Corporate Immigration update: EP and S Pass qualifying salaries to increase; Work Permit levies to be revised
Overview
In the recent Budget 2026 announcement, the Singapore Government confirmed revisions to foreign manpower policies, including:
- An increase in the qualifying salary for new Employment Pass (EP) applicants
- Adjustments to S Pass qualifying salary requirements
- Revisions to Work Permit levy rates
These changes form part of Singapore’s continued efforts to strengthen local wage growth while maintaining access to global talent.
Who will be affected?
The changes will primarily affect:
- Employers sponsoring foreign professionals under the Employment Pass (EP) scheme
- Employers hiring S Pass holders
- Companies employing Work Permit holders
- HR and Global Mobility teams managing workforce cost planning and compliance
Background
The Employment Pass and S Pass frameworks are administered by the Ministry of Manpower (MOM).
Under the announced changes:
Employment Pass (EP):
The minimum qualifying monthly salary will be raised to S$6,000, from S$5,600.
For the financial services sector, the minimum qualifying salary will increase to S$6,600, from S$6,200.
These changes will take effect:
- 1 January 2027 for new applicants
- 1 January 2028 for renewals.
S Pass:
The minimum qualifying monthly salary will be raised to S$3,600, from S$3,300.
For the financial services sector, the minimum qualifying salary will increase to S$4,000, from S$3,800.
These changes will take effect:
- 1 January 2027 for new applicants
- 1 January 2028 for renewals.
Work Permit:
Work Permit levies will be adjusted from 2028 to allow businesses time to adapt.
For the marine shipyard sector, the monthly levy rate for basic-skilled Work Permit holders will be raised by S$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 S$150. There is no change to the levy rate for higher-skilled Work Permit holders.
For the manufacturing and services sectors, the current three-tier levy structure will be reduced to two tiers from 2028.
Impact
With these revisions:
- Employers must meet higher salary benchmarks for new EP and S Pass applications.
- Companies in the financial services sector will face higher qualifying thresholds reflecting sector-specific wage norms.
- Employers hiring mid-career or senior foreign professionals may see more significant increases due to age-tiered salary requirements.
- Companies employing Work Permit holders may experience cost adjustments from 2028.
- Companies in marine shipyard and process sectors will experience levy increases for basic-skilled Work Permit holders from 2028.
- Manufacturing and services employers will see restructuring of levy tiers from 2028.
Forward workforce budgeting and compensation benchmarking will require early review.
Date of implementation
- 1 January 2027 for new EP and S Pass applications
- 1 January 2028 for EP and S Pass renewals
- 2028 for Work Permit levy adjustments
Santa Fe recommendation
We recommend that employers conduct an early workforce impact assessment to evaluate exposure to the revised EP and S Pass qualifying salaries, as well as potential levy adjustments.
Proactive planning will enable organisations to:
- Align compensation strategies with regulatory requirements
- Anticipate cost implications
- Minimise renewal and eligibility risks
Our Singapore Immigration team will continue to monitor further announcements and provide updates as additional operational details are released.
Contact us
Please get in touch with us for further information or clarification:
Leesa Abdullah
Immigration Manager — Singapore
Santa Fe Relocation
leesa.abdullah@santaferelo.com
Hema Jesani
Senior Manager Global Immigration
Santa Fe Relocation
Hema.Jesani@santaferelo.com
About our Immigration Services
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