Tourlife Consultants Private Limited has been supporting Japanese entrepreneurs since 2009 with recruitment, executive search, payroll, HR support, work pass applications, and relocation services. With our bilingual expertise (Japanese, English, Chinese) and SME 500 Awards 2023 & 2024 recognition, we ensure that foreign businesses entering Singapore stay fully compliant with MOM regulations while building strong teams.

Table of Contents

• Navigating the 2026 Work Pass Landscape
• 1. Qualifying Salary Thresholds (2026/2027 Update)
• 2. Eligibility & The COMPASS Framework
• 3. Quota & Dependency Ratio Ceiling (DRC)
• 4. Foreign Worker Levy (FWL) Costs
• 5. Family & Residency Rights
• How Tourlife Consultants Can Help
• Frequently Asked Questions

Navigating the 2026 Work Pass Landscape

In February 2026, Singapore’s Ministry of Manpower (MOM) announced significant updates to work pass criteria during the Budget statement. For Japanese companies and foreign entrepreneurs, choosing between an Employment Pass (EP), S Pass, or Work Permit (WP) is no longer just about the job title—it’s about matching salary benchmarks, points-based scoring, and sector-specific quotas.

Qualifying Salary Thresholds (2026/2027 Update)

The most critical change for 2026 is the further raising of salary floors to align with rising local wages.

*Note: For EP and S Pass, older and more experienced candidates require significantly higher salaries (e.g., up to SGD 11,500 for EP at age 45+).

Eligibility & The COMPASS Framework

As of 2026, the COMPASS (Complementarity Assessment Framework) points-based system is in full force for both EPs and S Passes.

• EP: Candidates must score at least 40 points across four foundational criteria (Salary, Qualifications, Diversity, Local Support) and two bonus criteria.
• S Pass: Now also subjected to COMPASS (effective since late 2025). Candidates must meet salary benchmarks by age and sector.
• Work Permit: Not based on points. Eligibility is strictly determined by the worker’s source country and the employer’s specific industry sector.

Quota & Dependency Ratio Ceiling (DRC)

The quota system limits how many foreign workers you can hire based on your local workforce size.

• EP: No Quota. You can hire as many EP holders as your business truly needs, provided they meet the individual criteria.
• S Pass: Capped at 10% (Services) or 15% (other sectors) of your total workforce.
• Work Permit: Highest quotas available, but vary wildly by sector (e.g., up to 83.3% in Construction, but much lower in Services).

Foreign Worker Levy (FWL) Costs

The monthly “tax” paid by employers to MOM varies by pass type and skill level.

• EP: Zero Levy. There is no monthly fee to the government.
• S Pass: A flat monthly levy of SGD 650 per worker.
• Work Permit: Tiered levies. For 2026, basic-skilled (R2) levies in the marine and process sectors were increased to encourage productivity. Services sector levies range from SGD 300 to SGD 800 depending on your quota usage.

Family & Residency Rights

Rights to bring family or apply for Permanent Residency (PR) depend on the pass tier.

• EP & S Pass: Holders earning at least SGD 6,000 per month can apply for Dependant’s Passes for their spouse and children. They are also on the track to apply for PR.
• Work Permit: No family rights. WP holders cannot bring dependants and generally are not eligible to apply for PR. They are also subject to certain social restrictions (e.g., marriage to Singaporeans requires MOM approval).

How Tourlife Consultants Can Help

Strategic workforce planning is essential with the 2026/2027 changes looming. We help you:

• COMPASS Pre-Assessment: We evaluate your candidate’s 40-point score before you apply.
• Quota Optimization: Calculating your “magic number” of local vs. foreign staff.
• Sector-Specific WP Advice: Navigating source country and levy tiering.
• Strategic Hiring: Moving mid-level talent from S Pass to EP where feasible to save on levies.

Frequently Asked Questions

Q1. When do the new 2027 salary thresholds take effect for renewals?
While new applications are affected from Jan 2027, renewals for existing passes will only be affected from January 2028, giving you time to adjust.

Q2. Can a Work Permit holder ever “upgrade” to an S Pass?
Yes, if the worker gains higher qualifications (e.g., a recognized diploma) and is offered a salary of at least SGD 3,300 (or the current 2026 benchmark).

Q3. Do small companies (under 25 PMETs) still get bonus points on COMPASS?
Yes, small firms are automatically awarded 10 points for the Diversity and Local Support criteria, acknowledging that small teams have less room to “balance” ratios.

Q4. Is medical insurance mandatory for all three passes?
It is mandatory for S Pass and Work Permit holders (minimum coverage SGD 15,000). While not mandatory for EP, it is highly recommended as a benefit.

Q5. How does the “Local Qualifying Salary” (LQS) affect my quota?
As of 2026, you must pay local staff at least SGD 1,800 for them to count as one “local unit” in your quota calculation.

Uncertain which pass your next hire needs? Let the experts handle the math. Contact Tourlife Consultants today at enquiry@tourlife.sg or WhatsApp us directly at +65 9380 7956.