Singapore is ushering in a comprehensive overhaul of its work permit regulations in 2025, targeting both foreign professionals and employers. These updates are intended to balance the inclusion of foreign expertise while reinforcing the importance of fair employment opportunities for local residents. With significant revisions in salary thresholds, compliance norms, and hiring frameworks, the city-state is setting the stage for a more competitive and transparent employment environment.
Salary Hikes Reshape Employment Pass Eligibility
Effective January 1, 2025, foreign professionals applying for the Employment Pass (EP) must meet new salary benchmarks. The revised minimum monthly salary stands at SGD 5,600 for most industries, up from the previous SGD 5,000. In the financial sector, this threshold increases further to SGD 6,200. For experienced professionals in their mid-40s, the required salary can go up to SGD 10,700, reflecting Singapore’s intent to attract high-caliber talent. These updated figures will also apply to all existing EP holders from January 1, 2026.
Upgraded S Pass Criteria and Increased Levy Costs
Mid-level skilled workers under the S Pass category will also face stricter requirements. Beginning September 1, 2025, the minimum qualifying salary will rise to SGD 3,300, with the financial sector demanding SGD 3,800. Additionally, the government will increase the Tier 1 levy rate from SGD 550 to SGD 650, while Tier 2 rates remain unchanged at SGD 650. Employers are encouraged to begin realigning their salary structures to ensure smooth transitions before the September 1, 2026 compliance deadline.
Introduction of the COMPASS Framework for EP Assessments
Singapore’s new Complementarity Assessment (COMPASS) Framework will become a critical component of EP applications in 2025. This points-based system evaluates candidates across four major pillars: salary competitiveness, educational credentials, workforce diversity within the hiring company, and the employer’s contribution to local hiring. To qualify for an EP, applicants must achieve a minimum of 40 points. This approach aims to bring greater transparency and objectivity to the hiring process, while encouraging firms to demonstrate commitment to local workforce development.
Fair Hiring Practices Gain Greater Emphasis
Stricter measures under the Fair Consideration Framework (FCF) are now in effect, placing heavier emphasis on fair employment practices. Employers must advertise job roles on MyCareersFuture before applying for foreign work passes, ensuring locals are considered first. Companies must also show evidence of sincere efforts to hire Singaporean candidates. Those that fall short risk being placed on the Ministry of Manpower’s (MOM) watchlist or facing delays in work pass approvals.
Timeline for Compliance with New Renewal Conditions
To provide a smooth adaptation period, the MOM has introduced staggered deadlines for compliance. All current EP holders must meet the updated salary requirements by January 1, 2026. Meanwhile, S Pass holders have until September 1, 2026 to comply with the increased salary and levy standards. Employers should review workforce budgets and employment policies early to avoid operational disruptions later on.
Implications for the Foreign Workforce and Employers
Foreign workers will need to aim for higher salaries and present strong qualifications to meet eligibility under the new criteria. For older professionals, age-adjusted salary benchmarks must be considered. Conversely, employers face increased labor costs and tighter hiring regulations. Transparency in recruitment processes will be under greater scrutiny, and only firms that comply fully will retain seamless access to foreign talent.
Alternative Work Pass Options for High-Caliber Talent
For individuals and companies unable to meet the revised criteria, alternative work passes offer viable routes. The Tech.Pass caters to top-tier technology professionals and entrepreneurs, while the Overseas Networks & Expertise Pass is designed for those earning SGD 30,000 or more monthly. Additionally, the Personalised Employment Pass (PEP) provides flexibility for existing EP holders drawing SGD 22,500 or above. These specialized passes are useful for employers seeking to attract or retain exceptional global talent within Singapore.
Preparing for a More Inclusive and Competitive Workforce
Singapore’s work permit updates for 2025 represent a strategic shift toward balancing global talent integration with stronger support for the local workforce. These changes reinforce fair hiring principles, raise the bar for salary and qualifications, and introduce new frameworks like COMPASS to guide decision-making. As the new policies come into play, both employers and foreign professionals must adapt proactively to stay aligned with Singapore’s evolving labor landscape.