Singapore Work Pass Overhaul: EP Floor Rises to S$6,000, COMPASS Updated, ONE Pass Targets AI Talent

Key Changes at a Glance

On March 3, 2026, Singapore's Minister of Manpower Dr Tan See Leng announced a series of foreign workforce policy adjustments for 2026-2028 at the Committee of Supply. Here is the key timeline:

EP Threshold Increase: S$5,600 → S$6,000

The Employment Pass minimum qualifying salary will rise from S$5,600 to S$6,000/month, and from S$6,200 to S$6,600/month for the financial services sector.

• New applications: Effective January 1, 2027
• Renewals: Effective January 1, 2028
• Age-adjusted salary bands for experienced candidates will also increase accordingly

S Pass thresholds rise in parallel: general sectors from S$3,300 to S$3,600, financial services from S$3,800 to S$4,000. The S Pass floor is expected to reach S$4,000-4,500 by around 2030.

Impact assessment: Current EP holders earning between S$5,600-6,000 must secure a raise before renewal, or risk rejection. Employers need to adjust compensation budgets before 2027.

COMPASS Framework: Updated January 2026

COMPASS (Complementarity Assessment Framework), the points-based EP evaluation system, was updated for new applications from January 1, 2026 and renewals from July 1, 2026. Updates include:

• Revised sector-specific salary benchmarks
• Updated Shortage Occupation Lists
• Pass mark remains at 40 points

Practical impact: Even if salary meets the minimum threshold, a COMPASS score below 40 will result in rejection. Advanced degrees, shortage occupations, and nationality diversity remain bonus factors.

ONE Pass AI & Tech Track: 5-Year Visa for Top Talent

From January 2027, the existing Tech.Pass will be replaced by the ONE Pass (AI & Tech track):

• Visa duration: 5 years, renewable for another 5 years
• Key breakthrough: Allows Employee Stock Option Plans (ESOP) and Employee Share Ownership (ESOW) to count toward the monthly salary criterion
• Targets top global AI and tech talent

This is significant for Chinese tech professionals — many tech compensation packages are equity-heavy, and this was previously ineligible for meeting ONE Pass cash salary requirements. The new rule removes this barrier.

Local Qualifying Salary (LQS) Increase: Impact on Foreign Worker Quotas

From July 1, 2026, the LQS rises from S$1,600 to S$1,800/month.

While seemingly unrelated to high-end EP holders, the impact is significant:

• Local employees earning below S$1,800 will no longer count (or count as only 0.5) toward S Pass/Work Permit quotas
• Companies relying on local headcount to maintain foreign worker quotas may need to raise wages for lower-paid staff
• The government will enhance the Progressive Wage Credit Scheme (PWCS) through 2028 to partially offset employer costs

Decision Signals for Chinese Applicants

Short-term (2026):

• COMPASS has been updated — candidates currently applying for EP should reassess their scores
• After the July LQS increase, some companies may see tighter foreign worker quotas, affecting S Pass approvals

Medium-term (2027):

• EP threshold rises to S$6,000 — current holders earning S$5,600-6,000 must negotiate raises with employers
• AI/tech talent should watch the ONE Pass — stock option eligibility is a major advantage

Long-term trends:

• Singapore continues to raise the cost of foreign employment, pushing companies toward higher-skilled, higher-paid foreign talent
• S Pass threshold expected to reach S$4,000-4,500 by 2030, further narrowing space for mid-tier foreign positions
• Wealth tax discussions are heating up, but Budget 2026 introduced no new taxes — competitiveness remains intact for now