Latest Strategies for Singapore EP Renewal When Salary Falls Short

When EP renewal season arrives, many foreign professionals suddenly discover their salaries no longer meet the latest threshold requirements set by Singapore's Ministry of Manpower (MOM). This predicament is particularly common in finance, technology, and other industries, especially with the 2024 EP minimum monthly salary standard adjusted to S$5,600 (S$6,200 for finance). Facing the dilemma of insufficient salary, should you give up your Singapore job opportunity or seek compliant solutions? This article provides seven proven strategies to help you legally and compliantly extend your work eligibility.

I. Review of 2024 EP Renewal Salary Standards

Latest Threshold Requirements:

Salary Calculation Rules:

• Included: Basic salary + fixed allowances
• Not Included: Performance bonuses, stock options, non-fixed subsidies
• Special Provision: Monthly salary of S$10,500+ qualifies for 5-year long-term EP

Case: Mr. Lin (IT Manager) with original EP monthly salary of S$5,300 faced difficulties during 2024 renewal due to S$300 shortfall

II. Seven Compliant Solutions

Solution 1: Salary Structure Adjustment (Most Direct)

• Implementation Methods:
• Convert variable bonuses to fixed salary
• Add written guaranteed housing allowance
• Include fixed allowances for transport, communication, etc.
• Key Implementation Points:
• Employment contract terms need revision
• Adjusted salary must maintain at least 6 months of records
• Success Rate: Approximately 85% (2023 MOM data)

Solution 2: Position Redesign

• Feasible Adjustments:
• Add management responsibilities (e.g., expand team size)
• Add professional technical requirements
• Adjust job title to match higher salary grade
• Documentation Required:
• New job description
• Organizational chart comparison
• Note: Must genuinely reflect changes in work content

Solution 3: Apply for Salary Exemption

• Eligibility Conditions:
• Possess special skills or rare qualifications
• Company in startup phase (established <3 years)
• Involved in government priority projects
• Application Process:
• Submit special request via EP Online
• Attach expert recommendation letters/client testimonials
• Approval time: Additional 2-3 weeks

Solution 4: Convert Pass Type

Note: S Pass requires meeting quota requirements; company needs at least 1 local employee per S Pass holder

Solution 5: Internal Company Transfer

• Multinational Enterprise Advantages:
• Transfer to higher-salary position within same group
• Maintain continuous work record
• Required Documents:
• Group organizational structure proof
• New position appointment letter
• Salary adjustment approval

Solution 6: Supplement COMPASS Score

In the points system launched in September 2023, salary shortfalls can be compensated through other aspects:

• Point Addition Methods:
• Obtain Singapore-recognized professional certification (+10 points)
• Work for companies in shortage industries (+20 points)
• Participate in government training programs (+10 points)
• Calculation Example:
  S$300 salary shortfall (-5 points) can be offset by top university degree (+20 points)

Solution 7: Transitional Arrangements

• Short-term Strategy:

1. First renew 1-year short-term EP
2. Simultaneously apply for salary increase approval
3. Submit salary compliance proof after 6 months

• Applicable Situations:
• Company in fundraising stage
• Upcoming promotion with salary increase

III. Warning on High-Risk "Gray Methods"

1. False Salary Declaration:

• MOM will verify:
  • Bank statements
  • CPF contribution records
  • Company financial reports
• Penalty: Work ban for 3-10 years

1. Shell Company Position:

• Risk: Suspected visa fraud
• Consequences: Criminal charges + deportation

1. Dual Contracts:

• Audit method: Random workplace inspection
• Typical case: A consulting firm fined S$500,000 in 2023

IV. Step-by-Step Action Plan

Phase 1: Current Situation Assessment (1-2 weeks)

• Verify latest salary standard gap
• Analyze COMPASS self-assessment score
• Confirm company policy with HR

Phase 2: Solution Development (2-3 weeks)

• Select 2-3 alternative solutions
• Cost-benefit analysis:
  Solution Expected Time Success Rate Cost
  Salary increase 1 month High Increased salary expenses
  S Pass conversion 2 weeks Medium Company quota cost Phase 3: Solution Implementation (1-3 months)
  • Prioritize solutions 1 and 2
  • Prepare backup solutions simultaneously
  • Follow up monthly on progress
  Phase 4: Result Confirmation
  • Approved: Ensure new terms are implemented
  • Rejected: Immediately activate backup solution
  V. Successful Case Reference Case Background:
  Ms. Chen (Digital Marketing Expert), original EP monthly salary S$5,400, S$200 short for renewal Strategies Adopted:
  1. Converted annual performance bonus of S$3,000 to monthly fixed allowance of S$250
  2. Obtained Google Analytics certification (COMPASS +10 points)
  3. Added responsibility for managing 2 interns
  Result:
  Approved for 2-year EP after 3 weeks, monthly salary shown as S$5,650 VI. Long-term Planning Recommendations
  1. Salary Growth Mechanism:
  • Include annual salary adjustment clauses in contract
  • Target: Maintain 15-20% above threshold
  1. Career Development Path:
  • Seek promotion every 18-24 months
  • Obtain industry authority certifications
  1. Policy Monitoring:
  • Subscribe to MOM policy updates
  • Join professional associations for early warnings
  Conclusion When facing EP renewal with insufficient salary, panic is the worst response strategy. Systematically evaluating all compliant options, establishing transparent communication with employers, and selecting the most suitable solution for your personal situation is the wise approach. Remember, 2024 MOM data shows that among applicants who took proactive measures, 72% successfully renewed. The key is early preparation, flexible response, and transforming what seems like a crisis into a career development opportunity.Final Recommendation: If the situation is complex, consider consulting a professional employment lawyer. The average consultation fee is S$300-500, but it could prevent the loss of a job opportunity worth hundreds of thousands.