From 1 July 2026, the Complementarity Assessment Framework (COMPASS) applies to Employment Pass renewals - not just new applications. Combined with the January 2026 salary increase, this is the biggest tightening of the EP regime since COMPASS launched. If you're a founder on EP, hiring on EP, or planning to renew, this is the brief.
COMPASS is MOM's points-based scoring system for EP applications. It scores candidates and their employer across four core attributes (salary, qualifications, diversity, support for locals) plus two bonus attributes (skills shortage, strategic priorities). Until July 2026, COMPASS only applied to new applications and very high-volume renewals. From July it applies to all EPs at renewal.
What changed in 2026 (at a glance)
1 January 2026 - Salary thresholds raised:- EP minimum qualifying salary (general): S$5,600/month (up from S$5,000)
- EP minimum qualifying salary (financial services): S$6,200/month (up from S$5,500)
- S Pass minimum qualifying salary: S$3,300/month (up from S$3,150)
- Older candidates (mid-40s+) face progressively higher minimums
- All EP renewal applications must score at least 40 points across the COMPASS framework
- Renewals failing COMPASS will not be granted, regardless of how long the EP has been held
- Some narrowly-defined exemption categories continue (e.g., overseas networks talent, government-endorsed strategic hires)
See our Employment Pass glossary entry for the full eligibility framework.
How COMPASS scoring actually works
Every EP application (new or renewal from July 2026) must score at least 40 points across these attributes:
| Attribute | 0 points | 10 points | 20 points |
|---|---|---|---|
| C1 Salary | Below 50th percentile of local PMETs in same sector | 50th-65th percentile | 65th percentile and above |
| C2 Qualifications | No degree | Degree from acceptable institution | Top-tier institution (e.g., QS/THE top 100) |
| C3 Diversity | Same nationality is >25% of company PMET workforce | 5-25% | Below 5% |
| C4 Support for locals | Below industry average for local PMET hiring | At industry average | Above industry average |
- C5 Skills bonus: candidate's role is on the Shortage Occupation List (typically tech, healthcare, advanced manufacturing)
- C6 Strategic Economic Priorities: company's investment commitments align with national priorities
Pass mark: 40 points. Most successful applications score in the 40-80 point range.
Why renewals are now the binding constraint
Until July 2026, an EP holder could renew almost automatically at the prevailing salary. From July 2026, the renewal goes through the same COMPASS scoring as a new application.
What this means in practice: A founder or employee who was hired in 2022 at S$5,500 and never received a meaningful raise might now be below the C1 salary band for 2026. If their company is C3-weak (e.g., a 5-person team where 4 are the same nationality) and C4-weak (no local hires), the renewal could fail. Founders especially: If you're the sole director and EP holder of a small company, you have limited C4 (Support for locals) score - because there are no local employees to support. This can be offset by C1 (high salary), C2 (top-tier qualifications), or by hiring local PMETs.Pre-renewal action plan (12 months out)
If your EP renewal is coming up in mid-2026 or 2027, work backwards 12 months and audit each COMPASS attribute:
C1 - Salary: Compare your current salary to the 50th and 65th percentile for PMETs in your sector. MOM publishes these benchmarks. If you're below the 50th, you score 0 on C1, which means you need to score 40+ on the other attributes alone. The simplest fix: raise your salary above the 65th percentile if your company can afford it. Self-employed founders often pay themselves more in salary and less in dividends specifically to satisfy COMPASS. C2 - Qualifications: Static (you can't change your degree retroactively). If your degree is from a non-recognised institution, you score 0 on C2. Compensating: lift other attributes. C3 - Diversity: Look at your PMET headcount by nationality. If >25% are the same nationality as you, you score 0. Hiring local PMETs reduces this percentage. So does hiring PMETs of different nationalities. C4 - Support for locals: Hire local PMETs. The benchmark is industry-relative, so you don't need a 50/50 split - you need to be at or above the average for your industry. For tech companies, hiring 1-2 local engineers can shift you from below to above average if you're a small team. C5 / C6 (bonus): Check if your role is on the Shortage Occupation List. Tech roles (software engineering, AI/ML, cybersecurity) often qualify. Investment commitments via EDB endorsement can give C6 bonus points but require a real engagement.What happens if your renewal fails
If MOM rejects your renewal, you have a 1-month appeal window. The appeal must be substantive - new evidence, new salary commitment, new local hires.
If the appeal fails, your EP expires on its current expiry date and you must leave Singapore (or transition to another pass). For founders, this is severely disruptive: bank accounts, tenancy, schooling, and company directorship are all tied to your EP.
Backup pathways for founders:- Tech.Pass - sponsor-free pass for senior tech professionals; criteria include US$20K+ monthly salary OR 5+ years at a leading tech company OR a product with 100K+ users
- ONE Pass - top-tier pass requiring S$30,000 monthly salary; 5-year duration
- Permanent Residence - if you've been on EP for 4+ years with strong COMPASS profile, PR application is the durable solution
Founder-specific edge cases
Sole director, sole employee, all-foreign team: Highest renewal risk. C4 is structurally weak. Mitigation: hire local PMETs (even 1-2 makes a meaningful difference), or transition the team toward a local-majority PMET base over 12-18 months. Pre-revenue startup paying founder below market: Many founders pay themselves the EP minimum to conserve cash. This scores 0 on C1 from January 2026 (since S$5,600 is now likely below 50th percentile in tech). Mitigation: time the salary increase to coincide with renewal cycle, or supplement with bonuses that count toward gross monthly income. Family office / wealth structure with offshore-resident founder: Some structures use a Singapore Pte Ltd with the founder as director but not employee. Renewal isn't relevant in those cases (no EP held), but if you do hold an EP, ensure your role and salary stand up to MOM scrutiny - a nominal director role with no operational responsibility may be flagged.How Karman supports EP renewals
Karman's incorporation and corporate secretary services include EP application and renewal support. We run a COMPASS pre-check 6 months before renewal, identify which attributes are at risk, and recommend specific changes (salary timing, hire timing, role documentation) to maximise renewal probability.
For founders building team around them, see our /for/ai-startups, /for/saas, and /for/fintech industry pages for sector-specific EP planning.
Official Sources
Frequently Asked Questions
From 1 July 2026, COMPASS applies to all EP renewal applications. Before that date, renewals are typically processed under the prevailing salary criteria. Applications submitted before 1 July 2026 are assessed under the pre-July framework even if a decision is issued after that date.
From 1 January 2026: S$5,600/month for general roles, S$6,200/month for financial services. These minimums increase progressively for older candidates (mid-40s+). The salary must also pass C1 in COMPASS - which means being at or above the 50th percentile for PMETs in your sector. The minimum and the C1 benchmark can differ; both must be satisfied.
Yes. Salary alone is one of four core attributes plus two bonus attributes in COMPASS. A high salary can score 20 points on C1 but still fail to reach the 40-point pass mark if the company scores 0 on C3 (diversity) and C4 (support for locals). MOM looks at the whole picture.
Yes - it improves both C3 (Diversity, by reducing the same-nationality concentration in your PMET workforce) and C4 (Support for locals, by raising your local PMET ratio). For small companies, a single local PMET hire can shift you from 0 to 10 or 20 points on these attributes.
You have a 1-month appeal window. If the appeal fails, your EP expires and you must leave Singapore by the expiry date or transition to another pass. Realistic alternatives: Tech.Pass (for senior tech professionals), ONE Pass (S$30K monthly salary requirement), or Permanent Residence application (if you have 4+ years on EP and a strong profile).