What Is the COMPASS Framework?

The Complementarity Assessment Framework, commonly known as COMPASS, is Singapore’s points-based system for evaluating Employment Pass (EP) applications. Introduced by the Ministry of Manpower (MOM) on 1 September 2023, COMPASS is designed to ensure that foreign professionals hired in Singapore genuinely complement the local workforce rather than displace it.

Under COMPASS, every EP application is assessed against a structured set of criteria that evaluate both the individual candidate and the hiring company. The candidate must score a minimum of 40 points to pass. This transparent, points-based approach replaces the previous system where EP approvals were largely assessed on a case-by-case basis, giving both employers and candidates much greater clarity on what is required.

With significant updates taking effect from 1 January 2026 for new applications and 1 July 2026 for renewals, it is essential for Singapore businesses and foreign professionals alike to understand how COMPASS works and what the latest changes mean.

Who Needs to Pass COMPASS?

COMPASS applies to most EP applications in Singapore. If your company is hiring a foreign professional and applying for an EP on their behalf, the application will need to meet the COMPASS threshold in addition to the minimum qualifying salary for an EP.

As of 2026, the minimum qualifying salary for an EP is S$5,600 per month for most sectors and S$6,200 per month for the financial services sector. These thresholds are set to increase further to S$6,000 (non-financial sectors) from 1 January 2027.

There is one notable exemption: candidates earning a fixed monthly salary of S$22,500 or more are exempt from COMPASS. This exemption recognises that individuals at this salary level are already demonstrating exceptional value to the Singapore economy.

The Six COMPASS Criteria Explained

COMPASS evaluates EP applications across six criteria, divided into four foundational criteria (C1 to C4) and two bonus criteria (C5 and C6). Each foundational criterion can award 0, 10, or 20 points. The bonus criteria can add up to 20 additional points each. An application needs at least 40 points to pass.

C1 — Salary

The salary criterion compares the candidate’s fixed monthly salary against local Professional, Manager, Executive, and Technician (PMET) wages within the same sector. If the salary meets or exceeds the 65th percentile of local PMET wages for the sector, the application scores 10 points. At the 90th percentile or above, it scores 20 points. Below the 65th percentile, zero points are awarded.

MOM updates these sector-specific salary benchmarks annually. The latest benchmarks, effective from 1 January 2026, reflect current labour market conditions and can be found on the MOM website.

C2 — Qualifications

This criterion assesses the candidate’s educational background. Candidates with a degree from a top-tier institution on MOM’s approved list score 20 points. Those holding a degree-equivalent qualification or a degree from a recognised institution outside the top tier score 10 points. Candidates without a degree or with qualifications from unrecognised institutions score zero.

For 2026, MOM has updated the list of qualifying institutions and faculties. Group A institutions qualify across all faculties, while Group B institutions qualify only for specified faculties. It is important for employers to check the updated lists before submitting applications.

C3 — Diversity

The diversity criterion looks at the nationality composition of the hiring firm’s PMET workforce. If the candidate’s nationality makes up less than 5% of the firm’s PMETs, the application scores 20 points. If the nationality share is between 5% and 25%, it scores 10 points. A share above 25% results in zero points.

This criterion encourages firms to maintain a diverse workforce rather than relying heavily on workers from a single nationality. For foreign entrepreneurs setting up companies in Singapore, this is an important consideration when planning the team composition.

C4 — Support for Local Employment

This criterion evaluates how well the hiring firm supports local employment. It compares the firm’s share of local PMETs against the sub-sector average. Firms with a local PMET share that exceeds the sub-sector median by 20 percentage points or more score 20 points. Those at or above the median score 10 points. Firms below the median score zero.

For businesses that are hiring foreign workers in Singapore, this criterion underscores the importance of maintaining a strong local workforce alongside any foreign hires.

C5 — Skills Bonus (Shortage Occupation List)

The first bonus criterion awards up to 20 points if the EP candidate is filling a role on MOM’s Shortage Occupation List (SOL). The SOL identifies occupations where Singapore faces an acute shortage of local talent and where foreign expertise is strategically needed.

The 2026 SOL includes roles across several key sectors. Healthcare roles such as clinical psychologists, diagnostic radiographers, occupational therapists, physiotherapists, and registered nurses feature prominently. The green economy is represented by carbon project managers, carbon traders, and carbon verification specialists. Agritech roles include alternative protein food application scientists and novel food biotechnologists. Financial services roles such as investment advisers and relationship managers serving ultra-high net worth clients are also included, as are select infocomm technology positions.

Notably, the 2026 update removed certain roles that were previously on the list, including Cyber Risk Specialist, Cybersecurity Operations Specialist, and Product Manager (Digital), while adding two new healthcare occupations.

C6 — Strategic Economic Priorities Bonus

The second bonus criterion awards up to 10 points if the hiring company participates in approved programmes that advance Singapore’s strategic economic priorities. This typically includes companies involved in investment or innovation programmes with agencies such as the Economic Development Board (EDB) or Enterprise Singapore (ESG).

This criterion rewards businesses that contribute to Singapore’s long-term economic development goals. Companies that have secured incentive agreements or are participating in strategic growth initiatives may qualify for these additional points.

How COMPASS Points Add Up — A Practical Example

To illustrate how COMPASS works in practice, consider a hypothetical scenario. A technology company in Singapore wants to hire a software engineer from overseas. The candidate earns S$9,000 per month (above the 65th percentile for the sector), holds a degree from a top-tier university, and the company has a healthy share of local PMETs.

The application might score as follows: C1 (Salary) — 10 points, C2 (Qualifications) — 20 points, C3 (Diversity) — 10 points (assuming moderate nationality share), and C4 (Local Employment) — 10 points. That gives a total of 50 points — well above the 40-point threshold. If the role also appears on the Shortage Occupation List, an additional 20 points under C5 could bring the total to 70.

This example shows that applications with a combination of competitive salary, strong qualifications, and good firm-level indicators should comfortably pass COMPASS.

Key 2026 Updates to COMPASS

Several important changes have taken effect under the COMPASS framework for 2026:

Revised salary benchmarks. MOM has updated the sector-specific salary benchmarks used for the C1 criterion, reflecting the latest local PMET wage data. Employers should review these benchmarks before submitting new applications.

Updated qualification lists. The lists of recognised educational institutions and qualifying faculties for the C2 criterion have been refreshed. Some institutions have been added, and faculty-level distinctions for Group B institutions have been updated.

Revised Shortage Occupation List. The SOL for the C5 bonus criterion has been updated to reflect current labour market needs. Two healthcare roles have been added, while several technology-related roles have been removed. Employers relying on SOL bonus points should verify that the intended role still qualifies.

New EP minimum qualifying salary. The EP minimum salary has been raised to S$5,600 for most sectors and S$6,200 for financial services, with a further increase to S$6,000 planned for 2027.

These changes apply to new EP applications from 1 January 2026, and to renewal applications for passes expiring on or after 1 July 2026.

Practical Tips for Employers

For Singapore companies that regularly hire foreign professionals, navigating COMPASS successfully requires some forward planning.

Assess your firm-level scores early. Criteria C3 (Diversity) and C4 (Local Employment) are firm-level attributes. Review your PMET workforce composition before initiating an EP application, as these scores affect every application your firm submits.

Use MOM’s self-assessment tool. MOM provides a COMPASS self-assessment tool that allows employers to estimate scores before submitting an application. This can help identify potential shortfalls early.

Offer competitive salaries. The C1 criterion rewards salaries at the 65th and 90th percentiles. Offering a salary well above the minimum qualifying threshold improves the likelihood of a successful application.

Verify qualifications carefully. Ensure the candidate’s degree or professional qualification is on MOM’s recognised list. Qualifications that do not appear on the list will score zero under C2.

Check the Shortage Occupation List. If the role is on the SOL, the application can benefit from up to 20 bonus points — which can make a significant difference for borderline cases.

Engage a professional corporate services provider. Navigating employment pass requirements can be complex, particularly for foreign companies setting up in Singapore for the first time. A registered corporate service provider can help ensure that all compliance requirements are met.

How COMPASS Fits into Singapore’s Broader Work Pass Framework

COMPASS is one component of Singapore’s comprehensive work pass framework, which includes the Employment Pass, S Pass, and Work Permit. While COMPASS applies specifically to EP applications, the principles of complementarity and workforce quality underpin the entire system.

For business owners who are exploring different options for setting up a company in Singapore, understanding the work pass landscape is crucial — particularly if the business plan involves hiring foreign talent or if the founders themselves will need work authorisation.

Companies should also be aware that the recent Corporate Service Providers Act 2024 has introduced enhanced compliance requirements for corporate service providers, which complements the regulatory rigour seen in Singapore’s work pass system.

Conclusion

The COMPASS framework represents Singapore’s commitment to a transparent, merit-based approach to Employment Pass approvals. By evaluating both individual and firm-level attributes through a clear points system, COMPASS ensures that foreign talent coming into Singapore genuinely complements the local workforce.

With the 2026 updates — including revised salary benchmarks, refreshed qualification lists, and an updated Shortage Occupation List — employers and foreign professionals should take the time to understand the current requirements and plan accordingly. Proactive preparation, competitive compensation, and strong firm-level indicators will be key to successful EP applications.

For guidance on company incorporation, work pass matters, or any other corporate secretarial needs, feel free to contact Raffles Corporate Services for professional assistance.

— The Editorial Team, Raffles Corporate Services