HR updates from Singapore Budget 2026: EP and S Pass salary hikes on the horizon

EP and S Pass salary thresholds will increase from 2027, support for lower-wage workers will be enhanced, and SSG and WSG will merge.

In Singapore's 2026 Budget announced today (12 February), Lawrence Wong, Singapore’s Prime Minister and Minister for Finance announced measures to strengthen support for lower-wage workers, improve skills development, and refine foreign workforce policies.

“Every Singaporean, regardless of where they start in life, should have a fair chance to pursue their aspirations and realise their full potential,” he said.

As such, here are the most important updates impacting HR leaders from the announcement.

The Local Qualifying Salary (LQS), for companies that hire foreign workers, will be raised from $1,600 to $1,800.

The Progressive Wage Credit Scheme (PWCS) will be extended for two more years until 2028, with the government co-funding for this year to increasing from 20% to 30%. From next year, the minimum wage increase required to qualify for PWCS support will rise from $100 to $200. The scheme's basic tier will be enhanced, and the hourly training allowance workers upgrading their skills will be increased.

On workforce development, PM said the systems of learning must work more seamlessly together. As such, SkillsFuture Singapore and Workforce Singapore will be merged into a new statutory board, jointly overseen by the Ministry of Education (MOE) and the Ministry of Manpower (MOM).

The aim is to create a one-stop platform for skills training, career guidance, and job matching. Employers will receive more integrated support in workforce planning, job redesign, hiring and development, while workers can expect clearer career pathways and stronger transition support.

Foreign workforce policies will also be updated to reflect evolving conditions.

From January 2027, the Employment Pass (EP) minimum qualifying salary will rise from $5,600 to $6,000, and $6,200 to $6,600 for the financial services sector.

S Pass qualifying salaries will also increase from $3,300 to $3,600, and $3,800 to $4,000 for financial services.

Revised qualifying salaries for older applicants, in both types of passes, will take effect from 2028 to give businesses time to adjust.

Together, these measures aim to strengthen support for Singaporean workers while ensuring businesses remain competitive in a changing global landscape.

ALSO READ: Live coverage: Singapore Budget 2026 presented by PM Lawrence Wong

Lead image / PM Wong Facebook