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The Ministry of Manpower has outlined key statutory changes aimed at enabling business competitiveness, building future-proof workplaces, and supporting different segments of Singaporeans.
At this year's Committee of Supply (COS) debate, Singapore's Ministry of Manpower (MOM) announced that it will be taking a three-pillar approach to help businesses and workers transform and thrive in a changed world:
- Enabling businesses to transform and stay competitive,
- Building workplaces that work for all so that no one is left behind, and
- Empowering Singaporeans through all stages of life.
Here’s a closer look at the focused plans driving stronger partnerships between businesses and workers.
All figures reflected are in SGD.
Enabling businesses to transform and stay competitive
MOM said the Enterprise Workforce Transformation Package (EWTP) aims to provide "greater support for companies to embark on workforce transformation."
The EWTP will enhance support for companies in three ways:
- The SkillsFuture Workforce Development Grant (WDG) will provide a single application channel for companies to access workforce transformation schemes.
- WDG brings together existing Government workforce transformation schemesexisting Government workforce transformation schemes — including the Career Conversion Programme and the National Centre of Excellence for Workplace Learning (NACE) Workplace Learning Project — to improve navigation and access of various support schemes.
- From 2026, companies will be able to access workforce transformation support through a single application channel via the Business Grants Portal (BGP), with the WDG rolled out in phases.
- More support will be provided for workforce transformation and job redesign under the SkillsFuture Workforce Development Grant (Job Redesign+) (WDG(JR+).
- The Job Redesign+ (WDG JR+) will launch in March 2026, offering enterprises up to 70% funding support, capped at $150,000 per company. This will provide companies with practical tools and resources to tackle key challenges in job redesign such as reskilling, effective AI adoption, together with additional support to build capabilities for job redesign implementation.
- To qualify, participating enterprises are required to meet the following criteria:
- Registered or incorporated and operating in Singapore, and
- Must have at least three local employees (local employees can be either Singapore Citizens and/or Singapore Permanent Residents.)
- The SkillsFuture Enterprise Credit (SFEC) will be redesigned to allow companies to immediately offset any out-of-pocket expenses of workforce transformation.
- Currently, SFEC is offered as a credit of $10,000 for employers to defray out-of-pocket costs for specified enterprise and workforce transformation programmes on a reimbursement basis.
- In late 2026, the SFEC will be redesigned as follows:
- Companies can use the credits to immediately offset out-of-pocket costs for eligible workforce transformation initiatives and courses, instead of on reimbursement basis.
- All companies with at least three resident employees (Singapore Citizen or Permanent Resident) will receive a fresh amount of $10,000 credit in an online wallet.
- The current SFEC will continue to operate until Nov 2026 to allow companies time to use their remaining credits and plan their transformation efforts accordingly.
To strengthen Singapore’s position as a global hub for AI and tech talent, MOM will introduce a new ONE Pass (AI and Tech) track in January 2027. This will replace the existing Tech.Pass and better recognise key industry leaders and innovators. [Read more on this here.]
MOM will also be raising the quality and complementarity of foreign workers through various initiatives:
- The levy framework will be streamlined to make it easier for businesses to understand and plan their workforce strategies for hiring, training and retaining work permit holders (WPHs).
- For the manufacturing and services sectors, the bottom two levy tiers will be combined into a single tier.
- The highest levy tier rates will remain unchanged to ensure that firms with greater reliance on WPHs continue to pay appropriate levies.
- This aims to incentivise higher-quality WPHs and channel them towards more productive firms and sectors.
- From 2028, levy rates in the marine shipyard and process sectors will be progressively aligned with those in the construction sector. Levy rates for basic-skilled (R2) WPHs in these sectors will increase by $100 and $150 respectively.
- At the same time, MOM will work with the industry to improve the framework for identifying higher-skilled workers who are eligible for lower levies.
- Effective September 2026, MOM will expand the Non-Traditional Source Occupation List (NTS-OL) by adding eight new occupations in the social services, food services and air transportation sectors.
- This will allow businesses to hire higher quality non-PMET workers from more diverse sources for roles where it is more challenging to attract locals.
- The Employment Pass (EP) minimum qualifying salary will be increased from $5,600 to $6,000, and the S Pass minimum qualifying salary will be increased from $3,300 to $3,600 to keep pace with local wage benchmarks.
- These changes will apply to new applications from 1 January 2027 and renewals from 1 January 2028.
- In addition, the S Pass minimum qualifying salary is expected to be around $4,000 - $4,500 by around 2030.
Touching on migrant workers in his speech at the COS, Minister of State for Manpower Dinesh Vasu Dash shared that to support existing dormitories in meeting improved standards by 2030, MOM has introduced the Dormitory Transition Scheme Grant to help defray retrofitting costs for about 900 existing dormitories.
"By 2040, all new and existing dormitories will meet the New Dormitory Standards, providing residents with more spacious rooms, including in-room Wi-Fi coverage as well."
Next, building on existing Recreation Centres (RCs), MOS Dinesh shared that a Recreation Hub (RH) model will be introduced, with an expanded scale and range of offerings for our migrant workers.
"This will start with the redevelopment of Soon Lee RC into the first Recreation Hub. In 2030, migrant workers can look forward to a Soon Lee Recreation Hub that is two to three times larger with upgraded facilities and more offerings.
"Beyond this model, MOM will also pilot smaller-scale satellite RCs to bring social and recreational options closer to where migrant workers live.
Building workplaces that work for all so that no one is left behind
MOM will work with the labour movement and trades associations to strengthen career progression for skilled trades workers.
For one, the Ministry has signed a Memorandum of Understanding with the Specialists Trade Alliance of Singapore (STAS) to pilot initiatives that will uplift the electrical trade, including structured career progression and professional development models, and skills or quality recognition frameworks.
"These "hands-on" roles offer stable career opportunities and will remain essential even as our economy evolves," the Ministry stated.
- The Local Qualifying Salary (LQS) will be raised from $1,600 to $1,800 from 1 July 2026 to keep pace with rising wages and ensure meaningful employment.
- The Progressive Wage Credit Scheme (PWCS) will also be extended to 2028 and increased to 30% co-funding to help cushion the impact for businesses.
- In addition, the qualifying wage increase for PWCS will be raised from $100 to $200 from 2027 to encourage more meaningful wage increases.
- The Workfare Skills Support (Basic) will also provide greater financial support, while enhancements to the Workfare Skills Support (Level-up) scheme will make it easier for workers to pursue both full qualifications and shorter courses.
In his speech, MOS Dinesh stated that the Progressive Wage Model (PWM) serves as wage ladders across nine sectors and occupations.
"These are negotiated by tripartite partners with reference to considerations such as productivity and business conditions, ensuring that wage growth does not exceed what the sector or occupation can bear," he explained.
He added that lower-wage workers receive additional support through the Workfare Income Supplement scheme, or WIS, which "supplements their incomes and helps them save for retirement."
On business transformation, MOS Dinesh addressed the raising the LQS, saying that this initiative will ensure locals are employed meaningfully, so that firms are able to access foreign workers.
"Raising productivity is therefore a key focus of the PWM, as it links wage growth to skills development, career progression and job redesign."
On supporting lower-wage workers in upskilling, sharing that the Government will be broadening the list of courses supported by WSS (Level-Up), to include long-form Workforce Skills Qualification, or (WSQ), full qualifications.
"These courses will be similarly eligible for the Training Allowance under the SkillsFuture Level-Up Programme. The changes will take effect from fourth quarter of this year," he said.
"At the same time, we will also enhance the WSS (Basic) scheme to support workers undertaking shorter training. This will better help workers meet their PWM training requirements or take up Workforce Skills Qualifications courses."
According to MOS Dinesh, the Training Allowance for self-sponsored trainees will be increased from $6/hour to $10.50/hour, effective from 1 July 2026.
"With the increase in the hourly Training Allowance, workers can now actively consider training without having a significant reduction in pay."
The scheme will also be streamlined to reduce complexity. Only trainees who attain full qualifications will receive the Training Commitment Award of $800 per year. Full qualifications are sets of related courses that result in a formal qualification, such as WSQ Qualifications or Academic Continuing Education and Training Qualifications.
"These have been found to lead to better outcomes for trainees, compared to modules that do not lead to formal qualifications," he added.
Empowering Singaporeans through all stages of life
Supporting young Professionals, Managers and Executives (PMEs)
- To support fresh graduates who need more help amidst a more uncertain economic outlook, the Government will continue to offer Graduate Industry Traineeships (GRIT) to 2025 graduates.
- The Overseas Markets Immersion Programme (OMIP) will be expanded to provide earlier access to international experience for young PMEs who are looking to broaden their exposure. The OMIP will help them build global perspectives and networks that strengthen their employers’ and Singapore’s competitive position.
- The Government will offer six months of complimentary access to premium AI tools for individuals who enroll in selected SkillsFuture AI courses, helping Singaporeans build confidence and capability in working alongside AI. By encouraging regular use and experimentation, the initiative aims to reinforce practical application of newly acquired skills.
- The programme will roll out in the second half of the year, with details on the qualifying courses and tools to be announced later.
- Announced at Singapore Budget 2026, SkillsFuture Singapore and Workforce Singapore will be merged into a new statutory board jointly overseen by the Ministries of Education and Manpower, called the Workforce and Skills Singapore (WSSG).
- WSSG will integrate the Government’s skills and employment capabilities to promote more seamless services in career guidance, skills advisory, training and job matching to better support our workers and employers to navigate a rapidly evolving economy.
- This is aligned with the Economic Strategic Review Committee’s recommendation to provide stronger end-to-end support for Singaporeans in bridging skills to jobs.
- MOM and SNEF have convened the Alliance for Action on Advancing Career & Employment Services (AfA-ACES) to engage a wide range of stakeholders, and pilot new services for different workforce segments such as fresh graduates, mid-level professionals, caregivers and seniors.
- "Through this AfA, the government will work with the sector to innovate, transform and develop new solutions," the Ministry added.
- MOS Dinesh added that MOM will also be launching an Alliance for Action on Safety and Health for Employment Longevity (AfA-SHEL) in the second half 2026.
With a focus on unlocking career longevity and strengthening retirement adequacy,
- The retirement and re-employment ages will be raised to 64 and 69 respectively on 1 July 2026. Senior Employment Credit (SEC) will be extended until December 2027, with the highest SEC wage support tier of 7% applying to workers aged 69 and above.
- According to MOM, this will give seniors more flexibility and assurance to continue working if they wish to, whilst enabling employers to retain their workers with valuable experience.
- From 2027, CPF contribution rates for workers aged above 55 to 60 will increase by 1.5 percentage points (p.p.); while rates for those aged above 60 to 65 will rise by 1p.p.
- At the same time, the CPF Transition Offset will be extended by another year to December 2027, to cover 50% of the increase in employer CPF contributions in 2027.
- Additionally, as announced at Budget 2026, a simplified, low-cost lifecycle CPF investment scheme will be introduced in the first half of 2028, and eligible seniors aged 50 and above with lower CPF balances will receive a Budget 2026 CPF Top-up.
According to MOM, these measures reflect the Government's commitment to "building an empowered workforce and thriving workplaces for all Singaporeans."
MOM will continue to work closely with its tripartite partners, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF), to continue building a dynamic economy that creates good jobs and better lives for Singaporeans.
On the topic of inclusivity, Shawn Huang, Senior Parliamentary Secretary for Manpower, shared in his speech that The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), will step up public outreach and education efforts on the Workplace Fairness Act, assuring that the alliance's resources and guides are kept simplified and bite-sized, even SMEs with no dedicated HR personnel will be able to follow and easily apply them.
"No worker should be subjected to such unacceptable practices in the workplace. The Workplace Fairness Act strengthens protections for workers facing harassment by requiring firms to put in place grievance handling processes," he added.
He shared that the Government is working towards helping employers prevent workplace harassment and bullying through reviewing the existing Tripartite Advisory on Managing Workplace Harassment, and developing a new Tripartite Standard on this matter, to allow employers to adopt the best practices to prevent and respond to workplace harassment.
SPS Huang also highlighted targeted measures to support women and caregivers to remain in the workforce. On the financial support, he shared that eligible working caregivers can boost their income and CPF savings through the Workfare Income Supplement and the Earn and Save Bonus under the Majulah Package. For non-working caregivers who have taken extended breaks, they too can benefit from other measures to boost their CPF savings, such as the Matched Retirement Savings Scheme and the Budget 2026 CPF top up.
On leave, SPS Huang raised that based on MOM's surveys, one in two firms offered scheduled FWAs to caregivers pre-pandemic. Post-COVID, "around seven in ten firms offer FWAs, even as firms adapt to new post-COVID norms and adjust provision."
To enhance flexi-load arrangements, like part-time work, job sharing and fractional roles, which may be more suitable for caregivers who need to work at a reduced load to fulfil their caregiving duties, SPS Huang emphasised that the Part-Time Re-employment Grant will help employers with the $125,000 payout.
For persons with disabilities, the Enabling Employment Credit (EEC) helps ease cost concerns for employers. SPS Huang shared that in 2025, 6,800 employers received the EEC for hiring 10,800 Singapore residents with disabilities, up from 6,600 and 10,000 in 2022.
[Read more on how Singapore is supporting employers of individuals with special needs, here.]
He added that MOM is working with tripartite partners and social service agencies on a new Tripartite Advisory on Reasonable Accommodations to provide practical guidance on how reasonable accommodation can be implemented at the workplace.
"This gives employers clarity, and, for workers, confidence to raise accommodation needs early," he highlighted.
"MOM will work closely with MSF to examine how to better support persons with disabilities in our changing job market: through upskilling, reskilling, expanding opportunities, strengthening employer support, and building career resilience."
"MOM will continue working with our partners to scale employment and strengthen post-employment support for persons with disabilities," SPS Huang concluded.
Lead image / Manpower Minister Tan See Leng's Facebook
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