Data from the Ministry of Manpower indicate that Singapore’s total foreign workforce numbered 1,545,200 as of June 2024, with 202,400 of these workers holding Employment Passes (EPs).
For Singapore employers considering hiring an EP holder, there are essential questions to address: What is the qualifying salary for an EP worker, and what are the COMPASS and advertising requirements associated with the process?
Understanding The Minimum EP Salary
Employers should note that EP workers typically command higher salaries than other migrant workers, such as S-Pass holders or Migrant Domestic Workers (MDWs).
Currently, the salary requirements are divided into two categories: financial services and all other sectors. The minimum salary for the financial services sector is S$5,500 per month, while it is S$5,000 per month for all other sectors.
This minimum is age-based, with the stated amounts applicable to workers aged 23 and below. The minimum salary requirement increases with age. In the financial services sector, it reaches S$11,500 for workers aged 45 and above, while for other sectors, it rises to S$10,500 per month at the same age threshold.
Changes To EP Minimum Qualifying Salary
These requirements will change for new EP applications starting on 1 January 2025. Beginning next year, the minimum qualifying salary for EP holders aged 23 and below will increase to S$6,200 in the financial services sector and S$5,500 in all other sectors.
As with the current structure, these minimum salaries will also increase with age. By age 45, the minimum wage will peak at S$11,800 for the financial services sector and S$10,700 for all other sectors.
This revised EP qualifying structure will apply to new applications and EP renewals for passes expiring from 1 January 2026 onward.
COMPASS Points-Based System
After establishing that their firm can pay the EP minimum qualifying salary, employers will also need to familiarise themselves with COMPASS. This transparent points-based system requires employers to earn at least 40 points to pass.
It’s broken down into four foundational criteria spread across attributes for individual and firm hiring. These are Salary (individual), Qualifications (individual), Diversity (firm), and Support for Local Employment (firm).
There are two extra bonus criteria: Skills Bonus (individual) and Strategic Economic Priorities Bonus (firm), which are equally split between the individual and firm. The Ministry of Manpower also has a COMPASS guidebook that helps employers examine the detailed EP eligibility framework and provides tips on navigating the application process.
COMPASS Points Breakdown
Source: Ministry of Manpower
There are a couple of exemptions to the COMPASS process, though. These include the individual having a fixed monthly salary of S$22,500 or more, applying as an overseas intra-corporate transferee, or the role being filled for one month or less.
Advertising Requirements For The Role
Before hiring an EP worker, employers must also meet requirements related to advertising the job. Specifically, they must post the job on the MyCareersFuture portal and give fair consideration to all candidates.
This process is part of the Fair Consideration Framework (FCF), which requires employers in Singapore to evaluate candidates fairly and avoid discrimination based on non-job-related characteristics.
Specific criteria must be followed for advertising requirements. For instance, the job posted must match the occupation listed in the EP application. Additionally, the salary range cannot be too wide—the maximum salary must not exceed twice the minimum salary.
The job advertisement must remain open on MyCareersFuture for at least 14 consecutive days to allow local job seekers adequate time to view and apply. If you make any changes to key fields in the ad, such as the job title or salary, after posting, you must keep the listing open for another 14 consecutive days before proceeding with the EP application.
Job posting example on MyCareersFuture
Source: Ministry of Manpower
There are a few exemptions to the advertising requirement, and if you meet one of the following four criteria for the EP application, then you don’t need to advertise the role:
- Your firm has fewer than 10 employees
- Fixed monthly salary for the role is S$22,500 or higher
- The role is short-term so one month or less
- The role is being filled by a local transferee
Navigating The EP Process
Hiring an EP worker involves three key steps: meeting the minimum qualifying salary, passing the COMPASS points-based system, and advertising the role on MyCareersFuture.
By approaching these steps in an organised manner, employers can streamline the process, making it less cumbersome and time-consuming than it might initially seem.
Read Also: Guide To Work Passes In Singapore: Work Permits, S Pass and Employment Pass (EP)
Photo Credit: Image by Pawel Szymczuk from Pixabay
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