Singapore’s 2026 Budget sets out measures to strengthen the local workforce while ensuring foreign talent continues to complement economic growth. Key initiatives include investments in skills development, incentives for local employment, and updates to foreign worker policies, including salary thresholds and levy adjustments for Employment Pass, S Pass, and Work Permit holders. These changes are phased over 2027 and 2028, giving businesses time to adjust.
Key Updates for Employers
Employment Pass (EP) – skilled foreign professionals
- From January 2027, new EP applicants must meet a minimum qualifying salary of SGD 6,000, up from SGD 5,600
- For the financial services sector, this rises from SGD 6,200 to SGD 6,600
- Qualifying salaries for existing EP holders will be raised in tandem, with renewals applying from January 2028
- Employers should review salary structures to maintain compliance and remain competitive for high-skilled talent
S Pass – mid-skilled foreign workers
- New S Pass applicants will require a minimum salary of SGD 3,600 from January 2027, up from SGD 3,300
- In the financial services sector, the threshold rises from SGD 3,800 to SGD 4,000
- Qualifying salaries for existing S Pass holders will be raised in tandem, with renewals applying from January 2028
- Businesses should assess budget and manpower plans for mid-level skilled workers, particularly in sectors with significant S Pass utilisation
Work Permit – lower-skilled foreign workers
- Marine and Process sectors: levies for basic-skilled workers will increase by SGD 100–150
- Manufacturing and Services sectors: the tiered levy structure will be simplified
- All changes take effect from 2028, allowing businesses time to plan and adjust workforce allocation
- Employers should review levy budgeting and labour deployment to manage potential cost implications
These updates are part of Singapore’s broader strategy to ensure that foreign talent complements a strong local workforce, supporting economic growth while prioritising local employment. Multinational employers and global mobility teams should review salary structures, levy obligations, and workforce planning to ensure ongoing compliance and cost optimisation.
Singapore – Global Insights
For further detailed guidance on Singapore employment regulations and foreign worker policies, visit our Singapore Global Insights page on the activpayroll website.
Next Steps
For more information on how these 2026 foreign worker policy updates may impact your business, please get in touch. Complete our Contact Us form and a member of our expert team will be happy to assist with your queries.