Recent updates to Singapore’s work visa policy, prepared to take effect by 2025, will prove heavy on both employers and foreign professionals. The revised rules are meant to ensure the employment of good foreign talent and regulate fair employment.
Revised Employment Pass (EP) Salary Criteria
The minimum salary for Employment Pass applications approved between January 1, 2025, onwards has recently been increased to S$5,600 from S$5,000, while that for the financial services sector has gone up to S$6,200 from S$5,500. These adjustments aim to benchmark the salaries against the top one-third of local Professional, Manager, and Executive and Top Skilled Executives (PMET) salary levels. The new salary criterion will be applied to EP renewal applications as of January 1, 2026.
Introduction of the COMPASS Framework
From September 1, 2023, the Complementarity Assessment Framework (COMPASS) will evaluate EP applicants on two levels. This two-staged eligibility framework uses a graduated system that reflects the significance of individual and firm-related attributes and is based on criteria such as salary, qualifications, diversity issues, strategies in economic priority sectors, etc.
A minimum of 40 points must be achieved when COMPASS assesses a given case. It is also pertinent to state that applications with a salary level of at least S$22,500 will be exempt from COMPASS, too, apart from those under intra-corporate transfer provisions from overseas provided from actual agreements.
Adjustment to S Pass Requirements
The Singapore authorities are concurrently in the process of changing the criteria applicable to the S Pass, a tool used specifically for mid-level skilled labor. Under the current threshold, S$3,150 remains the magical figure with certain alterations based on their respective age group.
The minimum salary of Singapore S Pass holders will, henceforth, begin at S$3,300 in the recruitment of new foreign workers from September 1, 2025, with the same level of changes for renewals starting September 1, 2026. The financial services will have the qualifying salary increased upwards to S$3,800. It is further suggested that the foreign worker levy for S Pass holders should be raised in increments by 2025 from the present S$450 to S$650.
Implications for Employers
Employers will have to change their practices for employment and compensation keeping in view various factors in line with the new decrees. This calls for budgeting for higher salaries, COMPASS score-card and bearing in mind fair competition with local labor deemed to be available. Staying informed about these regulation adjustments would enable compliance to these changes and attract top talents.
Conclusion
The updates in Singapore’s work visa policies show its commitment to a competitive and fair labor market. Nonetheless, with due diligence, employers and foreign professionals can make it work for them.