Updated COMPASS C1 Salary Benchmarks for EP Applications, S Pass Application Changes Effective 1 September 2025.
In this month’s HR newsletter, we spotlight key policy updates. The Ministry of Manpower (MOM) has released revised COMPASS C1 salary benchmarks for Employment Pass (EP) applications, which will take effect from 2026. Employers should also take note of S Pass changes effective from 1 September 2025 – adjustments to the Minimum Qualifying Salary (MQS) and S Pass Levy.
Alongside these policy updates, new research sheds light on the impact of raising retirement and re-employment ages, showing how these changes are influencing workforce participation. Prime Minister Lawrence Wong’s National Day Rally 2025 also outlined policy directions with significant implications for employers, particularly in the areas of skills upgrading, talent development, and workforce transformation.
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EP Application: Updated COMPASS C1 Salary Benchmarks Released
The Ministry of Manpower (MOM) released an updated version of the C1: Salary Benchmarks by Sectors in August 2025, which forms part of the COMPASS points system for Employment Pass (EP) applications.
The revised benchmarks will apply to:
- New EP applications submitted from 1 January 2026
- Renewals with expiry dates from 1 July 2026
This table compares current and upcoming salary benchmarks across sectors (age 35 reference).
* Click on image to enlarge.
See the complete list: NEW C1 salary benchmarks by sectors (Released in Aug 2025)
Importantly, the Stage 1 EP qualifying salary remains a separate and mandatory requirement—applicants who do not meet it are ineligible regardless of COMPASS scoring.
Under COMPASS Category C1 (Salary):
- Salaries meeting the 65th percentile yield 10 points; those meeting the 90th percentile yield 20 points; salaries below the 65th percentile receive zero points
- Applicants earning zero points under C1 must strengthen their applications by leveraging other COMPASS categories, such as qualifications, diversity, or strategic contributions
Depending on the sector and age group, salary thresholds have either increased or decreased compared to the current benchmarks. As salary points vary based on the timing of the EP application, employers and applicants are encouraged to use MOM’s Self-Assessment Tool (SAT) to check EP eligibility before submission.
Resources:
For detailed eligibility information, refer to MOM’s Eligibility for Employment Pass
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S Pass Application: Changes Effective from 1 Sep 2025
1. Minimum Qualifying Salary for S Pass
As previously announced, the Minimum Qualifying Salary (MQS)—the benchmark for S Pass applications—will be revised with effect from 1 September 2025.
* Click on image to enlarge.
The revised benchmarks will apply to:
- New S Pass applications submitted from 1 September 2025
- Renewals of passes expiring from 1 September 2026
Similar to the EP Application, applicants are advised to use the Self-Assessment Tool (SAT) to confirm S Pass eligibility before applying.
2. Changes to the S Pass Levy
Changes to the S Pass Levy (employment tax) will also take effect from 1 September 2025.
* Click on image to enlarge.
Resources:
For detailed information about S Pass Application, refer to MOM’s S Pass Information
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Key Takeaways From PM Wong’s National Day Rally 2025 For HR and Employers
Prime Minister Lawrence Wong’s National Day Rally speech on Aug 17 set out a vision of a “we-first society”, where Singapore continues progressing through collective effort and stronger workforce support.
For HR leaders and employers, the announcements carry important implications for recruitment, workforce development, and long-term talent strategies.
Here are the highlights relevant to HR:
1. Government-Funded Traineeships for Fresh Graduates
A new traineeship scheme will be launched for ITE, polytechnic, and university graduates. This builds on the pandemic-era initiative, which successfully kept graduates engaged and prepared for recovery.
Implications for Employers: Companies can tap into a steady pipeline of motivated graduates without bearing the full cost of training. This is a chance to build early talent pipelines, groom potential long-term hires, and strengthen employer branding by offering structured development opportunities.
2. Job-Matching Led by CDCs
Community Development Councils (CDCs) will spearhead local job-matching, leveraging their networks with SMEs and community partners. This initiative aims to connect residents with roles closer to home.
Implications for Employers: HR teams can gain better outreach into local communities, which is especially beneficial for SMEs or businesses with outlets across different neighbourhoods. This opens opportunities to attract talent who value shorter commutes and community-based work.
3. Enhancements to SkillsFuture Level-Up for Mid-Career Workers
Singaporeans aged 40 and above will benefit from expanded SkillsFuture support:
- Training allowances can now be used for part-time courses, offering flexibility for those balancing work and study.
- More quality courses will be introduced, with industry leaders and private providers offering specialised upskilling.
Implications for Employers: Mid-career workers are a valuable resource but retaining them requires continuous reskilling. With government-backed subsidies, HR leaders can design structured mid-career development plans, reduce turnover, and future-proof teams through lifelong learning.
4. Harnessing AI for Productivity and Workforce Transformation
The government will invest in helping enterprises, especially SMEs, adopt AI solutions. Beyond technology, emphasis will be placed on job redesign and equipping workers to work alongside AI effectively and responsibly.
Implications for Employers: This is more than just about efficiency gains — it’s about transforming job roles and preparing employees for the future. HR leaders should begin evaluating which roles can be enhanced by AI, identify new skills needed, and guide workforce transition through training and change management.
Click here for full summary of National Day Rally Speech 2025
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New Study Highlights Impact of Higher Retirement Age in Singapore
A new study by Ministry of Manpower shows that Singapore’s 2022 move to raise retirement and re-employment ages is paying off.
Key findings:
- After the retirement age rose from 62 to 63, employment among seniors increased by 0.4 percentage points.
- Raising the re-employment age from 67 to 68 boosted employment rates by 0.7 percentage points.
- The changes work by setting new social norms—encouraging seniors to remain active in the workforce while giving companies continued access to experienced talent.
The benefits are especially seen in knowledge-driven sectors like manufacturing and wholesale trade, where retaining seasoned employees provides stability and expertise.
While most seniors still retire close to statutory ages, the policy helps ease labour market pressures and supports Singapore’s long-term plan to raise retirement to 65 and re-employment to 70 by 2030.
The takeaway for employers? Age-friendly policies pay off by keeping experienced talent in the workforce.
Click here for full report
Resources
Responsible re-employment guidelines by Ministry of Manpower (MOM)
Retirement Guideline by Ministry of Manpower (MOM)
Get in touch
For Drafting, Reviewing of Re-employment Letter
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