Skip to content

Singapore Bureau

Best Asian BusinessesAPAC business recognition

Explainer · February 22, 2023

Singapore work pass types explained for employers

By the editorial team · Best Asian Businesses

Singapore work pass types come down to three main choices for an employer: the Employment Pass, the S Pass and the Work Permit. Each one fits a different kind of job. The Ministry of Manpower (MOM) runs all three. The right pass depends on the role, the salary you will pay and the skills the worker has.

Employment Pass: for professionals, managers and executives

The Employment Pass (EP) is for foreign professionals, managers, executives and technicians. It suits senior hires and specialists. MOM says the EP is meant for highly skilled people, so the pay bar is the highest of the three passes.

The minimum qualifying salary rises to $5,000 a month, up from $4,500. It is $5,500 for the financial services sector. These figures apply to new applications from 1 September 2022, and to renewals from 1 September 2023. The bar goes up with age, to as much as $10,500 for a candidate in their mid-40s.

A new points test is coming too. It is called COMPASS. It applies to new EP applications from 1 September 2023 and to renewals a year later. A candidate needs 40 points to pass. Points come from the worker's salary and qualifications, and from how diverse the employer's staff is and how it supports local hiring. Applicants paid $20,000 a month or more are exempt from it. Employers can also use MOM's online Self-Assessment Tool to check whether a candidate meets the new qualifying salary.

Sources: MOM, Employment Pass; MOM, Factsheet on foreign workforce policy announcements at COS 2022

S Pass: for mid-skilled technical staff

The S Pass is for mid-skilled workers in specialised roles, such as technicians. It also suits people who do not meet the Employment Pass bar. Unlike the EP, the S Pass has a quota, so an employer can only hire so many.

The minimum qualifying salary is now $3,000 a month, up from $2,500. It is $3,500 for financial services. Older candidates need more, up to $4,500 in their mid-40s. These apply to new applications from 1 September 2022 and to renewals from 1 September 2023.

The S Pass also carries a monthly levy, which is a fee the employer pays for each holder. The first tier, for companies whose S Pass holders are up to 10 percent of the workforce, is now $450, up from $330. The second tier, up to 18 percent, stays at $650. MOM plans further steps in September 2023 and later, so budget for the cost to rise.

Sources: MOM, S Pass; MOM, Factsheet on foreign workforce policy announcements at COS 2022

Work Permit: for semi-skilled workers in set sectors

The Work Permit lets semi-skilled migrant workers from approved source countries work in certain sectors. Each sector has its own rules on who is eligible, the security bond, the quota and the levy. Check the sector page before you plan a hire.

Source rules matter. Firms in services and manufacturing can hire Work Permit holders from Malaysia, China and North Asian sources, which are Hong Kong, Macau, South Korea and Taiwan. From 1 September 2023, MOM will also let these firms hire from other countries for a short list of seven jobs, such as welders, sheet metal workers and cooks in Indian restaurants. Those workers must be higher skilled, fall under a quota, and do only the job named on the permit.

Construction and process firms face tighter limits. From 1 January next year, the cap falls from seven Work Permit or S Pass holders per local employee to five.

Sources: MOM, Work Permit for foreign worker; MOM, Factsheet on foreign workforce policy announcements at COS 2022

How to choose between the three

Start with the job, not the person. Ask what skills the role needs and what you will pay each month. Then match it to the pass.

  • Senior, professional or specialist role, with pay at or above the Employment Pass bar: the Employment Pass.
  • Technical or mid-skilled role, with pay above the S Pass bar and room in your quota: the S Pass.
  • Hands-on, semi-skilled role in an approved sector: the Work Permit.

Cost counts as well. MOM has said it wants S Pass holders to match the top third of local wages for associate professionals and technicians, so the S Pass is no longer a cheap route. Do not pick a pass only because it is easier or cheaper. MOM says the salary and levy rules are there so that foreign staff are hired to fill skills gaps, and not simply because they cost less.

Sources: MOM, Factsheet on foreign workforce policy announcements at COS 2022

How an employer applies

Employers apply online through MOM. For the Employment Pass and S Pass, you must first advertise the job on MyCareersFuture for at least 14 days and consider all candidates fairly. This is part of the Fair Consideration Framework. Firms with fewer than 10 employees are exempt from the ad rule, and so are jobs that pay a fixed $20,000 a month or more, but fair hiring still applies.

Before you apply, gather the basics. You will need your company details, the worker's passport and qualifications, and the offered salary. Check the salary against the qualifying figure for the worker's age. If the worker falls short, the application is likely to fail.

Keep records of how you assessed each candidate, in case MOM asks how you considered local applicants.

Sources: MOM, Fair Consideration Framework; MOM, Employment Pass; MOM, S Pass

Rules and figures here are those MOM has announced to date. Check MOM's site before you apply, as pass rules change often.