Singapore's 2025 work permit policy changes: Can they balance global and local interests?

Singapore aims to ensure foreign hires contribute meaningfully to the local economy rather than simply filling gaps in the workforce.
Singapore has long been a magnet for global talent, leveraging its strategic location, business-friendly policies, and robust economy to attract skilled professionals worldwide.
However, as the global workforce evolves and domestic employment concerns rise, the government is implementing significant work permit reforms in 2025.
These changes aim to strike a delicate balance between maintaining Singapore’s competitive edge as a global talent hub and ensuring fair employment opportunities for local workers.
Key updates include higher salary thresholds for foreign professionals, the introduction of the Complementarity Assessment Framework (COMPASS), stricter hiring compliance, and new work pass options for top-tier talent.
Overview of Singapore’s 2025 work permit changes
1) Stricter eligibility criteria for work permits
One of the most immediate impacts of the 2025 reforms is the increase in minimum salary thresholds for Employment Pass (EP) and S Pass holders.
The qualifying salary for EP applicants will rise from SGD 5,000 to SGD 5,600 per month, with an even higher threshold of SGD 6,200 for financial sector roles.
Older, more experienced candidates must meet significantly higher salary benchmarks, reaching up to SGD 11,800 for professionals aged 45 and above.
Similarly, S Pass holders will face an increased salary requirement of SGD 3,300, with variations across different industries.
These adjustments reflect Singapore’s commitment to attracting only the most skilled and competitive foreign professionals while ensuring that local workers are not undercut by lower-wage foreign hires.
Also Read: Singapore witnessed slower employment growth, fewer layoffs in 2024
2) The COMPASS Framework: A gatekeeper of talent?
A cornerstone of the 2025 reforms is the Complementarity Assessment Framework, or COMPASS, a points-based system designed to ensure that foreign hires complement the local workforce.
EP applications will be evaluated based on six key criteria:
- Salary competitiveness – ensuring foreign hires earn salaries on par with or above industry standards
- Qualifications – a preference for degrees from globally recognised institutions
- Workplace diversity – companies that hire a mix of local and foreign professionals will score higher
- Support for local employment – firms that demonstrate commitment to hiring Singaporeans will gain an advantage
- Skills bonus – applicants with expertise in in-demand sectors will be prioritised
- Strategic economic priority bonus – companies in sectors aligned with Singapore’s economic goals will benefit
To qualify for an EP, applicants must score at least 40 points under COMPASS, making it a more rigorous and transparent process than before.
This signals Singapore’s intent to ensure that foreign hires contribute meaningfully to the local economy rather than simply filling gaps in the workforce.
3) Stricter hiring compliance and workforce mandates
Beyond salary thresholds and COMPASS, the new regulations will impose stricter hiring compliance measures. Employers will need to demonstrate concrete efforts to recruit local professionals before seeking foreign hires.
Revised levies and quotas will further encourage businesses to maintain a balanced workforce, reducing reliance on foreign workers while investing in local talent development.
Companies with a higher percentage of Singaporean professionals in key roles will have a competitive edge in securing work permits for foreign hires.
The approach aligns with the government’s vision of safeguarding local employment while ensuring that foreign workers complement rather than replace Singaporean talent.
4) New work passes to attract global talent
While the 2025 policy updates tighten foreign labour regulations, they also introduce a new work pass designed to attract elite global professionals.
The Overseas Network & Expertise Pass offers a long-term visa for high-earning individuals, allowing them to reside in Singapore without an immediate job offer. This initiative reflects Singapore’s ongoing ambition to position itself as a global hub for top-tier talent, innovation, and entrepreneurship.
Also Read: Singaporeans want higher pay and meaningful careers in 2025
The implications of the 2025 work permit changes
1) For employers
Higher wage costs: Companies will need to increase salaries to meet the revised thresholds, particularly in industries heavily reliant on foreign professionals.
Stronger local workforce mandates: Firms with a higher proportion of local employees will find it easier to obtain EPs for foreign hires.
Strategic hiring decisions: Employers must prioritise candidates with in-demand skills to maximise COMPASS points.
Greater administrative burden: Compliance with COMPASS, hiring quotas, and salary benchmarks will require more rigorous HR processes and strategic workforce planning.
2) For foreign professionals
Increased barriers to entry: The higher salary requirements and COMPASS evaluation criteria make obtaining an EP more challenging, particularly for mid-level professionals.
Preference for highly skilled talent: Singapore is shifting towards attracting top-tier professionals with strong credentials and competitive salaries.
Alternative visa options: The Overseas Network & Expertise Pass provides a pathway for high-caliber individuals without requiring immediate employment.
3) For Singapore’s workforce and economy
Boost for local employment: These reforms are designed to prioritise Singaporean professionals, ensuring that local talent is given ample employment opportunities before foreign hires are considered.
Enhanced talent quality: By setting higher entry standards, Singapore ensures that only top global talent enters its workforce, benefitting industries that require specialised expertise.
Maintaining global competitiveness: While the stricter regulations make it harder for mid-level foreign workers to enter, Singapore’s new work passes and focus on high-value professionals ensure it remains a preferred destination for elite global talent.
Singapore’s 2025 work permit reforms represent a strategic recalibration of its labour policies as it raises salary thresholds, implements COMPASS, enforces stricter hiring compliance, and introduces new visa options.
Overall, the government seeks to balance the needs of local workers and global talent.
While these changes will undoubtedly pose challenges for businesses and mid-level foreign professionals, they also reinforce Singapore’s long-term vision of being a hub for highly skilled, high-value professionals.
As companies and workers adapt to these somewhat higher barriers to entry, the tried-and-tested strategies for workforce planning, skills development, and a focus on local talent integration will be key to thriving in Singapore’s redefined labour market.