Singapore’s Ministry of Manpower (MOM) has announced changes to the Employment Pass (EP) application process.
These updates, designed to draw skilled talent and ensure competition with local professionals and foreign professionals, will be implemented in stages beginning September 2024.
According to TravelBiz, ‘the revised salary benchmarks will affect all new EP applications starting 1st January 2025, and renewals of EPs expiring on or after 1st July 2025.”
An Employment Pass (EP) is a work permit issued by the Singaporean government for foreign professionals seeking employment in Singapore.
The report details that for the new EP applications, revised salary benchmarks will apply to all initial EP applications starting 1st January 2025 and for ER renewals the new benchmarks will also apply to renewals of EPs that expire on or after 1st July 2025.
Further explaining that “The previous salary benchmark table, released in May 2023, will remain applicable to initial employment pass applications filed through 31st December 2024. For EP renewal applications, the current table will apply to passes expiring between 1st September 2024 and 30th June 2025.”
Under the COMPASS 1 (C1) salary criteria, candidates must earn a salary meeting or exceeding the 65th percentile of local salaries for their sector.
The COMPASS framework operates on a points-based system that assigns points based on several criteria met. One of these criteria requires employers to earn at least 40 points to secure an EP. Professionals earning a fixed monthly salary of at least SGD 22,500 are exempt from COMPASS.
Candidates must also meet the EP qualifying salary thresholds: SGD 5,000 per month for general sectors and SGD 5,500 for financial services, increasing with age.
Although at the start of January, 2025, the qualifying salaries will be revised to SGD 5,600 for general sectors and SGD 6,200 for financial services, applying to renewals from January 1, 2026.
These updates may lead to increased difficulty for companies to find foreign workers for senior positions and limit entry-level opportunities for foreign talent.
The changes may create a more competitive job market for foreign professionals in Singapore, especially as emphasis on hiring Singaporeans for entry and mid-level positions might restrict opportunities for foreign talent starting their careers, and to obtain an EP, individuals must meet higher standards for qualifications, experience, and salary.
