Singapore Employment Pass 2024: New Rules & Salary Requirements

With effect from January 2025, Singapore has revised its Employment Pass (EP) pay criteria under the COMPASS system. The new requirements will affect EP applications and renewals, guaranteeing that companies hire the best international experts while developing a robust local workforce.

The Employment Pass (EP) application procedure has undergone significant changes, as revealed by Singapore’s Ministry of Manpower (MOM). The changes will take effect gradually beginning in September 2024 and are intended to draw top talent while maintaining fair competition with local pros.

Overview: Employment Pass

Before delving into the latest modifications, let us first clarify what an Employment Pass (EP) is. The Singaporean government grants work permits, known as EPs, to foreign professionals who want to work there. Usually, to be eligible, one must meet certain wage requirements and have the necessary credentials.

Notable Modifications to the Salary Benchmarking Table

• New EP Applications: Beginning on January 1, 2025, all initial EP applications will be subject to the updated wage criteria.
• EP Renewals: Renewals of EPs expiring on or after July 1, 2025, will likewise be subject to the revised criteria.

The initial Employment Pass applications submitted through December 31, 2024, will still be eligible to use the prior pay benchmark table, which was published in May 2023. The present table will be used for EP renewal applications for passes that expire between September 1, 2024, and June 30, 2025.

The COMPASS Framework

A transparent, point-based system called COMPASS makes it easier to hire international experts while fostering diversity in the workforce and bolstering the local labor market. Employers need to accrue at least 40 points under COMPASS to obtain an Employment Pass (EP).

Professionals receiving a fixed monthly income of SGD 22,500 or more are immune from COMPASS, much like job advertisements are under the Fair Consideration Framework (FCF).

C1 Salary Criteria

Candidates must have a set monthly pay under the C1 salary criteria, which must equal or above the 65th percentile of local Professionals, Managers, Executives, and Technicians (PMET) earnings in their industry.

This income benchmark is not to be confused with the EP qualifying wage, which is the lowest amount needed to be eligible for an EP. No matter how many points a candidate receives under the C1 pay criteria, they are not eligible for an EP if their salary does not meet the EP qualifying wage.

EP Qualifying Salary Requirements

The qualifying wage thresholds listed below must be met by candidates for both new applications and renewals:

• In the general sector, the minimum monthly salary is SGD 5,000 (which increases with age to SGD 10,500 for applicants 45 years of age and up).
• Financial Services: A minimum of SGD 5,500 per month (up to SGD 11,500 for candidates 45 years of age and above, since income increases with age).

The amended EP qualifying wage for new applications will be SGD 5,600 for general industries and SGD 6,200 for financial services as of January 1, 2025. The higher salary will be implemented for EP renewals on January 1, 2026.

How Does This Affect Foreigners?

These adjustments portend a more competitive Singaporean labor market for overseas professionals. People need to show better credentials, more experience, and higher pay to get an EP. To comply with the new regulations, employers will also need to modify their hiring practices.

Conclusion

The updated Employment Pass qualification requirements and pay benchmarks are a reflection of Singapore’s continuous efforts to strike a compromise between corporate demands and the growth of a skilled local labor force. To ensure that EP applications are successful going forward, employers should be informed of the COMPASS framework and pay standards.