Significant changes have been made to the Employment Pass Singapore (EP) system. These changes aim to sustain a high-skilled foreign workforce while ensuring good job opportunities for Singaporeans.
Stage 1: EP Qualifying Salary
The following EP qualifying salary requirements apply to new applications and renewals:
- General Sectors: At least S$5,000 (increases progressively with age from age 23, up to S$10,500 at age 45 and above).
- Financial Services Sector: At least S$5,500 (increases progressively with age from age 23, up to S$11,500 at age 45 and above).
For EPs expiring from September 1, 2024, in addition to meeting the EP qualifying salary, they will also need to pass COMPASS to get their pass renewed. From January 1, 2025, the EP qualifying salary for new applications will be revised to at least S$5,600, and at least S$6,200 for the financial services sector. This revised EP qualifying salary will also apply to the renewal of EPs that are expiring from January 1, 2026.
Stage 2: Eligibility Framework
Candidates who do not meet Stage 1 will not be eligible for an EP, regardless of the points they would have scored under COMPASS. The 2-stage eligibility framework applies to new EP applications from September 1, 2023, and renewals of EPs expiring from September 1, 2024.
Strategic Changes To Employment Pass Singapore Holders
The Ministry of Manpower (MOM) reviews the Singapore EP qualifying salary annually against the set benchmark, as noted in their March 4 statement. Minister Tan See Leng mentioned that the adjustments provide companies with existing Singapore EP holders ample time to manage the impact of these changes and plan their hiring strategies accordingly, potentially extending until 2028. For first-time EP holders, the pass is valid for up to 2 years, while renewals can extend up to 3 years.
Dr. Tan explained that these dates were chosen after careful consideration. The decision was made in response to feedback from trade associations and chambers. They highlighted concerns about the rising costs of manpower and hiring constraints. He emphasized the importance of strengthening work pass Singapore framework to attract top talent while ensuring firms invest in developing their local workforce and treat local employees fairly.
COMPASS: New Scoring System for Employment Pass Singapore Applicants
COMPASS (Complementarity Assessment Framework) is a clear, points-based system. It is then designed to give businesses more certainty and transparency in their manpower planning. Thus, the system allows employers to hire top talents from all over the world. It also promotes workforce diversity. Additionally, it helps in strengthening the local talent pool.
Since September 1, 2023, new Singapore Employment Pass application have been assessed using COMPASS, with the system extending to renewals starting September 1, 2024. COMPASS evaluates candidates based on four key criteria:
- Salary
- Qualifications
- Workforce diversity
- Support for local employment
To successfully navigate COMPASS, applications will then need to achieve a minimum of 40 points. Additional points can be earned for positions on the Shortage Occupation List and for companies that collaborate with the government on innovative initiatives. Dr. Tan emphasized COMPASS’s success and mentioned that more than 440 companies have joined workshops to enhance their workforce strategies under this system.
Changes to Work Permit Framework
Additionally, changes to the work permit rules for the marine shipyard sector will commence on January 1, 2026. These changes aim to encourage the industry to be more productive and resource-efficient in their activities. The maximum allowed ratio of foreign workers to local workers will be reduced from 77.8% to 75%, and the levy for basic-skilled and higher-skilled work permits will increase.
Conclusion
These extensive changes to Singapore’s work pass framework aim to maintain a high-skilled foreign workforce. The changes also ensure fair opportunities and competitive wages for local Singaporeans. By updating the Employment Pass Singapore qualifying salary, Singapore continues to attract top global talent. At the same time, Singapore supports the development of local professionals through overseas work experience initiatives.
For more information and assistance with your Employment Pass Application, we at Leader Employment are here to help. Contact us today to ensure your business stays compliant and competitive in Singapore’s evolving employment landscape.
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