Better benefits and anti-discrimination law among upcoming Singapore employment changes

Increase in minimum salary thresholds for key work passes

All non-citizens and non-permanent residents must hold a valid work pass or obtain other regulatory consent before they can begin employment in Singapore. The minimum salary thresholds for two different types of work passes in Singapore were updated in September 2025.

Professionals applying for an employment pass must have a minimum monthly salary of S$5,600 (approx. US$4,300) if they are in the non-financial sector or S$6,200 if they work in the financial sector.

S pass applicants must have a minimum monthly salary of S$3,300, with a higher threshold of S$3,800 for those the financial sector.

In addition to the minimum salary criteria, there are various other criteria which the Ministry of Manpower will consider when evaluating whether a work pass should be issued.

Increase in central provident fund contribution changes

From 1 January 2026, the ordinary wage ceiling on which employees must pay Central Provident Fund (CPF) contributions will rise from S$7,400 to S$8,000 to keep pace with rising wages and strengthen retirement adequacy. The annual salary ceiling remains unchanged at S$102,000, but the CPF contribution rate will also increase from 32.5% to 34% for workers aged 55 to 60 and 23.5% to 25% for workers aged 60 to 65.

The increase in CPF contributions for workers aged 55 to 65 will be fully directed to their retirement account, up to the full retirement sum (FRS), to support greater retirement savings. If the FRS has already been met, the additional contributions will be allocated to the ordinary account instead.

Increase in salaries under progressive wage models

Singapore has put in place the progressive wage model (PWM), which aims to increase the wages of workers through upgrading skills and improving productivity. Under the PWM, employers must pay at least the PWM wage to eligible workers for their job level and meet the PWM training requirements for eligible workers.

Employers should take note of the PWM requirements and the increase in minimum salaries which take effect under the PWM of certain sectors, such as in the retail sector. The increase in salaries will cover all eligible Singaporean citizens and permanent residents who are employed as full-time or part-time employees in retail job roles on a contract of service or employed by firms which hire foreign workers.

Retail assistants and cashiers will earn an entry level wage of S$2,305 monthly gross wage, excluding overtime, senior retail assistants and cashiers will earn an entry level wage of S$2,535 and assistant retail supervisors will earn an entry level wage of S$2,790.

Anti-discrimination and the Workplace Fairness Act

The Workplace Fairness Act (WFA) will introduce new measures to protect employees against discriminatory employment decisions, including pre-employment and end-employment decisions. It was introduced in two bills and is expected to take effect from the end of 2027, protecting employees against discriminatory employment decisions.

The WFA will generally apply to employers with more than 25 employees, with this exemption for smaller firms to be reviewed in five years’ time. 

The WFA sets out 11 protected characteristics which an employer cannot discriminate against when making an employment decision: age, nationality, sex, marital status, pregnancy, caregiving responsibilities, race, religion, language ability, disability, and mental health condition. Employers will face financial penalties for contravening fair practices in the WFA.

However, there are narrow exceptions where differentiation will not be considered to be unfair discrimination. This includes situations such as where differentiation is a genuine job requirement and where age requirements are due to legal age limits. 

Under the WFA, employers must have a formal grievance handling process with review procedures, and must maintain written records. The WFA also prohibits employers from retaliating against an employee or other individual who makes a discrimination claim. 

The regime will also introduce a new three-step process for discrimination claims. Claims must first be raised through the employer’s internal grievance handling process. If the claim is unresolved, it will proceed to mediation. If no settlement is reached, the claim will proceed to the Employment Claims Tribunal or, if the claim is more than S$250,000 in value, the High Court.  

Retirement and Re-employment Act

Currently, employers must offer re-employment to eligible employees who turn 63, up to the age of 68, to continue their employment in the organisation, subject to the fulfilment of certain statutory criteria. From 1 July 2026, the minimum re-employment age will be raised from 68 to 69 years for employees born after 1 July 1958. 

Shared parental leave entitlements

For parents of children born from 1 April 2025, the shared parental leave entitlement for eligible employees fulfilling the relevant statutory criteria will increase from four to six weeks. 

Increased limits under the Work Injury Compensation Act

Compensation limits under the Work Injury Compensation Act (WICA) increased from the start of November 2025. The increases were designed to keep pace with rising medical costs and to provide greater financial security for employees and their families in the event of a serious workplace accident or illness. 

For death resulting from a work injury, the maximum compensation will rise from S$225,000 to S$269,000, and the minimum will increase from S$76,000 to S$91,000.

For permanent incapacity, the maximum compensation will increase from S$289,000 to S$346,000, and the minimum from S$97,000 to S$116,000.

For medical expenses, the cap will be raised from S$45,000 or up to one year from the date of the accident, whichever is reached first, to S$53,000, also up to one year from the date of the accident.

The increased limits came together with the issue of an updated list of occupational diseases by the Singapore’s Ministry of Manpower, expanding the conditions for which WICA compensation may be sought. 

Co-written by BoardRoom.