.

To add to the complexity on how to hire foreign employees, there are also multiple types of work passes depending on a candidate’s qualification, salary, experience and employment period. Last year in 2020, the government added more restrictions by increasing the salary requirement for candidates applying for work passes. It will now cost employers roughly $500 more to hire a foreigner and employers in the financial industry are restricted even further with a $1000 increase to the salary requirement.

Let’s take a look at some of the types of work passes issued in Singapore:

1) S Pass

The S Pass is issued to mid-skilled level candidates. The minimum salary requirement has seen a steady increase from $2,200 to $2,300 in January 2019 till the recent increment to $2,500 in October 2020. The S Pass also requires the candidate to possess a minimum qualification of a degree or diploma. To summarise the requirements for an S Pass:

Category: Mid-skill level workers
Salary Requirement: Minimum monthly salary of $2,500 and above. Older candidates with more experience may require higher salaries to be eligible.
Qualifications: Minimum qualification of a diploma or degree.

2) E Pass (Employment Pass)

The E Pass has a higher requirement compared to the S Pass. Intended for professionals with a job offer in Singapore whose position is that of an executive, manager or in a specialised role. With a minimum salary requirement of at least $4,500 a month with older and more experienced candidates requiring more. This however differs for positions in the financial sector, requiring a minimum monthly salary requirement of $5,000 instead. The candidates are also required to have a professional recognised degree.

Category: Executive, manager or specialised roles
Salary Requirement: Minimum monthly salary of $4,500 and above. Financial sectors are required to compensate a minimum monthly salary of $5,000 and above. Older candidates with more experience may require higher salaries to be eligible.
Qualifications: Minimum qualification of a professional degree.

3) Work Permit for Foreign Worker

Under this category, businesses can hire semi-skilled foreign workers from approved countries to work in the construction, manufacturing, marine shipyard, process or services sector only. Employers are also needed to pay a monthly levy for each worker which is dependent on their qualifications and employment sector. There is also a quota depending on the business sector which is measured by a ratio of foreign to the total workforce.

Category: Semi-skilled workers in the construction, manufacturing, marine shipyard, process or services sector only.
Salary Requirement: No minimum salary requirement.
Qualifications: No minimum qualifications requirement.

With the differing requirements and categories, it may be confusing for businesses to handle the entire process required on how to hire foreign employees. Thus, it is advisable for companies looking at hiring foreigners to partner with a human resources company in Singapore. Aside from being well-versed in the policies and requirements, partnering with a HR consulting firm in Singapore will not only save you costs but also increase your overall recruitment efficiency and effectiveness.

With many HR consulting firms in Singapore, it is crucial to find one that complements your business model and needs. At Talentspot, besides the capabilities of our consultants and the investment in HR technology, we recognise that all businesses have different needs – which is why we’ve implemented options to allow businesses to customise our human resources outsourcing services

Despite the current changes to limit the hiring of foreigners, Talentspot has maintained our success in this field. With a broad range of quality partners worldwide and over 500 employees in the Asia-pacific region, we’ve managed to always meet our objectives – making Talentspot a leading human resources solutions provider in Singapore.