Singapore is set to raise its salary benchmarks for the Employment Pass (EP) under the COMPASS framework, effective January 2025.
This move is aimed at attracting high-quality foreign talent while supporting the local workforce.
The Ministry of Manpower (MOM) announced these updates, which will impact both new EP applications and renewals.
The changes are part of a broader strategy to ensure businesses hire top-tier foreign professionals while maintaining fair competition with local talent.
The implementation will be phased, with the first changes taking effect in September 2024.
An Employment Pass (EP) is a work permit issued by the Singaporean government to foreign professionals who meet specific salary thresholds and possess relevant qualifications.
This pass is crucial for foreign workers seeking employment in Singapore, particularly in roles requiring specialized skills or expertise.
The revised salary benchmarks for EPs will apply to all new applications from January 1, 2025, and to renewals for EPs expiring on or after July 1, 2025.
The current salary table, released in May 2023, will remain applicable for initial EP applications through December 31, 2024, and for renewals for passes expiring between September 1, 2024, and June 30, 2025.
What is the COMPASS framework?
The COMPASS framework is a transparent, points-based system designed to simplify the hiring process for foreign professionals while promoting diversity in the workforce and supporting the local labour market.
Employers must accumulate at least 40 points under COMPASS to secure an EP for their candidates.
Professionals earning a fixed monthly salary of SGD 22,500($17,168) or more are exempt from COMPASS, similar to the exemption under the Fair Consideration Framework (FCF) for job advertising.
What we know
Under the C1 salary criteria, EP candidates must earn a fixed monthly salary that meets or exceeds the 65th percentile of local Professionals, Managers, Executives, and Technicians (PMET) salaries within their sector.
This benchmark is distinct from the EP qualifying salary, which sets the minimum requirement for obtaining an EP. Candidates who do not meet the EP qualifying salary are ineligible for an EP, regardless of the points they may accumulate under the C1 salary criteria.
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, which progressively increases with age, up to SGD 10,500($8,011) for candidates aged 45 and above.
Also for Financial Services a minimum of SGD 5,500 per month, with increases up to SGD 11,500($8.775) for candidates aged 45 and above.
From January 1, 2025, the EP qualifying salary for new applications will be revised to SGD 5,600($4,273) for general sectors and SGD 6,200($4,729) for financial services. These revised salaries will apply to EP renewals starting January 1, 2026.
What this means for Foreign Professionals
- These revised benchmarks suggest a more competitive landscape for foreign professionals seeking employment in Singapore.
- The changes mean that candidates will need to meet higher qualifications, experience, and salary levels to secure an EP. Employers will also need to adjust their hiring strategies to meet the new requirements.
- Employers must stay informed about these changes to the EP application process and the COMPASS framework. They will need to ensure that they meet the new criteria when hiring foreign professionals, particularly regarding salary thresholds and points accumulation under the COMPASS system.
- The updates reflect Singapore’s ongoing efforts to balance the needs of businesses with the development of a strong local workforce.
