Understanding the new MOM Complementarity Assessment Framework (COMPASS) for Employment Passes, and changes to minimum qualifying salaries

During the Committee of Supply announcements on 4 March 2022, Singapore's Ministry of Manpower announced a significant update to immigration policy. Foreign workforce policy changes have been made to strengthen the complementarity and diversity of the foreign workforce; support industry transformation and development of a strong Singaporean core, and to provide greater clarity and certainty to businesses on foreign workforce policies.

The aim is to ensure that EP and S Pass holders are comparable in quality to the top one-third of the local PMET (Professionals, Managers, Executives and Technicians) and APT (Associate Professionals and Technicians) workforce and that foreign workers are hired to fill skill gaps, not to save on costs. 

What are the key changes to costs?

• The EP qualifying salary will be benchmarked to the top one-third of local PMET wages, increasing from $4,500 to $5,000 for new applications from 1 September 2022, and to renewals from 1 September 2023 (existing EP Pass holders whose passes are expiring from 1 September 2023 will be subject to the new  qualifying salary). The qualifying salary will continue to increase progressively with age, up to $10,500 for a candidate in their mid-40s.

• The EP minimum qualifying salary for the Financial Services sector will be raised from $5,000 to $5,500. The qualifying salary will increase progressively to $11,500 for a candidate in their mid-40s. The same timeline applies to implementation. 

• The cost of hiring an S Pass holder, which includes both the qualifying salary and levy, will be benchmarked to the top one-third of local APT wages from 1 September 2022, and to renewals from 1 September 2023 (existing S Pass holders whose passes are expiring from 1 September 2023 will be subject to the new qualifying salary).

• Reflecting the Financial Services sector’s higher wage norms, a higher S Pass qualifying salary for this sector will be introduced.

• Some firms hire rank-and-file workers on S Passes due to the source restrictions for Work Permit holders. With the moves to increase the benchmark for S Pass quality, MOM will introduce an NTS Occupation List from 1 September 2023 to allow firms in the Services and Manufacturing sectors to hire such S Pass holders on Work Permits. This will be restricted to a list of selected occupations.

• Below is a diagram outlining the planned increases to S Pass qualifying salaries, staggered over time. Businesses should expect regular updates to the S Pass qualifying salary and levy to keep pace with local APT wage trends, reviewed annually against the benchmark, taking into account prevailing economic conditions. Sufficient lead time will also be given to businesses to adjust.

What is the new points-based Complementarity Assessment Framework (COMPASS) for EPs?

• COMPASS evaluates an EP application based on a holistic set of individual and firm-related attributes. It enables companies to select high-quality foreign professionals while improving workforce diversity and building a strong Singaporean core. It has been designed as a more transparent system to give businesses clarity and certainty for their manpower planning. 
   
• In addition to meeting the qualifying salary, EP candidates must earn sufficient points under a new points-based Complementarity Assessment Framework (COMPASS) to qualify for an EP.
   
• COMPASS will apply to new EP applications from 1 September 2023, and to renewal applications from 1 September 2024.

How will COMPASS work in practice?

• 40 points are required to pass.
   
• All applications are scored on four foundational criteria, based on benchmarks expected of a complementary EP holder. It is possible to have sufficient points for an application/renewal based on these foundational criteria, as up to 20 are available in each one and only 40 are required to pass.
   
• Additional points can be earned on bonus criteria, which recognise applications that bring in skills in shortage and support strategic economic priorities.
   
• Lower points on one criterion can be made up for by higher points on another.
   

The criteria of evaluation:

How the points are distributed in each criteria: 

Will there be any exemptions to COMPASS?

Candidates are exempted from COMPASS if they fufill any of these conditions:

• Earning at least $20,000 fixed monthly salary
   
• Applying as an overseas intra-corporate transferee under the World Trade Organisation’s General Agreement on Trade in Services or an applicable Free Trade Agreement that Singapore is party to.
   
• Filling a role on a short-term basis, i.e. 1 month or less.

Where can I find more information on COMPASS, and how can I check my company's eligibility to generate the necessary points?

• The MOM is maintaining a dedicated page for the COMPASS framework. We recommend businesses bookmark these pages for continued updates. 
   
• The MOM will be introducing a new Pre-Assessment Tool in time for the framework to take effect, similar to the current Self-Assessment Tool. 

What support is available to help businesses transform and remain competitive, and maintain their access to skilled labour?

• Multiple training schemes and conversion programmes are available from the Government, with varying eligibility. Details of these can be found on our Future of Work Information Hub, or via the MOM website.