Singapore is going to change the salary requirements for the Employment Pass (EP) as part of the COMPASS framework starting in January 2025.
This change is to help bring in skilled foreign workers while also taking care of local workers.
The Ministry of Manpower (MOM) shared these updates, which will affect new EP applications and renewals.
The updates are part of a big plan to make sure businesses hire top foreign workers but also keep fair competition with locals.
The first changes will start in September 2024, and then more changes will happen in January 2025.
An Employment Pass (EP) is a special work permit from the Singapore government for foreign professionals who earn a certain salary and have the right qualifications.
This pass is important for foreign workers who want to work in Singapore, especially in jobs that need special skills or knowledge.
The new salary rules for EPs will start for new applications on January 1, 2025, and for renewals of EPs that expire on or after July 1, 2025.
The current salary rules, shared in May 2023, will still apply for new EP applications until December 31, 2024, and for renewals for passes that expire from September 1, 2024, to June 30, 2025.
What is the COMPASS Framework?
COMPASS is a clear, points-based system to make hiring foreign professionals easier, while promoting a diverse workforce and supporting local workers.
Employers must get at least 40 points under COMPASS to get an EP for their candidates.
Professionals who earn a fixed monthly salary of SGD 22,500 ($17,168) or more do not have to worry about COMPASS, similar to the exemption under the Fair Consideration Framework (FCF) for job advertising.
What We Know
For the C1 salary criteria, EP candidates must earn a fixed monthly salary that is at least as much as the 65th percentile of local Professionals, Managers, Executives, and Technicians (PMET) salaries in their sector.
This benchmark is different from the EP qualifying salary, which is the minimum requirement to get an EP. Candidates who don’t meet the EP qualifying salary can’t get an EP, no matter how many points they have under the C1 salary criteria.
For both new applications and renewals, candidates must meet these salary thresholds: For General Sectors, a minimum of SGD 5,000 ($3,815) per month, which goes up with age, reaching SGD 10,500 ($8,011) for candidates aged 45 and older.
For Financial Services, a minimum of SGD 5,500 per month, which increases to SGD 11,500 ($8,775) for candidates aged 45 and older.
Starting 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 new salary rules will apply to EP renewals starting January 1, 2026.
What This Means for Foreign Professionals
- These new rules mean it will be more competitive for foreign professionals to get jobs in Singapore.
- Candidates will need to have better qualifications, more experience, and higher salaries to get an EP. Employers will also need to change their hiring plans to meet the new rules.
- Employers must stay updated on these changes to the EP application process and the COMPASS framework. They need to meet the new criteria when hiring foreign professionals, especially regarding salary thresholds and COMPASS points.
- The updates show that Singapore is working to balance the needs of businesses with the growth of a strong local workforce.