As the world’s third-largest financial center, Singapore has become a top choice for companies establishing overseas operations and for talent seeking job opportunities due to its advantages in geographical location, policy environment, and cultural atmosphere. Professionals and top talent gather in this tropical island nation, bringing endless business vitality, work motivation, and a high quality of life. For work visas in Singapore, high-end professionals with specialized skills have certainly heard of the Personalised Employment Pass (PEP) and the Employment Pass (EP), and may have considered which one to apply for. In this article, we will clarify the similarities, differences, pros, and cons of both.
For company founders, managers, and senior executives, the applicable visas for high-level positions include the Employment Pass (EP), EntrePass, and the Personalised Employment Pass (PEP). The main differences among these three lie in the required salary thresholds, company sponsorship, and job flexibility.
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Similarities Between Personalised Employment Pass (PEP) and Employment Pass (EP)
We often refer to the Personalised Employment Pass (PEP) as the “premium version of the Employment Pass (EP)” because the application requirements for the PEP are higher and it offers the most flexibility. However, this description isn’t entirely accurate, as the PEP also has its own limitations to some extent.
The PEP, like the EP, is not subject to the foreign employee quota or the Foreign Worker Levy. The biggest difference from the EP is that it does not require company sponsorship or an employer to apply on your behalf. While holding a PEP, you can change jobs without needing to reapply for a work visa, and you are allowed to stay in Singapore for up to six months after it expires to find a new job. Therefore, PEP holders can switch jobs effortlessly without needing to apply for a new entry visa or other Singapore visas.
Note: Freelancers or self-employed individuals are not eligible to apply for a PEP. While holding a PEP, you are not allowed to start a business in Singapore, including being an employee of your own company or engaging in entrepreneurial activities. (If applicants have entrepreneurial needs, they can consider the EntrePass or the Overseas Networks & Expertise Pass.)
Personalised Employment Pass (PEP) and Employment Pass (EP) Differences
| Personalised Employment Pass (PEP) | Employment Pass (EP) | |
| Sponsorship and Employer | Eligible individuals can apply for the PEP themselves, without going through an employer. | Must have a job in Singapore and apply for the EP through an employer. |
| Salary Threshold | PEP applicants must have a fixed monthly salary of SGD 22,500 or more, placing them in the top 10% of EP holders.
Annual salary must exceed SGD 270,000. |
Fixed monthly salary of SGD 5,000 or more (for non-financial industries).
Fixed monthly salary of SGD 5,500 or more (for the financial industry). |
| Education Threshold | No | Must have a university degree (or higher) recognized by Singapore. |
| Position | Very high-end positions based on the applicant’s personal abilities. | Professionals in managerial or executive roles are also eligible. |
| Is a job offer in Singapore required to apply? | Not necessary. | The applicant needs a job in Singapore to be granted an Employment Pass. |
| Validity and Renewal | Can only be applied for once for a 3-year period. After expiry, it can be converted to an EP or S Pass. | The visa is valid for 2 years and can be renewed for 3 years at a time. |
| Does it use the company’s foreign employee quota? | No | No |
| Is it subject to the Foreign Worker Levy? | No | No |
| Can you start a business? | Not allowed. Please consider applying for other passes. | An Employment Pass (EP) holder can start their own business, which can then sponsor their EP. |
| Can you be a director or shareholder in a company? | No | Yes |
| Can you apply for dependant visas? | Allows family members to enter Singapore on a Long Term Visit Pass (LTVP) or Dependant’s Pass (including adopted children or common-law spouses). | Allows family members to enter Singapore on a Long Term Visit Pass (LTVP) or Dependant’s Pass (including adopted children or common-law spouses). |
| Ineligibility conditions | You cannot apply for a PEP if you are:
An EP holder; A freelancer or working in a freelance capacity; A business owner, partner, director, or shareholder in a company registered with ACRA (Accounting and Corporate Regulatory Authority); A journalist, editor, sub-editor, or producer.
|
You cannot apply for an EP if:
You do not score at least 40 points under the COMPASS framework. |
| Can you work outside of Singapore? | Yes, you can work outside of Singapore for your Singaporean employer.
However, if you plan to leave Singapore for more than 6 months to work for an overseas employer, you should cancel your PEP. |
No. The applicant can be outside Singapore when the application is submitted but must have a job offer in Singapore. They must be in Singapore to collect the card. |
Summary
The Personalised Employment Pass (PEP) and the Employment Pass (EP) are distinctly different work passes targeted at different types of applicants. Before applying, you must carefully consider the differences, advantages, and disadvantages between these two work passes, as well as the requirements for each. If you have any questions about this, you can contact our professionals for clarification.
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