As Singapore positions itself as a global hub for talent, the government’s recent changes to Employment Pass (EP) salary criteria and enforcement of fair hiring practices reflect a strategic shift in how companies attract and retain talent. These changes are not just about numbers, they emphasize the importance of balancing competitive compensation with opportunities for Singaporeans and Permanent Residents.

The Ministry of Manpower has recently announced significant revisions to the salary criteria for Employment Pass (EP) applications, which will take effect for new applications on 1 January 2025 and for renewals on 1 January 2026. These changes require employers to carefully assess the salaries currently offered to EP holders to ensure compliance with the new thresholds. By conducting a thorough audit of existing salary packages, employers can identify potential gaps and determine if salary increments or adjustments are necessary. This proactive approach is essential to avoid complications during the renewal process, as failure to meet the new qualifying salary criteria could result in application rejections or penalties.

Table: Revised Employment Pass (EP) Salary Criteria (Effective 2025) 

These updated salary thresholds are designed to adjust progressively with age, ensuring a fairer wage structure for more experienced applicants.

In addition to the salary increases, new benchmarks for the Complementary Assessment Framework (COMPASS) will come into effect from 1 January 2025 for new applications and from 1 July 2025 for renewals. COMPASS, a points-based system used to evaluate EP applications, assigns points based on an applicant’s salary, among other criteria. 

Applicants can earn between 10 to 20 points based on their salary level under COMPASS. If the salary does not meet the required threshold, the applicant will need to make up points in other areas to qualify for the EP. Employers are responsible for ensuring that their employees’ salaries meet the benchmarks, which are updated annually. 

The minimum salary requirements outlined in the COMPASS benchmarking table, available at this link. 

In Singapore’s competitive labour market, employers are not only expected to meet the new salary thresholds but also to ensure that all roles, regardless of seniority, are first made available to the local workforce. This principle is central to the Fair Consideration Framework (FCF), which mandates that Singaporeans and Permanent Residents (PRs) must be given a fair opportunity to apply for all EP positions before international talent is considered. 

Equal Opportunity for Singaporeans and PRs 

The Fair Consideration Framework (FCF) is more than just a set of guidelines; it ensures that local talent has a fair opportunity to fill positions before employers turn to hiring foreign professionals. Whether a company is hiring for an entry-level role or a senior management position, all jobs open to Employment Pass applicants must first be advertised to the local workforce via the MyCareersFuture job portal for a minimum of 14 days. 

Enforcing Fair Consideration Across All Levels 

To ensure that employers adhere to these rules, the Ministry of Manpower (MOM) monitors hiring practices and conducts regular audits. Companies found bypassing the local hiring pool or not giving Singaporeans and PRs fair consideration can face severe consequences. These include being placed on the Fair Consideration Watchlist, which could limit or restrict their ability to hire foreign talent. 

Steps for Businesses to Ensure Fair Consideration Compliance 

To avoid potential issues and ensure a fair recruitment process, companies should focus on the following: 

• Advertise All EP Roles Locally: Every job intended for an Employment Pass applicant, irrespective of salary or seniority, must be advertised to the local workforce first. Make sure job postings are clear, and transparent, and list the required qualifications and skills to attract relevant local candidates. 

• Ensuring Transparency in Job Advertisements: When posting job ads for Employment Pass (EP) positions, employers must consider multiple factors to ensure compliance with the Fair Consideration Framework. It’s important that the job ad clearly outlines the necessary qualifications and skills, attracting suitable local candidates. \Thus, transparency in job postings and adherence to fair hiring processes are crucial to avoid complications. 

• Document the Hiring Process: Employers should maintain detailed records of all applications from Singaporeans and PRs, including why any local candidates were not selected. While interview dates and times are not tracked in the FCF system, it is recommended that employers internally record this information to ensure transparency and fairness in the evaluation process. This thorough documentation can help demonstrate compliance with the Fair Consideration Framework (FCF) if audited by the Ministry of Manpower (MOM). 

• Evaluate Internal Hiring Practices: Regular reviews of recruitment strategies can ensure that local candidates are genuinely considered for all open positions. Companies should foster a mindset that supports hiring local talent where possible. 

If your company engages a 3rd party agency to handle Employment Pass or other work pass applications, it is important to ensure all necessary authorizations are properly documented. The following forms are critical to maintaining compliance: 

1. FW Authorisation Form: This form is required for the employer to officially engage a 3rd party agency to conduct any work pass transactions on their behalf. It ensures the agency has the legal authority to act on the employer’s behalf in these matters.
   Download: https://www.mom.gov.sg/~/media/mom/documents/employment-agencies/fdw-authorisation-form.pdf
2. Annex A1 Form: This form must be signed by both the employer and the 3rd party agency, if the agency is not required to perform any recruitment activities OR to ensure fair consideration of local candidates prior to application of work passes on behalf of the employer.
   Download: https://www.mom.gov.sg/-/media/mom/documents/employment-agencies/ea-licence-conditions.pdf 

These forms are essential to ensure transparency and compliance with the Ministry of Manpower’s regulations, especially in situations where external agencies are involved in the hiring process.

Employers are required to thoroughly review all job applications for Employment Pass (EP) positions to comply with the FCF. The Ministry of Manpower (MOM) monitors this process through a detection system that tracks whether employers have opened or downloaded CVs submitted by Singaporeans and Permanent Residents.  

To demonstrate a fair hiring process, it is advisable for companies to provide feedback on local candidates, particularly if they are not selected, which ensures transparency. MOM’s detection system helps reinforce that all candidates are reviewed fairly before foreign applicants are considered. Failure to comply can result in audits, penalties, or placement on the Fair Consideration Watchlist by MOM.

Applicants who view and apply for these positions also have the right to raise concerns with the Ministry of Manpower (MOM) if they feel they have been unfairly excluded from consideration. MOM may investigate these complaints, which could lead to further scrutiny of the employer’s hiring practices 

By enforcing the Fair Consideration Framework, Singapore seeks to balance its openness to foreign talent with its commitment to building a strong local workforce. Employers who comply not only avoid penalties but also position themselves as inclusive, responsible corporate citizens. This commitment can improve a company’s standing among local candidates, enhance its brand reputation, and help attract top-tier local talent. 

Sources: 

1. https://www.mom.gov.sg/passes-and-permits/employment-pass/eligibility  

1. https://www.mom.gov.sg/passes-and-permits/employment-pass/consider-all-candidates-fairly  

1. https://www.mom.gov.sg/employment-practices/fair-consideration-framework#:~:text=The%20Fair%20Consideration%20Framework%20(%20FCF,%2C%20sex%2C%20nationality%20or%20race.  

Singapore’s evolving Employment Pass landscape demands that businesses stay proactive in both compliance and strategic talent acquisition. The recent changes to EP salary criteria, coupled with the strict enforcement of the Fair Consideration Framework, highlight the need for employers to ensure fair opportunities for Singaporeans and Permanent Residents while attracting top global talent. Adhering to these new salary thresholds and demonstrating a commitment to fair hiring practices are not just regulatory requirements—they are key steps toward building a competitive and diverse workforce. 

Link Compliance is here to help companies navigate these changes, ensuring your business is not only compliant but also positioned as an employer of choice in Singapore’s competitive job market. With our expertise, we can support your organization in meeting the updated salary requirements and fulfilling your obligations under the Fair Consideration Framework. 

Connect with us today to learn how we can help you seamlessly adapt to these regulatory changes and optimize your talent acquisition strategies. 

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More information, www.linkcompliance.com
Email: info@linkcompliance.com 

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