Singapore has introduced significant updates to its foreign workforce framework under the 2026 Budget, reinforcing its commitment to balancing economic growth with local workforce development. These changes reflect the broader Singapore foreign workforce policies 2026 and impact Employment Pass (EP), S Pass, Work Permit holders, and employer quota structures.
Below is a detailed breakdown of the latest updates and what they mean for businesses and foreign professionals.
π 1. Higher Minimum Salaries for Employment Pass (EP) and S Pass
The Ministry of Manpower (MOM) will raise minimum qualifying salaries starting from 1 January 2027 (new applications) and 1 January 2028 (renewals).
Employment Pass (EP)
- All sectors (except financial services):
S$5,600 β S$6,000 - Financial services sector:
S$6,200 β S$6,600
Salary requirements will continue to increase progressively with age and experience.
S Pass
- All sectors (except financial services):
S$3,300 β S$3,600 - Financial services sector:
S$3,800 β S$4,000
π Employers must review compensation structures to ensure compliance ahead of implementation.
π 2. Increase in Local Qualifying Salary (LQS)
From 1 July 2026, the Local Qualifying Salary (LQS) will increase:
- S$1,600 β S$1,800 per month
The LQS determines whether a local employee counts towards a companyβs foreign worker quota. This adjustment will directly impact quota calculations for S Pass and Work Permit holders.
To support businesses, the government will enhance the Progressive Wage Credit Scheme, extending assistance through 2028.
π° 3. Work Permit Levy Framework Changes (From 2028)
Starting in 2028, Singapore will revise Work Permit levy structures:
- Simplified levy tiers in manufacturing and services sectors
- Potentially higher levies for certain basic-skilled categories
- Greater emphasis on productivity and skills upgrading
These measures encourage companies to adopt higher-skilled workforce strategies and automation.
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π 4. Earlier Reforms Supporting Workforce Flexibility
Recent updates also include:
β Removal of Maximum Employment Period (From July 2025)
Work Permit holders are no longer subject to a maximum employment duration, provided eligibility requirements continue to be met.
π Higher Age Limits
- Maximum employment age increased from 60 β 63
- New Work Permit application age raised to 61
π Expanded Source Countries & Occupations
Singapore has expanded its approved source country list and broadened the Non-Traditional Sources (NTS) Occupation List to meet industry manpower needs.
π What This Means for Employers
- Higher foreign hiring costs
- Increased compliance planning required
- Greater focus on workforce transformation and local talent development
- Strategic salary planning needed for EP and S Pass renewals
Companies are encouraged to conduct early workforce assessments to minimize disruption and optimize cost structures.
π What This Means for Foreign Professionals
- Higher salary thresholds increase competitiveness
- Longer potential employment duration
- Stronger emphasis on experience and qualifications
π’ Final Thoughts
Singapore continues refining its foreign manpower framework to ensure sustainable economic growth while safeguarding opportunities for local workers. Employers and foreign professionals alike should stay updated and prepare in advance for upcoming regulatory changes.
For tailored advisory on Employment Pass, S Pass, or Work Permit compliance, consult an experienced immigration or HR specialist.
