The C1 salary criterion under Singapore’s COMPASS framework awards up to 20 points when an applicant’s fixed monthly salary exceeds the 90th percentile of local peers in the same sector. Fixed monthly salary generally refers to the sum of basic monthly salary plus fixed monthly allowances—transport, housing, meal, or similar—paid contractually every month without variation. An applicant with a fixed monthly salary of SGD 8,000 in the financial sector can secure 20 points for C1; the same amount in technical services may yield only 10 points because benchmarks differ. Employers who grasp the precise components of this definition can lawfully structure total compensation to lift the C1 score without inflating wages artificially.
The Fixed Monthly Salary Under COMPASS
Fixed salary generally includes basic wages and any allowance that is unconditional, non-discretionary, and paid at a steady monthly rate. Overtime, commissions, and profit‑sharing are excluded. A housing allowance of SGD 1,500 that appears in the employment contract and is credited every month irrespective of performance qualifies. A transport reimbursement that fluctuates based on actual claims does not. The distinction is binary: if an item can be reduced or withdrawn at the employer’s judgement, it is variable and does not count toward C1.
Guaranteed Bonuses as Fixed Pay
A contractual guaranteed bonus—such as an Annual Wage Supplement (AWS) of one month’s salary—can be factored into fixed monthly salary only if it is paid in equal monthly instalments. A bonus that is “guaranteed and non‑deferrable” may be prorated over the year and added to the base. Example: a base pay of SGD 7,000 with a contractual 13th‑month bonus paid monthly yields an effective fixed monthly salary of SGD 7,583. Discretionary performance bonuses, even when historically paid, never count. Document the guarantee in the employment contract and IR8A submission to satisfy audit scrutiny.
Fixed Allowances: The Hidden Lever
Fixed allowances for housing, children’s education, or a car that are contractually mandated and paid monthly push the fixed salary numerator higher. A technology firm in 2026 structured a package for a software architect: base SGD 6,800 plus a guaranteed housing allowance of SGD 2,000. Total fixed monthly salary of SGD 8,800 cleared the 90th percentile for the infocomm sector (SGD 8,400), securing 20 C1 points. Without the allowance, the candidate would have only 10 points. Employers must ensure allowances are reasonable for the role; a junior executive with a luxury car allowance triggers audit flags.
Compliant Variable‑to‑Fixed Ratios
MOM does not prescribe a rigid variable‑to‑fixed ratio, but enforcement patterns reveal safe harbour. Up to 20% of total annual remuneration as variable pay rarely draws scrutiny. When variable components exceed 40% of the annual package, MOM often suspects the fixed salary was inflated to meet COMPASS thresholds. EP applications may be flagged for salary verification if the variable pay fraction is unusually high. A compliant structure: total annual compensation of SGD 120,000, with a fixed portion of at least SGD 96,000 (80%) and no single allowance exceeding 25% of base salary.
Audit Triggers for Inflated Base Pay
Declared salary figures should be consistent with IRAS auto‑inclusion income records and CPF contributions. Three audit triggers are common. First, a sharp salary increase within three months of an EP application. Second, fixed allowances that disappear or shrink after the pass is granted. Third, a fixed salary that far exceeds the 90th percentile for the role’s responsibilities. If a firm pays a marketing executive SGD 15,000 monthly when the sector median is SGD 6,500, MOM will demand a justification. Applications with fabricated pay structures may be rejected, and false declarations may be subject to action under the Employment of Foreign Manpower Act.
Sector‑Specific Total Compensation Benchmarks
Setting a competitive fixed salary requires knowing sector benchmarks. MOM’s COMPASS benchmarks a candidate’s fixed monthly salary against local PMET salaries in the sector. An employer aiming for 20 C1 points must exceed the 90th percentile, typically 30–40% above the median. In banking, that threshold is around SGD 13,000; in manufacturing, SGD 8,200. Employers use these benchmarks to calibrate base pay plus fixed allowances precisely.
Strategic Structuring Without Crossing the Line
The most defensible approach ties every fixed component to a genuine business need. A regional sales director may require a car; a relocated engineer may need housing. Contractual allowances should be stated as obligatory and irrevocable during the pass validity period. Avoid “temporary” salary top‑ups that revert after EP approval. Remuneration packages that are consistent with industry norms and well‑documented withstand MOM audits and deliver maximum COMPASS points with negligible compliance risk.
FAQ
Can a one‑time sign‑on bonus be counted as fixed salary?
No, unless it is contractually guaranteed and paid in equal monthly instalments over at least 12 months. In practice, only recurring, non‑discretionary payments qualify. A sign‑on bonus spread over 12 months may be included if the employer cannot claw it back.
What happens if an employee receives a promotion salary change shortly before an EP application?
MOM evaluates the salary for the applied role, typically the most recent drawn pay. A promotion‑driven increase must be sustained for at least three consecutive months before it is considered stable. A single‑month spike will not be treated as the fixed salary baseline.
Is there a penalty for misrepresenting the fixed salary structure?
Yes. An employer that makes a false declaration to MOM may be subject to enforcement action under the Employment of Foreign Manpower Act. Severe cases may be subject to enforcement under the Employment of Foreign Manpower Act.
References
- Ministry of Manpower, COMPASS Framework 2026
- MOM Advisory on Fixed Monthly Salary Definition, January 2026
- Inland Revenue Authority of Singapore, Employer’s Guide to Auto‑Inclusion Scheme 2026
- Ministry of Manpower, Employment Pass Statistics and Audit Findings 2025
- Monetary Authority of Singapore, Sectoral Wage Benchmarks for Financial Services 2026
This article does not constitute legal or migration advice.