Securing an Employment Pass (EP) in Singapore has historically been a matter of meeting a specific salary threshold and having a clean track record. If the candidate was a professional and the pay was right, approval was often likely. However, the Ministry of Manpower (MOM) has fundamentally shifted its approach. The era of straightforward salary-based approvals is over, replaced by a more holistic, points-based system designed to ensure that foreign professionals complement the local workforce rather than compete with it.
For HR managers, business owners, and foreign professionals, understanding these changes is not optional—it is critical for business continuity. The introduction of the Complementarity Assessment Framework (COMPASS) and stricter salary benchmarks has raised the bar significantly. This guide breaks down the latest EP application updates, offering a roadmap to navigate this complex new landscape.
The Shift Toward Quality Over Quantity
The Ministry of Manpower’s objective is clear: to strengthen Singapore’s core as a global business hub while ensuring fair opportunities for local talent. The recent updates are designed to filter for high-quality candidates who bring genuine value to the economy.
Previously, the assessment was somewhat opaque. Now, the criteria are transparent but rigorous. The government wants to see that hiring a foreign professional is necessary because the skills are not readily available locally, or because the hiring firm is contributing significantly to Singapore’s strategic economic goals.
Understanding the COMPASS Framework
The most significant update to the EP application process is COMPASS. Applied to new applications since September 2023 and renewals starting September 2024, this points-based system is the new gatekeeper.
To pass COMPASS, an application must score at least 40 points. These points are awarded based on four foundational criteria and two bonus criteria.
The Four Foundational Criteria
These criteria assess both the individual candidate and the hiring firm.
1. Salary (Individual Attribute)
This compares the candidate’s fixed monthly salary to local professionals, managers, executives, and technicians (PMETs) in the same sector.
- 20 Points: Salary is in the 90th percentile or above compared to local peers.
- 10 Points: Salary is between the 65th and 90th percentile.
- 0 Points: Salary is below the 65th percentile.
2. Qualifications (Individual Attribute)
MOM now places heavier scrutiny on where a degree was earned.
- 20 Points: Degree from a top-tier institution (based on international rankings).
- 10 Points: Degree-equivalent qualification (e.g., a standard university degree).
- 0 Points: No degree-equivalent qualification.
3. Diversity (Firm Attribute)
This checks if the candidate’s nationality creates a concentration risk within the firm. The goal is to encourage a diverse mix of global talent.
- 20 Points: The candidate’s nationality makes up less than 5% of the firm’s PMETs.
- 10 Points: The candidate’s nationality makes up between 5% and 25%.
- 0 Points: The candidate’s nationality makes up 25% or more.
4. Support for Local Employment (Firm Attribute)
This compares the firm’s share of local PMETs against industry peers.
- 20 Points: Firm is in the 50th percentile or higher for local hiring.
- 10 Points: Firm is between the 20th and 50th percentile.
- 0 Points: Firm is below the 20th percentile.
The Two Bonus Criteria
If an EP application falls short on the foundational criteria, it can make up points here.
5. Skills Bonus (Shortage Occupation List)
If the candidate is being hired for a job on the Shortage Occupation List (SOL)—which includes roles in tech, green economy, and healthcare—the application earns 20 bonus points. However, note that if the nationality is one-third or higher of the firm’s PMETs, these bonus points are reduced to 10.
6. Strategic Economic Priorities Bonus
This rewards firms that are partnering with the government on ambitious innovation or internationalization activities. Firms must meet specific investment or innovation milestones to qualify for these 10 bonus points.
The New Qualifying Salary Benchmarks
Beyond COMPASS, the baseline for entry has moved. The qualifying salary is no longer a flat rate; it is progressive.
Age-Based Scaling
The minimum qualifying salary starts at $5,000 for all sectors (except financial services) for a 23-year-old candidate. However, this number increases progressively with age. By the time a candidate is in their mid-40s, the minimum qualifying salary can be nearly double the starting rate. MOM’s logic is that an experienced older worker should command a higher salary commensurate with their tenure.
The Financial Services Premium
The financial services sector faces a higher bar due to the higher wage norms in that industry. For this sector, the minimum qualifying salary starts at $5,500 and also scales upward with age.
It is vital to use the Self-Assessment Tool (SAT) provided by MOM before submitting an application. The SAT has been updated to reflect these age curves and will give a preliminary indication of whether the salary meets the requirement for the candidate’s specific profile.
Mandatory Verification of Qualifications
A subtle but impactful update is the requirement for third-party verification of educational qualifications. In the past, uploading a certificate was often sufficient. Under the new regime, qualifications must be verified for authenticity.
MOM requires verification proof from an accredited background check service provider if the institution is not on their standard drop-down list or if there are any discrepancies. This adds a step to the preparation phase. Employers must factor in the time and cost required to get these “accreditation checks” done before hitting the submit button. Failure to provide verified credentials usually results in the application receiving zero points for the Qualifications criteria under COMPASS.
Exemptions from COMPASS
While most EP applications face the COMPASS framework, there are specific exemptions. A candidate is exempted from COMPASS if they fulfill any of the following:
- High Earners: They earn a fixed monthly salary of at least $22,500.
- Intra-Corporate Transferees: They are transferring to the Singapore branch of an international company (under the ICT provisions of trade agreements).
- Short-term roles: The role is for one month or less.
However, even if exempted from COMPASS, the candidate must still meet the baseline qualifying salary requirements.
How to Prepare a Successful Application
Given the complexity of the new system, preparation is everything. A “wait and see” approach is risky and can lead to rejections that stay on the firm’s record.
1. Conduct a Pre-Assessment
Before making a job offer, run the candidate’s details through the Self-Assessment Tool. This tool now includes a COMPASS score preview. If the candidate scores fewer than 40 points, you must reconsider the salary offer or review if the firm qualifies for bonus points.
2. Review Firm-Level Data
HR managers need to keep a close eye on their firm’s diversity and local employment statistics. These figures are updated regularly by MOM. You need to know if hiring a candidate from a specific country will tip your diversity ratio over the 25% mark, dropping your points from 10 to 0.
3. Organize Documents Early
Because of the qualification verification requirement, ask candidates for their educational transcripts and certificates immediately. Initiate the verification process parallel to the interview process to avoid bottlenecks later.
4. Justify the Hire
While the points system is mathematical, the qualitative aspect remains. Ensure the job description clearly articulates why the role requires specialized skills. If applying under the Shortage Occupation List, the job duties must align strictly with the government’s definition of that occupation.
Common Reasons for Rejection Under the New Rules
Even with the transparent scoring system, rejections happen. Understanding why can help you avoid pitfalls.
- Salary Mismatch: The most common issue is offering a salary that meets the $5,000 baseline but fails to meet the age-based benchmark. A 40-year-old candidate cannot be hired at the entry-level rate.
- University Accreditation Issues: Claiming points for a degree from a “diploma mill” or an unaccredited institution will lead to immediate rejection of those points.
- Phantom Workers: Some firms try to game the “Support for Local Employment” score by hiring locals on paper who do not do actual work. MOM conducts rigorous audits, and finding phantom workers can result in a ban on all foreign hiring.
- Incorrect Occupation Classification: Misclassifying a general marketing role as a specialized tech role to try and get “Skills Bonus” points is a red flag.
Frequently Asked Questions
How long does the new EP application process take?
Generally, MOM processes online applications within 10 business days. However, if MOM requires additional inputs or verification of documents, it can take longer. It is safer to plan for a 3 to 4-week timeline to account for the third-party verification of diplomas.
Does COMPASS apply to EP renewals?
Yes, but with a delayed timeline. COMPASS applies to new applications submitted from September 1, 2023. For renewals of passes expiring from September 1, 2024, COMPASS will apply. This gives employers a one-year runway to adjust their workforce or salary structures to ensure existing staff can meet the 40-point threshold upon renewal.
What happens if my candidate scores exactly 40 points?
A score of 40 is a pass. You do not need to score higher than 40 to be approved, although a higher score (e.g., due to high salary or top-tier education) strengthens the application and may help in future renewals.
Can I appeal a rejected EP application?
Yes, you can appeal. However, an appeal should only be attempted if you can address the specific reason for rejection. For example, if you were rejected for low salary points, you must be willing to increase the salary offer. Appeals typically take at least 3 weeks to process.
Strategic Hiring for the Future
The changes to the EP application process represent a maturation of Singapore’s labor market. The government is signaling that foreign talent is welcome, provided it is high-caliber and complements the local ecosystem.
For businesses, this means recruitment strategies must evolve. It is no longer enough to find a candidate who can do the job; you must find a candidate who scores the points. HR teams must become data-centric, constantly monitoring their firm’s demographics and staying updated on salary benchmarks.
Navigating COMPASS requires a blend of strategic foresight and meticulous compliance. By understanding the four foundational criteria and planning for the age-based salary scales, companies can continue to access the global talent pool necessary for growth.
