Singapore manages foreign labor with the COMPASS points framework for professionals and Dependency Ratio Ceilings (DRC) for skilled workers — one of Asia’s most sophisticated quota systems. Vietnam, by contrast, has no hard percentage quota at any level. For a company bringing 50 specialists, this difference shapes the entire hiring strategy.
Singapore: COMPASS for EP, DRC + levy for S Pass
Employment Pass (EP) — professionals/managers: minimum salary SGD 5,600/month (financial services: 6,200), and at least 40 COMPASS points (salary, qualifications, workforce diversity, local PMET share…). The EP has no quota and no levy — but COMPASS is the “soft quota”: firms with too many foreigners lose points on diversity and local PMET share.
S Pass — mid-skilled workers: minimum salary SGD 3,300/month, subject to a DRC sub-cap: 10% for services, 15% for other sectors (of total workforce). Plus a levy of SGD 650/person/month. Sector DRCs: services 35%, manufacturing 60%, construction 83.3%.
The key point: Singapore does not ban hiring foreigners, but each additional hire has a “price” — in COMPASS points, in levy, or in hitting the DRC ceiling.
Vietnam: no hard quota — the barrier is “need” and “advertising”
Vietnam has no DRC, no levy, no points framework. But Decree 219/2025/ND-CP (effective 07/8/2025) controls through two different tools:
First, foreign-labor demand approval: the employer must show locals cannot fill the position — now integrated into the permit process, decided within 10 working days. Second, 05 business days of job posting before signing a labor contract with a foreigner in Vietnam (ICTs and service contracts exempt).
In other words: Vietnam does not count “what percentage” — it asks “is it genuinely needed.” For 50 specialists with clear degrees and experience, this door is usually easier than a hard quota — but the supporting dossier must be real.
Side by side: arithmetic quotas vs qualitative control
Quotas: Singapore — sector DRCs (35–83.3%) + S Pass sub-caps (10–15%); Vietnam — none. Per-head cost: Singapore — SGD 650/month levy for S Pass, plus high salary floors; Vietnam — no levy, no separate salary floor for foreign workers.
The surprising similarity: both “punish” over-reliance on foreign labor indirectly — Singapore through COMPASS (nationality diversity, local PMET share), Vietnam through posting and demand proof. Every employer must answer: why not hire locals?
Timing: Singapore — EP via COMPASS typically 3–8 weeks; Vietnam — 10 working days (demand approval integrated).
Practical recommendations
First, sending specialists to Singapore: run a trial COMPASS score before signing offers — SGD 5,600 is only the necessary condition; 40 points is the sufficient one. Second, sending them to Vietnam: prepare a thorough demand-justification dossier (job description, degree/experience requirements, posting results) — this is “COMPASS, Vietnamese edition.” Third, for 50 specialists, classify correctly in Singapore: those meeting EP standards should get EPs (no quota, no levy); do not let a specialist drop to S Pass because of a low declared salary — that means SGD 650/month levy plus the sub-cap.
Frequently asked questions
What does Singapore’s COMPASS score?
Four foundational criteria: salary (vs sector benchmark by age), qualifications, workforce diversity, share of local PMETs in the firm; plus two bonus criteria (skills bonus, strategic economic priorities). Minimum 40 points for an EP.
How does S Pass differ from EP?
EP is for professionals/managers (salary ≥ SGD 5,600, 40 COMPASS points, no quota, no levy). S Pass is for mid-skilled workers (salary ≥ SGD 3,300), subject to a 10–15% DRC sub-cap and SGD 650/month levy.
Does Vietnam cap the foreign-worker share?
No. Vietnam has no DRC or hard percentage quota at any level. The barrier is the demand-approval step (proving locals cannot fill the role) and 05 business days of job posting.
Is there a headcount limit for 50 specialists to Vietnam?
No statutory headcount limit. But each position goes through demand approval — for 50 positions, prepare a synchronized demand-justification dossier to avoid repeated queries per position.
Does Singapore’s levy apply to EP holders?
No. The EP carries no levy and no quota. The SGD 650/person/month levy applies only to S Pass (and Work Permit holders under separate sector rates).
For detailed advice on bringing specialists to Singapore or Vietnam, companies may contact FLAT Law Firm.
This article has been quality-reviewed by the FLAW AI Legal Council. Content was prepared by the FLAT Law Firm AI Legal Council and has not been reviewed by a human lawyer.