Increase in CPF contribution rates
As part of Singapore's ongoing efforts to strengthen retirement adequacy, the government has announced further adjustments to Central Provident Fund (CPF) contributes rates, salary ceilings and retirement sums.
Singapore will raise the minimum qualifying salary for new Employment Pass and S Pass applicants
Deputy Prime Minister and Minister for Finance, Lawrence Wong announced that the minimum qualifying salary for both Employment Pass and S Pass applicants will be taking effect in January 2027 during Singapore Budget 2026.
Combined with the increase in CPF contribution rates announced in the same Budget, businesses should expect a meaningful impact on overall workforce costs and payroll structures.
Employment Pass (EP)
EP holders are generally professionals, managers, executives and specialists who can contribute to Singapore’s economy and strengthen the local workforce.
For new EP applicants, the minimum qualifying salary will be raised from S$5,600 to S$6,000. For the financial services sector, which operates under higher salary norms, the threshold will increase from S$6,200 to S$6,600.
The qualifying salaries for older EP applicants will increase progressively based on age. For renewal applications, these changes will take effect from 1 January 2028, giving businesses sufficient time to adjust.
According to the Deputy Prime Minister and Minister of Finance, this move ensures that incoming EP holders are of comparable quality to the top one-third of the local PMET workforce - those in professional, managerial, executive and technical roles.
| EP applicants | Existing minimum qualifying salary | New minimum qualifying salary |
| General | S$5,600 | S$6,000 |
| Financial services sector | S$6,200 | S$6,600 |
S Pass
Similar to the EP framework, Singapore will increase the qualifying salary for S Pass holders to achieve in stages. An S Pass is granted to mid-level skilled workers with the relevant qualifications and work experience. Singapore aims for S Pass holders to be comparable in quality to the top one-third of local Associate Professionals and Technicians.
In the first step, the minimum qualifying salary for new S Pass applicants will be raised from S$3,300 to S$3,600, with a higher threshold of S$4,000 for the financial services sector. The qualifying salaries for older S Pass holders will also be raised in tandem.
Similar to EP, changes will apply to renewal applications a year later to give businesses sufficient time to adjust.
There are no new changes made to the S Pass sub-Dependency Ratio Ceilings and levies during the Singapore Budget 2026 announcement. The current cost structure remains unchange at a flat rate of S$650 per month per S Pass holder.
| S Pass applicants | Existing minimum qualifying salary | New minimum qualifying salary |
| General | S$3,300 | S$3,600 |
| Financial services sector | S$3,800 | S$4,000 |
Work Permit Holders
Budget 2026 introduced new measures directly affecting the construction and process sectors to continue pushing for productivity and manpower efficiency.
- Starting in 2028, monthly foreign worker levies for Basic-Skilled (R2) workers in the Process sector will face a steep hike between S$600 to S$800, depending on your nationalities and Non-Traditional Source (NTS) workers.
- The Local Qualifying Salary (LQS) will rise from S$1,600 to S$1,800 on 1 July 2026.
- To help construction and process firms retain experienced, productive foreign workers longer, the legal age limits will be officially extended on 1 July 2026.
Foreign Worker Policy Framework
Singapore has a comprehensive foreign worker policy framework in place to allow organisations to access a diverse pool of manpower. The Deputy Prime Minister and Minister of Finance affirmed that Singapore will continue to stay open and welcome global talent amid rising international competition.
With salary thresholds, levy adjustments and workforce changes all coming into effect at different stages, keeping payroll accurate and compliant has never been more complex. Our payroll outsourcing services in Singapore can help your business navigate these evolving requirements - so you can focus on what matters most.
Contact us today to find out how we can support your business through these changes.
Singapore Budget 2022 Commentary - A Bold Budget
On 18 February, Finance Minister Mr. Lawrence Wong delivered the much-anticipated Budget 2022 speech. The Budget remains expansionary, with an estimated ministry spending of S$102.4 billion, marking a 4.1 percent increase from the total expenditure in the previous year.
Employment & Immigration
Foreign nationals intending to enter Singapore to take up employment or to engage in business activities must obtain the relevant pass from the Ministry of Manpower (MOM). Here is everything you need to know about employment and immigration requirements in Singapore.
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