COMPASS: Singapore's latest employment pass regulation

The new changes to the Singapore Employment Pass application include implementing the Complementarity Assessment Framework (COMPASS) starting September 1, 2023, for new applications and September 1, 2024, for renewals.

The first stage is to meet the qualifying salary, and the second is to pass a points-based assessment. COMPASS will assess every Employment Pass (EP) application based on a holistic set of individual and firm-related attributes, focusing on enabling employers to select high-quality foreign professionals while improving workforce diversity and building a strong local core.

What is COMPASS 

COMPASS is a framework evaluates Employment Pass (EP) applications based on four foundational and two bonus criteria, which recognise applications that bring in skills in shortage or support strategic economic priorities.

To pass the COMPASS scoring system, EP applicants are required to score at least 40 points on a set of criteria.

Each criterion can award 0, 10, or 20 points depending on how well the applicant meets or exceeds expectations. 

What are the main objectives of COMPASS?

The objective of COMPASS can be broken down into three major categories.

• It enhances workforce quality by attracting highly qualified foreign professionals to fill skill gaps in the local workforce.
  
• It promotes a balanced and inclusive workforce by evaluating applications based on a transparent set of criteria that is designed to ensure a fair and diverse workforce.
• It provides a clear and predictable evaluation process for both employers and EP applicants looking to enter Singapore. 

What are the six criteria for COMPASS?

The COMPASS (Complementarity Assessment Framework) evaluates Employment Pass (EP) applications based on a points-based system that considers both individual and firm-related attributes. Each criterion can award 0, 10, or 20 points depending on how well the applicant meets or exceeds expectations. Here’s a detailed breakdown of each criterion:

Salary

This criterion focuses on whether a company pays its employees a qualifying salary. Companies are expected to meet or exceed their jurisdictions' minimum monthly salary requirements.

This criterion also considers the cost of living in the area where the company is located to ensure that employees can maintain a reasonable standard of living.

Companies that fail to provide a fair wage may be seen as exploiting their employees and contributing to regional inequality.

Points:

• 20 points: If the salary is significantly higher than the industry median.
• 10 points: If the salary meets the industry median.
• 0 points: If the salary is below the industry median.

Qualifications

This criterion focuses on whether a company provides adequate employee training and development opportunities and hires employees based on degree-equivalent qualifications rather than discriminatory factors such as race, gender, or age.

This criterion emphasises the importance of investing in employees and providing them with the tools they need to succeed. Companies that prioritise employee development and provide equal opportunities for all employees regardless of background are seen as more equitable and sustainable.

Points:

• 20 points: For degrees from top 100 global universities, Singaporean universities, or highly recognized vocational institutions.
• 10 points: For degrees from other recognized institutions.
• 0 points: For qualifications below degree level or from non-recognised institutions.

Diversity (firm-related)

This criterion assesses whether a company promotes diversity and inclusivity in its workforce and has policies to prevent discrimination and harassment.

Companies that value diversity and ensure that all employees feel valued and respected will likely have a more engaged and productive workforce.

This criterion also considers whether a company has a diverse leadership team, which can positively impact decision-making and business performance.

Points:

• 20 points: If the candidate's nationality forms less than 5% of the firm’s  professionals, managers, executives and technicians (PMETs).
• 10 points: If the candidate's nationality forms between 5% and 25% of the firm’s PMETs.
• 0 points: If the candidate's nationality forms 25% or more of the firm’s PMETs.

Source: Frame Stock Footage/Shutterstock

Support for local employment (firm-related)

This criterion assesses whether a company prioritises hiring and training local employees, particularly in areas where unemployment rates are high.

By providing employment opportunities to people in the local community, companies can help to reduce poverty and contribute to economic development in the region.

Companies committed to supporting local employment will likely positively impact the local economy and be considered good corporate citizens.

Points:

• 20 points: If the firm’s local PMET share is at the 50th percentile or above for its sector.
• 10 points: If the firm’s local PMET share is between the 20th and 50th percentiles.
• 0 points: If the firm’s local PMET share is below the 20th percentile.

The two bonus criteria for COMPASS are:

Skills bonus (Shortage occupation list)

This bonus criterion rewards companies that invest in the skills development of their employees through training programs, apprenticeships, or other initiatives. Companies committed to upskilling and reskilling their workforce in areas where there is a shortage of skilled talent will receive extra points in this category.

Points:

• 20 points: For jobs on the Shortage Occupation List (SOL), with the candidate’s nationality forming less than one-third of the firm’s PMETs.
• 10 points: For jobs on the SOL, with the candidate’s nationality forming one-third or more of the firm’s PMETs.

Strategic Economic Priorities Bonus (Firm-related)

This bonus criterion rewards companies that contribute to the economic development priorities of the jurisdiction where they operate.

For example, suppose a company operates in a region where the government prioritises the development of a particular sector, such as renewable energy or technology. In that case, the company will receive extra points if it contributes to that priority through its operations or investments.

Points:

• 10 points: For participating in or meeting the criteria for at least one eligible programme under SEP.

The table below illustrates the scoring for the COMPASS assessment criteria:

To qualify for employment passes, EP applicants must score minimum points in the COMPASS assessment. The minimum eligibility criteria will be higher for applicants in sectors with a higher concentration of foreign professionals.

The minimum number of points required for EP eligibility may vary depending on the sector or industry in which the applicant seeks employment. The minimum qualifying criteria will be higher for sectors with a higher concentration of foreign manpower.

To emphasise the application guidelines provided by the Ministry of Manpower (MOM), EP applicants must achieve a minimum of 40 points on the COMPASS assessment to be eligible for an EP. However, this minimum score is flexible and may be adjusted based on sectoral requirements.

In addition, the minimum salary requirements for EP applications will also be raised for new applicants and renewals. The salary criteria will vary based on the applicant's qualifications and experience, with higher salaries required for younger and less experienced applicants.

Are there any exemptions from COMPASS?

EP applicants are exempt from COMPASS requirements if they meet any of the following criteria:

• High salary: The applicant has a fixed monthly salary of at least SGD 22,500. This exemption also applies to the salary eligibility requirements.
• Intra-corporate transferees: The applicant is an overseas intra-corporate transferee under the World Trade Organisation (WTO) General Agreement on Trade in Services or an applicable Free Trade Agreement (FTA) with Singapore.
• Short-term roles: The applicant is filling a role for one month or less​.

These exemptions are designed to provide flexibility for highly compensated individuals, certain intra-company transfers, and short-term assignments.

Preparing for COMPASS: How to ensure a smooth application

Here are some practical tips to help applicants meet the criteria for their EP application under the COMPASS framework.

Research salary benchmarks and qualification requirements

 Understanding the industry-specific salary benchmarks and qualification standards is crucial. 

• Access the Ministry of Manpower (MOM) website for salary benchmarks and qualification recognition.
• Ensure your offered salary aligns with or exceeds industry standards to gain more points.
•  Ensure your academic and professional qualifications are from recognised institutions to maximise your points.

Enhance your application by targeting jobs in the SOL 

Jobs on the Shortage Occupation List receive bonus points and can increase your chances of a successful EP application

• Check the SOL to see if your profession is listed.
• Emphasise any relevant experience and skills related to the SOL job in your application.
• Ensure you meet any additional job requirements for roles on the SOL.

Ensure your employer is aware of the diversity and local employment criteria

Firms are scored based on their workforce diversity and local employment support so be sure to speak to potential employers about diversity policies and local employment statistics.  

Seek employment with firms that have a good track record in maintaining a diverse workforce and supporting local employment, as this can improve your chances under COMPASS.

Ensure your documentation is complete prior to submission

Ensure you have all required documents, including proof of qualifications, salary details, and employment history. Use the MOM’s Self-Assessment Tool to pre-evaluate your application and identify areas for improvement. Finally, review all application materials for accuracy and completeness before submission.

Leverage any available resources and tools

Use the workforce insights tool to better understand your prospective employer’s workforce profile and sector benchmarks. You can also refer to the COMPASS guidebook for detailed information on each criterion and how to navigate the framework. If needed, seek advice from immigration consultants or legal experts to ensure your application meets all requirements.

Source: Ministry of Manpower. (2022, March 25). Complementarity assessment framework (COMPASS). https://www.mom.gov.sg/passes-and-permits/employment-pass/upcoming-changes-to-employment-pass-eligibility/complementarity-assessment-framework-compass

Note: The information on this website is accurate as of the date of access and may be subject to change.