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The fraud of employment pass
04 May 2017 (330 views)

Dear Mr. Tan
I heard your speech on May Day concerning the exemption of levy for employment pass (E Pass) holders. I wish to share this experience several years ago.

Many years ago, I wanted to employ a software developer on a S Pass at a salary of $2,000. I had to pay a levy which was around $300 at that time. (I cannot remember the exact figure).

I received an application from a foreigner. He suggested that I apply for a E Pass stating the salary at $2,500 to be exempted from the levy for the S Pass. At that time, the minimum salary for an E Pass was $2,500. He suggested that I could pay him the actual salary of $2,000 after getting the E Pass issued. This would allow me to save on the levy for the S Pass.

I felt uncomfortable about this suggestion as I could get into trouble for making a false statement. The applicant told me that this practice was quite common and many of his friends were working with other companies in Singapore on the same arrangement. 

I decided not to take the risk and declined to employ him.

MY COMMENT
I wonder if this practice is rampant? Is the Ministry of Manpower aware about this abuse? Are they able to detect it and take the appropriate action against the employer?

It is better for the government to close this loophole and impose a levy for E Pass holders similar or higher than the levy for S Pass.


 

The fraud of employment pass
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Dear Mr. Tan
I heard your speech on May Day concerning the exemption of levy for employment pass (E Pass) holders. I wish to share this experience several years ago.

Many years ago, I wanted to employ a software developer on a S Pass at a salary of $2,000. I had to pay a levy which was around $300 at that time. (I cannot remember the exact figure).

I received an application from a foreigner. He suggested that I apply for a E Pass stating the salary at $2,500 to be exempted from the levy for the S Pass. At that time, the minimum salary for an E Pass was $2,500. He suggested that I could pay him the actual salary of $2,000 after getting the E Pass issued. This would allow me to save on the levy for the S Pass.

I felt uncomfortable about this suggestion as I could get into trouble for making a false statement. The applicant told me that this practice was quite common and many of his friends were working with other companies in Singapore on the same arrangement. 

I decided not to take the risk and declined to employ him.

MY COMMENT
I wonder if this practice is rampant? Is the Ministry of Manpower aware about this abuse? Are they able to detect it and take the appropriate action against the employer?

It is better for the government to close this loophole and impose a levy for E Pass holders similar or higher than the levy for S Pass.


 
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