EP Renewal, Salary Uplift and Dependency Ratios Explained

EP renewal, salary uplift and dependency ratios interact more closely than most employers realise: a renewal application is reassessed against current salary thresholds and the points-based COMPASS framework, and a firm’s own local headcount composition can quietly shift the outcome even when nothing else about the role has changed.

Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What EP Renewal Actually Is (And How It Differs From a First Application)

An Employment Pass (EP) renewal is a fresh assessment, not an automatic extension. Employers sometimes treat renewal as a formality because the employee is already known and has performed the role competently for years. In practice, the Ministry of Manpower (MOM) reassesses a renewal against the salary and COMPASS requirements that apply at the time of renewal, which are not necessarily the same requirements that applied when the pass was first issued. This is the biggest conceptual gap that trips employers up: at first application, MOM has no history with the company or the candidate; at renewal, MOM already holds several years of data, including the candidate’s salary progression, the company’s foreign to local headcount mix, and its compliance record. A renewal is therefore an opportunity for MOM to check whether the employment relationship has kept pace with regulatory expectations, particularly on salary uplift, rather than simply confirming that the original approval still stands. One point works in the employer’s favour: once a candidate’s qualifications have been verified in a previous application, they generally do not need to be re-verified at renewal.

Who Needs to Think About EP Renewal, Salary Uplift and Dependency Ratios

This topic matters to a specific but common set of employers. Any Singapore-registered company sponsoring an existing EP holder whose pass expires within the next six months should be actively planning for renewal, not waiting for a system reminder. It matters most acutely in three situations: companies whose EP holder’s salary has not been reviewed since the pass was last approved, particularly where the pass expires on or after 1 January 2028, when a higher qualifying threshold takes effect; companies that have grown their foreign headcount (EP and S Pass combined) faster than their local professional, managerial, executive and technical (PMET) headcount, since this shift affects COMPASS scoring at renewal even for an employee whose own performance and salary are unchanged; and companies in the financial services sector, which sits on a higher qualifying salary band and therefore has a larger gap to close before 2027 and 2028. Human resources managers, finance controllers who approve salary budgets, and small business owners without a dedicated HR function are most likely to be caught out, because renewal is easy to delegate to whoever handled the paperwork last time without revisiting whether the underlying facts have moved.

Eligibility and Requirements at Renewal

EP renewal eligibility runs on two stages, the same two-stage structure used for new applications. Stage 1 is the qualifying salary test. As at 18 September 2026, the fixed monthly salary threshold is S$5,600 for most sectors, rising progressively with age from 23 years old up to S$10,700 per month for candidates aged 45 and above. The financial services sector sits higher, at S$6,200 rising to S$11,800 at age 45 and above. From 1 January 2027, new applications face a higher threshold, and critically for renewal planning, passes expiring on or after 1 January 2028 will be assessed against these higher figures: S$6,000 (up to S$11,500 at 45 and above) for most sectors, and S$6,600 (up to S$12,700 at 45 and above) for financial services. An employer renewing a pass that expires in early 2028 needs to be raising salaries well before the renewal application is lodged, not at the point of submission.

Stage 2 is COMPASS, the Complementarity Assessment Framework, which requires a minimum of 40 points unless the candidate is exempt. COMPASS scores against six criteria: C1 Salary, C2 Qualifications, C3 Diversity, C4 Support for Local Employment, C5 Skills Bonus (Shortage Occupation List), and C6 Strategic Economic Priorities Bonus. Exemptions apply to candidates earning a fixed monthly salary of at least S$22,500, overseas intra-corporate transferees, and roles filled for one month or less. For passes expiring from 1 September 2024 onward, renewals face the same COMPASS reassessment as new applications, a point many employers wrongly assume does not apply once a pass has already been approved once.

Cost and Timeline for EP Renewal, Salary Uplift and Dependency Ratios

The numbers below are the current figures as verified against MOM’s published guidance. Employers should build these into their internal renewal calendar rather than treating them as background detail.

Item	Figure
Renewal application window	Up to 6 months (180 days) before expiry; EP Sponsorship cases from 3 months before expiry
Renewal fee	S$225 to have the renewed pass issued
Multiple Journey Visa fee (if applicable)	S$30 each
Processing time (myMOM Portal, standard)	Most renewals processed or updated within 10 business days
Processing time (EP Sponsorship)	Up to 6 weeks
Renewed pass validity	Up to 3 years
In-principle approval (IPA) validity after renewal	3 months, pass must be issued before this or before current pass expiry, whichever is earlier

Two administrative steps are frequently overlooked. Employers must ensure their organisation’s turnover information for the past three years is updated in myMOM before submitting a renewal application; an outdated record can delay processing even where the salary and COMPASS position is sound. Missing the six-month renewal window also converts the exercise into a fresh application, with the candidate potentially needing to stop working while it is processed, a materially worse outcome than a straightforward renewal.

The Dependency-Ratio and Headcount-Composition Angle, Explained

This is the part of EP renewal that is most commonly misunderstood, so it is worth being precise. An Employment Pass itself is not subject to a numerical quota or a Dependency Ratio Ceiling (DRC) in the way that the S Pass and Work Permit are. There is no fixed “EP quota” for a company to stay within, and this is different from how S Pass and Work Permit dependency ratios work, where a company’s foreign worker numbers are capped as a strict proportion of its total local workforce, set out in law.

What does affect an existing EP holder at renewal is something related but distinct: the company’s broader foreign-to-local headcount composition, and in particular its local PMET representation, feeds directly into two of the six COMPASS criteria, C3 (Diversity) and C4 (Support for Local Employment), which score the workforce mix against sector norms and the firm’s own historical PMET headcount. In loose, practical terms, this is the real mechanism by which “dependency ratios” affect an EP renewal: if a company’s local PMET share has fallen since the pass was last granted, or the company has added more EP and S Pass staff without growing its local core proportionately, the COMPASS score on C3 and C4 can slip at renewal even though the individual candidate’s own role, performance and salary have not changed. It is important not to conflate this with the legal DRC that applies to Work Permit and S Pass holders; the EP mechanism works through COMPASS scoring, not a hard statutory cap, but the practical effect on renewal planning is real. Employers who are actively hiring should also keep MOM’s Fair Consideration Framework (FCF) job advertising expectation in mind; renewals are generally exempt from re-advertising, but the underlying fair-hiring expectation still colours how C4 is assessed across the company’s overall hiring pattern.

Step-by-Step EP Renewal Process

The following sequence reflects how a well-run renewal should be approached, starting well before the six-month window opens.

Diarise the expiry date at least nine months out. This gives enough runway to review salary and headcount composition before the formal application window opens.
Review the candidate’s current salary against the applicable threshold at the pass’s expiry date, not against today’s threshold, since a pass expiring from 1 January 2028 will be tested against the higher figures described above.
Run an internal COMPASS self-check across all six criteria, paying particular attention to C3 and C4, which depend on company-wide headcount data rather than the individual candidate.
Update the company’s turnover information in myMOM for the past three years, before submission.
Adjust the candidate’s salary if needed, ideally with enough lead time that the increase is reflected in payroll records before the application is lodged.
Submit the renewal application via the myMOM Portal within the 6-month (or 3-month for EP Sponsorship) window before expiry.
Track the outcome, allowing up to 10 business days for standard cases or up to 6 weeks for EP Sponsorship cases.
Act on the in-principle approval promptly, since the IPA is valid for only 3 months and the renewed pass must be issued before that or before the current pass expires, whichever comes first.

Common Employer Mistakes and Rejection Reasons at Renewal

Most EP renewal problems are avoidable and fall into a small number of recurring patterns. Employers considering their own renewal pipeline should check for related pitfalls; a companion piece on documents required and templates for EP renewal covers the paperwork side in more detail.

Letting salary stagnate below the renewal-time threshold. The most frequent mistake is comparing the candidate’s current salary against the threshold that applied when the pass was first granted, rather than the threshold that will apply at renewal, particularly the step-up effective for passes expiring from 1 January 2028.
Assuming COMPASS reassessment does not apply to renewals. Employers who passed COMPASS once sometimes assume the pass will carry forward on the same basis indefinitely. For passes expiring from 1 September 2024, renewals face the same 40-point COMPASS bar as new applications.
Forgetting to update turnover data in myMOM. This is a simple administrative step that is easy to overlook and can hold up an otherwise straightforward renewal.
Missing the six-month application window. Once the pass has expired, the company can no longer renew; it must lodge a fresh application, which resets the qualifying salary and COMPASS position to whatever applies on that later date, typically a worse outcome.
Headcount and PMET-mix drift hurting C3 and C4. Companies that have expanded their foreign headcount faster than their local PMET base, without realising the effect on COMPASS, are sometimes surprised when a long-serving EP holder’s renewal scores lower than expected on Diversity and Support for Local Employment, even though nothing about that individual has changed.
Treating the IPA as the end of the process. Some employers relax once in-principle approval is granted, then miss the 3-month window to have the pass issued, triggering an overstaying fine.

Employers restructuring group entities may find it useful to read this overview of Singapore holding company tax optimisation, since headcount and payroll decisions often sit alongside broader corporate structuring questions. Newly incorporated companies hiring their first EP holders should also check this guide to Singapore Pte Ltd company registration for foreigners, as several mistakes described there (incomplete turnover records, unclear beneficial ownership) resurface later at renewal stage.

FAQs

Does an Employment Pass have a dependency ratio ceiling like the S Pass or Work Permit?
No. An EP is not subject to a numerical quota or a legal Dependency Ratio Ceiling. However, a company’s overall foreign-to-local headcount composition and local PMET representation feed into COMPASS criteria C3 and C4, which can affect an existing EP holder’s renewal outcome even though there is no formal EP quota.

How early can an employer apply to renew an Employment Pass?
Up to 6 months (180 days) before the pass expires for standard cases, or up to 3 months before expiry for EP Sponsorship cases. Employers should not wait until the window is closing, since salary and COMPASS adjustments often need lead time.

Does salary need to increase at every renewal?
Not automatically, but the salary must meet whatever qualifying threshold applies at the pass’s expiry date, which may be higher than the threshold that applied at the last approval, particularly for passes expiring on or after 1 January 2028.

Is COMPASS reassessed at renewal, or only at first application?
For passes expiring from 1 September 2024 onward, renewals are subject to the same COMPASS reassessment (40 points required, unless exempt) as new applications. This is one of the most commonly missed points in renewal planning.

What happens if the renewal deadline is missed?
Once a pass expires without a renewal application on file, the employer must submit a fresh application instead, which is assessed against the rules in force on that later date and does not carry over the previous approval.

Related Guides

For the practical paperwork side of a renewal application, employers can refer to the companion guide on EP renewal documents required and templates. For the statutory framework underpinning work pass applications generally, MOM’s website carries the current qualifying salary tables and COMPASS self-assessment tool, and is the authoritative source for figures that change periodically. Employers whose EP holders also require dependant’s passes or long-term visit passes for family members should check current requirements with ICA’s website, since immigration and work pass processes, while linked, are administered separately. Companies weighing Singapore as a base for regional expansion, and considering how workforce planning fits into a broader investment case, may also find it useful to review guidance published by EDB’s website on sector-specific manpower and investment priorities.

Section 7 of the Employment of Foreign Manpower Act 1990 establishes the framework under which the Controller of Work Passes considers an application for a work pass (which includes a renewal application), grants in-principle approval, and may impose conditions. Section 12 of the Employment of Foreign Manpower Act 1990 governs the extent to which a work pass, including an Employment Pass, remains valid, which is the statutory basis underlying the renewal process. Employers who keep these two provisions in mind, alongside the administrative COMPASS and Fair Consideration Framework requirements, are generally well placed to treat EP renewal as a routine, predictable exercise rather than a last-minute scramble.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.