Founders and senior hires often join on a package that leans on equity: a modest salary, a meaningful ESOP grant, and a bonus tied to results. That makes sense for the business. But if the person is moving to Singapore on an Employment Pass, the package needs a little planning first, because the pass is assessed on a specific part of the pay.
Get the structure right before the offer letter goes out, and the application is straightforward.
What the Employment Pass looks at
The Ministry of Manpower (MOM) assesses an Employment Pass on the candidate’s fixed monthly salary: basic salary plus fixed monthly allowances. Bonuses, commission, variable allowances and equity such as ESOPs aren’t part of that figure.
Fixed salary matters in two places:
- The qualifying salary. This is a minimum that rises with age. As of November 2026 it starts at S$5,600 a month (S$6,200 in financial services) for younger candidates, rising to S$10,700 (S$11,800) for those aged 45 and above. MOM has announced increases for new applications from 1 January 2027.
- The COMPASS points test. One of its criteria compares the candidate’s fixed salary with local professionals of a similar age in the same sector. A higher fixed salary earns more points. Candidates on a fixed salary of S$22,500 a month or more are exempt from COMPASS.
How to structure the package
Set the fixed salary first. Work out the qualifying salary for the candidate’s age and sector, then aim comfortably above it rather than exactly at it. Then build the equity and bonus on top. Equity still does its job of aligning the person with the company. It just isn’t what carries the pass.
Keep fixed allowances genuine. Fixed monthly allowances do count, but MOM looks closely at packages where allowances make up an unusually large share of pay. A housing or transport allowance that the person really receives every month is fine. Reclassifying bonus as “allowance” to reach a number isn’t.
Make the paperwork match. The salary in the offer letter, the employment contract, the application and the monthly payroll should all agree. Inconsistencies are a common reason for delays and can cause problems at renewal.
Plan the tax side of the equity. Gains from employee share plans connected to Singapore employment are generally taxable in Singapore. Agreeing how the ESOP will be documented and reported at the outset avoids surprises when options vest or are exercised.
Think about renewal from day one. Qualifying salaries are reviewed regularly and rise with age. A package that only just qualifies today may not qualify at renewal, so build in room for that.
Why it helps to plan this with your accountants
A pass application touches the offer letter, payroll, tax and sometimes the ESOP documents, and these are usually handled by different people. At Futurebooks, the same team looks after all of them. We check that the package meets the pass criteria, file the application through our licensed employment agency, and set the salary up correctly in payroll from the first month. Your hiring decisions stay with you; we make sure the package works on paper.
Moving someone to Singapore? Tell us who’s coming and when.
Pass criteria change often. Figures are as of November 2026; always check MOM’s current requirements before making an offer. This article is general information, not advice for your specific situation. Pass services are provided by Futurebooks People Management Pte. Ltd. (EA Licence No. 18S9104).