Recently, all those who are recruiting, working or planning to come to Singapore for development need to pay attention to an important movement:
The Ministry of Manpower (MOM) will be announcing further adjustments tothe Local Salary Thresholdin March this year.At the same time, theEmployment Passthresholdat for white-collar foreignerswas raised last year. In the face of these changes, many people have been drumming in their minds: what exactly will change? Is my salary still good enough? How should companies respond?
Don’t worry, this article will break down all the core issues for you in the most straightforward way possible and provide clear guidelines for action.
I.What isLQS?Does it affectEPapplications?
LQSmeans“Local Qualification Threshold“.You can think of it as a “liability line“set by the ZF for businesses. The core rule is simple:
A company that wants to beeligibleto employ foreign workers (e.g.WP,SPass holders) must ensure that the monthly salary of every Singaporean or Permanent Resident employee it employs is not less than this.Currently, the line is drawn atS$1,600per month.
1.How doesthe LQSaffect employers andEPapplications?
Althoughthe LQSdoes not directly regulatethe individual wages ofEPapplicants, it has a fundamental impact on the overall employment qualifications of a business and thus indirectly relates toEPapplications:
Impact on the company’s eligibility to recruit: If the company is unable to meet theLQSand as a result the quota of foreign workers is reduced, it will not be able toapply for permitsfor any new foreign workers (includingEPcandidateswho plan to apply).This is a“ticket“issueat the company level.
Reflecting the general direction of the policy:the simultaneous increase in theLQSandEPthresholds clearly demonstrates ZF’s unified intention: toprioritize the protection and enhancement of salaries and employment of the local workforce, and to ensure that foreign talent is only a high-quality supplement. This means that the approval environment for all work permits will tighten as a whole.
2. What should you do?
To business owners/HR: Immediately check the payroll of all local staff in the company to ensure that each one is earning no less thanS$1,600per month, and budget in advance for a possible upward adjustment in March. This is the foundation for maintaining the stability of the company’s current expatriate team and future recruiting capabilities.
ToEPapplicants: when looking for a job, you can use the stability and compliance of the employer company as an invisible consideration. Acompany that struggles to meeteventhe LQSstandards may need to have a question mark over its stability and support.
Schematic diagram, source: United Daily News
Secondly,how much monthly salary do you really need toapply forEPnow?
The biggest change in the salary requirements forEPsis that the“one-size-fits-all” approachis no longerused.There is now a strict “age-based pricing“system. The older you are, the higher the salary threshold you need to meet to ensure that your income matches that of high-income local professionals in Singapore in your age group.
1. The current salary threshold looks like this
For a young person just entering the workforce, sayat age23, the minimum monthly salary you need to achieve isS$5,600(S$6,200for financial services).This threshold jumps to aboutS$7,300(aboutS$8,200 forthe financial services industry)when the career entersthe 30to34year oldstage.
For the more experienced40to44year olds, the requirement is raised to aboutS$10,500(aboutS$11,600for financial services).For more experienced individualsaged45and above, the highest threshold isS$10,700(S$11,800for financial services).
Important reminder: this new set of criteria also applies tothe renewal ofexistingEPholders.If your passexpires afterJanuary 1,2026, you must meet the new thresholds corresponding to your current age when renewing yourpass.
Photo/EP Salary Reference, Source: MOM Singapore
2. What should you do?
To job seekers: Salary requirements must be evaluated based on your exact chronological age. When negotiating a joboffer, know exactly what the official bottom line is for your industry and age group.
For employers: When setting salaries or planning annual salary adjustments for expatriate employees, it is important to considerthe “automatic increase inEPsalary thresholdsdue to the age of the employee“as a fixed cost increase factor to avoid passivity at renewal time.
Third,what exactly has become of the EP application process?
1. What are the requirements for EP applications?
Nowadays, theEPapplication is more like a“game of hurdles“, divided into two consecutive hurdles that must all be passed:
Level 1: Salary qualifying round.This is the“age-based pricing“thresholdmentioned above. It is a mandatory veto, and failure to meet it is game over and non-negotiable.
Level 2:COMPASSComprehensive Points Race.After the salary is met, you and your employer company need toaccumulate at least40pointsout of100on four dimensions under a point systemcalledCOMPASS. The 4 dimensions are:
①Your salary level: The higher your salary, the higher your score compared to your peers and local professionals of the same age in Singapore.
② Your academic background: graduating from the world’s top institutions (e.g.QSTop 100 Universities) can score20points, and having a general undergraduate degree can score10points.
③ How diverse is your company’s workforce in terms of nationality: the rarer your nationality is within the company, the higher the score.
④ Your company’s support for local employment: The higher the percentage of Singapore citizens and permanent residents in your company, the higher the score.
In addition, if you work in a profession that is in short supply in Singapore (e.g. Artificial Intelligence, Cybersecurity, Green Economy, etc.), you can directly gain a valuable20extra points.
2. What should you do?
It is highly recommended to make sure that you usethe “EPSelf-Assessment Tool“at on the official website of Singapore’s Ministry of Manpowerfor pre-assessmentbefore formally submitting your application. If your score is on the edge of the passing line, you can target to strengthen it:
Individuals: try to get a higher salary offer or improve your academic scores by pursuing a higher level degree.
Employers: Being intentional about recruiting and developing core local employees and being mindful of building a diverse international team can radically improve your company’s pass rate for any future expatriate hires.
Schematic diagram, source: United Daily News
IV. A list of core actions for you
In the face of the upcoming March New Deal, it is better to wait than to act. Start preparing now against the following checklist:
1.Checklistfor Business Owners andHR
Immediately initiate a payroll audit: ensure that all local staff are paid no less thanS$1,600per monthand budget for a possible upward adjustment.
Comprehensive review ofEPemployee salaries: check that allEP-holdingemployees’ salaries have matched the new thresholds for their current age, allowing room for adjustments for renewal.
Review and solidify the recruitment process: Ensure thatjobshave beenpostedon theMyCareersFutureplatformas required andthat local candidates have been interviewed fairly and all records are availablebefore considering expatriate candidates.
Develop a long-term talent strategy: elevate building a strong local core team and a diverse international team to the strategic level of the company.
2.Checklistforpeople whoplan to apply for anEP
Complete the self-assessment: use the officialEPself-assessment tool inthe first instanceto predict yourCOMPASSscorebased on your situation.
Set reasonable salary expectations: Set a salary negotiation floor that meets official thresholds based strictly on your age and industry.
Comprehensively prepare your application file: Have certified academic credentials and a clear professional resume ready in advance.
Choose your employer carefully: When looking for a job, be proactive in finding out about your target company’s business stability, local team composition and past record of hiring expatriate staff.
Schematic diagram, source: United Daily News
[Conclusion]
Through this series of fine-tuning, Singapore continues to send a clear signal that it only welcomesinternational professionals whocan truly“complement”local talent . Understanding the rules and planning ahead is the only way to stay proactive on your career path in Singapore.
If you are interested in applying for SingaporeEP,PR,ONE Passand other passes, please contact your account manager and we will plan your sea program for you.
*Reference source: SingaporeMOM, United Morning Post, comprehensive news reports, reproduced with attribution, infringement and deletion of contact.
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