Budget 2026: Singapore hikes work permit levies hitting marine and process sectors

Manufacturing and services will move to a simpler tier structure starting in 2028.

Singapore will refine foreign worker policies to reflect changing economic conditions.

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

“We will raise the employment pass, or EP, minimum qualifying salary for new applicants, from $5,600 to $6,000 from January 2027 This maintains the quality of the EP holders as local wages rise,” Prime Minister Lawrence Wong said at the Singapore Budget 2026.

“For the financial services sector, which has higher salary norms, we will raise the minimum qualifying salary from $6,200 to $6,600 the qualifying salaries for older EP applicants will be raised in tandem for renewal applications,” Wong added.

Renewal applications for older EP holders will follow the same adjustments in 2028. 

S Pass salaries will also increase: the minimum for new applicants will rise from $3,300 to $3,600, and in financial services from $3,800 to $4,000, with renewals adjusted in 2028.

Work permit levies will be revised for the marine and process sectors, increasing by $100 and $150 respectively for basic skilled workers. 

The levy structure for manufacturing and services sectors will be simplified, with details provided in the budget . These changes will take effect in 2028, giving businesses time to adjust.

Overall, the government said these measures aim to keep Singapore open to skills and talent whilst ensuring Singaporeans remain central to workforce policies.