From Jan 1, 2025, the minimum pay for Employment Pass (EP) increased to S$5,600!
Singapore’s Service of Labor has uncovered the upgraded compensation limit for Business Pass (EP) candidates for the year 2025. The EP serves as a work visa for foreign professionals, managers, and executives who wish to pursue employment opportunities in Singapore. It allows holders to reside and work in the nation, enabling multiple entries without the necessity of obtaining separate visas.
New applicants can secure an EP for an initial duration of two years, which may subsequently be renewed for periods of up to three years at a time.
An Overview of Singapore’s COMPASS Framework for Employment Passes
Under the COMPASS framework in Singapore, EP applicants are required to undergo a two-step evaluation process to qualify.
Salary Qualification:
Initially, candidates must satisfy a minimum salary criterion, which is aligned with the top one-third of local wages for professionals, managers, executives, and technicians (PMETs) based on age. Meeting this salary threshold is crucial for eligibility.
Points-Based Assessment:
In this phase, candidates must attain a minimum score of 40 points, derived from various factors including educational qualifications, relevance of skills, and demand within the industry. Candidates who meet the salary requirement but do not achieve the necessary points may still qualify if they fulfill certain exemptions; however, those who fail to meet the salary requirement in Step 1 will be disqualified, irrespective of their points total.
Additional Foundational Criteria:
Diversity:
This criterion assesses the diversity within the hiring organization, particularly focusing on the representation of the applicant’s nationality among the company’s PMETs. A higher level of workforce diversity, especially in senior positions, is promoted to cultivate a balanced and inclusive work environment.
A diverse team is frequently regarded as an asset, offering a range of viewpoints that enhance innovation and adaptability.
Support for local employment:
The Ministry of Manpower evaluates the company’s history of recruiting and developing local talent. Organizations that demonstrate a strong dedication to fostering Singaporean skills receive higher ratings in this area. This approach ensures that companies employing foreign workers also play a role in the advancement and skill enhancement of the local labor force.
What is the unused compensation edge for Singapore’s 2025 Work Pass?
Effective January 1, 2025, the minimum monthly salary requirement for new Employment Pass applications will be adjusted:
- For individuals in non-financial services, the minimum salary will rise to S$5,600 (US$4,196), an increase from the current S$5,000 (US$3,747).
- For those in financial services, the minimum salary will be elevated to S$6,200 (US$4,646), up from S$5,500 (US$4,122).
Furthermore, Employment Pass holders whose passes expire on or after January 1, 2026, will be required to comply with the revised salary standards for their respective sectors, irrespective of whether they apply for renewal before or after this date.
