EP renewal, salary uplift and dependency ratios — Step-by-step walkthrough
EP renewal, salary uplift and dependency ratios are the three issues employers must manage when extending an Employment Pass in Singapore: meeting the higher renewal salary, re-passing COMPASS, and keeping work-pass headcount within the Dependency Ratio Ceiling for S Pass and Work Permit holders. This walkthrough covers all three for 2026.
What EP renewal, salary uplift and dependency ratios mean
An Employment Pass is issued for up to two years on first grant and up to three years on renewal. At renewal, the Ministry of Manpower re-applies the qualifying salary and COMPASS, both of which rise with the candidate’s age, so a salary that qualified at first issue may need an uplift to clear renewal. Separately, employers must watch the Dependency Ratio Ceiling, which caps the share of S Pass and Work Permit holders in the workforce.
Although the Dependency Ratio Ceiling does not apply to EP holders directly, EP renewal sits within wider workforce planning where these quotas shape hiring, so the three topics are managed together.
Who must manage renewal and uplift
Every employer of an EP holder must manage renewal. The salary uplift bites hardest for older candidates, because the qualifying salary increases with age to keep pace with local PMET pay. Employers in the financial services sector face a higher salary floor than other sectors. COMPASS is re-tested at renewal, so a candidate or firm whose profile has weakened may need to act before the renewal window.
The Dependency Ratio Ceiling matters to employers hiring S Pass and Work Permit holders alongside EP staff, particularly in services, manufacturing and construction, where the ceilings and quotas differ.
For a closely related perspective, see our guide on Singapore Transfer Pricing Documentation (TPD) 2026: When Companies Must Prepare and What It Must Cover.
Salary uplift and dependency ratio numbers
In 2026 the EP qualifying salary is at least S$5,600 a month for most sectors and at least S$6,200 for financial services, rising progressively with age toward roughly S$10,700 for candidates in their mid-forties. At renewal MOM applies the prevailing, age-adjusted figure, so plan salary uplifts ahead of the expiry date.
For S Pass, the Dependency Ratio Ceiling in the services sector is 35 percent of the total workforce, with lower ceilings in some sectors, and S Pass holders also attract a monthly levy. The Work Permit ceilings and levies vary by sector. EP holders are not counted in these ceilings, but the firm’s overall foreign-worker mix affects planning.
Official guidance is published by the relevant Singapore authorities; see www.mom.gov.sg and www.ica.gov.sg for current requirements.
You may also find it useful to read Nominee Director in Singapore: Legal Requirements, Risks and How It Works (2026).
Cost and timeline
Renewal carries the standard MOM fees of S$105 per application and S$225 on issuance, plus the cost of any salary uplift required to meet the age-adjusted threshold. Professional assistance for a renewal typically costs S$300 to S$1,000. The S Pass levy adds a recurring monthly cost where the firm employs S Pass holders.
Begin the renewal at least three to six months before expiry. MOM allows renewal applications from about six months before the pass expires, and starting early leaves room to adjust salary or address a COMPASS shortfall before the pass lapses.
Step-by-step renewal process
First, diarise the EP expiry and open the renewal window about six months out. Second, check the prevailing age-adjusted qualifying salary and arrange any uplift in good time. Third, run a fresh COMPASS self-assessment to confirm the candidate still scores at least 40 points, addressing firm-level gaps if needed.
Fourth, submit the renewal through MOM with updated salary and qualification information. Fifth, monitor the firm’s S Pass and Work Permit headcount against the Dependency Ratio Ceiling so new hiring does not breach quotas. Sixth, on approval, complete issuance and update payroll to reflect the new salary.
Common mistakes and gotchas
The most common mistake is leaving renewal to the last minute and discovering the age-adjusted salary now exceeds the current pay, with no time to adjust. Another is forgetting that COMPASS is re-tested at renewal. A third is breaching the Dependency Ratio Ceiling through unrelated S Pass or Work Permit hiring, which can constrain the whole workforce.
A 2026 gotcha: qualifying salaries and dependency ceilings are reviewed periodically, so always confirm the current figures rather than relying on last year’s numbers.
Planning the salary uplift early
Because the qualifying salary rises with age, the salary that secured a first EP may be below the renewal threshold two or three years later. The practical defence is to model the age-adjusted figure well before expiry and budget any uplift into the next pay review. Leaving it to the renewal window risks discovering a shortfall with no time to adjust, which can cost the firm a valued employee.
Financial-services roles face a higher floor than other sectors, so sector matters as much as age. Build the renewal salary into workforce cost planning rather than treating it as a surprise at expiry.
Managing dependency ratios and levies
The Dependency Ratio Ceiling caps the proportion of S Pass and Work Permit holders in the workforce, with the services-sector S Pass ceiling at 35 percent and lower ceilings in some sectors. S Pass and Work Permit holders attract monthly levies that vary by sector and tier. Although EP holders are not counted in these ceilings, unrelated S Pass or Work Permit hiring can push the firm against a quota and constrain its overall foreign workforce.
Plan headcount holistically: track the ratio as the team grows, and time new S Pass or Work Permit hires so they do not breach the ceiling. A breach can block further work-pass applications until the ratio is corrected.
Re-passing COMPASS at renewal
COMPASS is re-tested at renewal, so a candidate or firm whose profile has weakened may score below 40 even though the original application passed. Re-run the self-assessment several months before expiry. If the score has slipped, address it through verified qualifications, a salary that clears a higher band, firm-level diversity improvements, or a qualifying Shortage Occupation List role.
Treating renewal as a fresh assessment, rather than a formality, prevents an unwelcome surprise. The earlier the self-assessment, the more room there is to act on any shortfall before the pass lapses.
For more detail on a connected topic, see EP renewal, salary uplift and dependency ratios — Complete 2026 guide.
FAQs
How long before expiry can I renew an EP?
MOM generally allows renewal applications from about six months before the pass expires; starting early gives time to adjust salary or COMPASS.
Why does the qualifying salary go up at renewal?
Because the qualifying salary rises with the candidate’s age to keep pace with local PMET pay, so older candidates need a higher salary to renew.
Does the Dependency Ratio Ceiling apply to EP holders?
No. The ceiling caps S Pass and Work Permit holders. EP holders are not counted, but the firm’s overall foreign-worker mix still affects hiring plans.
Is COMPASS re-tested when I renew an EP?
Yes. COMPASS applies at renewal as well as first application, so a weakened candidate or firm profile can fall below the 40-point threshold even after an earlier pass.
What is the services-sector S Pass dependency ceiling?
In the services sector the Dependency Ratio Ceiling for S Pass holders is 35 percent of the total workforce, with lower ceilings in some other sectors.
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.