Singapore has updated its salary benchmarks for the Employment Pass (EP) under the COMPASS framework, effective from January 2025. The new criteria will impact EP applications and renewals, ensuring businesses hire top foreign professionals while fostering a strong local workforce. Singapore’s Ministry of Manpower (MOM) has announced significant changes to the Employment Pass (EP) application process. The updates, aimed at attracting high-quality talent while ensuring fair competition with local professionals, will come into effect in phases starting from September 2024.

What is an Employment Pass?
Before diving into the recent changes, let’s quickly understand what an Employment Pass (EP) is. An EP is a work permit issued by the Singaporean government to foreign professionals who wish to work there. One typically needs to meet specific salary thresholds and possess relevant qualifications to qualify.

Key Changes in the Salary Benchmarking Table
1.New EP Applications: The revised salary benchmarks will apply to all initial EP applications starting January 1, 2025.
2.EP Renewals: The new benchmarks will also apply to renewals of EPs that expire on or after July 1, 2025.

The previous salary benchmark table, released in May 2023, will remain applicable to initial Employment Pass applications filed through December 31, 2024. For EP renewal applications, the current table will apply to passes expiring between September 1, 2024, and June 30, 2025.

The COMPASS Framework
COMPASS is a transparent, points-based system that simplifies hiring foreign professionals while promoting workforce diversity and supporting the local labour market. To secure an Employment Pass (EP), employers must accumulate at least 40 points under COMPASS. 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 Explained
Under the C1 salary criteria, candidates must earn a fixed monthly salary that meets or exceeds the 65th percentile of local Professionals, Managers, Executives, and Technicians (PMET) salaries in their sector. This salary benchmark is distinct from the EP qualifying salary, which serves as the minimum requirement for obtaining an EP. Candidates who fail to meet the EP qualifying salary are ineligible for an EP, regardless of how many points they earn under the C1 salary criteria.

EP Qualifying Salary Requirements
For both new applications and renewals, candidates must meet the following qualifying salary thresholds:
1. General Sectors: At least SGD 5,000 per month (progressively increasing with age, up to SGD 10,500 for candidates aged 45 and above).
2. Financial Services: At least SGD 5,000 per month (progressively increasing with age, up to SGD 10,500 for candidates aged 45 and above).

From January 1, 2025, the EP qualifying salary for new applications will be revised to SGD 5,600 for general sectors and SGD 6,200 for financial services. These revised salaries will apply to EP renewals starting January 1, 2026.

What Does This Mean for Expats?
These changes signal a more competitive job market for foreign professionals in Singapore. To secure an EP, individuals must demonstrate higher qualifications, experience, and salary. Employers will also need to adjust their hiring strategies to meet the new requirements.

Final Thoughts
The revised salary benchmarks and qualifying criteria for the Employment Pass reflect Singapore’s ongoing efforts to balance the needs of businesses with the development of a strong local workforce. Employers should stay updated on the COMPASS framework and salary requirements to ensure successful EP applications moving forward.