As Singapore continues to evolve as a hub for global businesses, the government has been making progressive changes to the Employment Pass (EP) eligibility criteria to ensure that local companies have access to the right talent pool to support their growth.
A two-stage eligibility framework was introduced by the Ministry of Manpower (MOM), effective 1 September 2023, to assess EP applications. Stage 1 is to meet the EP qualifying salary; Stage 2 is to pass the points-based Complementarity Assessment Framework (COMPASS).
Stage 1: Meeting the EP Qualifying Salary
Effective 1 January 2025, the minimum qualifying salary for new Employment Pass (EP) applications will be raised to SGD 5,600 per month for all sectors, and SGD 6,200 for the Financial Services sector. This change will also apply to all EP renewal applications submitted on or after 1 January 2026. The qualifying salary will increase progressively with age, reaching up to SGD 10,700 for all sectors and SGD 11,800 for the Financial Services sector at age 45 and above.
In August 2024, the Ministry of Manpower (MOM) released the upcoming salary benchmarks for local Professionals, Managers, Executives, and Technicians (PMETs), which will influence the C1 Salary criterion in the COMPASS framework. This will apply to new EP applications from 1 January 2025 and renewals of EPs expiring from 1 July 2025.
These adjustments aim to ensure that EP holders are comparable to the top one-third of the local PMET workforce, maintaining a fair and competitive job market. Employers are advised to ensure they meet the new salary thresholds when renewing their EP holders, as failing to do so may result in their applications being rejected.
Stage 2: Passing the COMPASS Framework for EP Applications
Applicants earn points from four foundational criteria and two bonus criteria.
The four foundational criteria include: C1 Salary, C2 Qualifications, C3 Diversity and C4 Support for Local Employment. The two bonus criteria include: C5 Skills Bonus and C6 Strategic Economic Priorities Bonus.
The system scores 0, 10, and 20 points for each of the six criteria, corresponding to ‘does not meet expectations’, ‘meet expectations’, and ‘exceeds expectations’, respectively. An applicant requires 40 points or more to be eligible for the Employment Pass.
Overview of the Compass Framework Criteria
The new EP eligibility requirements aim to ensure that businesses have access to the right talent pool and that foreign workers are compensated fairly for their contributions. Companies will need to pay closer attention to the salaries of their EP holders to meet the new threshold for renewals. The introduction of COMPASS will also make it more challenging for companies to hire EP holders with lower qualifications or work experience.
| Criteria |
Description |
Requirements |
Result |
| C1 Salary |
Salary compared to local PMET salaries in the sector by age |
Above 90th Percentile |
20
|
| 65th to 90th Percentile |
10 |
| Below 65th Percentile |
0 |
| C2 Qualification |
Candidate’s Qualifications |
Top-tier Institutions |
20 |
| Degree-equivalent Institutions |
10 |
| No degree-equivalent Institutions |
0 |
| C3 Diversity |
Candidate’s nationality among firm’s PMETs |
Below 5% |
20 |
| 5 to 25% |
10 |
| Above 25% |
0 |
| C4 Support for Local Employment |
Share of local PMETs compared to other firms in same sector |
Above 50th Percentile |
20 |
| 20th to 50th Percentile |
10 |
| Below 20th Percentile |
0 |
| C5 Skills |
Applicant holds highly specialised skills that corresponds to job openings in the Shortage Occupations List (SOL) |
- Job on the SOL
- Candidate’s nationality below 1/3 among firm’s PMETs
|
20 |
- Job on the SOL
- Candidate’s nationality below 1/3 among firm’s PMETs
|
10 |
| C6 Strategic Economic Priorities |
Partnership with Government on ambitious innovations or internalisation activities |
Yes |
10 |
| No |
0 |
Exemptions from COMPASS
Candidates are exempted from COMPASS if they meet any of these conditions:
- They are earning a fixed monthly salary of at least $22,500;
- They are applying as an overseas intra-corporate transferee; or
- They are filling a role on a short-term basis.
Workforce Insight and Self-Assessment Tool
The Workforce Insight Tool and Self-Assessment Tool (SAT) are valuable resources for workforce planning and hiring. The Workforce Insight Tool provides benchmarking insights, allowing firms to compare median salaries and non-monetary benefits across industries, while also assessing performance on COMPASS criteria such as C3 Diversity and C4 Support for Local Employment. The SAT complements this by enabling employers and employment agents to evaluate a candidate's eligibility for an Employment Pass (EP) or S Pass. Its enhanced features offer an indicative outcome for EP applications, including a detailed COMPASS score analysis.
Verifications and Qualifications for EP Applications
All post-secondary diplomas and higher qualifications declared in Employment Pass (EP) applications must be verified by an MOM-approved third-party background screening agency. The verification process typically takes one to two weeks; hence, employers should plan and consult the approved screening companies to understand the required documents and information. MOM has provided a list of authorised background screening companies, and only verification proof from these agencies will be accepted.
The Aim of COMPASS
The introduction of COMPASS aims to ensure that EP holders have the necessary skills, experience, and qualifications to fill critical roles that cannot be easily filled by locals. This new system will evaluate an applicant’s overall profile, and only those who meet the required threshold will be considered for an EP.
How will these changes impact Businesses and Foreign Workers?
The new EP eligibility requirements aim to ensure that businesses have access to the right talent pool and that foreign workers are compensated fairly for their contributions. The changes will impact businesses and foreign workers in the following ways:
- Companies will need to pay closer attention to the salaries of their EP holders to meet the new threshold for renewal. With the increase in the minimum qualifying salary, companies will need to review the existing EP holders and be more selective when hiring new EP holders in the future.
- The introduction of COMPASS will also make it more challenging for companies to hire EP holders with lower qualifications or work experience. Given that COMPASS is a point-based system that assesses an applicant’s qualifications, experience, and other factors to determine their eligibility for an EP, those who do not meet the required number of points will not be eligible for an EP.
- Employing older foreign employees may become more financially demanding for employers, given the rise in the minimum qualifying salary for both new applications and renewals. The minimum qualifying salary for EP holders increases with age, so senior foreign employees will need to be paid more to be eligible for an EP.
Common FAQs on Compass Framework
Q: If the COMPASS score is lower than 40 points, is it automatically rejected? Conversely, is EP guaranteed for 40 points and above?
- Applications with score lower than 40 points are likely to be rejected, while approval for applications above 40 points are subjected to MOM’s approval.
Q: If the institution is found on the MOM institution list, is there a requirement to undergo education proof verification?
- Yes, it is still required. While the institutions found on the MOM list are verified, the education certificate still requires independent verification.
Q: If an EP is expiring after 1 January 2026, and an EP renewal was submitted a few months before 1 January 2026, will it be subjected to the COMPASS framework?
- Yes, it is still subjected to the COMPASS assessment as the EP renewal is subject to requirements based on date of expiry.
Q: If the candidate has a master’s degree, is verification required only for master’s degree or both the master’s and bachelor’s degree?
- The usual practice is to submit the highest qualification. However, if both qualifications are declared, verification is required for both.
Q: What should an employer take note of in the verification process of a candidate’s EP application?
- Education verifications should be completed prior to submitting an EP application. The verification number and a copy of the verification proof are mandatory requirements in the EP application process. Although employers are not obligated to cover verification costs, it is encouraged to do so. They can engage in discussions with applicants for potential cost-sharing arrangements on a case-by-case basis.
The new EP eligibility requirements may present challenges for companies that hire foreign workers. However, it is vital for businesses to understand these requirements and comply with them to avoid any complications with their employees’ EP applications or renewals.
How PayrollServe can help
PayrollServe’s licensed employment agents provide businesses with comprehensive Work Pass Application Services. We work together with our strategic partner Sterling RISQ to provide the screening service that is needed under the COMPASS regulations. Together, we can support your HR team with its employment pass applications.
Our HR consultancy services can also provide you with professional advice on complex HR matters, best practices, and employment regulations for companies of all sizes. We can help you stay compliant with the ever-changing regulatory environment and benefit from our in-depth expertise in building your people force.
Sources:
https://www.mom.gov.sg/passes-and-permits/employment-pass/upcoming-changes-to-employment-pass-eligibility/complementarity-assessment-framework-compass
compass-booklet.pdf (mom.gov.sg)
https://www.mom.gov.sg/-/media/mom/documents/work-passes-and-permits/compass/c1-salary-benchmarks-upcoming.pdf
https://www.sterlingrisq.com/employment-screening/background-checks-for-employment
Complementarity Assessment Framework (COMPASS) (mom.gov.sg)
Documents required for Employment Pass (mom.gov.sg)
https://www.mom.gov.sg/faq/work-pass-general/what-are-the-requirements-for-a-verification-proof
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