MOM Work Pass Framework Updates for 2025: What Employers Need to Know

Singapore’s Ministry of Manpower (MOM) has announced significant changes to the Employment Pass (EP), S Pass, and Work Permit rules coming into effect between July and September 2025. These updates aim to protect local employment and raise workforce quality, but they also bring new compliance challenges and opportunities for employers. 

Key Highlights for Employers 

• Stricter Hiring Standards: The minimum qualifying salary for EPs rises to S$5,600/month (S$6,200 in financial services). S Pass minimum salary increases to S$3,300 (S$3,800 in finance), scaling higher for older or more experienced applicants. Work Permit holders’ maximum employment age increases to 63, and the duration cap is removed, allowing employers to keep valued staff longer. 

• COMPASS Points-Based Assessment: EP applications must now pass a points-based framework (“COMPASS”), making salary competitiveness, qualifications, diversity, and support for local hiring essential factors for approval. 

• Expanded Talent Sources: From June 2025, Bhutan, Cambodia, and Laos join the eligible source countries for Work Permits, and the eligible occupation list expands—providing employers with more flexibility to address labour shortages. 

• Increased Levies and Costs: S Pass levy is raised to S$650/month across all sectors from September 2025, impacting total hiring costs. 

• Fair Consideration Enforcement: Employers must document strong efforts to hire local candidates first, with enhanced requirements for job advertising and evaluation before hiring foreign personnel. 

  
  

Implications for Businesses 

• Organisations must adjust workforce planning to factor in the higher qualifying salaries, stricter pass approval process, and increased levies. 

• Proactively reviewing talent acquisition and documentation is critical to avoid compliance pitfalls and tap into new labour pools. 

• The regulatory landscape now favours businesses with well-structured HR practices and a focus on hiring and developing local staff. 

  
  

Strategic Takeaway 

Singapore is reinforcing its commitment to a high-quality workforce by raising the bar for foreign hires and promoting local employment. Businesses should begin preparations well in advance, audit their current workforce, and ensure their recruitment processes align with the new standards for 2025 and beyond. 

Feel free to reach out to us if you have any further questions regarding work passes. Our team of experienced consultants will be glad to assist you.