EP renewal, salary uplift and dependency ratios — Timeline and processing benchmarks
EP renewal, salary uplift and dependency ratios are the three levers employers manage to keep foreign talent compliant with Ministry of Manpower rules. An Employment Pass renewal should be started about 6 months before expiry, and the outcome usually issues within 3 weeks of a complete submission.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What EP renewal, salary uplift and dependency ratios mean
An Employment Pass (EP) is the work pass for foreign professionals, managers and executives. Renewal is the process of extending it before expiry; salary uplift refers to the periodic rises in the qualifying salary that renewals must meet; and dependency ratios (or ratio ceilings) cap the proportion of foreign S Pass and Work Permit holders a firm may employ.
The EP itself is not subject to a dependency ratio ceiling or a levy, but S Pass and Work Permit headcounts are, so workforce planning must consider all three passes together. Our related read on tech-sector hiring, Singapore EP and S Pass Salary Floors Rising in January 2027, sets out how firms sequence these passes.
Who this affects
Employers renewing EP holders, foreign professionals approaching pass expiry, and HR teams balancing local and foreign headcount all need to track these rules. Companies in sectors with tighter quotas, such as services, feel dependency ratios most acutely.
Requirements and the legal framework
Work passes are issued and regulated under the Employment of Foreign Manpower Act 1990, which requires that no person employs a foreign employee without a valid work pass and empowers the Controller of Work Passes to set conditions. From 1 January 2025 the EP qualifying salary rose, and it is scheduled to rise again, so renewals must meet the prevailing floor.
EP applications and renewals are assessed under the COMPASS points framework for most candidates, which scores salary, qualifications, diversity and local employment support. Section 5 of the Employment of Foreign Manpower Act 1990 underpins the requirement to hold a valid pass.
Costs and timeline benchmarks (2026)
There is no levy on EP holders. The EP application fee is S$105 and the issuance fee is S$225 per pass. S Pass holders attract a monthly levy that varies by tier, and Work Permit holders attract levies tied to the dependency ratio. Renewal outcomes typically issue within 3 weeks of a complete online submission, though COMPASS-related documentation can extend this.
Start renewals about 6 months ahead: MOM opens the renewal window then, and early action leaves time to adjust salary to meet any uplift. Salary floors are rising; the detail is in Singapore bank account opening — DBS, OCBC, UOB, Wise, Aspire.
Step-by-step process
First, review each EP holder’s salary against the prevailing and upcoming qualifying salary. Second, confirm the firm’s COMPASS score and address any shortfall. Third, submit the renewal through the MOM portal within the 6-month window. Fourth, pay the issuance fee and arrange the new pass once approved. Firms should also model dependency-ratio headroom before adding S Pass or Work Permit staff. For the broader tax and cost picture of hiring, see Section 14Q Income Tax Act Singapore (2026).
Common mistakes and gotchas
The common errors are leaving renewal too late to adjust salary to a rising floor, ignoring the COMPASS score until rejection, and hiring S Pass or Work Permit staff without checking dependency-ratio headroom. Employers also sometimes forget that salary must be paid as declared, not merely stated on the application.
Managing the salary uplift across a team
Because the EP qualifying salary rises periodically and increases with a candidate’s age, employers should model each pass holder’s salary against the prevailing and announced future floors well ahead of renewal. A candidate who cleared the bar at first application may fall short at renewal if their salary has not kept pace.
The financial-services sector applies a higher qualifying-salary threshold than other sectors, so employers there must budget accordingly. Building the uplift into annual compensation reviews avoids last-minute pay rises purely to preserve a pass.
Where a renewal is genuinely borderline, employers should engage early rather than gambling on the outcome, since a rejected renewal disrupts both the employee and the business.
Understanding COMPASS in practice
Most EP applications and renewals are assessed under the COMPASS points system, which awards points across salary, qualifications, the diversity of the firm’s workforce, and support for local employment, with bonus points for skills in shortage or strategic partnerships.
A firm that scores poorly on the diversity or local-support axes can lift its overall COMPASS outcome by improving those areas, not only by raising salaries. Reviewing the firm-level attributes ahead of a renewal window is therefore as important as checking individual salaries.
Employers should keep documentation supporting each attribute, because MOM may seek evidence. The wider hiring-cost and tax picture is covered in Section 14Q Income Tax Act Singapore (2026).
Dependency ratios and workforce planning
While EP holders sit outside the dependency-ratio ceiling, S Pass and Work Permit holders do not, and their levies rise as a firm’s foreign-worker share increases. A firm planning to grow its foreign headcount should map its ratio headroom before committing to hires.
Practical planning treats the three passes as a portfolio: EP for professionals, S Pass for mid-skilled roles within quota, and Work Permit for semi-skilled roles within sector limits. Over-reliance on any one pass creates fragility if rules tighten.
The salary-floor detail that drives much of this planning is set out in Singapore bank account opening — DBS, OCBC, UOB, Wise, Aspire, and the sequencing of passes for a growing team is illustrated in Singapore EP and S Pass Salary Floors Rising in January 2027.
Official references
The primary authorities for this topic are the relevant Singapore regulators and legislation:
FAQs
When should I renew an Employment Pass?
Start about 6 months before expiry, which is when MOM opens the renewal window. This leaves time to meet any salary uplift and address COMPASS shortfalls.
Is there a levy or quota on EP holders?
No. Employment Pass holders are not subject to a levy or dependency-ratio ceiling. Levies and quotas apply to S Pass and Work Permit holders.
How long does EP renewal take?
Typically within 3 weeks of a complete online submission, though additional COMPASS documentation can extend the timeline.
What is a dependency ratio ceiling?
It is the maximum proportion of a firm's workforce that can be S Pass and Work Permit holders, varying by sector. It does not apply to EP holders.
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.