Hiring foreign professionals — total cost model — Costs and fees breakdown

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

This guide to hiring foreign professionals sets out the practical detail Singapore businesses need. The total cost of hiring a foreign professional in Singapore extends well beyond salary. For an Employment Pass holder, employers should model the qualifying salary, MOM application and issuance fees, dependant costs, and the compliance overhead of the COMPASS points framework introduced from September 2023.

Understanding Hiring foreign professionals

The sections below break down hiring foreign professionals step by step, covering what it is, who it applies to, the numbers that matter, the process, and the mistakes practitioners see most often.

What drives the total cost

Hiring a foreign professional carries direct and indirect costs: the qualifying salary the pass requires, government application and issuance fees, medical insurance and, for lower-skilled roles, foreign-worker levies. The Employment Pass, aimed at professionals and managers, does not attract a levy, but it does require the candidate to meet a rising qualifying salary and to pass the COMPASS points-based assessment.

For a related perspective, see Singapore Corporate Tax 2026: A Complete Guide to Rates, Exemptions and Filing.

Employment Pass qualifying salary and COMPASS

From September 2023 the Employment Pass qualifying salary rose, with a higher bar for the financial services sector and salaries that increase progressively with age. COMPASS assesses candidates across salary, qualifications, diversity and local employment support, awarding points that determine eligibility. Employers should model both the salary floor and the COMPASS profile before committing to a hire.

See also our guide on Hiring Foreign Tech Talent in Singapore 2026: A Strategic Pass Playbook.

S Pass, work permits and levies

Mid-skilled roles on the S Pass and lower-skilled roles on work permits attract monthly foreign-worker levies and are subject to quota (dependency ratio ceilings) that vary by sector. These levies are a recurring cost that must be built into the model, unlike the levy-free Employment Pass.

Related reading: Subsidiary of foreign parent — director and capital pitfalls — Costs and fees breakdown.

Cost model and timelines

See the numerical block below. In addition to the salary, budget for application and issuance fees, medical examination, insurance and any dependant passes. Processing is typically a few weeks for straightforward Employment Pass applications submitted online.

Step-by-step hiring process

The route runs: (1) confirm the role and required pass type; (2) check the qualifying salary and, for the EP, the COMPASS profile; (3) satisfy the fair-consideration advertising requirement where applicable; (4) submit the application to MOM; (5) on approval, complete issuance formalities, medical examination and registration; and (6) apply for any dependant passes.

Common mistakes and gotchas

Employers often budget for salary alone and overlook levies, insurance and dependant costs. Others miss the fair-consideration advertising step, misjudge the COMPASS score, or fail to plan for salary progression as the qualifying threshold rises with the employee’s age.

Building the full cost model

A realistic model captures more than salary. Include the government application and issuance fees, the mandatory medical examination and insurance, and, for S Pass and work-permit hires, the monthly foreign-worker levy over the full period of employment. Add onboarding costs such as relocation, and, for higher earners, the cost of Dependant’s Passes for family members. For Employment Pass hires, factor in salary progression, because the qualifying salary rises with the employee’s age and the financial-services sector carries a higher floor than general sectors.

Fair consideration and advertising

Employers hiring Employment Pass candidates generally must advertise the role on the national jobs portal and consider local candidates fairly before applying, subject to exemptions. This fair-consideration requirement is both a compliance step and a timeline factor, as the advertising period must run before the application is submitted. Documented, genuine consideration of local applicants also protects the employer if the application is later scrutinised.

Retention, renewal and total lifetime cost

The first-year cost is only part of the picture. Passes must be renewed, levies continue for the duration of S Pass and work-permit employment, and salary must keep pace with rising qualifying thresholds. Employers should model the total lifetime cost of a hire, including renewals and the risk that a pass is not renewed if criteria tighten, rather than budgeting for the first application alone.

How we can help

Little Big Employment Agency helps employers select the right pass, model the full cost, run the fair-consideration process and manage applications and renewals, so the hiring budget reflects the true cost of employing foreign talent in Singapore.

Cost drivers at a glance

  • EP qualifying salary: higher for the financial sector and rising with age (confirm the current MOM figure).
  • Employment Pass levy: none.
  • S Pass / work permit: monthly levy plus quota apply.
  • Application + issuance fees: per MOM’s published schedule.
  • EP processing: typically within a few weeks online.

Official sources

FAQs

Does the Employment Pass attract a levy?
No. The Employment Pass is levy-free, unlike the S Pass and work permits, which attract monthly levies.

What is COMPASS?
The Complementarity Assessment Framework, a points-based system MOM uses to assess Employment Pass eligibility across salary, qualifications, diversity and local support.

Can the employee bring family?
Higher-earning pass holders can apply for Dependant’s Passes for eligible family members; each carries its own cost.

How long does an EP application take?
Straightforward online applications are often processed within a few weeks, though timelines vary.

Related guides

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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