Singapore’s Ministry of Manpower (MOM) has introduced important updates to the (EP) application process, effective in phases starting from September 2024. These changes are designed to attract top global talent while ensuring fair competition with local professionals.
What is an Employment Pass?
The Employment Pass (EP) is a work permit for foreign professionals in Singapore. Applicants must meet salary and qualification criteria to qualify.
Key Changes to Salary Benchmarking
- New EP Applications: Updated salary benchmarks will apply to all new EP applications from January 1, 2025.
- EP Renewals: These new benchmarks will also apply to EP renewals for passes expiring on or after July 1, 2025.
- The current salary benchmarks, introduced in May 2023, will remain valid for applications submitted by December 31, 2024. For renewals, the existing benchmarks apply to passes expiring between September 1, 2024, and June 30, 2025.
The COMPASS Framework
The COMPASS system is a points-based method that simplifies hiring foreign professionals while encouraging workforce diversity and supporting local talent. Employers must score at least 40 points under COMPASS to qualify for an EP. Professionals earning a fixed monthly salary of at least SGD 22,500 are exempt from COMPASS, similar to the Fair Consideration Framework (FCF) job advertising exemption.
C1 Salary Criteria
Candidates must earn a monthly salary that is at least equal to the 65th percentile of local PMET (Professionals, Managers, Executives, and Technicians) salaries in their industry. If candidates fail to meet the required EP qualifying salary, they are ineligible, even if they meet the C1 salary criteria.
EP Qualifying Salary Requirements
The salary thresholds for new applications and renewals are as follows:
- General Sectors: At least SGD 5,000 per month (increasing with age, up to SGD 10,500 for candidates aged 45 and above).
- Financial Services: At least SGD 5,500 per month (increasing with age, up to SGD 11,500 for candidates aged 45 and above).
From January 1, 2025, the qualifying salary for new applications will rise to SGD 5,600 for general sectors and SGD 6,200 for financial services. These thresholds will apply to EP renewals starting January 1, 2026.
Impact on Foreign Workers
These changes will make the job market more competitive for foreign professionals in Singapore. Candidates will need to demonstrate higher qualifications, experience, and salary levels to secure an EP. Employers will also need to adjust their hiring practices to meet the new criteria.
