Budget 2026: Salary threshold for new Employment Pass applicants to be raised to $6,000 from 2027
(Photo credit: ST Photo/Lim Yaohui)
Source: The Straits Times
A slew of changes to the foreign work pass system is set to keep the Republic open to skills and expertise from foreigners that will strengthen its economy while ensuring Singaporeans remain at the core of the local workforce.
“Foreign professionals and workers strengthen our teams, transfer knowledge and enable companies to grow – this in turn creates more and better opportunities for Singaporeans,” Prime Minister Lawrence Wong said in his Budget statement on Feb 12.
“At the same time, we will continue to ensure that our foreign workforce complements a strong Singaporean core.”
Among the changes is an increase in the Employment Pass (EP) qualifying monthly salary for new applicants from January 2027, and for those who are renewing it from the year after.
The minimum qualifying monthly salary will be raised to $6,000, from $5,600 currently.
The move maintains the quality of EP holders as local wages rise, PM Wong said.
He added that the minimum qualifying salary for EP applicants in the financial services sector will be raised to $6,600 from the current $6,200, as the sector has higher salary norms.
The minimum qualifying salary for candidates aged 45 and above will also rise to up to $11,500, and to up to $12,700 for those in financial services.
PM Wong, who is also Finance Minister, said the minimum qualifying salary for new S Pass applicants will also be increased from January 2027, and for those who are renewing it the year after.
Their minimum qualifying salary will be raised to $3,600 from $3,300. For the financial services sector, this will be raised to $4,000 from $3,800.
The minimum qualifying salary for candidates aged 45 and above will also rise to up to $5,100, and to up to $5,650 for those in financial services.
Work permit levies will also be adjusted, but these changes will take effect from 2028 to give businesses time to adjust, said PM Wong.
For the marine shipyard sector, the monthly levy rate for basic-skilled work permit holders will be raised by $100. There is no change to the levy rate for higher-skilled work permit holders.
For the process sector, the monthly levy rate for basic-skilled work permit holders will be raised by $150. There is no change to the levy rate for higher-skilled work permit holders.
For the manufacturing and services sector, there are currently three tiers where companies pay progressively higher levies as the proportion of their foreign workers in their total workforce increases. The tiers will be reduced to two tiers from 2028.
There were 201,200 EP holders, 177,600 S Pass holders and 1,182,500 work permit holders as at June 2025, according to the Ministry of Manpower’s website.
More details on the updates to the foreign worker policies will be shared during the debate on the Ministry of Manpower’s budget.
The range of workforce measures reflects Singapore’s approach to stay open to skills and expertise that strengthen the economy, while ensuring that Singaporeans remain firmly at the centre of the workforce and policies, PM Wong said.
“We will help Singaporeans adapt to change with confidence, move across career transitions with assurance, and build meaningful and fulfilling careers,” he added.