Singapore Work Permit 2025: Key Rule Changes for Foreign Workers & Employers

Singapore has announced significant updates to its work permit regulations for 2025. These changes will impact employers and foreign workers across multiple industries. The updated policies focus on increasing salary thresholds, revising eligibility criteria for Employment Pass (EP) and S Pass holders, introducing the COMPASS framework, and enforcing stricter fair hiring practices.

This guide provides an in-depth look at these changes, their implications, and how businesses and workers can prepare for the transition.

Major Updates to Singapore’s Work Permit System in 2025

The 2025 updates to Singapore’s work permit system aim to create a more competitive job market while maintaining a balance between local and foreign talent. Below is a summary of the critical changes:

Update	Details
Employment Pass (EP) Salary Increase	Minimum salary raised to SGD 5,600 (previously SGD 5,000); SGD 6,200 for financial sector professionals.
S Pass Minimum Salary	Increased to SGD 3,300 (from SGD 3,150); SGD 3,800 for financial sector workers.
COMPASS Framework for EP Applications	A points-based system evaluating salary competitiveness, qualifications, workforce diversity, and local hiring commitments.
S Pass Levy Rate Increase	Tier 1 levy rises from SGD 550 to SGD 650; Tier 2 remains SGD 650.
EP & S Pass Renewal Deadlines	EP holders must comply by January 1, 2026; S Pass holders must meet new conditions by September 1, 2026.
Stricter Workforce Fair Hiring & Compliance	Reinforced regulations to prioritize local workforce employment and improve transparency in hiring.
Official Source	Ministry of Manpower (MOM)

1. Higher Salary Requirements for Employment Pass (EP)

The Employment Pass (EP), designed for highly skilled professionals, will see an increase in salary requirements. Starting January 1, 2025, the minimum monthly salary for EP applicants will be:

• SGD 5,600 for most sectors (previously SGD 5,000).
• SGD 6,200 for the financial sector.
• Higher salary thresholds for older applicants (e.g., SGD 10,700 for those in their mid-40s).
• These salary criteria will also apply to EP renewals from January 1, 2026.

2. Increased Minimum Salary for S Pass Holders

S Pass holders, who are mid-skilled workers, will also experience salary and levy changes:

• SGD 3,300 per month (previously SGD 3,150) for most industries.
• SGD 3,800 per month for the financial sector.
• Employers must pay a higher levy rate, increasing from SGD 550 to SGD 650 per worker.
• By September 1, 2026, existing S Pass holders must comply with these revised conditions.

3. Introduction of the COMPASS Framework for EP Applications

The Complementarity Assessment Framework (COMPASS) is a new system that evaluates EP applications based on a points-based approach. Employers and applicants must score at least 40 points based on the following factors:

• Salary Competitiveness: Ensures salaries are in line with local professionals in similar roles.
• Educational Qualifications: Higher academic degrees will earn more points.
• Company Workforce Diversity: Encourages a balance between local and foreign talent.
• Support for Local Hiring: Employers must show active efforts to hire Singaporeans before applying for an EP.

4. Stricter Fair Hiring & Compliance Measures

To reinforce fair hiring practices and protect local job seekers, Singapore is strengthening its Fair Consideration Framework (FCF):

• Employers must advertise jobs on MyCareersFuture before hiring foreign workers.
• Companies must prove genuine efforts to recruit Singaporeans before applying for work passes.
• Employers need to follow transparent hiring processes to prevent nationality-based discrimination.
• Non-compliance could lead to delays in work pass approvals or being placed on the Ministry of Manpower’s (MOM) watchlist.

5. Work Pass Renewal Deadlines & Transition Periods

To allow businesses and workers to adjust, Singapore has set deadlines for work pass renewals:

• Employment Pass (EP) holders must meet new salary thresholds by January 1, 2026.
• S Pass holders must comply with updated salary and levy conditions by September 1, 2026.
• Employers should start adjusting salary structures and workforce planning now to meet the upcoming requirements.

Also Read: S$700 Government Payout 2025: Check Eligibility, New Payment Dates & How to Claim

Impact of Work Permit Changes on Foreign Workers and Employers

For Foreign Workers:

• Higher salary requirements mean negotiating competitive pay is essential.
• Older applicants must ensure they meet age-adjusted salary thresholds.
• Advanced qualifications and in-demand skills improve the chances of securing an EP or S Pass.
• Fewer opportunities for lower-skilled jobs due to hiring preferences shifting towards local employees.

For Employers:

• Increased costs due to higher salary thresholds and levy rates.
• Stricter hiring regulations require more documentation and compliance efforts.
• Tighter competition for work passes necessitates better employee benefits to attract foreign talent.
• Potential work pass approval delays if fair hiring practices are not followed.

Employers must reassess hiring strategies, adjust salary structures, and ensure compliance with Singapore’s updated work permit regulations.

Conclusion

Singapore’s 2025 work permit updates mark a significant shift in employment policies, emphasizing higher salary standards, fair hiring practices, and talent competitiveness. Businesses and foreign professionals must stay informed and proactive to navigate these changes smoothly. Employers should start strategic workforce planning now to ensure compliance and continued access to skilled talent in Singapore’s evolving job market.

Frequently Asked Questions (FAQ)

1. What is the purpose of Singapore’s 2025 work permit updates?

The updates aim to create a competitive job market, balancing local and foreign talent while ensuring fair hiring practices and economic growth.

2. How will the COMPASS framework affect EP applications?

The COMPASS system introduces a points-based evaluation considering salary, education, workforce diversity, and commitment to hiring locals. Applicants must score at least 40 points to qualify.

3. What are the new salary requirements for EP and S Pass holders?

• EP holders must earn a minimum of SGD 5,600 (SGD 6,200 for financial sector roles).
• S Pass holders need a minimum salary of SGD 3,300 (SGD 3,800 for financial roles).

4. What are the consequences of non-compliance with fair hiring practices?

Employers failing to comply may face delays in work pass approvals, penalties, or placement on the MOM watchlist.

5. How should businesses prepare for these changes?

Employers should review hiring policies, adjust salary structures, and enhance compliance efforts to meet the updated regulations before the deadlines.

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