Yes, the income threshold for Singapore’s Employment Pass has been raised yet again! For a long time, Singapore, as the financial hub of Southeast Asia, has been a popular location for foreign companies to establish their regional headquarters. Singapore places great importance on the issue of foreign labor and continually introduces new policies to adapt to new changes. We remind you once again: those planning to apply for an EP must act quickly!
The Singapore Ministry of Manpower has listed on its website the income data for local Professionals, Managers, Executives, and Technicians (PMETs) aged 23 to 45 across 22 industries, at the 65th and 90th percentiles, for employers’ reference. Based on Singapore’s salary trends, the government has raised the income threshold for the Employment Pass from S$5,000 to S$5,600, while the threshold for those in the financial services sector will be increased to S$6,200.
Table of Contents
Policy Trends for Hiring Foreigners in Singapore
The last adjustment to the Singapore EP salary was in September 2023, when the income requirement was raised from S$4,500 to S$5,000. Starting from January 2025, the minimum monthly salary for new Employment Pass holders will be increased by another S$600, to S$5,600.
Affected by the 2020 pandemic, the salary threshold for hiring foreigners in Singapore has been raised three times. The Singapore government is tightening its foreign employment policies to curb the rapid influx of foreign professionals. As of December 2023, there were 187,300 EP holders in Singapore, a decrease from the 193,700 in December 2019 before the pandemic.
|
Employment Pass Application Salary Thresholds (from January 2025) |
|||||
| All Other Sectors | Banking and Financial Services Sector | ||||
| Age | Current EP Salary Threshold | New EP Salary Threshold | Age | Current EP Salary Threshold | New EP Salary Threshold |
| ≤23 | $5,000 | $5,600 | ≤23 | $5,500 | $6,200 |
| 24 | $5,250 | $5,832 | 24 | $5,773 | $6,455 |
| 25 | $5,500 | $6,064 | 25 | $6,045 | $6,709 |
| 26 | $5,750 | $6,295 | 26 | $6,318 | $6,964 |
| 27 | $6,000 | $6,527 | 27 | $6,591 | $7,218 |
| 28 | $6,250 | $6,759 | 28 | $6,864 | $7,473 |
| 29 | $6,500 | $6,991 | 29 | $7,136 | $7,727 |
| 30 | $6,750 | $7,223 | 30 | $7,409 | $7,982 |
| 31 | $7,000 | $7,455 | 31 | $7,682 | $8,236 |
| 32 | $7,250 | $7,686 | 32 | $7,955 | $8,491 |
| 33 | $7,500 | $7,918 | 33 | $8,227 | $8,745 |
| 34 | $7,750 | $8,150 | 34 | $8,500 | $9,000 |
| 35 | $8,000 | $8,382 | 35 | $8,773 | $9,255 |
| 36 | $8,250 | $8,614 | 36 | $9,045 | $9,509 |
| 37 | $8,500 | $8,845 | 37 | $9,318 | $9,764 |
| 38 | $8,750 | $9,077 | 38 | $9,591 | $10,018 |
| 39 | $9,000 | $9,309 | 39 | $9,864 | $10,273 |
| 40 | $9,250 | $9,541 | 40 | $10,136 | $10,527 |
| 41 | $9,500 | $9,773 | 41 | $10,409 | $10,782 |
| 42 | $9,750 | $10,005 | 42 | $10,682 | $11,036 |
| 43 | $10,000 | $10,236 | 43 | $10,955 | $11,291 |
| 44 | $10,250 | $10,468 | 44 | $11,227 | $11,545 |
| 45 and above | $10,500 | $10,700 | 45 and above | $11,500 | $11,800 |
Undoubtedly, local residents are concerned about the influx of foreign professionals competing for jobs. The Singapore government’s policy adjustment aims to ensure that the quality of the foreign workforce improves in tandem with local employees, creating a healthier competition between foreign and local labor. This also means that foreigners who want to work in Singapore will need higher educational qualifications and skill levels, facing more intense competition and challenges.
Given this trend, we recommend that those who still need to apply for a Singapore EP should do so as quickly as possible, as the government may raise the threshold for the Employment Pass again.
Employment Pass Applications Adopt a Points-Based System
Starting from September 1, 2023, the Singapore Ministry of Manpower (MOM) officially implemented a points-based system for EP applications. In addition to meeting the minimum salary requirements, EP applicants must also score at least 40 points under the COMPASS framework to apply for an EP.
COMPASS mainly applies to the following two groups:
- New EP applications after September 1, 2023
- EP renewals after September 1, 2023
Related Articles:
For example:
According to the salary benchmarks for various industries published by the Ministry of Manpower (as shown in the image below), a 23-year-old banking professional just starting their career, with a salary at the 65th percentile or in the top third of their peers, could earn up to S$6,486. As this PMET gains experience, their salary could rise to S$17,705 by age 45. If they are a high-earner, with an income in the top tenth of their peers, their monthly salary could be as high as S$31,384.
In contrast, a Singaporean PMET in the food service industry whose income is also in the top third of their peers would earn S$4,105 at age 23, with their income rising to S$5,894 by age 45, far less than their counterparts in the banking industry.
A 35-year-old Employment Pass applicant from the information and communications technology industry with a fixed monthly salary of S$9,252, including basic salary and fixed allowances, can score 10 points under the salary component of the points system. However, an applicant of the same age in the food service industry could get 10 points with a monthly salary of S$5,081.
In short, the salary benchmarks for different industries vary significantly, and the salary gap widens with age. PMETs in banking, finance, insurance, information and communications, and professional services tend to earn more.
For Employment Pass applicants, after meeting the minimum income threshold of S$5,600, the income requirement increases with age. The threshold also varies by industry. The unchanging truth is: the higher the salary, the higher the COMPASS score.
How is the COMPASS C1 Salary Score Calculated?
For example:
Based on the industry salary benchmarks published by the Singapore Ministry of Manpower, let’s use the banking and financial services sector from the table below as an example:
A 35-year-old applicant needs a salary above S$21,359 per month to get 20 points. If their monthly salary is between S$12,606 and S$21,359, they will only receive 10 points for C1.
| Banking and Financial Services Sector | ||
| Age | Minimum Monthly Salary for 10 Points at 65th Percentile
(Top third of local PMET peer salaries) |
Minimum Monthly Salary for 20 Points at 90th Percentile
(Top tenth of local PMET peer salaries) |
| ≤23 | $6,486 | $9,724 |
| 24 | $6,996 | $10,709 |
| 25 | $7,506 | $11,693 |
| 26 | $8,016 | $12,678 |
| 27 | $8,526 | $13,662 |
| 28 | $9,036 | $14,647 |
| 29 | $9,546 | $15,631 |
| 30 | $10,056 | $16,616 |
| 31 | $10,566 | $17,600 |
| 32 | $11,076 | $18,585 |
| 33 | $11,586 | $19,569 |
| 34 | $12,096 | $20,554 |
| 35 | $12,606 | $21,539 |
| 36 | $13,116 | $22,523 |
| 37 | $13,626 | $23,508 |
| 38 | $14,136 | $24,492 |
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
