October 12, 2011

On October 3, 2011, the Ministry of Manpower (MOM) announced its review of all work pass administrative fees. By December 1, 2011, the MOM intends to increase the administrative fees for issuing and processing most work passes. These fees will be charged on a transactional basis versus an annual basis and will prompt Singaporean sponsoring companies to use the Work Pass Online electronic filing system versus making manual submissions.

What’s Changed?

The MOM is making changes as it moves towards full cost recovery for the Ministry’s work pass operations and services. The administrative fees for most work passes will be increased on primarily Employment Pass and “S” work pass applications filed on or after December 1, 2011. Readers are invited to review further details at the following:

http://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=389

The primary change for Singaporean sponsors to consider is that issuance fees for several of the traditional work passes will not only increase in amount, but will also be charged on a per transaction basis versus being charged once a year.  As issuance fees for both the Employment Pass and “S” Pass will be increased to $120 and $70, respectively, on a per transaction basis, disbursement costs could rise significantly for Singaporean sponsors.

ACTION ITEMS FOR EMPLOYERS 

As filing and issuance fees could dramatically raise disbursement costs for high-volume Singaporean sponsors, companies should review the detailed new fees and possibly revise end of year budgets accordingly. The new fee schedules can be found at the following:

http://www.mom.gov.sg/Documents/press-releases/2011/Changes%20to%20the%20Work%20Pass%20Admin%20Fees%20-%20Annex%20A.pdf

This news alert was provided in coordination with our Pro-Link GLOBAL Singapore office.

Caveat Lector | Warning to Reader 

This content is provided for general information purposes only and does not constitute legal advice or final guidance for any immigration matter. Readers are reminded that a country’s immigration laws and requirements may change with little to no advance public notice.