Crossover at $12.5M: Valuation Cap vs Discount for Singapore Founders
Master the cap versus discount crossover. Calculate the $12.5M breakpoint from a $10M cap and 20% discount, model conversions, and avoid Singapore filing...
Published: 2 July 2026 · Reviewed by Ray Tay, Co-Founder & Managing Director, VIVOS PTE. LTD. (ACRA Filing Agent FA20240323 · MOM EA Licence 24S2425)
The Personalised Employment Pass (PEP) is for high-earning Employment Pass holders or overseas foreign professionals who can show a fixed monthly salary of at least S$22,500. Unlike an Employment Pass, which is tied to one sponsoring employer, the PEP is not tied to any employer, the holder can change jobs across sectors without reapplying. The trade-off is that the PEP is issued once, lasts up to 3 years and is non-renewable, requires continuous employment (no more than 6 months unemployed at any point), and the holder must earn at least S$270,000 per calendar year to keep it. The candidate applies directly to the Ministry of Manpower (MOM).
The Personalised Employment Pass is a work pass granted by the Ministry of Manpower to a select group of established professionals: high-earning Employment Pass holders already working in Singapore, and overseas foreign professionals who can demonstrate a comparable salary. Its defining feature is flexibility. Where an ordinary Employment Pass belongs, in effect, to the employer who sponsors it, cancel the job and the pass falls away, the PEP belongs to the individual. The holder can move between employers and across sectors without applying for a new pass each time, which makes it valuable to senior professionals who expect to change roles during their time in Singapore.
That freedom comes with a higher bar and tighter conditions, because the PEP is designed for the upper tier of the foreign professional workforce. The salary threshold is benchmarked to the top earners among Employment Pass holders, and the pass carries an annual income floor, a continuous-employment rule and a hard limit on its lifespan. The sections below set out exactly who qualifies, what it takes to keep the pass, and how it sits alongside the EP and the ONE Pass.
To be eligible for a PEP you must show a fixed monthly salary of at least S$22,500. MOM benchmarks this figure to the top 10% of Employment Pass holders, which is what positions the PEP as a pass for high earners rather than a general work pass. “Fixed monthly salary” means your guaranteed monthly pay, excluding variable components such as bonuses that are not guaranteed.
Who can apply depends on where you are coming from:
Importantly, the candidate applies directly to MOM. Unlike the Employment Pass, there is no sponsoring employer lodging the application on your behalf; the PEP is granted to you as an individual.
Eligibility gets you the pass; two ongoing conditions keep it valid. Both matter, because failing either can cost you the pass.
Continuous employment. You must remain in employment in Singapore. If you are unemployed for more than 6 months at any point, the pass must be cancelled. (The PEP does allow a search window, see Flexibility & features, but it is bounded by this six-month rule.)
Annual income floor. You must earn a fixed salary of at least S$270,000 per calendar year, regardless of how many months you are employed that year. In other words, taking time between jobs does not reduce the annual figure you are expected to hit.
One transitional point is worth noting for existing holders: anyone who applied before 1 September 2023 must earn at least S$144,000 per calendar year, rather than the higher S$270,000 figure that applies to more recent applicants. If you are unsure which threshold applies to you, confirm it against your pass conditions and with MOM.
The PEP is valid for up to 3 years and is non-renewable, it is issued only once. This is the single most important planning point about the pass, and the one most often misunderstood. There is no extension and no second PEP. When the PEP expires, the holder needs an Employment Pass or S Pass to keep working in Singapore.
Practically, that means a PEP is best treated as a flexible bridge rather than a permanent status. Professionals who expect to settle into a stable role with one employer often plan, before the PEP lapses, to move onto an Employment Pass tied to that employer, or, if they meet the much higher bar, onto a longer-dated pass such as the ONE Pass. Building that transition into your timeline early avoids a scramble in the final months of the pass.
The PEP’s appeal is the freedom it gives a senior professional who is not wedded to a single employer. Its main features are:
The PEP is deliberately narrow, and several groups are excluded. You are not eligible for a PEP if you are:
If any of these apply to you, the PEP is not the right pass, and it is worth taking advice on which work pass actually fits your situation before you apply.
The PEP sits between the standard Employment Pass and the top-tier ONE Pass. The Employment Pass is the workhorse pass for professionals with a job offer; the ONE Pass targets the very top of the global talent pool; and the PEP serves established high earners who want job flexibility without committing to a single employer. The table below compares the three on the points that matter most.
Employment Pass vs ONE Pass vs Personalised Employment Pass (current as at June 2026)
| Feature | Employment Pass (EP) | ONE Pass | Personalised Employment Pass (PEP) |
|---|---|---|---|
| Who it’s for | Professionals, managers & executives with a Singapore job offer | Top-tier talent (business, arts/culture, sports, academia/research) | High-earning EP holders or overseas professionals |
| Min. fixed monthly salary | From S$5,600 (S$6,200 financial services), rising with age to S$10,700 / S$11,800 at 45+ | S$30,000 (or qualify via outstanding achievement) | S$22,500 (and at least S$270,000 per calendar year) |
| COMPASS points test | Yes, score 40 (unless exempt) | Exempt | Exempt |
| Tied to an employer | Yes | No | No (change jobs freely) |
| Duration | Up to 2 yrs (first), 3 yrs (renewal); up to 5 yrs for tech SOL roles | Up to 5 years | Up to 3 years |
| Renewable | Yes | Yes (5 yrs each) | No (issued once) |
| Run a business | Restricted | Yes | No (use EntrePass / ONE Pass) |
| Who applies | Employer / agent | Candidate, or employer / agent | Candidate, directly |
Because the PEP is granted to the individual, the candidate applies directly to MOM, there is no employer sponsoring the application. Before applying, the two practical things to get right are the salary evidence and the recency rule:
Given the pass is issued only once, lasts up to three years and is non-renewable, it is worth planning the application and your eventual transition off the PEP together. This is where structured advice helps: getting the salary documentation in order, checking your eligibility against the exclusions, and mapping out the move back onto an Employment Pass (or onto a longer-dated pass) before the PEP expires.



Who qualifies for the Personalised Employment Pass in Singapore?
The PEP is for high-earning Employment Pass holders or overseas foreign professionals who can show a fixed monthly salary of at least S$22,500, benchmarked to the top 10% of EP holders. If you are applying from overseas, your last drawn salary must have been within the 6 months before you apply. The candidate applies directly to the Ministry of Manpower; there is no sponsoring employer.
How is the PEP different from an Employment Pass (EP)?
The main difference is that the PEP is not tied to a single employer, so the holder can change jobs across sectors without applying for a new pass, whereas an EP is tied to the sponsoring employer. The PEP also has a higher salary bar (S$22,500 a month) and an annual income floor. The trade-off is that the PEP is issued only once, lasts up to 3 years and is non-renewable, while an EP can be renewed.
What salary do I need to keep a PEP?
To keep the PEP, you must earn a fixed salary of at least S$270,000 per calendar year, regardless of the number of months you are employed that year. Anyone who applied before 1 September 2023 must earn at least S$144,000 per calendar year instead. You must notify MOM of your annual income by 31 January of the following year.
Can the PEP be renewed?
No. The PEP is valid for up to 3 years and is non-renewable, it is issued only once. When the PEP expires, the holder needs an Employment Pass or S Pass to keep working in Singapore. Because there is no extension, it is best to plan your transition onto another pass before the PEP lapses.
Can I be unemployed while holding a PEP?
You can remain in Singapore for up to 6 months without a job to search for new employment, which is one of the pass’s key advantages. However, if you are unemployed for more than 6 months at any point, the pass must be cancelled. You must also stay within the annual income requirement, which does not reduce based on how many months you worked.
Can I start a business on a PEP?
No. You cannot start a business or carry out entrepreneurial activity on a PEP. If you want to run a business, the appropriate routes are the EntrePass or the ONE Pass instead. The PEP is also not available to sole proprietors, partners, or directors who are also shareholders of an ACRA-registered company, nor to freelancers or EP holders under the sponsorship scheme.
Does a PEP holder pay a foreign worker levy or come under a quota?
No. There is no foreign worker levy and no quota attached to a PEP holder. Eligible family members can also be brought in on the relevant passes. Note that professional registration rules still apply in regulated fields such as medicine, dentistry, law and architecture, and you cannot work in restricted occupations such as media and religion.
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Incorporated in Singapore under the Companies Act 1967 UEN 202416468C | ACRA Registered Filing Agent FA20240323 | MOM Employment Agency Licence 24S2425
Malaysia – VIVOS (M) Sdn. Bhd. | Registration Number:
People’s Republic of China, Hong Kong – VIVOS CORPORATE SERVICES (HK) LTD. | Business Registration Number: 80545137
United Arab Emirates, Dubai – VIVOS CORPORATE SERVICES L.L.C. | Commercial Licence Number: 1638200

