Singapore Work Pass Guide: Employment Pass for Executives -

This is Xavier from GPC Singapore (now known as DCC Group).

Singapore is one of the world’s most desirable work destinations. However, despite its strong workforce, a supply-demand gap persists, and understanding where these gaps lie is crucial. A helpful resource for this is Singapore’s “My Career Future” portal, which provides insights into current job market needs.

For over 10 years, our group company has supported multinational corporations and entrepreneurs from Japan in establishing and growing their businesses in Singapore. Assisting to secure Employment Passes for client employees or hiring foreign talent locally are one of the services we offer.

In this article, we aim to provide key updates for companies planning to enter Singapore or expand their established operations here.

Overview of Work Pass Singapore

Did you know that in Singapore, there are 13 types of Work Passes and 4 exemption categories that allow foreign talent to legally work in Singapore (excluding family-related passes)?

Types of Work Passes:

Employment Pass
EntrePass
Personalised Employment Pass
Overseas Networks & Expertise Pass
S Pass
Work Permit for migrant worker
Work Permit for migrant domestic worker
Work Permit for confinement nanny
Work Permit for performing artiste
Training Employment Pass
Work Holiday Pass (under Work Holiday Programme)
Work Holiday Pass (under Work and Holiday Visa Programmes)
Training Work Permit

Exemption and Working while on a Visit Pass:

Miscellaneous Work Pass
Work Pass Exempt Activities
Work pass exemption for foreign students
Work passes for holders of Long-Term Visit Passes issued by ICA

A good understanding of these options helps us determine the most suitable pass for foreign hires. The Singapore Ministry of Manpower’s (MOM) provides excellent guidance on each pass type.

If you are interested to know more, please check out their website (https://www.mom.gov.sg/passes-and-permits)

Commonly Used Work Pass

As of June 2024, Singapore’s foreign workforce totaled 1,545,200. The most widely used passes include:

Work Permit: 1,138,200 (73.6%)
Employment Pass: 202,400 (13.1%)
S Pass: 176,400 (11.4%)

Source: MOM Statistics (https://www.mom.gov.sg/foreign-workforce-numbers)

Work Permits are traditionally aimed at skilled and semi-skilled workers across industries like construction, manufacturing, marine shipyard, as well as foreign domestic workers, confinement nannies and public entertainers, performing arts sectors.

Historically viewed as “blue-collar” passes, Work Permits are increasingly being used for skilled office roles due to rising income thresholds and quotas for the Employment Pass and S Pass.

Employment Pass: The Gateway for Business Executives

The Employment Pass (EP) remains a popular choice for business executives and professionals. However, since the launch of the Complementarity Assessment Framework (COMPASS) on September 1, 2023, EP application requirements have evolved.

Previously, applications often faced additional inquiries from MOM. These inquiries are either directed to the individual applicant or the sponsoring company or both. Sometime, inquiries from MOM can be tough to handle, especially for newly established companies sponsoring their first employees. With COMPASS, these processes have been streamlined, and unnecessary application questions have significantly reduced, making the application experience smoother.

FAQ: Rising Income Thresholds for EP?

Yes, the income threshold for EP has been increasing steadily. MOM’s “Self-Assessment Tool (SAT)” allows applicants to assess their eligibility, but this tool is now accessible only to Authorized Personnel of Singapore registered company or employment agency.

Japanese talent in high demand in Singapore?!? 270% surge in hiring cost over the last 8 years!

We recently explored this trend in a GPC newsletter (now DCC), which found that the cost of hiring foreign executives has risen dramatically over the past eight years—by about 270%. This increase, along with currency shifts, has had a significant impact on hiring practices in Singapore.

In 2016, a Japanese candidate for a secretary role with similar qualifications could expect a salary of around S$3,700 (approximately JPY 292,633 at the time). By 2024, however, this figure has risen to approximately S$6,800 (about JPY 800,020), underscoring the growing financial pressures due to higher salary standards and a weaker yen.

A Case Comparison: Then and Now

November 2016

Age: 27
Education: Graduate of Keio University (Faculty of Environment and Information Studies)
Language Proficiency: Intermediate business level
Current Role: International flight attendant for 5 years (earning approximately S$2,500)
Required Salary for Employment Pass: S$3,700 (JPY 292,633 at an exchange rate of 79.09)

July 2024

Hypothetical Situation: The same candidate time-travels to apply for an Employment Pass today.
Required Salary for Employment Pass: S$6,800 (JPY 800,020 at an exchange rate of 117.65)

This stark increase highlights a challenging “double whammy” of rising government-mandated salary benchmarks and the yen’s weakening position. It’s unrealistic to expect today’s 27-year-olds to perform 270% better than candidates 8 years ago, but this is the evolving reality of Singapore’s foreign labour market.

FAQ: Does an All-Foreign Management Team Affect EP Approvals?

In recent years, some clients have raised concerns whether a predominantly foreign management team could impact EP applications. The answer is “Yes”. MOM encourages fair employment practices and emphasizes the importance of a diverse and inclusive workforce, including Singaporean representation in key management roles.

Singapore’s MOM assesses companies based on the ratio of local to foreign PMETs (Professionals, Managers, Executives, and Technicians), using the following formula.

While a high concentration of foreign Employment Pass holders in top management may draw additional scrutiny, recent COMPASS guidelines emphasize a balanced approach.

Previously, companies under TAFEP (Tripartite Alliance for Fair & Progressive Employment Practices) investigation faced restrictions on EP renewals and applications, often needing to implement fair hiring practices to lift any hiring constraints.

Blacklisted! Employment Pass privileges at risk

Yes! TAFEP (Tripartite Alliance for Fair & Progressive Employment Practices) can enforce the following actions to ensure compliance.

Restrict EP privileges – Limit an employer’s ability to apply for or renew work passes, such as EP and S Passes
Revoke EP privileges – Revoke an employer’s work pass privileges entirely.
Impose penalties – Penalize employers who fail to respond satisfactory to TAFEP’s request.
Mandate remediation training – Require human resources personnel to attend remediation training sessions.

While TAFEP’s guidelines are not legally binding, MOM can enforce these actions to ensure compliance. Additionally, the government has accepted recommendations from the Tripartite Committee on Workplace Fairness to strengthen workplace fairness, suggesting that the Fair Employment Guidelines will continue to work alongside upcoming workplace fairness legislation.

To mitigate these risks, companies with foreign management teams should consider hiring and developing local talent for leadership positions, highlighting training programs, and actively demonstrating their commitment to Singapore’s workforce development.

While TAFEP is less frequently involved now, companies should remain proactive to avoid similar situations. Non-compliance company can lead to restriction or even a complete loss of EP privileges.

Updated COMPASS Criteria from 1 January 2025

MOM had earlier committed to updating the COMPASS criteria annually to ensure that COMPASS remains responsive to market conditions.

As part of the regular update, the following COMPASS criteria have been updated and will take effect from 1 January 2025 for New Application and Renewals of EP expiring from 1 July 2025:

C1 Salary – Updated salary benchmarks by sector.
C2 Qualifications – Updated  20-points institutions list  and  10-points professional qualifications list.
C5 Shortage Occupation List (SOL) – Updated SOL with new occupations added to address shortages in the Semiconductor industry. Find out more in the updated SOL Employer Guide.

The required fixed monthly salary for candidates increases progressively with age (increases from age 23 to age 45). You can also check your organisation’s sector classification online.

What you should do as an Employer?
The Self-Assessment Tool (SAT) has been updated to reflect these new criteria. You should continue to use the SAT before submitting new or renewal EP applications from 1 January 2025 onwards.

Looking ahead : Focus on S Pass for the next edition

Thank you for reading. We hope this information has been helpful. If you have any questions about Work Passes in Singapore, feel free to contact us.

We’re committed to providing valuable insights for companies expanding into or out of the ASEAN region.