Immigration
Singapore | Employment pass salary benchmarks updates
Summary
On 02 August 2024, as part of regular updates to benchmark data for COMPASS (Complementarity Assessment Framework), the Ministry of Manpower (MOM) released the upcoming Employment Pass (EP) C1 Salary benchmarks, applicable to new EP applications from 1 January 2025 and renewals of EPs expiring from 1 July 2025.
This is in addition to the minimum qualifying salary (announced 04 March 2024) taking effect for new EPs from 1 January 2025.
Details
Since the introduction of COMPASS, EP candidates need to pass a 2-stage eligibility framework:
Stage 1: EP qualifying salary (latest announcement 04 March 2024); and
Stage 2: Minimum 40 points comprised of Foundational (1-4) and Bonus Criteria (5-6):
-
- C1 Salary (latest release 2 August 2024)
- C2 Education (last updated September 2023)
- C3 Diversity (updated monthly in myMOM)
- C4 Support for Local Employment (updated monthly in myMOM)
- C5 Skills Bonus (last updated March 2023)
- C6 Strategic Economic Priorities Bonus (last updated March 2023)
At Stage 1 of COMPASS, the March update will see an increase in the minimum qualifying salary:
- Non-Financial Services sectors: From SGD $5,000 to SGD $5,600 per month, increasing progressively with age, up to SGD $10,700 for candidates in their mid-40s.
- Financial Services sector: From SGD $5,500 to SGD $6,200, increasing progressively with age, up to SGD $11,800 for candidates in their mid-40s.
At Stage 2 of COMPASS; these recent benchmark updates reflect the MOM’s Manpower Research and Statistics Department’s (MRSD) annual Comprehensive Labour Force Survey results.
- All sectors average had around 3% increase to the 65th percentile benchmark (Fund Management sector had the highest with 12.5% increase; Arts, Entertainment and Recreation the lowest with -2.84% decrease).
- For the 90th percentile benchmark, all sector average was around 2.5% increase with the Real Estate sector having the highest with 16.5% and the Retail Trade sector the lowest with -6% decrease.
A selection of sector samples below to illustrate these benchmark increases.
| All Sector 65th percentile (10 Points) | All Sector 90th percentile (20 Points) | All Sector (excl Financial Services) 65th Percentile (10 Points) | All Sector (excl Financial Services) 90th Percentile (20 Points) | Financial Services 65th Percentile (10 Points) | Financial Services 90th Percentile (20 Points) | |
| Average Salary % Increase in Upcoming Benchmarks | 3.13% | 2.48% | 2.58% | 2.23% | 6.61% | 4.08% |
Table 1: Average % increases in upcoming benchmarks from current benchmarks
| Sample % Salary Changes for C1 for a 34 Years Old Applicant | ||||||
| Selected Sector (Salary for 34 yo) | Current 10 points | Upcoming 10 points | 10 Points % Increase | Current 20 points | Upcoming 20 points | 20 Points % Increase |
| Banking & Other Financial Services | $12,096 | $12,600 | 4.17% | $20,554 | $20,976 | 2.05% |
| Fund Management | $12,390 | $13,994 | 12.95% | $26,958* | $28,522* | 5.80% |
| Health & Social Services | $6,831 | $7,060 | 3.35% | $13,106 | $13,120 | 0.11% |
| Info-communication Technology | $8,983 | $9,520 | 5.98% | $14,763 | $15,943 | 7.99% |
| Manufacturing | $7,374 | $7,573 | 2.70% | $11,410 | $11,943 | 4.67% |
| Professional Services | $8,673 | $8,879 | 2.38% | $15,383 | $15,599 | 1.40% |
| Wholesale Trade | $7,617 | $7,893 | 3.62% | $13,115 | $14,211 | 8.36% |
Table 2: Salary increases for sample sectors for a 34 yo applicant. *Salary exempt from COMPASS
Timeline
- The revised Stage 1 Qualifying Salary will take effect for new EPs from January 2025 and for existing EPs expiring from January 2026.
- The C1 upcoming benchmark will apply to new EPs from January 2025 and for existing EPs expiring from July 2025.
Timeline illusions for new EPs and existing EPs are below.
Illustration 1: COMPASS Timelines for new EP applications. Last updated 2 August 2024
Illustration 2: COMPASS Timelines for existing EP renewals. Last updated 2 August 2024
What This Means for You
Proactive planning is crucial to minimize disruptions to operations and ensure continued compliance with regulatory requirements.
Businesses should already be aware of the implications on the eligibility of the existing EP holders for renewal application and will need to refresh their data analytics to factor in these recent updates for ongoing business continuity.
With the salary requirement being just one part of COMPASS, businesses should also aim to understand where they stand with their employee population, to forecast an optimal workforce in diversity of foreign and local talents.
We expect benchmark updates to occur regularly as part of COMPASS and advise businesses to be proactive in adapting their strategies, refreshing their analytics, and proactively communicate with employees to manage employee expectations and remain competitive in the evolving talent and regulatory landscape.
For data analytics or access to detailed sector breakdown, please reach out to the below contacts.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Yang Li
Partner
Irin Ou
Director
Further information on Vialto Partners can be found here: www.vialtopartners.com
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