Singapore’s work pass system has three main tiers: the Employment Pass (EP) for professionals and managers, the S Pass for mid-skilled workers, and the Work Permit for semi-skilled roles in specific sectors. Each tier carries its own salary thresholds, and the S Pass and Work Permit both impose quota limits and Foreign Worker Levy obligations on the sponsoring employer. If you’re hiring foreign nationals to work in Singapore, understanding each tier before you make an offer saves significant time and avoids costly missteps.
##Overview of Singapore’s work pass framework
The Ministry of Manpower (MOM) issues and regulates all work passes in Singapore. Critically, the employer is the sponsor of the pass, not the employee. This means your organisation must be a Singapore-registered entity to submit any work pass application. A foreign company with no local entity can’t sponsor a pass directly, regardless of where the employee is being hired from.
The three-tier system works as follows:
| Pass type | Typical worker profile | Quota? | Levy? |
|---|---|---|---|
| Employment Pass (EP) | Professionals, managers, executives | No | No |
| S Pass | Mid-skilled workers | Yes | Yes |
| Work Permit | Semi-skilled workers (specific sectors) | Yes | Yes |
##Employment Pass
The Employment Pass is the most common route for international professional hires. There’s no quota, so the number of EP holders on your headcount isn’t capped as a proportion of your workforce.
Who it’s for
The EP is for professionals, managers, executives, and specialists. In practice, this covers roles like software engineers, finance managers, marketing directors, and similar white-collar positions where the candidate holds relevant qualifications and commands a salary that reflects their experience level.
Salary requirements
MOM sets a minimum monthly fixed salary, and it applies at the point of application. The current thresholds are:
| Sector | 2026 minimum | From January 2027 |
|---|---|---|
| Non-financial sector | SGD $5,600 | SGD $6,000 |
| Financial services sector | SGD $6,200 | SGD $6,600 |
These are floor figures. The EP uses an age-progressive salary expectation, meaning MOM benchmarks the candidate’s salary against peers in the same field and age bracket. Candidates in their 30s and 40s typically need to earn SGD $10,000 to $12,000 or more to reflect what someone with their level of experience commands in the Singapore market. Offering a candidate the bare minimum when they have 15 years of experience will likely result in a failed COMPASS assessment.
Compass framework
Since September 2023, all new EP applications are assessed under COMPASS (Complementarity Assessment Framework). Renewals have been subject to COMPASS since September 2024.
COMPASS is a points-based system. Applications are scored across four criteria:
- Salary: how the candidate’s salary compares to local peers in the same occupation and age group
- Qualifications: whether the candidate holds a recognised degree or professional qualification
- Diversity: whether the candidate’s nationality adds to or concentrates the existing nationality mix in your workforce
- Support for local employment: whether your company maintains a strong ratio of local to foreign professionals
An application needs to score enough points to pass outright, or it can qualify through a bonus points route. The practical implication for employers: if your Singapore workforce already skews heavily toward one nationality, adding another hire from the same country may reduce your COMPASS score. It’s worth assessing your workforce profile before submitting.
##S Pass
The S Pass is designed for mid-skilled workers. Unlike the EP, it comes with both a quota restriction and a monthly levy that the employer must pay.
Salary and quota requirements
The minimum monthly fixed salary for the S Pass in 2026 is SGD $3,300 for the non-financial sector. Candidates applying in the financial services sector face a higher threshold of SGD $3,800 or above. Like the EP, the S Pass uses an age-progressive scale, so older, more experienced candidates need to earn above the floor figure.
Quota caps limit the number of S Pass holders you can employ relative to your total workforce. The specific percentage depends on your sector. This means that even if you want to hire a qualified candidate on an S Pass, you may not have quota headroom to do so until your overall headcount grows.
Foreign worker levy
Employers pay a Foreign Worker Levy of SGD $650 per month for each S Pass holder, on top of the employee’s salary. This is a direct employer cost and isn’t recoverable from the employee. Budget for it as part of your total employment cost when modelling S Pass hires.
##Work Permit
The Work Permit covers semi-skilled workers in specific sectors: construction, manufacturing, marine shipyard, process, and services. It doesn’t apply to professional or office-based roles, so most international hiring teams won’t engage with this tier. Both quota limits and Foreign Worker Levy charges apply, and the rates vary by sector and the worker’s skill tier. The Work Permit is tied to a specific employer and sector, so the worker can’t transfer to a different role or company without a new application.
##Fair Consideration Framework
Before you submit an EP application, check whether the Fair Consideration Framework (FCF) applies to your hire.
If your organisation has 10 or more employees in Singapore, you must advertise the role on MyCareersFuture for at least 14 days before applying for an Employment Pass. The intent is to give Singapore citizens and permanent residents a fair opportunity to be considered before a foreign hire is made.
There are exceptions. If the fixed monthly salary for the role is above SGD $22,500, the advertising requirement doesn’t apply. Some other narrow exceptions exist, but for most standard professional hires, assume the FCF requirement is active and build that 14-day window into your hiring timeline.
##Local Qualifying Salary and quotas
For S Pass and Work Permit hiring, your quota headroom depends on how many local employees you have on your payroll. But not every local hire counts. MOM only includes local employees who earn at or above the Local Qualifying Salary (LQS) when calculating your headcount for quota purposes.
The LQS is currently SGD $1,600 per month. From 1 July 2026, it rises to SGD $1,800. Any local employee earning below that threshold doesn’t count toward your quota baseline, which means your effective foreign worker quota may be lower than you’d expect if some of your local staff are part-time or lower-wage workers.
Plan ahead if you’re approaching a quota limit. Adjusting local salaries above the new LQS before July 2026 may open up additional quota capacity.
##Dependant sponsorship
EP holders can sponsor family members to live in Singapore. The specifics depend on the pass holder’s salary:
- EP holders earning SGD $6,000 or more per month can sponsor a spouse and unmarried children under 21 on a Dependant’s Pass.
- S Pass holders face higher salary thresholds to qualify for Dependant’s Pass sponsorship. The thresholds are set by MOM and adjusted periodically.
If you’re hiring a foreign professional who plans to relocate with family, confirm their salary exceeds the dependant sponsorship threshold before making an offer. Discovering this after the fact creates complications for the employee and for your onboarding timeline.
##Sponsoring foreign workers without a local entity
Singapore’s work pass system has a hard requirement that’s easy to overlook: only a Singapore-registered entity can act as the employer of record and submit a work pass application. A foreign company can’t sponsor an EP, S Pass, or Work Permit directly, even if the role is Singapore-based and the company pays Singapore payroll.
If your company doesn’t have a Singapore entity and isn’t ready to incorporate one, an Employer of Record (EOR) with a Singapore-registered entity can act as the legal employer and sponsor the work pass on your behalf. The what is an employer of record model is common for companies testing Singapore as a market before committing to full incorporation, or for companies that want to hire one or two people without the overhead of a local legal entity.
When evaluating EOR services for Singapore, confirm that the provider maintains an active Singapore-registered company and has a track record of successful work pass applications, including COMPASS-assessed EP applications.
##FAQs
What’s the difference between the Employment Pass and the S Pass?
The EP is for professionals, managers, and executives. It has no quota, no levy, and a higher minimum salary (SGD $5,600+ in 2026 for non-financial roles). The S Pass is for mid-skilled workers, carries a monthly levy of SGD $650, and is subject to a quota cap on how many S Pass holders you can employ relative to your total workforce.
What does COMPASS assess, and does it affect all EP applications?
COMPASS applies to all new EP applications and to renewals since September 2024. It scores applications on four criteria: the candidate’s salary relative to peers, their qualifications, how their nationality affects the diversity of your workforce, and your company’s track record of supporting local employment. An application needs to reach the pass threshold on the points scale to be approved.
Does the Fair Consideration Framework apply to every EP application?
It applies if your company has 10 or more employees in Singapore and the role pays less than SGD $22,500 per month. In that case, you must advertise the role on MyCareersFuture for at least 14 days before submitting the EP application. Build this into your hiring timeline from the start.
Who pays the Foreign Worker Levy?
The employer pays it. For S Pass holders, the levy is SGD $650 per month. Work Permit levies vary by sector and skill tier. The levy can’t be deducted from the employee’s salary or passed on to them in any form.
Can a foreign company sponsor a Singapore work pass without a local entity?
No. Singapore law requires the sponsoring employer to be a Singapore-registered entity. A foreign company without a local legal presence can’t apply for an EP, S Pass, or Work Permit on behalf of a Singapore-based hire. Using an EOR with a Singapore entity is the standard solution for companies that want to hire in Singapore before incorporating locally.
