In our Spotlight on the APAC series, we highlight the latest developments across the Asia Pacific region. In this post, we summarise key announcements from Singapore’s Budget 2026, released on 12 February 2026.
In line with the Government’s objective of maintaining a strong and high-quality talent pool in while supporting the local workforce, adjustments have been introduced:
- Increase in minimum qualifying salaries for Employment Pass (EP) and S Pass holders
- Increase in work permit levies
- Increase in local qualifying salary
- Increase in co-funding and minimum qualifying wage under the Progressive Wage Credit (PWC) scheme
Minimum qualifying salaries for EP and S Pass holders
Effective 01 January 2027, the minimum qualifying salary for fresh EP applications will increase:
- From $5,600 to $6,000 for all sectors except Financial Services
- From $6,200 to $6,600 for the Financial Services sector
For new S Pass applications, the minimum qualifying salary will increase:
- From $3,300 to $3,600 for all sectors except Financial Services
- From $3,800 to $4,000 for the Financial Services sector
These revised salary thresholds will apply to renewal applications from 1 January 2028.
Work Permit Levies
The following changes are expected to take effect in 2028:
- The levy rate for basic-skilled Work Permit holders will increase from $100 to $150.
- The current three-tier levy system for Work Permit holders in the Services and Manufacturing sectors will be simplified into two tiers.
The new two-tier structure will be based on dependency ratio utilisation:
- Up to 25%
- Above 25% to 35%
Within the lower tier, the monthly levy rates will be:
- $400 for higher-skilled workers
- $600 for basic-skilled workers
Manufacturing Sector
The new tiers will be based on dependency ratio utilisation:
- Up to 50%
- Above 50% to 60%
Within the lower tier, the monthly levy rates will be:
- $300 for higher-skilled workers
- $470 for basic-skilled workers
Local Qualifying Salary
Effective 01 July 2026, the local qualifying salary will be raised from $1,600 to $1, 800 for full time local workers. Employers are also expected to ensure that foreign workers are paid in accordance with the Progressive Wage Model where applicable.
Progressive Wage Credit (PWC) Scheme
The Singapore Government will enhance funding support under the PWC scheme.
- Employers will receive 30% co-funding for qualifying wage increases in 2026 and 2027.
- Co-funding support will be 20% in 2028.
The required average gross monthly wage increase will be:
- $100 for qualifying year 2026
- $200 for qualifying years 2027 and 2028
The PWC scheme will also be extended for an additional two years.
For more information on the above or any assistance you require on global immigration matters, please do not hesitate to contact Rachel.ang@magrath.sg or hazimah@magrath.sg.
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