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) 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).
With effect from 1 September 2023, the EP qualifying salary is applicable to both new EP applications and EP renewals. The COMPASS Framework, on the other hand, will be applicable to new EP applications from 1 September 2023, and to EP renewals for passes that expire from 1 September 2024.
Stage 1: Meeting the EP Qualifying Salary
From September 1, 2023, the minimum qualifying salary for EP renewals has been raised to SGD 5000 monthly for all sectors, with the Financial Services sector being raised to SGD$5500. This change applies to all new EP applications as well as EP renewals that are submitted on or after September 1, 2023.
The age of the foreign employee also affects the minimum qualifying salary for both new applications and EP renewals. For all sectors excluding Financial Services, this salary increases progressively with age from 23, reaching $10,500 at age 45 and above. In the Financial Services sector, the minimum qualifying salary for new applications and renewals increases progressively with age from 23, up to $11,500 at age 45 and above.
Employers are advised to ensure that they meet the new salary threshold 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
Another significant change is the introduction of the points-based Complementarity Assessment Framework (COMPASS) for EP applications. Applicants are able to 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 Tool
The Workforce Insights Tool has benchmarking insights to help with your workforce planning and hiring. It allows you to compare median salaries and non-monetary benefits across industries. The tool has been enhanced to help you find out your firm's score on these firm-related COMPASS criteria: C3 Diversity and C4 Support for Local Employment.
Self-Assessment Tool (SAT)
The self-assessment tool allows you to check a candidate's eligibility before you apply for an Employment Pass or S Pass. Employers and employment agents can use the enhanced Self-Assessment Tool (SAT) to get an indicative outcome of their EP applications, including COMPASS scores.
Verification of Qualifications
All post-secondary diplomas and above qualifications declared in EP applications must be supported with verification proof verified by a MOM-approved third party background screening agency. This requirement will apply to new EP applications from 1 September 2023 and renewals from 1 September 2024.
Verification Process
Obtaining the verification documents from background screening companies often takes one to two weeks. It is important to plan and allow time for this. It is also necessary to consult with the screening companies on what information and documents they will require.
Approved Background Screening Companies
MOM has come out with a list of approved background screening companies. Companies need to use one of these authorised background screening companies to ensure that their verification proof is accepted.
Employment Agencies and Outsourcing Firms
Companies who are unsure of the upcoming requirements can consider engaging employment agencies or outsourcing firms like PayrollServe that provide employment pass services. This will help the company remain compliant with the ever-changing requirements and also save time.
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 September 2024, and an EP renewal was submitted a few months before 1 September 2024, 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.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
-cropped.svg)
