The Singapore Ministry of Manpower has announced the new salary threshold for Employment Pass (EP) for 2025. The EP is a work visa for foreign professionals, managers and executives seeking employment in Singapore. It allows its holders to live and work in the country, facilitating multiple entries without the need for separate visas.

New applicants can obtain an EP for an initial period of two years, which can then be renewed for up to three years at a time.

Understanding Singapore’s COMPASS Framework for Employment Passes

Under Singapore’s COMPASS framework, EP applicants must pass a two-stage assessment to qualify:

Step 1: Salary qualification

Applicants must first meet a minimum salary requirement, which is the top third of local Professional, Managers, Executives and Technicians (PMET) salaries by age. Compliance with this condition is essential for eligibility.

Step 2: Points-based assessment

At this stage, applicants must achieve a minimum score based on factors such as educational qualifications, skill relevance, and industry demand. Applicants who meet salary requirements but have not earned points may still be eligible if they meet specific exemptions, but those who do not meet Stage 1 salary requirements are not eligible regardless or their score.

Other fundamental criteria

Diversity

This criterion assesses the diversity within the recruiting company, in particular the representation of the candidate’s nationality among the company’s PMETs. Greater workforce diversity, particularly in leadership positions, is encouraged to foster a balanced and inclusive workplace.

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A diverse team is often seen as a strength, offering diverse perspectives that contribute to innovation and resilience.

Support for local employment

The Ministry of Manpower evaluates the company’s track record in hiring and developing local employees. Companies strongly committed to promoting Singaporean talent perform better on this criterion. This ensures that companies that hire foreign talent also contribute to the growth and development of the local workforce.

What is the new salary threshold?

As of January 1, 2025, the minimum monthly salary required for new EP applications will increase:

• For those working in non-financial services, the minimum wage will be increased to S$5,600 (US$4,196) from the current S$5,000 (US$3,747).
• For those working in financial services, the minimum wage will increase to S$6,200 (US$4,646), from S$5,500 (US$4,122).

Additionally, PE holders whose passes expire on or after January 1, 2026 must meet the updated salary requirements for their respective sectors, whether they submit renewal applications before or after that date.

How can businesses prepare?

To align with the upcoming MOU requirements, Singapore businesses can take several proactive steps:

Review compensation structures

Employers should assess current salaries, particularly foreign professionals, managers and executives, to ensure they meet the new minimum thresholds. Adjusting salaries where necessary can help maintain competitiveness by attracting the best global talent.

Plan recruitment strategies

Given the stricter salary requirements and the COMPASS framework, companies may need to evaluate their recruitment plans. By targeting roles that match the framework’s criteria, companies can increase their chances of successful EP applications.

Improving support for existing EP holders

For PE holders whose pass expires in 2026 or later, employers should assess salary levels well in advance of renewal deadlines to ensure compliance with new sector-specific requirements. Providing opportunities for development and career advancement could help justify higher pay levels.

Implement workforce planning for critical roles

The COMPASS framework’s two-step assessment emphasizes both salary and points requirements. Employers should identify critical roles and ensure these positions meet the framework’s rating criteria. Additionally, planning for workforce needs in advance can help businesses manage the complexities of PE demands.

Collaborate with human resources and immigration specialists

Businesses can benefit from consulting with human resources or immigration specialists to better understand the nuances of new requirements and their impact on hiring strategies. This support can also help develop policies that meet MOM criteria, reducing the risk of applications being rejected.

By proactively aligning with these new requirements, Singapore businesses can continue to attract and retain international talent while ensuring compliance with the Ministry of Manpower’s updated EP regulations.