Navigating the Latest Updates to Singapore’s COMPASS Framework

The world of work, especially in a dynamic hub like Singapore, never stands still. For foreign professionals and the companies that hire them, staying on top of immigration policies isn't just a good idea, it's a necessity. This is especially true with the introduction and ongoing evolution of the Complementarity Assessment Framework, better known as COMPASS.

Launched by the Ministry of Manpower, this points-based system has fundamentally changed how we assess Employment Pass (EP) applications, moving beyond a simple salary benchmark to a holistic evaluation of both the individual and the firm. Understanding these recent updates is crucial for anyone looking to build or grow their professional life in the Lion City.

Why COMPASS Matters, a New Approach to a Familiar Process

Before COMPASS came into full effect, the EP application process primarily hinged on the candidate's salary and qualifications. While these factors are still very important, COMPASS introduced a more nuanced, transparent, and comprehensive framework. It's designed to ensure that Singapore continues to attract high-quality foreign talent while at the same time building a strong local workforce. Think of it less as a hurdle and more as a clear guide; it tells us exactly what the government values in foreign professionals and their employers.

The framework requires an applicant to score a minimum of 40 points to pass. These points are tallied across four foundational criteria, C1 through C4, and two bonus criteria, C5 and C6. You can earn up to 20 points in each foundational category, meaning a candidate can pass even if they score zero in one category, as long as they make up the points elsewhere. This flexibility is a key feature of the system.

The Four Foundational Criteria, A Deeper Dive

The foundational criteria are where the core of your score comes from. They assess the individual's qualifications and salary, as well as the company's commitment to diversity and local employment.

First, let's talk about C1, Salary. This is perhaps the most straightforward criterion. Points are awarded based on how a candidate's fixed monthly salary compares to the salaries of local professionals, managers, executives, and technicians (PMETs) in the same sector and age group. To get 10 points, your salary needs to be at or above the 65th percentile. For the full 20 points, you must be at or above the 90th percentile.

This is a significant update, as it ties a foreign professional's salary to the local market rate, ensuring fair compensation and preventing wage erosion. The benchmarks for these percentiles are updated annually, so what was sufficient last year might not be this year, a critical point to remember for both new applications and renewals.

Next is C2, Qualifications. This criterion assesses a candidate's academic background. A degree-equivalent qualification from a reputable institution gets you 10 points, while a degree from a top-tier institution will give you the maximum 20 points. What’s considered a "top-tier institution" is a list curated and updated by the MOM. This list includes the top 100 global universities, Singapore's autonomous universities, and other institutions highly recognised in specific fields. For example, the latest updates have added several new institutions to the list, which is a great sign for those with diverse educational backgrounds.

It’s also worth noting that if you have a qualification not on the list, it can still be assessed as degree-equivalent, earning you 10 points. However, if you don't have a degree-equivalent qualification, you'll score 0 points in this category and must make up for it elsewhere.

The third criterion, C3, Diversity, shifts the focus to the hiring firm. This criterion measures the share of the candidate’s nationality among the company’s PMETs. If your nationality makes up less than 5% of the firm's PMETs, you get 20 points. If it's between 5% and 25%, you get 10 points. If it’s over 25%, you get 0 points.

This is an important mechanism designed to encourage companies to maintain a diverse workforce and avoid over-reliance on any single nationality. Small companies with fewer than 25 PMETs automatically get 10 points for this criterion, a thoughtful policy that ensures smaller businesses aren't unfairly penalised for their limited size.

Finally, we have C4, Support for Local Employment. This criterion is a firm-level attribute that assesses the company's commitment to hiring locals. It's measured by the firm's share of local PMETs compared to other firms in the same sector. If your company's local PMET share is at or above the 50th percentile for its sector, you score 20 points. If it’s between the 20th and 50th percentile, you get 10 points. Below the 20th percentile, you get 0 points. The system is also designed to be fair; companies with a local PMET share of at least 70% are guaranteed a minimum of 10 points, regardless of where they fall in the percentile ranking. This ensures that firms that have a strong local core are recognised and rewarded.

The Bonus Criteria, For the Extra Mile

Beyond the foundational criteria, there are two bonus criteria that allow a candidate to earn extra points and, in many cases, make the difference between a successful application and a rejection.

The first bonus, C5, Skills Bonus, is awarded to candidates with highly specialised skills that are currently in shortage in Singapore. The occupations that qualify for this are listed on the Shortage Occupation List (SOL), which is developed by the MOM and the Ministry of Trade and Industry.

A candidate whose job is on this list can earn 20 bonus points. However, there's a nuance; the bonus is reduced to 10 points if the candidate's nationality makes up one-third or more of the company's PMETs. This ensures that even when companies are hiring for roles on the SOL, they are still incentivized to maintain a balanced, diverse team.

The second bonus, C6, Strategic Economic Priorities Bonus, is for firms that are contributing significantly to Singapore’s strategic economic goals. This includes companies that are involved in ambitious investment, innovation, internationalisation, or workforce transformation activities. To qualify, a firm must be supported by a government agency or the National Trades Union Congress (NTUC).

If a firm is part of these initiatives, they get a bonus of 10 points for each EP application they submit. This bonus is a powerful tool for companies that are leading the charge in developing Singapore's economy, as it gives them an edge in attracting and retaining top talent.

The Human Factor, Making Sense of the Points

While the COMPASS framework may seem like a complex scoring system, its ultimate goal is to introduce clarity and provide a predictable pathway for both companies and foreign talent. For the individual, it means you can now see exactly where you stand and what areas you need to improve to strengthen your application. For instance, if you fall short on the qualifications criterion, you know you'll need a stronger score in salary or a boost from one of the bonus criteria. For companies, it provides a clear roadmap for human resource planning, encouraging them to hire for in-demand skills, maintain workforce diversity, and support local employment.

This framework is not just a regulatory tool, it's a reflection of Singapore's broader economic and social strategy. It's about building a workforce that is not only skilled but also complementary, ensuring that foreign talent adds to, rather than substitutes, the local workforce. By navigating these updates and understanding the spirit behind them, foreign professionals and their employers can confidently plan for a long and successful future in Singapore.

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