Link Compliance

Singapore Raises Employment Pass Salary Thresholds from 1 January 2027: What Employers Need to Know

Singapore’s Ministry of Manpower (MOM) has announced revised qualifying salary requirements for Employment Pass (EP) holders as part of its regular review of foreign workforce policies. The updated qualifying salary requirements will apply to new Employment Pass applications from 1 January 2027 and to renewal applications for Employment Passes expiring on or after 1 January 2028.

The revised qualifying salaries are intended to keep pace with local wage growth and continue to benchmark Employment Pass holders against the top one-third of local PMET (Professionals, Managers, Executives and Technicians) salaries by age.

For employers hiring or retaining foreign professionals in Singapore, now is an appropriate time to review hiring budgets, salary structures and upcoming Employment Pass renewals.

When Will the New Salary Requirements Apply?

The revised Employment Pass qualifying salaries will be introduced in two stages:

Application Type Effective Date
New Employment Pass applications 1 January 2027
Renewal applications for passes expiring on or after 1 January 2028 1 January 2028

This means employers submitting new Employment Pass applications from 1 January 2027 must meet the revised qualifying salary requirements. Existing Employment Pass holders will only be assessed against the new requirements when renewing passes that expire on or after 1 January 2028.

Revised Employment Pass Qualifying Salaries

The qualifying salary depends on both the applicant’s age and the sector in which they will be employed.

All sectors (except Financial Services)

  • Minimum qualifying salary: SGD 6,000 per month
  • Salary increases progressively with age
  • Reaches SGD 11,500 per month for applicants aged 45 and above

Financial Services

  • Minimum qualifying salary: SGD 6,600 per month
  • Salary increases progressively with age
  • Reaches SGD 12,700 per month for applicants aged 45 and above

Rather than having only two salary levels, MOM applies an age-based salary scale, with the qualifying salary increasing progressively from age 23 up to age 45 and above. Employers should therefore refer to MOM’s age-specific qualifying salary table when assessing Employment Pass eligibility.

Meeting the Salary Requirement Is Only the First Step

Employment Pass applications are assessed under MOM’s two-stage eligibility framework.

Stage 1: Meet the EP Qualifying Salary

Applicants must meet the applicable qualifying salary based on their age and sector.

Stage 2: Pass COMPASS (Unless Exempted)

Applicants must also pass the Complementarity Assessment Framework (COMPASS) unless they qualify for an exemption.

COMPASS is a points-based assessment that evaluates factors including:

  • Salary
  • Qualifications
  • Workforce diversity
  • Support for local employment

An applicant who does not meet the qualifying salary requirement will not be eligible for an Employment Pass, regardless of the COMPASS score.

What Employers Should Do Now

Review Current Compensation Structures

Assess whether salaries for new hires and existing Employment Pass holders align with the revised qualifying salary requirements.

Identify Upcoming Renewals

Review Employment Passes that are due to expire in 2027 and 2028 to determine whether salary adjustments may be required before renewal.

Check the Correct Sector Classification

Employers should confirm whether a role falls under the Financial Services sector or the general qualifying salary framework, as different salary thresholds apply.

Consider Age-Based Salary Progression

As the qualifying salary increases progressively with age, employers hiring experienced professionals should ensure proposed salaries meet the applicable age-based threshold.

Use MOM’s Self-Assessment Tool

Before submitting an Employment Pass application, employers may use MOM’s enhanced Self-Assessment Tool (SAT) to assess whether a candidate is likely to qualify under the prevailing Employment Pass framework.

Preparing for the Changes

While the revised qualifying salaries will only apply to new Employment Pass applications from 1 January 2027 and renewal applications for passes expiring on or after 1 January 2028, employers are encouraged to begin reviewing their workforce plans well in advance.

Assessing salary structures, upcoming Employment Pass renewals and future hiring budgets early can help organisations prepare for the revised requirements and minimise potential disruptions to recruitment and workforce planning.

As Employment Pass policies may evolve over time, employers should refer to the latest guidance published by Singapore’s Ministry of Manpower (MOM) before submitting any Employment Pass application or renewal.

 

More information: www.linkcompliance.com | Email: info@linkcompliance.com 

—–

Disclaimer: This article is provided for general informational purposes only and does not constitute legal, immigration or employment advice. Employers should refer to the latest guidance issued by Singapore’s Ministry of Manpower (MOM) or seek professional advice based on their specific circumstances.

Official Reference:
https://www.mom.gov.sg/passes-and-permits/employment-pass/eligibility# 

––-

Singapore | Malaysia | Indonesia | USA | Japan | China (Shanghai, Beijing, Shenzhen, Hong Kong, Taiwan) | Vietnam | Germany | Turkey | Philippines | United Kingdom | Spain | Australia | Romania | Sri Lanka