[SUMMARIES]
New Base Thresholds: The minimum qualifying salary is $5,600 for all sectors, rising to $6,200 for Financial Services (effective for all new applications and renewals expiring from Jan 1, 2026).
Age Matters: The requirement increases progressively with age; a 45-year-old candidate now requires $10,700+ (General) or $11,800+ (Finance).
COMPASS Integration: Meeting the minimum only qualifies the candidate to apply; earning points under the COMPASS C1 attribute requires meeting local PMET salary benchmarks (65th and 90th percentiles).
Fixed Components: Only “fixed monthly salary” counts towards the threshold, variable bonuses and overtime pay are excluded.
[/SUMMARIES]
For employers and HR leaders, obtaining an Employment Pass (EP) in Singapore has shifted from a straightforward salary benchmark to a more nuanced, multi-factor assessment. Meeting a single minimum threshold is no longer sufficient; today, the EP qualifying salary is assessed dynamically, taking into account the applicant’s age, industry sector, and performance under the COMPASS framework. These evolving requirements mean that workforce planning now requires greater precision and foresight At Koobiz, we frequently assist businesses in navigating these complexities to ensure their talent acquisition strategies remain compliant and efficient. This guide will help you accurately calculate the required salary to meet the new 2025/2026 standards.
What is the Minimum Qualifying Salary for EP in 2025?
As of 2025, the Ministry of Manpower (MOM) has raised the baseline monthly wage required to secure an Employment Pass to $5,600 for most industries.
This figure is benchmarked against the top one-third of local PMET wages. For all new applications (and renewals expiring from 1 January 2026 onwards), the baseline thresholds are:
- Non-Financial Sectors: $5,600 per month (up from $5,000).
- Financial Services: $6,200 per month (up from $5,500).
Note on Renewals: The previous lower rates ($5,000/$5,500) applied only to passes expiring before 31 December 2025. Moving forward into 2026, all candidates must meet these higher thresholds. Any EP application submitted with a fixed monthly salary below these amounts will be rejected automatically, regardless of the employer’s size, reputation, or business profile.
How Does Age Affect the EP Salary Threshold?
The EP qualifying salary increases progressively with age, starting at the baseline for a 23-year-old and rising to nearly double for candidates aged 45 and above.
MOM structures this increase to ensure foreign talent competes fairly with locals at a similar career stage. The 2025 age curve is significantly steeper than previous years:
- Entry Level (Age 23): Candidates qualify at the absolute minimum ($5,600 General / $6,200 Finance).
- Progressive Increase (Age 23 to 45): The salary requirement rises steadily. For example, a 30-year-old in a general sector now requires approximately $7,223.
- Senior Level (Age 45 and above): The threshold peaks at $10,700 (General) and $11,800 (Financial Services).
In practice, this “experience premium” is often the most underestimated cost in EP planning. As many employers working with Koobiz discover, hiring senior expatriates requires budgeting well above the headline minimum salary, especially when aligning compensation with COMPASS and renewal expectations.
Financial Services vs. Non-Financial Sectors: The Salary Gap
Financial services require a higher baseline compared to general industries, reflecting the premium wage norms within Singapore’s banking sector.
The Ministry of Manpower recognizes that salaries in this sector are naturally inflated due to the high demand for specialized skills. Consequently, the bar is set higher across the board.
Here is a detailed comparison of the 2025/2026 requirements:
| Comparison Factor | Non-Financial Sectors | Financial Services |
|---|---|---|
| Base Salary (Age 23) | $5,600 | $6,200 |
| Mid-Career (Age ~35) | ~$8,382 | ~$9,000+ |
| Senior (Age 45+) | $10,700 | $11,800 |
| Target Industries | Retail, Tech, Manufacturing, etc. | Banking, Insurance, Asset Mgmt. |
This gap widens significantly as age increases. Failing to account for this sector-specific premium is a common reason for application rejections in the Central Business District.
The COMPASS Framework: Calculating C1 Salary Points
The COMPASS Framework calculates C1 Salary Points based on two benchmarks: meeting the 65th percentile of local PMET wages earns 10 points, while meeting the 90th percentile earns 20 points.
Importantly, meeting the EP qualifying salary is only the entry requirement, it does not earn points by itself. To pass COMPASS, an application must score at least 40 points, and C1 is the most straightforward lever employers can use to boost the total score.
- 0 Points: Salary meets the EP minimum but is below the 65th percentile of local peers.
- 10 Points: Salary is at or above the 65th percentile.
- 20 Points: Salary is at or above the 90th percentile.
Note: C1 benchmarks are specific to your sector and are updated annually. Always check the latest MOM tables for your specific industry code.
Case Studies: Calculating EP Eligibility in Real Scenarios
To demonstrate how the new 2025 rates apply, we have compiled three scenarios. These highlight the stricter requirements compared to previous years.
Scenario 1: The “Age Trap” (Tech Sector)
Candidate: Software Engineer, Age 38.
Offer: $8,000 Fixed Monthly Salary.
Outcome: REJECTED.
- Analysis: While $8,000 seems high, the new 2025 benchmark for a 38-year-old in general sectors is approximately $9,077. The offer falls short by over $1,000.
- Lesson: Mid-career hires face the steepest increases. You must check the specific age benchmark before making an offer.
Scenario 2: The “Sector Premium” (Finance vs. Retail)
Candidate: Marketing Manager, Age 30.
Offer: $7,000 Fixed Monthly Salary.
Outcome: AT RISK (Both Sectors).
- In a Retail Company: REJECTED. The new general benchmark for Age 30 is roughly $7,223. An offer of $7,000 is no longer sufficient (unlike in 2024).
- In an Investment Bank: REJECTED. The Finance benchmark for Age 30 is approximately $7,982.
- Lesson: Salaries that were “safe” last year may now be insufficient.
Scenario 3: The “COMPASS Save” (Using Salary to Pass)
Candidate: Operations Director, Age 45.
Challenge: The company has low diversity (0 points). They need 40 points solely from the candidate.
Strategy: Offer a salary in the 90th percentile (e.g., $18,000+).
- Result:
- C1 (Salary): 20 Points (90th percentile).
- C2 (Qualifications): 20 Points (Top-tier University degree).
- Total: 40 Points -> PASSED.
- Lesson: For senior roles, aiming for the 90th percentile can “save” an application even if the firm scores poorly on diversity.
How to Use the MOM Self-Assessment Tool (SAT) for Verification
The Self-Assessment Tool (SAT) is MOM’s official online calculator that predicts application outcomes.
Before submitting any application, using the SAT is mandatory to avoid rejection fees and records.
Step 1: Access and Login
Navigate to the MOM SAT page. Koobiz strongly recommends logging in via Singpass to see your specific Firm-Level COMPASS scores (C3 Diversity and C4 Support for Local Employment).
Step 2: Input Candidate Data
Enter the candidate’s personal details accurately. Nationality & Date of Birth are critical for the age-based salary curve.
Step 3: Input Job & Salary Details
Enter only the fixed monthly salary. Do not include variable bonuses. If the result is “Not Eligible,” try adjusting the salary upward to find the passing threshold for that specific profile.
Step 4: Interpret the Result
- Green (Eligible): ~90% chance of approval.
- Red (Not Eligible): Do not proceed. The salary likely fails the new 2025 age-based benchmarks.
Understanding “Fixed Monthly Salary” Components
Fixed Monthly Salary is the guaranteed amount paid every month. MOM assesses EP eligibility strictly based on this figure, not total compensation.
Included (YES) vs. Excluded (NO)
- YES: Basic monthly salary and fixed allowances (e.g., fixed transport/housing/meal allowances stipulated in the contract).
- NO: Variable bonuses (AWS, performance bonus), overtime pay, reimbursements, and in-kind benefits (direct housing or car provided).
Special Cases and Exemptions
Renewals vs. New Applications
While the 2025 increase applies fully to new EP applications, employers should plan early for renewals expiring in 2026. These renewals must meet the new higher baselines ($5,600 / $6,200), and many existing EP holders may need salary adjustments to remain eligible.
Overseas Intra-Corporate Transferees (ICT)
Intra-Corporate Transferees (ICTs) are senior employees transferred from an overseas branch. While they must still meet the age-tiered qualifying salary (Age 45+ ~$10,700), ICTs are exempt from the COMPASS framework (no C1 salary points needed).
About Koobiz
Navigating Singapore’s employment regulations, whether it’s determining the correct EP qualifying salary or managing corporate tax and accounting, can be challenging for international businesses.
Koobiz helps simplify your market entry and ongoing compliance in Singapore. From company incorporation and corporate bank account opening to payroll setup and tax filings aligned with the latest MOM and IRAS requirements, our experienced team provides end-to-end support.
Let us manage the regulatory details, so you can stay focused on scaling your business with confidence.
Visit us at: Koobiz.com to learn more about our corporate services.