Employment Pass Requirements in 2023

The Singapore government has recognised the importance of attracting and retaining top talent in order to secure the nation’s long-term economic success, particularly in a post-COVID-19 world. During the National Day Rally speech on 21 August 2022, Prime Minister Lee unveiled upcoming initiatives that aim to address these needs.

Further elaborating on these initiatives, Manpower Minister Tan See Leng delivered a speech on 29 August 2022, outlining key changes to the Employment Pass (EP) framework.

These changes, which will be implemented progressively from 1 September 2023, include raising the qualifying salary for EP renewals and introducing a points-based Complementarity Assessment Framework (COMPASS) for EP applications. As an employer, here’s what you need to know to stay informed about these significant changes.

A closer look

Increases to the EP qualifying salary (From 1 September 2022)

Currently, the eligibility criteria for an EP differ based on the sector. However, from 1 September 2022, the EP qualifying salary is benchmarked to the top 1/3 of local professionals, managers, executives, and technicians (PMET) salaries by age. The change to the minimum EP qualifying salary will apply to new applications for EP with effect from 1 September 2022, and to renewals of EP with effect from 1 September 2023.

Here are the updates to the EP qualifying salary:  

These changes aim to ensure that EP holders receive salaries aligned with local PMET compensation levels and contribute to a sustainable and competitive workforce in Singapore.

Introduction of the COMPASS Framework (From 1 September 2023)

The MOM employs the Complementarity Assessment (COMPASS) Framework to assess EP applications and renewals. COMPASS takes into account a wide range of individual and firm-related attributes to provide a holistic assessment. 

Here’s how the COMPASS framework works:

Image credit: Ministry of Manpower 

Points are assigned to each attribute, and to successfully pass COMPASS, an application or renewal must accumulate a minimum of 40 points in total. This evaluation process ensures that EP candidates meet the necessary criteria and possess the qualifications and attributes required for their respective roles – you can refer to the Ministry of Manpower’s website to find out how the scoring system works.

There are certain conditions under which your candidate will be exempted from undergoing the COMPASS evaluation for the EP application. These conditions include:

• Earning a fixed monthly salary of at least $22,500. This exemption aligns with the prevailing Fair Consideration Framework job advertising exemption, which will be effective from 1 September 2023.
• Applying as an overseas intra-corporate transferee under the General Agreement on Trade in Services of the World Trade Organization or any applicable Free Trade Agreement that Singapore is a party to.
• Filling a role on a short-term basis of 1 month or less.

Meeting any of these criteria will exempt your candidate from undergoing the COMPASS assessment. It is essential to be aware of these exemptions as they can streamline the EP application process for eligible candidates.

So how do the changes affect the existing EP holders?

Existing EP holders are not affected by the new changes currently. However, these changes will be applicable to them when their EP is up for renewal. The Ministry of Manpower has implemented a timeline to allow employers sufficient time to adapt to the changes as such:

How can employers prepare for these changes to employment passes?

To prepare for the changes to EP application, employers can take the following steps:

• Be aware of the salary rates of their employees on EPs, especially for those which will be up for renewal in 2023.
• Understand COMPASS: Familiarise yourself with the points-based Complementarity Assessment Framework (COMPASS) that will be introduced for EP applications and renewals. Understand how the scoring system works and the various criteria on which points are awarded. 

By proactively staying informed, reviewing your company’s practices, and making necessary adjustments, you can better prepare for the changes to EPs and ensure a smooth transition for your employees and business operations.

Looking for Guidance? Get the Support You Require

It can be tedious to keep track of employment law updates like the ones mentioned above. Why not leave the difficult work to us — so you can better focus on the tasks at hand?

Keeping track of EP holders in your company doesn’t have to be difficult. With the right information and guidance, it’ll take you minutes rather than hours! 

Keen to find out more? Contact Singapore Corporate Services today to learn more about how our team of employment specialists can help you ensure compliance with the new changes.

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