Singapore to raise Employment Pass requirements in 2025

Foreign professionals aiming to work in Singapore will face stricter eligibility criteria under significant updates to the Employment Pass (EP) framework, set to take effect on Jan. 1, 2025. These changes will include higher salary thresholds and mandatory assessments.

The qualifying salary for new EP applications will increase to at least S$5,600 per month for general sectors and S$6,200 for financial services roles. These benchmarks will also apply to EP renewals from Jan. 1, 2026. Salaries will be adjusted based on age, starting from S$5,600 for younger professionals and reaching up to S$10,500 for those aged 45 and older.

The new thresholds aim to align with the top one-third of local salaries for professionals, managers, executives and technicians (PMETs), ensuring that foreign professionals contribute at a competitive level.

In addition to meeting the salary benchmarks, applicants must score at least 40 points under the Complementarity Assessment Framework (COMPASS), which evaluates factors such as qualifications, job roles and the employer’s workforce diversity. Introduced for new applications in 2023, COMPASS ensures a balanced hiring mix of local and foreign professionals.

The new updates are expected to intensify competition for highly skilled talent, pushing employers to offer competitive compensation packages. Businesses will likely prioritize candidates with specialized expertise, particularly in industries such as finance, technology and engineering.

While the changes aim to enhance workforce quality and maintain a fair playing field between local and foreign professionals, they may create challenges for smaller enterprises and less-experienced foreign workers. Employers could face higher operational costs, and foreign professionals may need to demonstrate exceptional value to meet the new criteria.

Singapore also offers alternative employment passes, such as the Personalized Employment Pass for high-earning professionals, which provides greater flexibility as it is not tied to a specific employer. The Training Employment Pass is available for individuals undergoing occupational training in the country.