Singapore’s Ministry of Manpower (MOM) has announced further updates to foreign workforce policies as part of Budget 2026. These changes affect:
- Minimum qualifying salaries for Employment Pass (EP) and S Pass
- Local Qualifying Salary (LQS) used for S Pass / Work Permit quota
- Work Permit levies (from 2028)
These updates are separate from the earlier COMPASS changes taking effect from January 1, 2026.
EP & S Pass – Higher Minimum Qualifying Salaries from 2027/2028
From January 1, 2027 (new applications), and January 1, 2028 (renewals):
Employment Pass (EP)
- All sectors (except Financial Services): Minimum qualifying salary will increase from S$5,600 to S$6,000 per month.
- Financial Services sector: Minimum qualifying salary will increase from S$6,200 to S$6,600 per month.
S Pass
- All sectors (except Financial Services): Minimum qualifying salary will increase from S$3,300 to S$3,600 per month.
- Financial Services sector: Minimum qualifying salary will increase from S$3,800 to S$4,000 per month.
For both EP and S Pass, the age-adjusted salary bands for more experienced candidates will also rise in tandem.
What this means for employers
Roles currently budgeted close to today’s EP / S Pass thresholds may need to be re-priced upwards if the start date or renewal falls in 2027 or later. Longer-term workforce and compensation planning should assume these higher salary floors for foreign professionals and mid-skilled staff.
S Pass Quota – Higher Local Qualifying Salary (LQS) from July 1, 2026
From July 1, 2026, the Local Qualifying Salary (LQS) – the minimum wage for a local employee to be counted towards S Pass / Work Permit quota – will be raised from S$1,600 to S$1,800 per month for full-time local workers. In parallel, the Progressive Wage Credit Scheme (PWCS) will be enhanced in 2026 and extended to 2028 to help employers manage the higher wage costs for eligible lower-wage Singaporean employees.
Implications for S Pass / Work Permit planning
- You may need to review local salaries between S$1,600 and S$1,800:
- Local employees who are not brought up to the new LQS may no longer be counted (or may only count as 0.5) towards your S Pass / Work Permit quota, which can reduce room for foreign hiring or renewals.
- PWCS will partially offset wage increases for eligible lower-wage Singaporeans, but employers should still budget for a structurally higher local wage floor where they rely on locals to support foreign worker quota.
Work Permit – Levy Adjustments from 2028
From 2028, the Government will adjust Work Permit levies, with details varying by sector. Broadly:
- Higher levy rates are expected for basic-skilled Work Permit holders in certain sectors (e.g. marine and process).
- For manufacturing and services, the levy structure will be simplified into fewer tiers, while steering employers towards higher-skilled or more productive workforce profiles.
These changes have been signalled early to give businesses lead time to plan headcount and cost structures.
At Newland Chase Singapore, we are monitoring these developments closely and can support you with pre-assessment of EP and S Pass cases against the new salary benchmarks and COMPASS, and high-level review of your Singapore work-pass portfolio to identify cases most impacted by the 2026–2028 changes.
For any assistance with Singapore immigration matters, please reach us at [email protected].
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.
