Will Your Foreign Hiring Cost Rise in 2027? Singapore EP & S Pass Salary Changes Explained

Will Your Foreign Hiring Cost Rise in 2027? Singapore EP & S Pass Salary Changes Explained 

Hiring a foreign employee in Singapore may cost more in 2027 — even before you factor in recruitment fees, benefits, levies, or other employment costs.

The reason is a change announced by Singapore's Ministry of Manpower (MOM): the minimum qualifying salaries for both Employment Pass (EP) and S Pass applications will increase from 1 January 2027.

For employers, the headline numbers are straightforward.

The EP minimum qualifying salary for most sectors will increase from $5,600 to $6,000, while the S Pass minimum will rise from $3,300 to $3,600. Financial services employers face higher thresholds as well.

But there is a detail that employers should not overlook:

The new thresholds do not apply to every application and renewal at the same time.

That distinction matters when you're planning your 2027 hiring budget.

The 2027 Changes at a Glance

If you currently employ foreign talent close to the minimum qualifying salary, these are the numbers worth putting into your workforce plan.

The increase is designed to keep foreign-worker salary thresholds aligned with prevailing local wage benchmarks. MOM says the EP threshold is benchmarked to the top one-third of local PMET salaries, while the S Pass qualifying salary is benchmarked to the top one-third of local Associate Professionals and Technicians (APT) wages.

EP: The Minimum Salary Will Rise to $6,000

For Employment Pass applications outside the financial services sector, the minimum qualifying salary will increase from $5,600 to $6,000 for new applications from 1 January 2027.

There is also an age component. The qualifying salary is not a flat amount for every candidate. It increases progressively with age because MOM benchmarks the salary against local PMET salaries by age.

For example, under the 2027 framework for non-financial-services sectors:

MOM's published table shows the threshold rising progressively from age 23 through age 45 and above.

S Pass: The Threshold Is Also Moving

• For most sectors, the minimum qualifying salary will increase from $3,300 to $3,600 for new applications from 1 January 2027.

• For financial services, the threshold will increase from $3,800 to $4,000. And, just like the EP, the S Pass qualifying salary increases with age.

• For most sectors, MOM's 2027 table starts at $3,600 for candidates aged 23 or below and increases progressively with age, reaching $5,100 for candidates aged 45 and above.

So if your company hires several S Pass employees, the effect on payroll may be greater than the headline $300 increase suggests.

But There's a Catch: New Applications and Renewals have Different Dates

This is one of the easiest details to misunderstand.

For new EP applications, the new qualifying salary applies from 1 January 2027.

For EP renewals, the new threshold applies to passes expiring from 1 January 2028.

The S Pass framework follows a similar transition:

• New applications: from 1 January 2027
• Renewals: for passes expiring from 1 January 2028

This gives employers some time to plan.

It also means that a company shouldn't automatically assume every existing foreign employee needs a salary adjustment on 1 January 2027.

Check the pass type, application or renewal status, age-based threshold and applicable date before making changes.

A Salary Increase Doesn't Automatically Guarantee an EP

This is another important distinction. For an Employment Pass, the qualifying salary is only Stage 1.

Unless an exemption applies, the candidate must also pass the Complementarity Assessment Framework (COMPASS). MOM requires an EP application to meet the qualifying salary first; failing Stage 1 means the candidate is not eligible regardless of COMPASS points.

COMPASS assesses factors including:

• Salary
• Qualifications
• Workforce diversity
• Support for local employment
• Shortage occupation skills, where applicable
• Strategic economic priorities, where applicable

A candidate generally needs 40 points to pass COMPASS unless exempted.

So an employer shouldn't approach 2027 planning as:

“If we pay $6,000, the EP will be approved.”

That's not how the framework works.

The salary is the entry requirement. COMPASS can still determine the outcome.

What About COMPASS Salary Benchmarks?

There is another salary figure employers need to understand.The EP qualifying salary is different from the COMPASS C1 salary benchmark. Under C1, candidates earn:

• 20 points if their fixed monthly salary is at or above the 90th percentile of local PMET salaries in their sector
• 10 points if it falls between the 65th and below the 90th percentile
• 0 points if it is below the 65th percentile

MOM updates these benchmarks annually based on local labour-market data.

That means the $6,000 figure should not be interpreted as a universal “good salary” for EP candidates.

For some roles and sectors, an employer may need to offer considerably more to remain competitive or achieve the desired COMPASS profile.

The Bigger Picture: 2027 Is a Planning Issue, Not Just a Salary Issue

The headline change is easy to remember:

EP: S$5,600 → S$6,000

S Pass: S$3,300 → S$3,600

But employers should look beyond those two numbers.

Singapore's foreign workforce framework is designed around a broader objective: attracting skilled foreign workers while ensuring they complement rather than displace the local workforce. MOM has said the qualifying salaries are benchmarked to the top one-third of local wages for the respective groups.

For employers, that means foreign workforce planning is increasingly connected to:

salary benchmarking + local workforce composition + hiring strategy + payroll budgeting + work-pass compliance.

A company that only reacts when a pass is due for renewal may find itself with fewer options. A company that reviews its workforce early can budget properly, assess candidates realistically and make hiring decisions with better visibility.

What Should Singapore Employers Do Now?

If your company employs EP or S Pass holders, 2027 should already be part of your manpower planning conversation.

Start by reviewing your current foreign workforce and identifying employees who are close to the new thresholds. Then separate new applications from renewals, review age-based salary requirements, assess S Pass quota and levy exposure, and consider the broader EP COMPASS requirements.

For companies planning multiple hires, this review can also help prevent an uncomfortable situation: discovering that the candidate you budgeted for in 2027 no longer meets the applicable work-pass requirements.

The earlier you identify the gap, the more options you have.

What to Do Next?

Once the immediate issue has been resolved, it is worth looking at how to prevent similar problems in the future.

Regular bookkeeping, timely tax filing, proper payroll and CPF records, and organised financial documentation can make it easier to keep up with your company’s ongoing compliance obligations.

JWC Accounts & HR can support your business with bookkeeping, payroll records, CPF reconciliation and corporate tax reporting, helping you keep the information behind the grant accurate and organised.