- The EP is employer-sponsored, renewable, starts at S$5,600/month, and lets the holder be a director and shareholder.
- The PEP is not employer-tied and allows up to six months between jobs, but needs S$22,500/month plus S$270,000/year and is a one-time, non-renewable three-year pass.
- The PEP cannot be used to run a business, so foreign founders should stay on an EP; the PEP suits senior professionals who value mobility.
The Employment Pass (EP) is tied to one sponsoring employer and starts from a fixed monthly salary of S$5,600 (S$6,200 in financial services). The Personalised Employment Pass (PEP) is not tied to any employer, which gives you full job mobility, but it requires a fixed monthly salary of at least S$22,500, a fixed annual salary of at least S$270,000, and it is issued only once for a non-renewable three-year term. In short, the EP is the standard route for most foreign hires and founders, while the PEP suits senior professionals who want to move between employers freely and already earn well above the EP bar.
This guide compares the two passes on the points that actually change your decision: who sponsors the pass, the salary thresholds, job mobility, renewal, and the grace period between jobs. It does not cover the full application steps or the EntrePass. If you are comparing an EP with an EntrePass instead, see employment pass vs EntrePass.
Quick answer: EP vs PEP at a glance
Employment Pass (EP): from S$5,600/month, employer-sponsored, renewable, valid up to 2 years (new) or 3 years (renewal). Can be a director and shareholder.
Personalised Employment Pass (PEP): from S$22,500/month and S$270,000/year, not employer-tied, 3-year term, non-renewable, issued once. Cannot run a business.
What is the difference between an EP and a PEP?
The core difference is sponsorship. An Employment Pass is applied for by a Singapore employer and stays linked to that employer. If you change jobs, your new company has to apply for a fresh EP. A Personalised Employment Pass belongs to you, not to a company, so you can switch employers without a new application for as long as the pass is valid.
That single distinction drives almost every other trade-off. Because the PEP is portable and aimed at high earners, MOM sets a much higher salary bar, adds an annual income test, and limits the pass to one non-renewable term. The EP is cheaper to qualify for and can be renewed, but it ties your right to stay to a specific job.
Employer-sponsored vs personal: the core distinction
An EP is a good fit when you are joining or being hired into a company, or incorporating and appointing yourself as a director-employee. As an EP holder, you can be both a director and a shareholder of an ACRA-registered company, which is why most foreign founders use it. If you want to understand the full set of options before you commit, read our overview of work passes for business owners.
A PEP works differently. It is meant for established professionals who move between roles and do not want to be locked to one employer. The flexibility is real, but it comes with a strict condition that surprises many applicants: the PEP cannot be used to start or run a business. Sole proprietors, partners, and directors of a Singapore-incorporated company are not eligible on the strength of the PEP. If your plan involves owning a company here, the EP is almost always the right pass.
How do the eligibility and salary thresholds compare?
The EP has two gates. First, you must meet the qualifying salary: a fixed monthly salary of at least S$5,600 for most sectors, or S$6,200 for financial services, per the Ministry of Manpower (MOM). This figure rises with age, reaching roughly S$10,700 for general sectors and S$11,800 for financial services at age 45 and above. Second, you must score at least 40 points on the points-based Complementarity Assessment Framework (COMPASS). Candidates earning a fixed monthly salary of S$22,500 or more are exempt from COMPASS but still need to clear the qualifying salary.
The PEP has one gate, set much higher. You need a fixed monthly salary of at least S$22,500, and overseas applicants must have drawn a comparable fixed monthly salary in the six months before applying. There is no COMPASS test, but there is an ongoing condition: PEP holders must earn a fixed annual salary of at least S$270,000 in each calendar year and declare it to MOM by 31 January. Falling short in any year can lead to cancellation. That annual test, more than the entry salary, is what makes the PEP genuinely demanding to hold.
Rights and limits: job switching, renewal and unemployment
On job mobility, the PEP wins clearly. A PEP holder can change employers without filing a new pass and can spend up to six continuous months in Singapore between jobs while looking for the next role. An EP holder who changes employer needs a new EP, and the letter of consent rules differ for dependants. If you are weighing whether a dependant can work, see letter of consent vs EP.
On longevity, the EP wins. An EP is valid for up to two years on a first application and up to three years on renewal, and it can be renewed repeatedly as long as you keep meeting the criteria. The PEP is a one-time, non-renewable pass with a fixed three-year term. Once it expires, you cannot get another PEP. You would then need to move to a standard EP, apply for the Overseas Networks and Expertise Pass if you qualify, or apply for permanent residence. Say this plainly to yourself before you apply: the PEP buys three years of flexibility, not a long-term status.
EP vs PEP: side-by-side comparison
In plain terms: the EP is the accessible, renewable, founder-friendly pass, starting at S$5,600 a month and staying valid as long as you keep meeting the rules. The PEP costs far more to qualify for, at S$22,500 a month and S$270,000 a year, and lasts only three years without renewal, but it frees you from any single employer and allows a six-month gap between jobs.
Who should choose the EP, and who the PEP?
Choose the EP if you are being hired by a Singapore company, or if you are incorporating and will appoint yourself as a director. It is the only one of the two that lets you own and run a business; it can be renewed, and the salary bar is realistic for most roles. Most foreign founders start here. If you are setting up, our team can handle both the company and the pass when you incorporate as a foreigner.
Choose the PEP only if you are a senior professional who already earns S$22,500 or more a month, expect to keep earning at least S$270,000 a year, and want the freedom to switch employers without re-applying. It is not for business owners, and it is not a route to a longer-term pass, so plan your next step before the three years run out.
Can you move from an EP to a PEP?
Yes, if you meet the salary threshold. A current EP holder earning a fixed monthly salary of at least S$22,500 can apply for a PEP and gain the mobility that comes with it. Before switching, weigh two things. First, you give up renewability: the PEP is a one-time, three-year pass, while your EP could be renewed indefinitely. Second, you take on the S$270,000 annual income test. For many senior hires, the mobility is worth it; for founders, it usually is not, because the PEP blocks business ownership. If your EP was recently declined and you are exploring alternatives, start with what to do if your EP is rejected before assuming the PEP is the answer.
How Sleek helps
Sleek manages EP and PEP applications alongside your incorporation, so your company setup and your right to work are handled together rather than in separate, disconnected steps. We check your eligibility against the current MOM thresholds, run your COMPASS position where the EP applies, prepare the documentation, and track the timelines so nothing slips. Explore our employment pass services, or read the step-by-step guides on how to get an EP and how to get a PEP if you want to understand the process first.
Sort your work pass and company setup in one go with Sleek.
Source for all salary, COMPASS, validity and grace-period figures: Singapore Ministry of Manpower (MOM), verified July 2026. Thresholds are reviewed by MOM periodically, so confirm current figures with MOM before applying.
