Hiring Foreign Talent in Singapore: Choose EP or S Pass?

When expanding your workforce in Singapore, tapping into foreign talent can be a strategic advantage, but only if you choose the right kind of work pass. For employers and business owners, understanding the difference between the EP and S Pass is essential. Selecting the wrong pass could lead to compliance headaches, unexpected costs, or worse: rejection of applications. In this guide, we walk you through everything you need to know, from eligibility and costs to practical considerations, to help make the right decision for your company.

What Are EP and S Pass? A Quick Overview

Singapore’s work-pass framework distinguishes between foreign talent based on skill level, role type, and the employer’s needs. Broadly, here’s the difference between EP and S pass:

Choosing between them comes down to the job nature, candidate’s profile, and your company’s staffing strategy.

Eligibility & Salary Requirements (2025 Update)

Employment Pass (EP)

Under the current rules, the Ministry of Manpower in Singapore announced Singapore Employment Pass changes: that Employment Pass Singapore candidates must meet two major Employment Pass Singapore requirements:

1. Minimum Qualifying Salary

For a new Employment Pass application (all sectors except financial services), the MOM employment pass minimum salary per month is S$5,600 starting 2025. In the financial services sector, it rises to S$6,200.

2. Points-based Assessment under COMPASS

Even if salary qualifies, candidates (unless exempted) must pass a second-stage evaluation under the Complementarity Assessment Framework (COMPASS). This considers individual attributes (salary, qualifications, experience) and employer/company-level attributes (e.g. workforce diversity, support for local employment).

If both criteria are met and the application passes, EP becomes an attractive option, especially given EP’s flexibility (see later).

S Pass

The S Pass Singapore is less restrictive in some ways but comes with quotas and levies. It’s meant for mid-level skilled foreign employees.

From 1 September 2025, the S Pass minimum salary for general-sector S Pass Singapore applicants will be S$3,300 per month (up from S$3,150). For financial sector roles, the threshold will be S$3,800.

Salary threshold increases with age, for example, older or more experienced applicants will have a higher minimum S Pass requirement.

Employers must pay a monthly foreign-worker levy per S Pass holder. As of 1 September 2025, the S Pass levy is standardised at S$650/month across all sectors.

Additionally, employers must consider quota limits (see below), and must satisfy the Fair Consideration Framework (FCF) advertising requirement before submitting an S Pass application.

Quotas, Levies & Employer Obligations for S Pass

A major structural difference is that S Pass holders are subject to quotas and levies, Employment Pass holders are not.

The quota is expressed via the Dependency Ratio Ceiling (DRC), which limits the proportion of foreign workers (S Pass and Work Permit holders) relative to the total workforce.

For example, in the services sector, S Pass holders may not exceed 10% of total workforce; in construction/manufacturing/shipyard sectors, up to 15%.

The levy of S$650/month applies to each S Pass holder, a recurring cost that employers must budget for.

Because of quotas and levies, hiring via S Pass requires more workforce-planning discipline compared to Employment Pass.

In-Depth: Job Roles, Qualifications & When to Use Each Pass

EP: For Skilled and Senior Roles

The Employment Pass’s lack of quota and levy makes it the flexible choice for scaling your core team. It is designed for roles where you expect substantial experience, possibly advanced qualifications, and responsibility.

Because Employment Pass isn’t subject to quota or levies, it offers more flexibility when you foresee scaling growth or need multiple foreign professionals across different functions. This makes EP ideal for core roles, leadership, or critical functions where local talent may be scarce.

Moreover, Employment Pass tends to attract more experienced talent, the Employment Pass salary bar is higher, and under COMPASS, companies and candidates are evaluated holistically, which may favour senior or highly skilled individuals.

S Pass: For Mid-Level Skilled & Supporting Roles

Governed by quotas and levies, the S Pass is a cost-effective tool for specific, mid-level needs. It works best for when you need mid-level skilled professionals or technicians, staff who may not be top-tier executives but have relevant technical skills, experience, or diploma-level qualifications.

For roles where versatility, support functions, or cost-efficiency matter more than seniority, e.g., administrative, operational, technician-level, S Pass can be more cost-effective (especially if salary offers are modest) than Employment Pass.

However, with quotas and levy costs, S Pass Singapore hiring must be managed carefully to avoid hitting regulatory limits.

Application Process, Time & Practical Considerations

Fair Consideration Framework (FCF): Both Employment Pass and S Pass applications generally require job postings on the local job portal (e.g., MyCareersFuture) for at least 14 days prior, to ensure local candidates are considered.
Documentation & Compliance: Employers must declare salaries and local employee numbers accurately (especially if hiring S Pass Singapore holders, this affects quota calculation).
In short: S Pass hiring requires more administrative and compliance diligence than EP, though both involve paperwork and employer obligations.

Renewal, Employee Privileges & Long-Term Implications

EP validity: Typically up to 2 years for first-time pass holders; renewals can be for 3 years. For experienced professionals (especially in sectors with shortage of talent), EPs might be renewed up to 5 years.
S Pass renewal & salary review: S Pass qualifying salary thresholds increase over time, especially with age. As of 2025, employers should expect higher salary obligations for renewals.
Dependants and family passes: While many pass holders value family privileges (Spouse / Dependant Pass), this typically requires meeting higher salary thresholds. In such cases, EP may offer better long-term stability for employees and their families, making the role more attractive to talent.

EP vs S Pass: Key Differences at a Glance

To summarise the core distinctions, the following table contrasts the two passes across critical dimensions:

Feature / Attribute	Employment Pass (EP)	S Pass
Target Roles	Professionals / Executives / Specialists	Associate Professionals / Technicians / Mid-level skilled workers
Minimum Salary (2025)	From S$5,600 (S$6,200 for finance) + age-adjustments	From S$3,300 (S$3,800 for finance) + age-adjustments
Points-based assessment	✔ (COMPASS)	✘ (salary + standard criteria)
Quota / Levy	No quota, no levy	Quota applies; monthly levy (S$650) per S Pass holder
Flexibility / Scalability	High, suitable for scaling foreign staffing	Limited by quotas and levy costs
Best for	Core, senior, specialised roles, long-term staffing	Mid-level, support, or cost-efficient staffing needs
Renewal / Long-term planning	More stable, easier for long-term retention	Dependent on salary thresholds, quota availability

Checklist: When Should Employers Opt for EP, and When for S Pass?

Choose Employment Pass when:

You are hiring senior, management, specialist or strategic roles requiring advanced skills, experience or leadership.
You anticipate scaling foreign staff over time, EP’s lack of quota makes it more scalable and predictable.
You want to offer long-term stability and attractive packages, especially if you want to attract higher-quality or family-oriented talent.
Role demands are high, or the market value of the role justifies the higher salary threshold.

Choose S Pass when:

The role is mid-level, operational, or technical, not necessarily requiring high-level experience or specialization.
You need foreign staff but want to balance hiring cost vs skill level carefully.
Your company doesn’t need to scale many senior professionals but could use support staff, technicians or mid-level role-fills.
You’re comfortable managing quotas, levies, and compliance requirements, and have workforce planning controls in place.

Common Foreign Hiring Pitfalls & Mistakes Employers Make, And How to Avoid Them

Many companies, especially smaller ones or those new to hiring foreign talent, fall into avoidable mistakes. Some common ones:

Under-estimating total cost. Focusing only on salary; forgetting levies and quota-related constraints for S Pass holders.
Ignoring quota limits / DRC calculations. Results in rejected applications or compliance issues.
Not anticipating salary increases on renewal. Especially for S Pass older / more experienced hires, which could push the salary beyond budget.
Not considering long-term staff stability or family privileges. Leading to higher turnover or inability to attract quality foreign talent.
Failing to properly assess candidate suitability under COMPASS (for EP). Leading to unexpected rejections even when salary threshold is met.

Employers should therefore plan carefully: match role, candidate profile and business needs, and also anticipate long-term implications (renewal, retention, compliance).

Strategic Considerations for Employers & Workforce Planning

From a broader business perspective, choosing between EP and S Pass affects more than just hiring a candidate, it shapes your workforce composition, long-term talent strategy, and cost-structure. Key strategic considerations:

Risk & Compliance Management: Hiring S Pass holders requires more diligence, quota tracking, levy payments, local-employee quota calculations, which can add administrative overhead.
Retention & Employer Branding: Offering EP (with higher salary, stability, possible family privileges) may help attract and retain better foreign talent, a big plus for employers building long-term teams.
Role Suitability & ROI: For support, technical, or mid-level operations roles where specialization isn’t critical, S Pass may provide better return on investment.

Looking Ahead: Strategic Implications of the 2025 Changes

The 2025 updates, higher salary thresholds and the standardised S Pass levy, are not just cost increases; they signal a strategic shift for employers:

The Quality-Over-Quantity Mandate: Rising costs make each foreign hire a more significant investment, pushing companies to be more selective and ensure the role justifies the pass.
Advanced Planning is Non-Negotiable: With progressive age scales and quota limits, workforce planning must look 2-3 years ahead, especially for S Pass renewals.
The EP as the Default for Core Roles: As the cost gap narrows (when factoring S Pass levies), the flexibility of the EP makes it increasingly attractive for any role that is central to business growth, not just the most senior positions.
What You Can Do: Review your upcoming hiring pipeline now. Re-calculate total cost (salary + levy) and assess whether existing roles still align with the correct pass type under the new thresholds.

Final Thoughts: Making the Right Call for Your Business

There’s no one-size-fits-all answer when selecting between EP and S Pass, the “right” choice depends on your company’s needs, growth plans, role requirements and long-term strategy.

If you’re aiming for quality, stability and scalability, especially for senior or strategic roles, Employment Pass is generally the safer, more flexible option. If you need support-level, mid-skilled staff and want cost-efficiency, S Pass can work, provided you manage quotas, levies, and plan carefully.

Ultimately, hiring foreign talent is more than ticking boxes: it’s about building a workforce that complements your business, integrates well, and supports growth. As an employer, understanding the nuances between EP and S Pass, especially in light of 2025’s regulatory updates, is the first step toward an effective, compliant, and future-ready hiring strategy.

But if you’d prefer guidance rather than navigating EP and S Pass requirements on your own, our recruitment team is here to help.

FAQ

1. What is the main difference between an Employment Pass (EP) and an S Pass?

The EP is for professionals, managers, executives and specialists, typically more senior or highly skilled roles with higher salary benchmarks. The S Pass is for mid-level skilled employees such as technicians, associate professionals, or support roles. S Passes come with quotas and levies; EPs do not.

2. How do I know whether a role should be EP or S Pass?

Start with the role’s skill level, responsibilities, and market salary.

If the role requires specialised expertise, leadership experience or commands a salary above S$5,600, EP is usually more appropriate.

If the job is technical, operational, or diploma-level, and salary falls between S$3,300–S$4,500, S Pass may fit better, provided your quota allows it.

3. What is the minimum salary for EP and S Pass in 2025?

EP: From S$5,600 (or S$6,200 for finance), with higher thresholds for older or more experienced candidates.
S Pass: From S$3,300 (or S$3,800 for finance), with progressive increases for older candidates.

4. Is COMPASS required for all EP applications?

Most new EP applications must pass COMPASS unless exempted (e.g., very high earners, intra-corporate transferees).

COMPASS evaluates both the candidate’s profile and the employer’s workforce composition, so passing salary alone is not enough.

5. Are S Pass applications subject to quotas?

Yes. Your company must meet the sector’s Dependency Ratio Ceiling (DRC).

For example:

Services sector: S Pass holders capped at 10% of workforce.
Manufacturing/Construction/Shipyard: Up to 15%.

If you exceed your quota, the application will automatically be rejected.

6. What is the levy for S Pass holders?

A monthly levy of S$650 per S Pass employee applies from September 2025 onwards.

This is on top of salary and should be factored into your total hiring budget.

7. Do EP and S Pass holders receive different family privileges?

Yes.

EP holders earning above the required salary can bring in dependants (spouse and children).

S Pass holders cannot bring dependants unless they meet significantly higher salary thresholds or qualify under specific schemes.

8. Which pass is easier to renew?

EPs generally offer more predictable renewals, especially for senior roles with stable salaries.

S Pass renewals depend on updated salary thresholds, your company’s quota at the time of renewal, and overall compliance, making long-term planning important.

9. What if my company doesn’t have quota for S Pass? Can I convert the role to EP instead?

Only if the candidate and the role genuinely meet EP skill and salary criteria. You cannot “upgrade” a mid-level role to EP simply due to quota constraints; MOM evaluates whether the role justifies the pass level.

10. Do both EP and S Pass require job advertising under the Fair Consideration Framework (FCF)?

Yes, unless exempted. Most employers must advertise the job on MyCareersFuture for at least 14 days to show that local candidates were considered before submitting the EP or S Pass application.

11. Can candidates apply for their own EP or S Pass?

No. Only the employer or an authorised employment agency can apply on their behalf.

12. How long does the application process take?

EP/S Pass: Typically 10 business days for companies with a Singapore entity.
New companies or entities hiring foreign employees for the first time may experience longer processing times (4–8 weeks).

13. Can an employee switch from S Pass to EP later?

Yes, if they meet EP salary and COMPASS requirements at that stage. This often happens when an employee gains experience, receives a promotion, or moves into a more specialised role.

14. Are EP or S Pass holders eligible for Permanent Residency (PR)?

Both can apply for PR, but EP holders generally have stronger profiles due to higher salaries, seniority, and stability. S Pass holders can still qualify, especially with strong professional track records and long-term employment.

15. What is the total cost difference between EP and S Pass?

EP: Higher salary cost, but no levy or quota restrictions.
S Pass: Lower salary cost, but levy + quota constraints + higher admin obligations.
In many cases, after levy costs, EP may be more cost-effective for borderline or specialised roles.

16. What happens if my application gets rejected?

You can submit an appeal with additional documents, clearer justifications, or improved salary/role clarity.

For EP rejections under COMPASS, you may need to strengthen salary benchmarks or workforce diversity metrics.

17. Should I engage an agency to handle EP/S Pass applications?

Many employers choose to do so when they:

are new to hiring foreign talent,
have complex quota/COMPASS issues,
want to avoid delays from errors, or
need faster, cleaner processing.

But if you’re confident in the requirements, you can manage it internally.