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.
Employment Pass (EP) – skilled foreign professionals
S Pass – mid-skilled foreign workers
Work Permit – lower-skilled foreign workers
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.
For further detailed guidance on Singapore employment regulations and foreign worker policies, visit our Singapore Global Insights page on the activpayroll website.
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.