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Singapore's EP rules have helped boost local wages and skilled jobs, MOM affirms

Singapore's EP rules have helped boost local wages and skilled jobs, MOM affirms

  • Real median income rose 4.1% in 2025 amid foreign workforce policies.
  • Resident unemployment stayed low at about 3%, with strong growth in local PMET jobs.
  • Measures such as COMPASS aim to ensure foreign hires complement local workers.

Singapore’s foreign workforce policies, including Employment Pass (EP) requirements, have supported local employment outcomes while maintaining economic competitiveness, the Government has affirmed.

In a written reply to a Parliamentary Question by MP Hazlina Abdul Halim, the Ministry of Manpower (MOM) outlined how measures such as EP qualifying salaries and related frameworks have contributed to wage growth and narrowing skills gaps.

Income growth outpaces many developed countries

MOM said Singapore’s foreign workforce policies have helped grow the economy and create good jobs for Singaporeans, leading to improvements in wages and living standards.

In 2025, real median income of full-time employed residents increased by 4.1%, which the ministry noted was higher than income growth in other developed countries.

Unemployment remains low and stable

Over the past decade, Singapore’s resident unemployment rate has stayed low at around 3%, placing the country among the lowest compared with OECD economies.

In the same period, the number of residents working in higher-skilled Professional, Managerial, Executive and Technician (PMET) roles grew alongside the number of foreign PMETs.

MOM reported that resident PMET employment rose by 357,000 over the last 10 years, while the number of EP and S Pass holders increased by 24,000.

Local job growth in key sectors

In major growth industries including Financial & Insurance Services, Professional Services, and Information & Communications Technology, resident employment gains were also significant.

Resident PMET employment in these sectors increased by 157,000 over the decade, compared with an increase of 8,000 EP and S Pass holders.

Policies aim to complement local workforce

MOM said it regularly updates foreign workforce policies, including EP and S Pass qualifying salaries and the Complementarity Assessment Framework (COMPASS), to ensure foreign professionals complement local workers.

Under COMPASS, the Shortage Occupation List grants bonus points to EP applicants filling roles where skills shortages exist. When determining whether an occupation should be included, MOM considers the industry’s efforts to build a local talent pipeline.

The list is reviewed annually to keep up with the trends, MOM said – in 2026, three Infocomm Technology occupations were removed after more local workers entered those roles.


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