Amendment to Section 157 of the Companies Act 1967

The Corporate and Accounting Laws (Amendment) Bill (the “Bill”), which will come into effect from April 2026, makes amendments to the Accounting and Corporate Regulatory Authority Act 2004, the Accountants Act 2004, the Companies Act 1967 (“CA”), the Insolvency, Restructuring and Dissolution Act 2018, the Limited Liability Partnerships Act 2005, the Limited Partnerships Act 2008 and the Variable Capital Companies Act 2018. The Bill also makes consequential and related amendments to the ACRA (Registry and Regulatory Enhancements) Act 2024, the Exchanges (Demutualisation and Merger) Act 1999 and the Securities and Futures Act 2001.

Specifically to Section 157 of the CA, the Bill’s amendments increase the penalties for directors who breach their statutory duties to act honestly and exercise reasonable diligence to serve as a stronger deterrent. The increased penalties include a maximum fine of S$20,000 or imprisonment for a term not exceeding 12 months, or both. Please refer to the table below for an easy comparison:

CA	Pre-April 2026	From April 2026
Section 157	Maximum fine of S$5,000; or Imprisonment for up to 12 months	Maximum fine of S$20,000; or Imprisonment for a term not exceeding 12 months; or Both

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Understanding the New Employment Pass Criteria

Significant changes to the Employment Pass (EP) salary requirements in Singapore took effect from 1 January 2025. These updates are designed to attract highly skilled professionals while promoting fair job opportunities for local residents.

Key Changes on New Employment Pass Criteria:

• Updated Minimum Salary Requirements:

  • For new EP applicants across all sectors, the minimum qualifying salary will increase from SGD 5,000 to SGD 5,600 per month. In the financial services sector, this threshold will rise from SGD 5,500 to SGD6,200.

• Enhanced Salary Criteria for Experienced Professionals:

  • The salary requirements increase progressively with age, reflecting greater experience and seniority expectations.

  • For those aged 45 and above, the qualifying salary for all sectors will be SGD 10,700, while professionals in the finance sector will need to meet a threshold of SGD 11,800.

  • This age-adjusted approach ensures that salary expectations align with the level of expertise and responsibility typically associated with older professionals.

Implications for Employers and Foreign Professionals:

• For Employers:

  • Companies will need to reassess their compensation packages to meet the new EP criteria, which may lead to increased operational costs and internal equity concerns. Employers are encouraged to invest in training programs to elevate the skills of local employees, aligning with national workforce development goals.

• For Foreign Professionals:

  • Prospective EP applicants must ensure their offered salaries meet the updated thresholds. Those currently holding EPs should be aware that renewal applications may also be subject to the new criteria, necessitating discussions with employers about potential salary adjustments.

Note: This information is accurate as of the point of publishing.

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Upcoming Changes to Central Provident Fund (CPF) Contribution Rates for Senior Workers

Singapore is preparing to implement significant changes to the Central Provident Fund (CPF) contribution framework, with the aim of enhancing retirement savings for its workforce. These adjustments focus particularly on senior workers, ensuring they are better equipped for financial stability in their post-retirement years.

Key Changes for Central Provident Fund (CPF)

Effective January 1, 2026, CPF contribution rates for senior workers aged 55 to 65 will increase by 1.5%. This adjustment includes a 0.5% rise in employer contributions and a 1% increase in employee contributions. These changes are designed to strengthen retirement savings for Singapore’s aging workforce. For more details on these revised rates, please visit the CPF Board's official website.

Implications for Employers and Employees:

• For employers:

  • Companies will need to adjust their payroll systems to accommodate the revised CPF contribution rates.

  • Ensuring adherence to these new regulations is essential to avoid penalties and maintain smooth payroll operations.

• For employees:

  • Employees should expect changes to their take-home pay, as a larger portion of their earnings will now be allocated to CPF accounts. While this may slightly reduce immediate disposable income, it will significantly enhance long-term retirement savings.

Conclusion

By confirming contribution rate adjustments for older workers, the government facilitates greater accumulation of retirement funds, promoting long-term financial security. Both employees and employers should prepare for these adjustments to fully benefit from the enhanced CPF contribution structure.

Note: This information is accurate as of the point of publishing.

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