Starting January 1, 2025, significant adjustments to the Employment Pass (EP) criteria will take effect, impacting both employers and foreigners alike.
As an integral part of Singapore’s ongoing efforts to prioritise local talent and ensure fair treatment in the workforce, these changes aim to enhance opportunities for local professionals while maintaining the city-state’s attractiveness to global talent.
The most notable change is the increase in the minimum monthly qualifying salary for EP applicants. Previously set at S$5,000, the new threshold will be raised to S$5,600. This adjustment reflects Singapore’s commitment to aligning wage standards with market trends and ensuring that foreign workers contribute significantly to the local economy.
For professionals in the financial services sector, where wage norms are higher, the minimum qualifying salary will rise to S$6,200 per month. This targeted approach acknowledges the sector’s unique dynamics and the need to attract top talent while maintaining competitiveness.
Additionally, qualifying salaries will now increase progressively with age, with the top rates reaching S$10,700 for applicants in their mid-40s and S$11,800 for those in the financial services sector. This age-based adjustment acknowledges the varying levels of experience and expertise that professionals bring to the workforce.
It’s essential to note that these revised qualifying salary levels will also apply to EP renewal applications. However, the implementation for renewal cases will be delayed, with the new thresholds taking effect on January 1, 2026. This phased approach provides existing EP holders and their employers with ample time to adjust to the changes and plan accordingly.
Beyond salary adjustments, Singapore is reinforcing its work pass framework to ensure fairness and transparency in hiring practices. The introduction of the Complementarity Assessment Framework (COMPASS) represents a systematic approach to evaluating EP qualifications, taking into account factors such as local employment support and industry benchmarks.
Under COMPASS, firms with lower local Professional, Manager, Executive, and Technician (PMET) shares relative to their sector may face tougher challenges in passing the assessment. This incentivises employers to prioritise local hiring and contribute to a more inclusive workforce.
In line with Singapore’s commitment to fair employment practices, firms with unfair hiring practices will face consequences under the Tripartite Guidelines for Fair Employment Practices and upcoming Workplace Fairness Legislation. The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) continues to support firms in improving their workforce profiles through engagement and workshops.
The revised EP criteria mark a significant step forward in Singapore’s ongoing efforts to balance the needs of employers with the aspirations of local professionals. By raising the bar for foreign workers while reinforcing fair employment practices, Singapore aims to foster a dynamic and inclusive workforce that drives sustainable economic growth.
For businesses navigating these changes, it’s essential to stay informed and proactive in adapting to evolving regulatory requirements. At Counto, we are committed to assisting SMEs and entrepreneurs in navigating the complexities of compliance and finance management, ensuring continued success in the competitive business landscape.
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