There are 202,100 workers on employment pass in Singapore, according to SingStat data. Singapore is a global hub that attracts foreign talents from countries around the world including Malaysia.
As a Malaysian working in Singapore, you will probably need to make certain arrangements and decisions relating to your finances and other aspects of your life. Here’s a roadmap of important financial events for Malaysian workers on an employment pass.
Before Getting An Employment Pass
In Singapore, foreigners who want to work here need to have a valid work pass before they start work.
One such pass is the Employment Pass, which is for foreign professionals, managers and executives who earn at least S$5,000 (or S$5,500 for the financial services industry) a month.
Candidates also need to score 40 points on the Complementarity Assessment (COMPASS) to obtain an Employment Pass.
If you fulfill the mentioned eligibility requirements, an employer or employment agency may apply for an Employment Pass on your behalf with the Ministry of Manpower (MOM) Singapore. You will need to provide written consent to your employer to apply for the Employment Pass.
After obtaining approval from the ministry, your employer will send you a copy of an in-principal approval (IPA) letter, a pre-approved single-entry visa for you to enter Singapore and complete the process for pass issuance. You need to print out the IPA letter to show to the immigration officer at your arrival in Singapore.
The IPA letter will also state if you need to perform medical examinations upon your arrival to Singapore.
After arriving in Singapore, you will need to get your pass issued within six months of getting the IPA letter.
To get your pass issued, you will need to present the following documents:
- Candidate’s passport details
- Candidate’s Singapore contact details
- Candidate’s current Short-Term Visit Pass (STVP) or immigration pass details
- Candidate’s Singapore residential address, which must meet the housing requirements
- Singapore residential or office address to receive the candidate’s card
- Details of up to three authorised recipients to receive the card (their mobile number and NRIC number, FIN or passport number)
Once your pass is ready, you and your employer will be given a letter of notification via email. You can now officially start working in Singapore.
The letter of notification will state whether you need to register fingerprints and photo. If you’re required to do so, you must complete the registration in two weeks at the Employment Pass Services Centre (EPSC) after the pass issuance.
Within five days after your fingerprint registration or document verification, your pass card will be delivered to you.
Becoming An Employment Pass Holder
Employment Pass holders can work in Singapore for a continued period of time. The validity period of an Employment Pass is two years for first-time applicants, and can be renewed for up to three years.
Experienced tech professionals with skills in shortage may apply for a longer five-year validity Employment Pass.
As an Employment Pass holder, you also can become a shareholder of a Singapore-registered company.
You can apply for a SingPass account to access various government and private services.
Employment Pass holders have the option of renting and staying in HDB flats or private residential premises.
You’re also eligible to get a Dependent Pass or Long-Term Visit Pass for your family members including your spouse, children or parents to join you in Singapore. To be eligible, you need to have a minimum salary of S$6,000. Your children who have a valid pass mentioned earlier will be able to study in any school in Singapore.
Additionally, you’re covered under the Work Injury Compensation Act (WICA), which allows you to make medical claims should you suffer from an injury or disease from work.
Your employer is not obligated to buy medical insurance for you, but he can offer it to you as part of your work benefits. You can also purchase your own medical insurance if you like.
You’re not required to contribute to the Central Provident Fund (CPF) but if you want to voluntarily save for your retirement, you can do so through the Supplementary Retirement Scheme (SRS).
Investing In Supplementary Retirement Scheme
The Supplementary Retirement Scheme (SRS) was introduced to help people in Singapore including foreign residents save for their retirement.
It is a voluntary scheme which allows you to contribute up to S$35,700 per year to your account as often as you like, and enjoy a dollar-to-dollar tax relief.
For example, if you contribute S$35,700 to SRS, you also enjoy an automatic tax relief of up to S$35,700 for that year.
The savings in your SRS account earns an interest of 0.05% p.a. You can also use the contributions to invest in other investment vehicles for potential higher earnings.
You can open an SRS account at any of the three banks – DBS, OCBC Bank and UOB – by presenting your passport.
As SRS was meant to help you save for retirement, withdrawal of savings in the SRS account prior to retirement age can result in a 5% penalty for Singapore citizens and foreigners.
For foreigners who want to leave the country, you can withdraw your savings or manage your account from abroad. Foreigners who withdraw their savings before retirement can get the 5% penalty waived if they have maintained the SRS account for at least 10 years and are making a full withdrawal.
Depending on the type of withdrawal made and your status as tax resident or non-resident, you will be charged with withholding tax for the withdrawal.
Leaving Your Job In Singapore
After working with your employer for a period of time, you may want to move on to another job. In this case, your existing pass will be cancelled upon the approval of your new pass.
If you’re leaving your job and returning to Malaysia, your employer will cancel your Employment Pass within a week after the last day of notice. Before that, your employer will need to give you a notice period and get you an air ticket with check-in luggage, unless stated otherwise.
Your dependents’ passes will also be cancelled.
Read Also: Guide To Work Passes In Singapore: Work Permits, S Pass and Employment Pass (EP)
The post Malaysians On Employment Pass: Roadmap To Financial Decisions You Have To Make appeared first on DollarsAndSense.sg.
