EP renewal, salary uplift and dependency ratios — Complete 2026 guide

EP renewal, salary uplift and dependency ratios are the three levers that determine whether a Singapore Employment Pass renewal in 2026 succeeds. Renewals are run through the COMPASS framework with the September 2023 baseline, the S$5,600 monthly threshold (S$6,200 for financial services), and the dependency ratio ceiling that applies indirectly via S Pass and Work Permit headcount.

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 the 2026 EP renewal regime actually requires

Employment Pass renewals from 1 September 2024 onwards are assessed under the COMPASS (Complementarity Assessment) framework. Renewal applicants must satisfy:

  • The qualifying salary floor: S$5,600 per month minimum (S$6,200 for financial services), with age-banded uplift up to S$10,700 for candidates in their mid-40s.
  • The COMPASS minimum 40-point score, across the four foundational criteria (salary, qualifications, diversity, local employment) plus up to two bonus criteria (Shortage Occupation List and Strategic Economic Priorities).
  • The employer’s overall workforce profile — number of locals, number of foreigners, sector dependency ratio compliance.

Renewal applications open four months before pass expiry. MOM’s service standard is three weeks for a clean renewal, longer where COMPASS bonus points are claimed.

Salary uplift — the 2026 floor and the 2027 increase

The 2024–2026 EP qualifying-salary floor is:

  • S$5,600 per month for non-financial sectors (PMET candidates).
  • S$6,200 per month for financial services.
  • Age-band uplift: candidates over 30 progressively pay S$200–S$5,000 more per month.

MOM announced a further uplift effective 1 January 2027:

  • EP non-financial floor moves to S$5,800.
  • EP financial-services floor moves to S$6,400.

Renewals filed in 2026 are assessed at the 2024 floor, but employers should budget for the 2027 step-up at the next renewal cycle. For payroll readiness see IR8A and the Auto-Inclusion Scheme (AIS) — employer filing 2026 on IR8A and the Auto-Inclusion Scheme.

Dependency ratios — why EP renewals interact with WP and S Pass headcount

EP holders themselves are not subject to a dependency ratio, but the employer’s ability to renew EPs is influenced by overall workforce composition because:

  • The dependency ratio ceiling (DRC) caps S Pass and Work Permit holders as a percentage of the local workforce. In services it is 35% (S Pass) and varies by sector for WP.
  • When a company exceeds the DRC, MOM may rescind quota and force WP / S Pass attrition, which feeds into the COMPASS "diversity" and "local employment" scores.
  • Low local-employment percentages reduce the company’s COMPASS C3 (Diversity) and C4 (Support for Local Employment) sub-scores — even though these criteria are EP-facing, they are calculated from the entire pass-holder population.

Dependency ratios in 2026 sit at: 87.5% in Construction, 83.3% in Marine Shipyard, 60% in Manufacturing, 50% in Process and 35% in Services. See the on-site COMPASS guide (COMPASS framework — points, bonuses, shortage list) for how the framework converts headcount data into points.

Cost and timeline — a clean renewal in 2026

Budget and processing time for a typical EP renewal:

  • MOM application fee: S$105 per submission, plus S$225 issuance fee on approval.
  • Employment agency or HR consultancy fee: S$1,500–S$3,500 per renewal.
  • Salary uplift (if needed): depending on age-band and sector, the gap to the 2026 floor can be S$200–S$1,500 per month.
  • Medical insurance refresh: S$700–S$1,500 per annum.

End-to-end timeline: the renewal window opens four months before expiry; submission typically takes 3 weeks for clean COMPASS-40-plus cases, 6–8 weeks where MOM requests further evidence (such as Shortage Occupation List verification).

Step-by-step workflow

The standard 2026 renewal sequence:

  1. Five months before expiry: pull the candidate’s current pass details, run the COMPASS self-assessment.
  2. Four months before: confirm the renewal salary against the 2026 floor and age band; agree any uplift with the candidate.
  3. Three months before: collect supporting documents — pay slips, qualifications, organisation chart, headcount evidence.
  4. Submit via EP Online with the COMPASS calculation worksheet.
  5. Issue the renewed EP on approval; collect the biometric appointment letter at the Employment Pass Services Centre.
  6. Update payroll for the new salary band and IR8A reporting cycle — see IR8A and the Auto-Inclusion Scheme (AIS) — employer filing 2026.

Companies that have not yet incorporated their Singapore entity should sequence the Pte Ltd registration first — see Singapore Pte Ltd company registration for foreigners.

Common COMPASS failure modes in 2026 renewals

Six recurring 2026 issues:

  1. Salary below the age-banded floor. Companies budget to the headline S$5,600 figure but forget the 30+ and 40+ uplifts.
  2. Single-nationality teams. COMPASS C3 (Diversity) penalises concentrations above 33% from one foreign nationality.
  3. Low local-PMET share. COMPASS C4 expects local PMET headcount within reasonable range of sector medians.
  4. Shortage Occupation List misclassification. Claiming the SOL 20-point bonus without the right ISCO-08 code triggers MOM verification.
  5. Missed COMPASS update on diversity hires. A net-new local PMET hire between submissions can shift the score by 10 points.
  6. Late renewal submission. The four-month window is a hard ceiling; less than 30 days’ runway invites refusal even for clean applications.

Section 7 of the Employment of Foreign Manpower Act 1990 places renewal eligibility entirely within MOM’s discretion. There is no statutory right of renewal.

FAQs

When can I submit an EP renewal in 2026?

MOM’s EP Online opens the renewal window four months before pass expiry. Submitting earlier than that is not possible; submitting less than 30 days before expiry significantly raises the risk of refusal.

Does the 2027 salary floor apply to renewals filed in 2026?

No. Renewals filed in 2026 are assessed at the 2024 baseline (S$5,600 / S$6,200). The 2027 floor applies to renewals and new applications submitted on or after 1 January 2027.

How is the COMPASS score recalculated at renewal?

COMPASS is recalculated each time an application is submitted, using the company’s current workforce profile and the candidate’s current salary, qualifications and role. A salary uplift between submissions can re-score the candidate by up to 20 points.

Can a candidate appeal an EP renewal refusal?

Yes. MOM accepts appeals within three months of the refusal letter, supported by new evidence (salary uplift, additional qualifications, change of role). Roughly one in four appeals succeed in 2026.

Does the dependency ratio apply to EP holders directly?

No. Dependency ratios cap S Pass and Work Permit headcount as a percentage of the local workforce. EP holders are not counted in the DRC numerator, but the company’s overall workforce profile feeds COMPASS sub-scores.

Authoritative sources

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.

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