From 1 July 2026, every Employment Pass renewal in Singapore is assessed against COMPASS’s updated criteria — including revised sector-specific salary benchmarks, a refreshed list of recognised educational institutions, and an updated Shortage Occupation List. This is not a distant deadline. It is here now. If your employee’s Employment Pass is due for renewal in the second half of 2026 and you have not re-run the COMPASS numbers against the 2026 benchmarks, you risk a rejection that could disrupt your operations and jeopardise your employee’s right to work in Singapore.

This guide explains exactly what changed on 1 January 2026, why 1 July 2026 is the critical date for renewals, and the practical steps employers and EP holders must take before submitting a renewal application.

What Is COMPASS and How Does It Govern Your EP Renewal

COMPASS — the Complementarity Assessment Framework — is the Ministry of Manpower’s points-based system for assessing Employment Pass applications. Introduced in September 2023, COMPASS replaced the previous subjective approach with a structured scoring system across four criteria. A candidate must score at least 40 points overall to qualify.

The four criteria are: C1 (Salary), which compares the candidate’s fixed monthly salary to local PMET salaries in the same sector and is worth up to 20 points; C2 (Qualifications), which assesses whether the candidate holds a degree from a top-tier institution or a recognised degree-equivalent professional qualification, also worth up to 20 points; C3 (Diversity), which considers whether the candidate’s nationality adds to the diversity of the employer’s local PMET workforce, worth up to 20 points; and C4 (Local Support), which assesses the employer’s local PMET hiring ratio and job advertisement practices, worth up to 20 points.

Bonus points are available under C5 (Shortage Occupation List) and C6 (Skills Bonus). Our detailed COMPASS points calculator and guide walks through all criteria in full.

What Changed on 1 January 2026

MOM updated three key components of COMPASS in late 2025, effective for new EP applications from 1 January 2026 and for EP renewals from 1 July 2026.

C1: Updated Sector-Specific Salary Benchmarks

The salary benchmarks used to score C1 are updated annually based on MOM’s survey of local PMET salaries. The 2026 benchmarks reflect an average increase of approximately 5% across sectors, though the magnitude of change varies significantly by industry. The Fund Management sector saw the largest increase (close to 10%), while a small number of sectors saw minimal change or slight decreases.

The practical impact: a candidate who scored 20 C1 points in 2024 at a salary of S$7,000 per month may now score only 10 points if the revised 65th percentile benchmark for their sector has moved above S$7,000. The scoring structure is as follows: 20 points are awarded if the candidate’s salary is at or above the 90th percentile; 10 points if at or above the 65th percentile; and 0 points if below the 65th percentile. The minimum qualifying salary floor remains S$5,600 per month for most sectors and S$6,200 for financial services — these are absolute minimums separate from the COMPASS scoring.

C2: Refreshed Qualification Lists

MOM has updated its list of top-tier educational institutions whose degrees attract maximum C2 points, as well as its list of recognised degree-equivalent professional qualifications. Candidates whose qualifications appeared on the previous list but have been removed from the 2026 list will score 10 points under C2 instead of 20. MOM’s lists are not publicly disclosed in full detail, but the Self-Assessment Tool (SAT) on the MOM website will indicate whether a particular qualification scores 10 or 20 points.

Updated Shortage Occupation List

The Shortage Occupation List — which triggers a 10-point C5 bonus — has been updated for 2026. New occupations have been added in advanced manufacturing, green technology, and digital infrastructure. Some roles previously on the SOL have been removed as labour market shortages in those areas have eased. Candidates whose job title is newly listed gain a meaningful COMPASS advantage that did not exist under their previous EP grant.

Why 1 July 2026 Is the Critical Date

Any EP renewal submitted on or after 1 July 2026 is scored against the 2026 benchmarks — the updated salary percentile tables, the refreshed qualification lists, and the revised SOL. There is no grace period after that date. If your employee’s EP expires in August, September, October or later in 2026, the renewal application will be assessed under these updated standards.

Employers should note that EP renewal applications are typically submitted between one and six months before expiry. An application submitted in June 2026 for an EP expiring in August 2026 would still be subject to the 1 July rule if MOM processes it after that date. The safest approach is to complete your COMPASS pre-assessment now and submit renewals well before expiry.

How to Check Your Employee’s COMPASS Score Before Renewing

MOM provides a Self-Assessment Tool (SAT) on its website that employers can use to estimate a candidate’s COMPASS score before submitting an application. The SAT is updated to reflect current benchmarks.

Before submitting a renewal, employers should work through this checklist. First, confirm the candidate’s current fixed monthly salary and re-run the SAT under the 2026 C1 benchmarks for the relevant SSIC sector code. If the C1 score has dropped from 20 to 10, you have lost 10 points that must be recovered elsewhere. Second, verify C2 qualification points by checking whether the candidate’s educational qualifications still appear in MOM’s current approved lists. Third, review C3 diversity points — if the candidate’s nationality is disproportionately represented in your PMET workforce, C3 points may be reduced. Fourth, review C4 local support metrics, including your firm’s local PMET hiring ratio and MyCareersFuture job posting compliance. Fifth, check the updated Shortage Occupation List for C5 eligibility. Finally, confirm that the total projected score clears 40 points before submitting.

For a full breakdown of the COMPASS scoring system, our Singapore Employment Pass 2026 COMPASS Framework Guide covers each criterion in detail.

Consequences of Failing COMPASS on Renewal

A failed renewal application is a serious operational disruption. If MOM rejects the renewal, the EP holder cannot continue working once the existing pass expires. There is no automatic right of appeal, though employers can submit a request for reconsideration if new information is available or if MOM has made an assessment error. Key consequences include the employee ceasing work immediately on EP expiry, the possible need to leave Singapore if no other valid pass exists, and the requirement to reapply with materially improved conditions before a new pass can be granted.

Acting proactively — several months before the EP expires — gives employers time to make salary adjustments, restructure roles, or seek professional assistance. For end-to-end assistance with EP renewal submissions, our associated licensed employment agency handles the full application process with MOM, including COMPASS pre-assessment and submission strategy.

Financial Services Sector: Additional Considerations

Employers in the financial services sector face higher salary thresholds. For 2026, the minimum EP qualifying salary for financial services candidates is S$6,200 per month, and the C1 benchmark percentiles are calibrated against financial sector PMET salaries, which are higher than cross-sector averages. The Fund Management segment within financial services saw close to a 10% increase in the 65th percentile benchmark, meaning that candidates who previously cleared C1 comfortably may now score differently. Financial sector employers should run their COMPASS checks as a priority.

Alternatives to the Employment Pass Worth Considering

If an EP renewal appears unviable due to COMPASS scoring — for example, where a salary increase is not commercially feasible — it is worth reviewing whether alternative passes may be available. Our Employment Pass vs ONE Pass vs PEP comparison covers the full range. The ONE Pass is reserved for very high earners (S$30,000 per month fixed salary) and is not subject to COMPASS. The PEP (Personalised Employment Pass) is available to existing EP holders earning above S$22,500 per month but is non-renewable after three years. The EntrePass is an option for eligible entrepreneurs running qualifying startups. Sound business financial planning should also factor in the cost implications of work pass renewals and salary benchmarks when budgeting for headcount.

For a comprehensive view of all annual regulatory deadlines, our Singapore Company Compliance Calendar lists all key MOM, ACRA, and IRAS deadlines in one place.

For the latest Singapore business news and regulatory updates, there are useful resources for employers staying on top of MOM policy changes.

To speak with the team at Raffles Corporate Services, you can email [email protected] or call, SMS, or WhatsApp +65 8501 7133. We are happy to assist with any queries.

— The Editorial Team, Raffles Corporate Services