Since 2023, the Ministry of Manpower (MOM) has tightened the requirements for hiring foreign professionals and mid-skilled staff, while making the Work Permit scheme more flexible. Employers should note the higher qualifying salaries, the single S Pass levy rate, a higher Local Qualifying Salary and new Work Permit rules. The Committee of Supply (COS) 2026 announcements add another round of changes from 2027. Below is a summary of what has changed and what is still to come.
Employment Pass (EP)
Qualifying salary
The EP minimum salary was raised from $5,000 to $5,600 a month, and for the financial services sector from $5,500 to $6,200. The new levels applied to new applications from 1 January 2025 and to renewals from 1 January 2026. The minimum rises with the candidate’s age, reaching $10,700 ($11,800 in financial services) for candidates aged 45 and above.
COS 2026 announced the next increase. From 1 January 2027 for new applications, and 1 January 2028 for renewals, the minimum becomes $6,000 ($6,600 in financial services). For candidates aged 45 and above it becomes $11,500 ($12,700 in financial services).
COMPASS
The Complementarity Assessment Framework (COMPASS) took effect for new EP applications from September 2023 and for renewals from September 2024. Candidates must first meet the qualifying salary, then score 40 points across four criteria: salary against local PMET pay in the sector, qualifications, nationality diversity within the firm, and the firm’s support for local employment. Each criterion is worth up to 20 points. Bonus points are available for roles on the Shortage Occupation List and for firms in strategic economic programmes. Candidates earning a fixed monthly salary of at least $22,500, overseas intra-corporate transferees, and those filling a role for one month or less are exempt.
COS 2026 also announced a new ONE Pass (AI and Tech) track, starting in January 2027 and replacing the Tech.Pass.
S Pass
Qualifying salary
The S Pass minimum salary has gone up in steps:
- $3,150 ($3,650 in financial services) for new applications from 1 September 2023;
- $3,300 ($3,800 in financial services) for new applications from 1 September 2025 and renewals from 1 September 2026;
- $3,600 ($4,000 in financial services) for new applications from 1 January 2027 and renewals from 1 January 2028.
The current amount for candidates aged 45 and above is $4,800 ($5,650 in financial services). MOM expects the minimum to reach about $4,000 to $4,500 by around 2030.
Levy
The Tier 1 S Pass levy went up from $450 to $550 on 1 September 2023, and then to $650 on 1 September 2025. As the Tier 2 levy was already $650, all S Pass holders are now charged $650 a month in every sector.
Quotas: dependency ratio ceilings
The dependency ratio ceiling (DRC) is the maximum share of a firm’s total workforce that can be foreign. The sub-DRC is a separate limit on S Pass holders within that ceiling. Current limits by sector:
| Sector | DRC | S Pass sub-DRC |
|---|---|---|
| Services | 35% | 10% |
| Manufacturing | 60% | 15% |
| Construction and Process | 83.3% | 15% |
| Marine Shipyard | 75% (from 77.8% on 1 January 2026) | 15% |
Within these limits, Work Permit holders from Non-Traditional Sources (NTS) are capped at 8% of the workforce.
Work Permit
- Maximum period of employment removed: the previous cap of 14 to 26 years no longer applies, from 1 July 2025.
- Age limits: from 1 July 2025, existing workers can be employed up to age 63 (previously 60), and new applicants must be aged 61 or below. Previously, new applicants had to be under 50 (under 58 for Malaysians).
- New source countries: Bhutan, Cambodia and Laos were added as Non-Traditional Sources from 1 June 2025.
- NTS Occupation List: from 1 September 2025, the list was expanded to include manufacturing operators, cooks and heavy vehicle drivers. More occupations in food services, social services and air transport are being added from September 2026. These hires must be paid a fixed salary of at least $2,000 a month.
- Levies: Marine Shipyard levies rose on 1 January 2026, to $500 for basic-skilled and $350 for higher-skilled workers. From 2028, basic-skilled levies in Marine Shipyard and Process will rise by $100 to $150, and Manufacturing and Services will move from three levy tiers to two. Check MOM’s published tables for the exact rates.
Local Qualifying Salary (LQS)
The LQS sets how much a local employee must earn to count toward a firm’s foreign worker quota. It went from $1,400 to $1,600 on 1 July 2024, and from $1,600 to $1,800 on 1 July 2026. A local employee now counts as one worker if paid at least $1,800 a month, and as half a worker if paid between $900 and $1,800. For part-time staff, the minimum is $10.50 an hour.
Other workforce changes from Budget 2026
- The retirement age rose to 64 and the re-employment age to 69 on 1 July 2026.
- The Progressive Wage Credit Scheme was extended to 2028.
- The Senior Employment Credit was extended to December 2027.
- CPF contribution rates for older workers will rise again from 2027, with the CPF Transition Offset covering half of the employer’s increase in 2027.
Key thresholds at a glance
| Item | Amount | Effective |
|---|---|---|
| EP minimum (general / financial services) | $5,600 / $6,200 | New: 1 Jan 2025; renewals: 1 Jan 2026 |
| EP minimum (general / financial services) | $6,000 / $6,600 | New: 1 Jan 2027; renewals: 1 Jan 2028 |
| S Pass minimum (general / financial services) | $3,300 / $3,800 | New: 1 Sep 2025; renewals: 1 Sep 2026 |
| S Pass minimum (general / financial services) | $3,600 / $4,000 | New: 1 Jan 2027; renewals: 1 Jan 2028 |
| S Pass levy (all sectors and tiers) | $650 a month | From 1 Sep 2025 |
| Local Qualifying Salary | $1,800 a month | From 1 Jul 2026 |
| NTS Occupation List minimum salary | $2,000 a month | Current |
What employers should do
- Check each EP and S Pass holder’s salary against the 2027 and 2028 minimums for their age, especially for passes due for renewal from 2028.
- Recalculate your quota using the $1,800 LQS. Local staff paid below that may now count as half a worker or not at all.
- Budget for the $650 S Pass levy and for the Work Permit levy changes in 2028.
- Check that your foreign headcount is within your sector’s DRC and sub-DRC before applying for or renewing passes.
- Score new EP candidates against COMPASS before making an offer.
- Consider whether the expanded NTS Occupation List, higher age limits or removal of the employment period cap would help your Work Permit hiring.
How we can help
Higher salary thresholds, levies and CPF rates affect payroll costs, accruals and budgets. If you have questions about how these changes affect your financial statements or audit, please contact K.S. NG & Co at enquiries@ksng.com.sg.
Information in this article is correct as at October 2026.