Singaporean businesses should prepare for wage increases for foreign workers

This change was announced by Singapore’s prime minister, Lawrence Wong, in the budget speech 2026.

The employment pass (EP) serves as a work visa for foreign professionals, managers, executives and technicians working in Singapore. Under the new rules, all new EP applicants from January 2027 onward, as well as existing EP holders renewing their passes from January 2028, will be subject to higher salary requirements.

The minimum qualifying monthly salary will be raised from S$5,600 (approx. US$4,431) up to S$6,000 for most sectors. In the financial services sector, the minimum qualifying salary for employment pass holders will be raised from S$6,200 to S$6,600, reflecting the higher salary expectations in this sector, according to the Singaporean government. In addition, as EP salary thresholds rise progressively with age, the minimum qualifying salary for EP holders aged 45 and above will be raised up to S$11,500 and up to S$12,700 for those in the financial services sector.

Similarly, S pass holders, generally mid-skilled workers who may not qualify for the EP, will also have their minimum qualifying salary raised from S$3,300 to S$3,600, and for the financial services sector, from S$3,800 to S$4,000.

Mayumi Soh, an expert in employment law at Pinsent Masons, said: “The Singaporean government has announced these changes with the aim of ensuring that Singaporeans are at the centre of the workforce, but employers can still find skilled and expert workers that strengthen the country’s economy.”

“Businesses and employers have less than a year to factor these changes into their strategies and payroll and should begin to prepare imminently,” she said.

Lastly, in the budget speech 2026, it was announced that lower-wage foreign workers will also receive a pay rise, with the minimum wage rising from S$1,600 to S$1,800 a month. This measure to uplift and strengthen support for lower-wage workers builds on Singapore’s progressive wage model.

“In light of these upcoming changes, businesses employing EP or SP holders as well as lower wage foreign workers should begin preparations to ensure compliance with the revised salary thresholds and budget for the associated increase in manpower costs,” Soh said.