Over the past few years, the Ministry of Manpower (MOM) has steadily raised the bar for hiring foreign employees, while giving employers more flexibility in some areas. This article brings together the key changes to the Employment Pass (EP), S Pass and Work Permit from 2023 onwards, including those already announced for 2027 and 2028.
Employment Pass: Minimum Qualifying Salary
| Effective (new applications / renewals) | General | Financial services |
|---|---|---|
| 1 Sep 2022 / 1 Sep 2023 | $5,000 (up to $10,500 at age 45+) | $5,500 (up to $11,500 at age 45+) |
| 1 Jan 2025 / 1 Jan 2026 | $5,600 (up to $10,700 at age 45+) | $6,200 (up to $11,800 at age 45+) |
| 1 Jan 2027 / 1 Jan 2028 | $6,000 (up to $11,500 at age 45+) | $6,600 (up to $12,700 at age 45+) |
The qualifying salary rises progressively with the candidate’s age, from age 23 up to age 45.
COMPASS Points Framework
Since 1 September 2023 for new applications, and 1 September 2024 for renewals, EP candidates must pass the Complementarity Assessment Framework (COMPASS) in addition to meeting the qualifying salary. A candidate needs at least 40 points, scored on:
- Salary compared with local professionals in the same sector and age group;
- Qualifications;
- Diversity of nationalities in the company’s professional workforce;
- Support for local employment, compared with industry peers;
- Bonus points for jobs on the Shortage Occupation List and for firms supporting strategic economic priorities.
Firms with fewer than 25 professional employees receive default points for the diversity and local-employment criteria. Candidates earning a fixed monthly salary of $22,500 or more are exempt from COMPASS.
Fair Consideration Framework
Before applying for an EP or S Pass, employers must generally advertise the job on MyCareersFuture for at least 14 consecutive days and consider all candidates fairly. Exemptions include companies with fewer than 10 employees and jobs paying a fixed monthly salary of $22,500 or more (raised from $20,000 on 1 September 2023).
S Pass: Qualifying Salary and Levy
| Effective (new applications / renewals) | General | Financial services |
|---|---|---|
| 1 Sep 2023 / 1 Sep 2024 | $3,150 (up to $4,650 at age 45+) | $3,650 (up to $5,650 at age 45+) |
| 1 Sep 2025 / 1 Sep 2026 | $3,300 (up to $4,800 at age 45+) | $3,800 (up to $5,650 at age 45+) |
| 1 Jan 2027 / 1 Jan 2028 | $3,600 (up to $5,100 at age 45+) | $4,000 |
S Pass levy: the basic (Tier 1) levy rose from $450 to $550 a month on 1 September 2023, and to $650 on 1 September 2025. A single rate of $650 a month now applies to all S Pass holders.
S Pass quota: 10% of the total workforce in the Services sector and 15% in other sectors.
Work Permit Changes
- Construction and Process sectors (from 1 January 2024): the Man-Year Entitlement framework was phased out, the foreign worker quota was tightened from 1:7 to 1:5 (83.3% dependency ratio ceiling), and new levy rates were introduced.
- Non-Traditional Sources (NTS) Occupation List (from 1 September 2023): employers in Services and Manufacturing may hire workers from non-traditional source countries for selected occupations, subject to conditions. The list has since been expanded, for example to include cooks, manufacturing operators and heavy vehicle drivers from 1 September 2025.
- From 1 July 2025: the maximum period of employment for Work Permit holders was removed, and the maximum employment age was raised from 60 to 63. New applicants must be below 61.
- Marine Shipyard sector (from 1 January 2026): quota reduced from 77.8% to 75%, with higher levies.
- From 2028: the two lower levy tiers in the Services and Manufacturing sectors will be combined, and levies for basic-skilled workers in the Marine Shipyard and Process sectors will rise.
Local Qualifying Salary
Only local employees earning at least the Local Qualifying Salary (LQS) count in full towards a company’s foreign worker quota:
- $1,400 before 1 July 2024
- $1,600 from 1 July 2024
- $1,800 from 1 July 2026
Local employees earning at least half of the LQS count as half a worker.
What Employers Should Do
- Review the salaries of current EP and S Pass holders ahead of their renewal dates, as the higher thresholds apply at renewal.
- Run a COMPASS self-assessment on MOM’s website before making job offers.
- Check that local employees are paid at least the LQS, so that they count fully towards your quota.
- Factor the higher S Pass levy and planned Work Permit levy changes into your manpower budget.
How We Can Help You
Our team can help you review your manpower costs, payroll and CPF records, and plan for the upcoming changes. Contact us to arrange a discussion.
References
- MOM – Committee of Supply 2026 press release
- MOM – Committee of Supply 2025 Factsheet on Foreign Workforce Policies
- MOM – Committee of Supply 2024 Factsheet
- MOM – Employment Pass eligibility
- MOM – S Pass levy and quota requirements
Information is correct as at 26 October 2026. Please refer to MOM for the latest requirements.