COMPASS 2026: Managing the New Salary Benchmarks for EP Renewals

We often see HR teams focus their compliance bandwidth on new hires. But the clock is ticking on existing staff. Come July 1, 2026, every Employment Pass (EP) renewal must comply with the updated COMPASS salary benchmarks 2026, which the Ministry of Manpower (MOM) refreshed in August 2025. If you fail to audit your current payroll against these new sector-specific percentiles, you risk sudden renewal rejections.

Understanding the Two-Stage Assessment

Renewing an EP means clearing a two-stage hurdle. Stage 1 is the baseline EP qualifying salary. Stage 2 is the MOM COMPASS framework, requiring a minimum of 40 points. MOM is strict here: candidates missing the baseline salary are automatically rejected, even if they score perfectly on COMPASS.

Under the C1 (Salary) criteria, points depend on how a candidate's fixed monthly salary compares to local Professionals, Managers, Executives, and Technicians (PMETs) in their sector. You get 20 points if the salary hits the 90th percentile, 10 points for the 65th percentile, and 0 points if it falls below the 65th.

Sector-Specific Variations

Required salaries vary wildly by industry. We always remind HR and Finance directors to double-check their sector classification.

A junior financial analyst needs a much heavier compensation package to earn points than a peer in the accommodation sector. Firms must map existing EP holders against the updated C1 benchmarks today. Historical salary data won't cut it anymore—the updated percentiles reflect recent local wage growth. Start recalibration talks early to get budgets approved well before the July 2026 deadline.

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One of the trickiest parts of the Singapore EP renewal requirements is the age progression. The fixed monthly salary required for an EP candidate doesn't stay static. It climbs with age, peaking at 45. MOM designed this to ensure older foreign professionals earn salaries on par with senior local PMETs.

The Cost of Experience

This presents a real headache for employers. Say you hired an EP holder at 35 and they easily met the C1 benchmark. When they renew at 38, they might suddenly miss the updated Employment Pass salary threshold unless their pay has kept pace with those steep age-based increments.

CFOs and HR leaders need to run a granular, age-adjusted payroll audit. First, project the candidate's exact age on the date of their EP renewal application. Next, check their current pay against the C1 benchmark for that specific age and sector. Finally, calculate the exact dollar shortfall needed to hit either the 65th percentile (10 points) or 90th percentile (20 points).

If a candidate scores zero on C1, you have to scrounge up 40 points elsewhere in the COMPASS framework. For smaller firms or those with concentrated nationalities, that is incredibly difficult.

The Exemption Threshold

There is a safe harbour for highly paid executives. MOM exempts EP candidates earning a fixed monthly salary of at least SGD 22,500 from the COMPASS framework entirely. For C-suite leaders or regional directors hovering just below this mark, a strategic salary bump makes sense. It wipes out the administrative hassle of COMPASS scoring and guarantees renewal eligibility, assuming basic criteria are met.

Restructuring Compensation Packages

When adjusting pay, remember that MOM only looks at fixed monthly salary. Variable bonuses, stock options, and housing allowances in kind mean nothing for COMPASS. You may need to restructure total compensation—perhaps by rolling variable allowances into the fixed base. Do this carefully. The changes must comply with Singapore employment laws while aligning with your global mobility policies.

If giving a massive salary bump isn't financially viable, you have to find points in the other COMPASS categories. The threshold is a hard 40 points, but the framework is flexible. As the Anlian Group notes, a balanced 10 points across the four foundational criteria (C1 to C4) passes, as does scoring 20 points in two categories and zero in the rest.

Maximising C2: Educational Qualifications

MOM's November 2025 updates to the C2 (Qualifications) criteria hit all renewals starting July 1, 2026. The mapping for top-tier institutions is now much stricter. Degrees from Group A institutions earn 20 points across all faculties. For Group B, only specific, highly regarded faculties get the full 20.

The real opportunity lies in degree-equivalent qualifications. MOM has expanded its recognition of professional certs. Qualifications like ACCA, CPA Australia, Chartered Engineers, and CREST cybersecurity certifications now earn 10 points. Audit your team's credentials immediately. A newly recognised professional certification might just save a renewal.

Capitalising on C5: The Shortage Occupation List

The C5 criteria hands out up to 20 bonus points for roles on the Shortage Occupation List (SOL). For 2026, the list expanded aggressively to match Singapore's economic goals. Envoy Global notes that new additions include critical healthcare roles (like clinical psychologists and diagnostic radiographers) alongside emerging agritech positions (such as alternative protein food application scientists and novel food biotechnologists).

Job scopes evolve. If an existing EP holder's day-to-day duties now align with an SOL job description, update their classification. Landing in a shortage role instantly offsets a zero score in the salary category.

C6: Strategic Economic Priorities (SEP) Bonus

Firms driving Singapore's innovation and economic targets can unlock a firm-level bonus. The C6 SEP bonus grants 10 points to companies participating in MOM-recognised government programmes. Talk to the Economic Development Board (EDB) or Enterprise Singapore. If your recent investments, export activities, or innovation projects qualify for SEP status, those 10 points apply to every EP application and renewal across your firm. It is a massive safety net.

Fixing individual salaries is the immediate fire to put out, but executives also need to watch the macro regulatory shifts. The Singapore EP renewal requirements tie directly into the national push to uplift local wages and protect the Singaporean core.

The Impact of the Local Qualifying Salary (LQS) Increase

On July 1, 2026, the Government raises the Local Qualifying Salary (LQS) from SGD 1,600 to SGD 1,800 for full-time employed local workers. For part-timers, the rate jumps to at least SGD 10.50 per hour.

This isn't just a domestic wage issue. It dictates your COMPASS performance. Under MOM rules, a local employee only counts towards your local workforce quota if they earn the LQS. If you don't bump your lower-income local staff to SGD 1,800 by July 2026, they stop counting as a full local worker. Locals paid at least SGD 900 but less than SGD 1,800 only count as 0.5.

That artificial drop in your local workforce count hits two crucial COMPASS criteria directly:

• C3 (Diversity): Looks at the candidate's nationality share against your total PMET workforce.
• C4 (Support for Local Employment): Compares your local PMET share against industry peers.

A sudden drop in C3 or C4 scores can easily turn a safe EP renewal into a rejection. Finance teams must budget for these local wage hikes alongside EP salary adjustments to protect the firm's baseline COMPASS points.

Forecasting the 2027 Baseline Salary Hikes

Beyond COMPASS, the next major hurdle is the Stage 1 baseline salary increase. On January 1, 2027, the minimum qualifying salary for new EP applications jumps from SGD 5,600 to SGD 6,000 (and from SGD 6,200 to SGD 6,600 for the Financial Services sector). These changes hit renewals starting January 1, 2028, but smart businesses are factoring them into multi-year compensation strategies today.

Handling these compounding changes requires a joined-up approach. HR can't run COMPASS compliance in a vacuum. Finance, HR, and legal teams need to sit down and run a full workforce audit by Q1 2026, making sure both local wage structures and foreign pay packages are ready for the July 1 deadline.