Singapore to Implement Changes to the Employment Pass (EP) Eligibility Framework

The Singapore Ministry of Manpower (MOM) will progressively implement changes to the Employment Pass (EP) eligibility framework over the next two years. These changes are part of the government’s continued effort to protect the local labor market.

Increased salary thresholds for new Employment Pass (EP) and S Pass holders from September 1, 2022.

Starting September 2023, a new scoring system, Complementarity Assessment Framework (COMPASS) for New Employment Pass (EP) applications, will be in place. In addition to meeting the qualifying salary requirements, EP candidates must score at least 40 points under COMPASS. This is the first time the MOM is introducing a point-based system to evaluate Work Passes for foreign nationals. These changes will strengthen the quality of foreign hires and their complementarity to the local workforce. At the same time, it will create a more transparent process for all employers.

Key Changes
  • The EP qualifying salary will increase from $4,500 to $5,000 for new applications from September 1, 2022.
  • The S Pass qualifying salary will increase from $2,500 to $3,000 for new applications from September 1, 2022.
  • The S Pass qualifying salary will increase from $3,000 to $3,150 for new applications from September 1, 2023.
  • The revised qualifying salary will apply to renewals from September 1, 2023.
  • Introduction of COMPASS, a new points-based Complementarity Assessment Framework from September 1, 2023, and renewals will follow from September 1, 2024.

For Financial Sector roles, the qualifying salary will increase to $5,500 for EP and $3,500 S Pass from September 1, 2022. The financial sector qualifying salary for S Pass will increase to $3,800 from September 1, 2023. The minimum salary for more experienced applicants will be higher and is assessed depending on the foreign national’s age and overall profile at the time of application.

 

What are the new points-based Complementarity Assessment Framework (COMPASS) for EPs?

COMPASS evaluates an EP application based on a holistic set of individual and firm-related attributes. It enables companies to select high-quality foreign professionals while improving workforce diversity and building a strong Singaporean core. It has been designed as a more transparent system to give businesses clarity and certainty in their hiring plans.

  • In addition to meeting the qualifying salary, EP candidates must earn sufficient points under a new points-based Complementarity Assessment Framework (COMPASS) to qualify for an EP.
  • COMPASS will apply to new EP applications from September 1, 2023, and renewal applications from September 1, 2024.

 

How will COMPASS work in practice?

  • 40 points are required to pass.
  • All applications are scored on four foundational criteria, based on benchmarks expected of a complementary EP holder. It is possible to have sufficient points for an application/renewal based on these foundational criteria, as up to 20 are available in each one, and only 40 are required to pass.
  • Additional points can be earned on bonus criteria, which recognize applications that bring in skills in shortage and support strategic economic priorities.
  • Lower points on one criterion can be made up for by higher points on another.

 

The criteria of evaluation:
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How the points are distributed in each criterion: image-20220305111116-1

 

Are there exemptions to COMPASS?

  • Candidates are exempted from COMPASS if they fulfill any of these conditions:
    • Earn at least $20,000 fixed monthly salary
    • Apply as an overseas intra-corporate transferee under the World Trade Organization’s General Agreement on Trade in Services or an applicable Free Trade Agreement to which Singapore is a party.
    • Filling a role on a short-term basis, i.e., one month or less.

 

How can an organization check their company’s eligibility to generate the necessary points?

  • The MOM will introduce a new Pre-Assessment Tool (PAT) in time for the framework to take effect, similar to the current Self-Assessment Tool. PAT is used as an indicative COMPASS score for their prospective EP candidate before submitting an EP application. PAT will be available by September 2023.

 

Erickson Insights

We expect the Ministry of Manpower will continue to evaluate the economy and market growth, and there may be salary changes to EP & S Pass application requirements. The COMPASS framework may be extended to lower category passes such as Work Pass and S Pass as the government deems necessary.

Erickson Immigration Group will continue to share updates as more news is available. If you have questions about anything we’re reporting above or case-specific questions, please contact your EIG attorney.