Singapore | Salary benchmark update postponed

Singaporean officials announced that updates to salary benchmarks as part of the first round of annual updates to the COMPASS criteria will be postponed to July 2024.

‌Key Points:

• As BAL previously reported, candidates need to pass the points-based Complementarity Assessment Framework (COMPASS) in addition to meeting the qualifying salary to obtain an Employment Pass. Further details on how EP applications are evaluated can be found here.
• A candidate’s fixed monthly salary is compared to salary benchmarks by sector as part of COMPASS, and these figures were due to be updated in March 2024.
• The Ministry of Manpower stated that the salary benchmarks will now be updated in July and indicated that there will not be any changes to the list of top-tier institutions and the shortage occupation list.
• The first round of annual updates is projected for implementation on Sept. 1.

Additional Information: COMPASS is a transparent points-based system that gives businesses greater clarity and certainty in the EP application process. COMPASS rewards zero, 10 or 20 points for each category based on whether the application does not meet, meets or exceeds expectations. Applicants who receive at least 40 points will be approved. Applicants can receive bonus points if the job is on the skills shortages list or if the company partners with the government on strategic economic priorities.

BAL Analysis: Changes may be made to the list of top-tier institutions and shortage occupation list to meet market requirements. Despite the postponement of the salary benchmarks update, the target implementation date for the first annual update is still Sept. 1. BAL will continue to monitor the implementation of the changes to the framework and will provide more information as it becomes available.

This alert has been provided by the BAL Global Practice Group.

Copyright © 2024 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.