Hiring Foreign Talent in 2026: EP & COMPASS Essentials for Singapore Employers

This article is written in English for readers in Singapore. Chinese and Japanese translations are available on our website. 

Why Hiring Foreign Talent Still Matters in 2026

Singapore’s workforce remains highly international, but hiring foreign professionals in 2026 requires far more planning and justification than in previous years.

With tighter Employment Pass (EP) criteria, the continued enforcement of the COMPASS framework, and stronger expectations around fair hiring and workforce localisation, companies can no longer treat foreign hiring as a default option.

Instead, employers must demonstrate:

• clear business necessity
• skills complementarity
• alignment with national workforce priorities
• structured hiring processes

For HR leaders and business owners, understanding EP and COMPASS essentials is now a core compliance requirement, not just an administrative task.

Employment Pass (EP) in 2026: What Has Changed and What Hasn’t

The Employment Pass remains the primary work pass for foreign professionals, managers, and executives in Singapore.

Key EP criteria employers must still meet:

• Minimum qualifying salary (varies by age and sector)
• Relevant qualifications and experience
• Genuine job role with business justification
• Fair consideration of local candidates

While the EP framework itself is familiar, scrutiny has increased. MOM is paying closer attention to:

• inflated job titles
• generic role descriptions
• weak skills differentiation between local and foreign candidates

Employers must ensure that EP roles are clearly senior, specialised, or critical to business growth.

Understanding the COMPASS Framework (Still Mandatory in 2026)

Introduced to bring transparency and balance to foreign hiring, COMPASS continues to be the decisive gatekeeper for EP approvals.

To qualify, EP applications must score at least 40 points across four foundational criteria, with additional bonus points available.

The four COMPASS pillars:

1. Salary
 Compared against local PMET benchmarks in the same sector.

2. Qualifications
 Assessed based on institution recognition and relevance.

3. Diversity
 Evaluates nationality mix within the organisation.

4. Support for Local Employment
 Considers how actively the firm hires and develops Singaporeans.

Bonus considerations:

• Roles on the Shortage Occupation List
• Strategic economic contributions

In 2026, COMPASS is no longer new, but non-compliance remains a top reason for EP rejection.

What MOM Is Looking for in 2026

Beyond scoring frameworks, MOM is increasingly focused on hiring intent and process quality.

Employers are expected to demonstrate:

• fair job advertising practices
• structured interview processes
• skills-based evaluation
• alignment with business expansion or transformation goals

Companies that rely on vague justifications such as “we couldn’t find locals” face higher rejection risks.

Instead, employers should document:

• why the role is needed
• why the foreign candidate is uniquely qualified
• how the hire complements local talent

Common EP & COMPASS Pitfalls Employers Should Avoid

Even experienced HR teams can stumble. Common mistakes include:

• Submitting generic job descriptions
• Offering salaries just at the minimum threshold
• Poorly articulated reporting lines
• Over-reliance on one nationality group
• Weak internal documentation of hiring decisions

In 2026, these oversights often trigger requests for clarification or outright rejection.

How Hiring Foreign Talent Supports Business Growth (When Done Right)

Despite tighter controls, foreign hiring remains critical in sectors such as:

• advanced manufacturing
• Semiconductors
• technology and AI
• finance and risk
• regional business development

Foreign professionals often bring:

• niche technical expertise
• regional market knowledge
• multilingual and cross-cultural capabilities
• leadership experience for scaling teams

The key is ensuring foreign hiring is positioned as complementary, not substitutive.

Best Practices for Employers Hiring Foreign Talent in 2026

To improve approval outcomes and reduce compliance risk, employers should:

• Align job scope with business strategy
• Benchmark salaries accurately
• Plan workforce diversity proactively
• Strengthen internal hiring documentation
• Partner with experienced recruitment advisers

Working with a recruitment agency that understands both talent markets and regulatory frameworks can significantly reduce friction and delays.

 

Frequently Asked Questions (FAQ)

1. Is it harder to hire foreign talent in Singapore in 2026?

Yes. The process is more structured and evidence-driven, but still achievable with proper planning and compliance.

2. Can SMEs still hire foreign professionals?

Yes. SMEs can qualify under COMPASS if they demonstrate fair hiring practices, strong local employment support, and genuine business needs.

3. What happens if my EP application fails COMPASS?

The application will be rejected. Employers may reapply only after addressing the scoring gaps.

4. Are EP salary requirements the same across all industries?

No. Salary benchmarks differ by sector, age, and experience level.

5. Should employers work with recruiters for EP hires?

Yes. Recruiters help align role design, talent fit, and compliance requirements, reducing rejection risks.

 

Looking to Hire Foreign Talent Responsibly in 2026?

Reeracoen works closely with companies in Singapore to:

• identify compliant, high-impact foreign talent
• design roles aligned with EP and COMPASS requirements
• support fair and sustainable hiring strategies

👉 Submit a hiring request or speak with our consultants

Considering Your Own Career Options?

If you are a foreign professional exploring opportunities in Singapore, our advisers can guide you on:

• role suitability
• EP readiness
• market expectations

👉 Register your profile with Reeracoen Singapore

 

✅ Final Author Credit
By Valerie Ong (Regional Marketing Manager)
Published by Reeracoen Singapore — a leading recruitment agency in APAC.

 

🔗 Related Articles 

Taking a Closer Look at the COMPASS Framework
Guidelines for Fair Employment Practices Will Become Law in Singapore
Singapore Hiring Trends 2026: What Employers Should Prepare for in Q1

📚 References

• Ministry of Manpower (MOM), Employment Pass and COMPASS Framework
• Singapore Labour Market Reports
• Workforce Singapore (WSG) hiring and localisation guidance
• OECD international labour mobility insights
• World Economic Forum workforce transformation studies

 

 

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