Foreign Worker Levy and Work Pass Changes in 2026 Explained

Budget 2026 raised Employment Pass and S Pass salary thresholds, the Local Qualifying Salary, and Work Permit levy rates. These changes will be rolled out in stages between 2026 and 2028. Let’s explore what is changing, when each change starts, and what employers should do now.

What Are the New Employment Pass and S Pass Salary Thresholds?

The Employment Pass minimum salary for 2026 rises from $5,600 to $6,000 for most sectors, and from $6,200 to $6,600 for financial services. The s pass minimum salary 2026 rises from $3,300 to $3,600 for general sectors, and from $3,800 to $4,000 for financial services.

Pass	Sector	Current minimum salary	New minimum salary
Employment Pass	All sectors except financial services	$5,600	$6,000
Employment Pass	Financial services	$6,200	$6,600
S Pass	General sectors	$3,300	$3,600
S Pass	Financial services	$3,800	$4,000

These S Pass salary 2026 and Employment Pass figures do not apply right away. The dates to keep track of are:

• New applications: from 1 January 2027

• Renewals of existing passes: from 1 January 2028

The one-year gap between new applications and renewals is commonly missed during workforce planning. Both passes also use an age-tiered salary scale, so older applicants must meet higher minimum salaries on top of these baseline figures.

What Is Changing With the Local Qualifying Salary and Work Permit Levy?

The local qualifying salary 2026 rises from $1,600 to $1,800 a month from 1 July 2026. Several Work Permit levy rates are also changing.

The Local Qualifying Salary is the minimum a full-time local employee must earn for that employee to count toward your foreign worker quota. From 1 July 2026, any local employee paid below $1,800 a month will no longer count toward this quota.

Here is a summary of the foreign worker levy 2026 changes:

• Marine shipyard sector: Basic-Skilled Work Permit levy rises by $100 a month

• Process sector: Basic-Skilled Work Permit levy rises by $150 a month

• Higher-skilled levy rates: no change

• S Pass levy: no change at $650 a month

• Manufacturing and services sectors: a broader levy restructuring is planned for 2028

What Should Employers Do to Prepare?

Two things matter most right now: check whether your local employees' salaries meet the new threshold, and review your Employment Pass and S Pass pay before 2027 and 2028.

• Check any local employees earning between $1,600 and $1,799 a month because from 1 July 2026, the new salary threshold applies so these roles may no longer count towards your foreign worker quota.

  
  

• Review Employment Pass and S Pass salaries before the 2027 and 2028 deadlines. Pay close attention to older employees, since age-tiered salaries are rising too.

Doing this early gives you time to adjust budgets and hiring plans, instead of scrambling at renewal time.

What's the Best Way to Track Changes Going Forward?

There are two ways to stay on top of foreign worker levy and work pass rules: track them yourself, or bring in a partner who does it for you.

You can follow the Government's Budget announcement each year, or check the Ministry of Manpower's website regularly for updates. If you do not have the time or resources to track every change, outsource to HR and payroll specialists. They stay updated on every threshold and levy adjustment and can advise you on the right next steps.

Speak with the Trusted Services HR payroll services team about a workforce cost review before the 2026 to 2028 changes take effect.