What and How the Latest MOM Employment Pass Changes Affect Your EP Renewal

Singapore has entered a new era of Employment Pass (EP) regulation, and the changes are more significant than most employers realise. From 1 September 2024, the Ministry of Manpower (MOM) made the COMPASS Framework mandatory for all EP renewals, not just new applications. This shift marks one of the most important updates to Singapore’s foreign workforce policy in over a decade — and every employer hiring foreign professionals must understand how these new rules work, why they were introduced, and how they directly impact EP renewal chances.

If your company employs EP holders whose passes expire on or after 1 September 2024, you can no longer rely on the old renewal criteria. Instead, every EP renewal must score 40 points under COMPASS, satisfy the new qualifying salary requirement, and meet stricter employer-based benchmarks that MOM now uses to determine whether your business contributes positively to Singapore’s workforce ecosystem.

This guide explains exactly what the new rules are, how they affect your EP renewal, and what employers must start doing now to avoid rejection under the new framework.

What Are the Latest MOM Changes That Affect EP Renewals?

MOM’s latest regulatory changes revolve around one key policy: COMPASS (Complementarity Assessment Framework) is now mandatory for all EP renewals from 1 September 2024. Previously, COMPASS applied only to new EP applications. But with this expansion, MOM is ensuring that renewal candidates are held to the same standards as new applicants.

Key Change: COMPASS is now required for EPs expiring from 1 Sept 2024

This includes:

• Renewals for existing EP holders
• Workers who have been in Singapore for years
• EP holders who previously cleared renewals easily under old rules

Renewal eligibility now follows a 2-part test:

1. Qualifying Salary (which increases with age and sector)
2. COMPASS score (minimum 40 points from 6 criteria)

Even if your EP holder meets the salary rule, failing COMPASS = EP rejection.

This marks a fundamental shift: renewal is no longer guaranteed — companies must now demonstrate that both the individual and the employer contribute strategically to Singapore’s workforce needs.

What Is COMPASS and Why Is It Now Mandatory for EP Renewals?

COMPASS is a points-based evaluation framework launched by MOM to create a more transparent, merit-based Employment Pass system. Traditionally, renewals were easier to obtain because MOM assessed only salary, job role, and company track record. With COMPASS, the evaluation is deeper, multi-dimensional, and more data-driven.

From 1 September 2024 onward, renewal applicants must score at least 40 points across:

• Individual attributes (salary competitiveness, qualifications)
• Employer attributes (local PMET share, workforce diversity)
• Bonus criteria (shortage occupation list, strategic economic areas)

This means renewal success is no longer based solely on the candidate — the company’s workforce profile now directly affects renewal eligibility.

Why MOM Is Doing This

Singapore aims to:

• Protect and strengthen local PMET opportunities
• Attract foreign talent with strong complementarity value
• Encourage companies to maintain healthy local-foreign workforce balance
• Reward employers investing in skills, diversity, and innovation
• Move away from salary-only approval models

These new standards explain why EP renewals have become more stringent — and why employers must prepare early.

How Do These Changes Affect Your EP Renewal in 2024–2025?

COMPASS introduces several layers of complexity into EP renewals. Companies that previously renewed EPs smoothly may now face bottlenecks if they are unaware of how COMPASS scores are calculated.

Here is how the latest changes directly impact your renewal likelihood:

1️⃣ Your EP Holder Must Meet the Higher Qualifying Salary

From 2024 onwards, MOM has raised the minimum salary required for EP renewals. The benchmark varies by:

• Age
• Sector
• Job function

For example:

• Younger PMET roles start near S$5,600 (as of 2025 updates)
• Older professionals must meet higher benchmarks (S$10,700+ for mid-career hires)
• Financial sector EPs face higher thresholds

Failing the salary requirement = automatic EP renewal rejection, even before COMPASS scoring.

2️⃣ COMPASS Points Are Now Mandatory for Renewal

Every renewal must meet:

✔ Minimum 40 points

from the following criteria:

• Salary benchmark
• Candidate qualifications
• Diversity of the company’s workforce
• Local PMET representation
• Skills shortage bonus
• Strategic business bonus

If your EP holder scores below 40, the renewal will be rejected — even if the person has been employed for years.

3️⃣ Your Company’s Workforce Profile Now Impacts EP Renewal Success

COMPASS evaluates the employer using two key indicators:

C3 – Diversity Points

If your company’s PMET team is dominated by one nationality, COMPASS penalises your score.

C4 – Local PMET Share

Companies with a very low local PMET ratio compared to industry peers lose points.

This means:

• Tech companies hiring many from a single country
• Startups with mostly foreign PMETs
• Firms with limited local hiring

…may see EP renewals get flagged under COMPASS.

4️⃣ Poor Company Compliance History Can Affect COMPASS Scores

COMPASS incorporates MOM and IRAS compliance indicators.

EP renewals may be at risk if your company has:

• CPF non-compliance
• Underpayment cases
• Fair hiring violations
• Poor record-keeping
• Misclassification of job roles

Under the new framework, compliance is not optional — it directly affects your EP approval chances.

5️⃣ Skills-Based Roles Gain an Advantage Under COMPASS

Certain roles benefit from bonus points if:

• They are on the Shortage Occupation List (SOL)
• The employer works in a Strategic Economic Priority sector (SEP)

This means candidates in tech, AI, green energy, cybersecurity, and financial compliance roles may find renewals easier than traditional roles.

What Must Employers Do to Prepare for EP Renewal Under COMPASS?

Most companies underestimate the preparation required. The safest timeline is to begin preparations 6 months before the EP expires.

Employers should:

• Perform a COMPASS pre-assessment for every EP holder
• Review the company’s local PMET ratio
• Fix workforce diversity issues early
• Adjust the EP holder’s salary to meet updated salary benchmarks
• Strengthen hiring processes to diversify nationality mix
• Document fair hiring practices
• Maintain excellent compliance records

COMPASS is highly data-driven — companies that prepare proactively will have significantly higher EP renewal success rates.

📘 Real Renewal Scenarios Under the New COMPASS Rules

Scenario A: Salary too low

EP holder earns S$5,500. New salary benchmark for his age/sector is S$6,500. Even with good COMPASS points → Renewal rejected.

Scenario B: One-nationality dominance

Company has 80% foreign PMETs from a single country. Diversity score collapses → EP renewal may fail even with high salary.

Scenario C: Small business with low local PMET share

Startup with 90% EPs and only 1 Singaporean PMET. Local share is too low → COMPASS penalises score → 40-point threshold not met.

Scenario D: High-skilled worker in shortage occupation

AI engineer with competitive salary + SOL bonus → Easily passes COMPASS.

These examples show how COMPASS changes the renewal landscape, making it essential for companies to understand the system in depth.

Why Companies Choose Paul Hype Page for EP Renewal Strategy

Paul Hype Page helps businesses navigate MOM’s new EP framework through:

• COMPASS scoring simulations
• Salary benchmark analysis
• EP risk assessment audits
• Workforce diversity advisory
• Local PMET hiring strategy
• Fair hiring compliance reviews
• EP application and renewal submission support

With a strong track record and deep regulatory expertise, PHP ensures your foreign professionals remain eligible, compliant, and strategically positioned for renewal success.