Singapore’s Ministry of Manpower (MoM) has released the updated salary benchmarks by sector under COMPASS. This updated salary benchmark is applicable to new Employment Pass (EP) applications submitted from 1 January 2026 and renewals of EPs expiring from 1 July 2026.
The MoM annual update of salary benchmarks underscores MoM’s commitment to aligning EP eligibility with market conditions and Singapore’s workforce strategy.
If the C1 salary criterion is not met, candidates must rely on points from other COMPASS criteria to meet the minimum 40-point threshold. Failure to meet this requirement may result in the candidate being ineligible for an EP.
In such cases, employers may need to consider alternative work pass options such as the S Pass, which carry different eligibility rules and workforce planning implications.
The changes to salary benchmarks and the impact on employment strategies and marketplace dynamics may complicate EP eligibility under the COMPASS framework and add complexity to budgeting and workforce planning.
The C1 salary criterion assesses the candidate’s salary against that of a local PMETs (Professionals, Managers, Executives, and Technicians) within the same sector.1
The updated C1 salary benchmarks will apply to:
Stage 1: Meet the EP qualifying salary, benchmarked to the top one-third of local PMET salaries by age.
Stage 2: Unless exempted, candidates must achieve at least 40 points under COMPASS across six criteria:
C1: Salary
C2: Qualifications
C3: Diversity
C4: Support for Local Employment
C5: Skills Bonus
C6: Strategic Economic Priorities Bonus.
With these updates, companies may wish to proactively review their foreign employee population to identify individuals who may no longer meet the criteria for EP eligibility and conduct a review of the compensation policies with a view to fostering compliance and talent retention.
The latest salary benchmarks released under the COMPASS framework indicate average increases of 5 percent at the 65th percentile and 4 percent at the 90th percentile, aligning with the projected national salary increment range of 2 percent to 5 percent for 2025.3 However, sector-specific deviations reveal a more nuanced landscape.
Notably, industries such as Air & Transport, Food & Beverage Services, and Real Estate have recorded salary increases at the 90th percentile that exceed double the expectation, suggesting intensified competition for top-tier talent. Conversely, sectors like Banking & Financial Services and Fund Management Activities & Activities Auxiliary to Financial Services have seen a decline in 90th percentile benchmarks, with the latter showing reductions across all age groups.
This divergence may reflect evolving remuneration strategies – potentially a shift toward lower base salaries and higher bonus structures, or a recalibration of compensation models to align with changing talent priorities and cost structures.
Employers in Singapore may face challenges amid shifting salary benchmarks. Rising compensation expectations in high-growth sectors can strain talent acquisition and retention efforts, while declining benchmarks in financial services could suggest evolving remuneration models.
Employers are encouraged to engage and consult with their usual immigration adviser or a member of the KPMG Singapore Immigration team (see the Contacts section) for guidance.
1 See the MoM webpage, "COMPASS C1. Salary benchmarks."
MoM, "C1 Salary benchmarks by Sector."
2 For additional information, see the MoM webpage "Eligibility for Employment Pass."
3 S. Salim, “Salary increments for Singapore employees in 2025,” The Straits Times (published Dec. 17, 2024, updated Feb. 7, 2025). Please note that by clicking on this link, you are leaving the KPMG website for an external site (non-governmental, non-KPMG) that KPMG is not affiliated with nor does KPMG endorse its content. The use of the external site and its content may be subject to the terms of use and/or privacy policies of its owner or operator.
Head of Personal Tax & Global Mobility Services, Regional Lead, Global Mobility Services, ASPAC
KPMG in Singapore
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Singapore.
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