Singapore to Increase Salary Requirements for Foreign Worker Passes

Starting January 2025, Singapore will raise the salary benchmarks for Employment Pass (EP) applications as part of the COMPASS framework, a move aimed at attracting top-tier foreign talent while ensuring support for the local workforce.

The Ministry of Manpower (MOM) announced these changes, which will impact both new EP applications and renewals.

This adjustment is part of a broader strategy by the Singaporean government to ensure that businesses hire high-quality foreign professionals without compromising fair competition for local talent.

The rollout of these changes will be phased, with the first set of updates taking effect in September 2024.

What is the Employment Pass (EP)?

An Employment Pass (EP) is a work permit issued by the Singaporean government to foreign professionals who meet specific salary thresholds and possess the necessary qualifications.

It is essential for foreign workers seeking employment in Singapore, particularly in specialized roles requiring skills or expertise.

The new salary benchmarks for EPs will apply to all new applications from January 1, 2025, and to EP renewals for passes expiring on or after July 1, 2025.

The current salary requirements, which were updated in May 2023, will remain in effect for new EP applications until the end of 2024 and for renewals of passes expiring between September 1, 2024, and June 30, 2025.

Understanding the COMPASS Framework

The COMPASS framework is a transparent, points-based system that simplifies the hiring process for foreign professionals, promoting workforce diversity while supporting the local labor market.

Employers must accumulate at least 40 points under the COMPASS system to secure an EP for their candidates.

However, professionals earning a fixed monthly salary of SGD 22,500 ($17,168) or more are exempt from the COMPASS framework, similar to the existing exemption under the Fair Consideration Framework (FCF) for job advertising.

Key Changes in Salary Requirements

Under the revised C1 salary criteria, EP candidates must earn a fixed monthly salary that is at least equal to or above the 65th percentile of local salaries for Professionals, Managers, Executives, and Technicians (PMETs) within their industry.

This benchmark is separate from the EP qualifying salary, which sets the minimum pay required to be eligible for an EP.

For both new applications and renewals, candidates must meet the following qualifying salary thresholds:

• For General Sectors: A minimum of SGD 5,000 ($3,815) per month, increasing with age, up to SGD 10,500 ($8,011) for candidates aged 45 and above.
• For Financial Services: A minimum of SGD 5,500 per month, increasing to SGD 11,500 ($8,775) for candidates aged 45 and above.

Starting January 1, 2025, the EP qualifying salary for new applications will increase to SGD 5,600 ($4,273) for general sectors and SGD 6,200 ($4,729) for financial services. These new salary levels will also apply to EP renewals beginning January 1, 2026.

Impact on Foreign Professionals

These updated benchmarks indicate a more competitive environment for foreign professionals seeking employment in Singapore.

The higher qualifying salaries mean that candidates must meet more stringent qualifications, experience, and salary levels to secure an EP.

Employers must also adapt their hiring practices to align with the new requirements.

Employers should remain aware of these changes to the EP application process under the COMPASS framework.

Ensuring that they meet the updated criteria, particularly regarding salary thresholds and point accumulation, will be critical when hiring foreign professionals.

These updates reflect Singapore’s continued efforts to strike a balance between meeting business needs and fostering the growth of a strong local workforce.