The revamped EP salary threshold and COMPASS bonus point pathways for 2025

Singapore’s Employment Pass (EP) landscape is undergoing a major overhaul in 2025. The Ministry of Manpower (MOM) is raising the salary bar significantly for foreign professionals, a move that directly impacts both current EP holders and new applicants aiming for a future in Singapore. If you’re targeting Permanent Residency (PR) or citizenship, understanding these changes is non-negotiable.

Here are the critical updates you need to know now.

Key EP Changes Effective in 2025

Increased Minimum Salary: Starting January 1, 2025, for new applications, the minimum qualifying salary will be raised from S5,000 to S5,600 for most sectors, and from S5,500 to S6,200 for the Financial Services sector.

Age-Based Increases: The qualifying salary continues to increase progressively with age, reaching up to S$10,700 for general sectors and S$11,800 for Financial Services for applicants in their mid-40s.

The new salary requirements for the Employment Pass (EP) will be implemented in two phases:

• For new applications: The requirements take effect from January 1, 2025.
• For renewals: Existing EP holders are given a one-year grace period, with the new requirements applying to renewals from January 1, 2026.

COMPASS Remains Key: The points-based Complementarity Assessment Framework (COMPASS) remains a mandatory component, meaning salary alone does not guarantee approval. You must meet both the qualifying salary and score at least 40 points on COMPASS.

These changes are designed to ensure that EP holders are high-caliber professionals, a factor that heavily influences the success of future Singapore PR and citizenship applications.

Understanding the New 2025 EP Salary Thresholds

The cornerstone of the 2025 update is the significant increase in the minimum fixed monthly salary required for EP applicants. This benchmark is pegged to the top one-third of local Singaporean professionals, managers, executives, and technicians (PMETs).

For General Sectors

For all industries except Financial Services, the new qualifying salary for the youngest applicants will be S$5,600 per month.

For the Financial Services Sector

Recognizing the higher wage norms in finance, the minimum salary for this sector will be set at S$6,200 per month.

How Age Affects Your Qualifying Salary

It is crucial to understand that the S5,600andS6,200 figures are base thresholds for applicants in their early 20s. The required salary increases with age to reflect the expected experience and seniority of the applicant.

Here is a summary of the progressive salary requirements for 2025:

Debunking the Myth: Can Bonuses Be Used to Meet the EP Salary?

This is a critical point of clarification: No, you cannot use variable components to meet the minimum qualifying salary.

MOM defines the qualifying salary as the fixed monthly salary. This includes basic monthly pay and any fixed monthly allowances. It explicitly excludes variable payments such as:

• Performance-based bonuses
• Commissions
• Overtime pay
• Allowances that are not fixed (e.g., travel reimbursements)

Your employment contract must clearly state a fixed monthly salary that meets or exceeds the threshold relevant to your age and sector.

The COMPASS Framework: Beyond Salary Requirements

Since September 2023, meeting the salary threshold is only the first step of a successful employment pass application. All EP applicants must also pass the Complementarity Assessment Framework (COMPASS), a points-based system designed to provide a more holistic assessment of a candidate’s profile.

You need to score a minimum of 40 points across foundational and bonus criteria.

How the COMPASS Points System Works

COMPASS evaluates both individual attributes and firm-related attributes.

Individual Attributes:

C1: Salary: Your fixed monthly salary compared to local PMET salaries in your sector.

C2: Qualifications: Your academic qualifications based on the awarding institution.

Firm-Related Attributes:

C3: Diversity: Your nationality’s share among your firm’s professionals.

C4: Support for Local Employment: Your firm’s commitment to hiring local Singaporeans.

Earning “Bonus” Points: Skills and Economic Priorities

If an applicant falls short on the foundational criteria, they can earn “bonus” points through two key areas:

C5: Skills Bonus (Shortage Occupation List): Earn +20 points if your job is on the Shortage Occupation List (SOL), which includes roles like AI specialists, cybersecurity experts, and certain types of engineers.

C6: Strategic Economic Priorities Bonus: Earn +10 points if your employer is participating in specific strategic programs led by government agencies that promote innovation or internationalization.

Implementation Timeline: When Do These Changes Take Effect?

The rollout of these changes is staggered to allow businesses and individuals to adapt:

For New EP Applications: Effective from January 1, 2025.

For EP Renewals: Effective from January 1, 2026.

This timeline gives existing EP holders and their employers a one-year grace period to meet the new salary benchmarks before their pass renewal.

How the 2025 EP Rules Compare to the Previous Framework

The evolution of the EP framework highlights a clear policy direction towards quality over quantity.

The “Why”: Singapore’s Rationale Behind the EP Overhaul

The Singapore government’s primary goal is to maintain a fair and level playing field for the local workforce while attracting high-quality foreign professionals. By pegging the EP salary threshold to the top-tier of local PMET wages, MOM ensures that:

1. Foreign professionals are not hired simply due to lower costs.
2. The quality of foreign talent remains high, bringing valuable skills and expertise.
3. Local wages are not depressed by an oversupply of foreign manpower.

Impact on Your Singapore PR and Citizenship Goals

A stable and high-quality Employment Pass, secured through a successful singapore ep application, is the most common and critical foundation for a successful Singapore PR application. The Immigration and Checkpoints Authority (ICA) closely assesses an applicant’s economic contributions, social integration, and long-term commitment to Singapore.

Here’s how the 2025 EP changes directly affect your PR journey:

Higher Bar for Entry: A higher qualifying salary and a good COMPASS score signal a higher level of economic contribution, which is a key factor in PR evaluations.

Stability is Key: Successfully renewing your EP under these stricter rules demonstrates stability and commitment, which ICA views favorably.

Profile Differentiation: A high COMPASS score, especially with bonus points for skills in shortage, can differentiate your profile from other applicants, showcasing that you possess skills vital to Singapore’s future economy.

Are You Prepared for the 2025 EP Changes?

The new EP framework demands a proactive approach. Don’t let policy changes derail your long-term ambitions in Singapore. A comprehensive assessment of your profile against the new salary and COMPASS criteria is the first step towards securing your future.

Take the next step in your Singapore journey. Contact us today for a confidential and professional assessment of your profile. Our team of experts can help you navigate the 2025 EP changes and strengthen your strategy for a successful PR application.