Singapore has announced a series of significant updates to its foreign workforce policies aimed at maintaining the quality of Employment Pass (EP) and S Pass holders while safeguarding opportunities for the local workforce. The changes, announced by Prime Minister Lawrence Wong as part of the 2026 Budget Statement, will take effect from January 2027 for new applications, with renewal applications following in 2028.
These adjustments are part of Singapore’s continued strategy to remain open to global talent while ensuring that foreign hiring complements a strong Singaporean core.
Increased Salary Thresholds for Employment Pass (EP) Holders
Beginning January 2027:
- The minimum qualifying monthly salary for EP applicants will rise from SG$5,600 to SG$6,000.
- For the financial services sector, where salary norms are higher, the threshold will increase from SG$6,200 to SG$6,600.
- Salary requirements will continue to scale with age, with applicants aged 45 and above requiring:
- Up to SG$11,500 for most sectors
- Up to SG$12,700 for financial services
The government noted that these increases reflect rising local wages and ensure EP holders continue to meet the skill and experience standards expected of foreign professionals in Singapore.
Increased Salary Thresholds for S Pass Holders
The S Pass — intended for mid‑level skilled workers such as technicians — will also see new salary requirements starting January 2027:
- The minimum salary will increase from SG$3,300 to SG$3,600.
- For the financial services sector, it will increase from SG$3,800 to SG$4,000.
- Age‑adjusted salary requirements will also rise, up to:
- SG$5,100 for most sectors
- SG$5,650 for financial services
These changes reinforce Singapore’s intent to bring in workers with skills that are in shortage while disincentivizing cost‑driven hiring.
Updates to Work Permit Levies (Effective 2028)
To give businesses time to adjust, levy increases for Work Permit holders will take effect in 2028:
- Marine shipyard sector: +SG$100/month for basic‑skilled workers
- Process sector: +SG$150/month for basic‑skilled workers
- Manufacturing and services sectors: Levy tiers will be consolidated from three to two
Policy Context
Singapore has progressively tightened work visa requirements in recent years, including the 2024 introduction of the COMPASS framework, a points‑based system designed to ensure foreign hires complement Singapore’s workforce. The upcoming 2027 salary revisions continue this trajectory, emphasizing higher‑skilled, higher‑value roles and a strong local workforce foundation.
Erickson Insights & Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.