Immigration

Singapore | Foreign workforce policy updates

Summary

Following the announcements in Singapore’s Budget 2026, the Ministry of Manpower (MOM) outlined further foreign workforce policy updates during the 2026 Committee of Supply (COS) debate. The changes aim to maintain a high-quality foreign workforce while strengthening Singapore’s competitiveness in emerging areas such as artificial intelligence (AI) and advanced technologies. A key development is the introduction of a new AI & Tech track under the Overseas Networks & Expertise Pass (ONE Pass) from January 2027, which will replace the existing Tech.Pass.

Taken together, these measures reflect Singapore’s continued policy approach of carefully calibrating foreign manpower policies to support economic transformation while ensuring better employment opportunities for the local workforce.

The detail

New ONE Pass AI & Tech Track

MOM announced that a new AI and Tech track will be introduced under the Overseas Networks & Expertise Pass (ONE Pass) from January 2027, replacing the existing Tech.Pass scheme.

The new pathway aims to attract leading global talent in artificial intelligence and advanced technology sectors to support the development of its AI and technology ecosystem.

Key features of the new track include:

• Extension of the company criteria beyond USD$500M market capitalisation or USD$200M annual revenue criteria, to include US$500M assets under management (AUM) as well as tech companies that raised funding of at least USD$30M
• Applicants must earn at least $30,000 per month for 12 consecutive months leading up to the date of application. This may comprise a combination of cash (minimum SGD$22,500 per month) and vested non-cash compensation, such as employee stock options or equity awards.
• Applicants must also have or last-held employment in a tech company, or tech division within a company or a tech venture capital firm, with at least 5 years of relevant experience within the last 10 years. In addition, applicants must have served as a founder, held a C‑suite position, or performed in a technical role.

The overall qualifying income threshold of SGD$30,000 per month remains unchanged, but the new track introduces greater flexibility in how compensation is assessed, reflecting the common use of equity-based remuneration in the technology industry.

Employers may wish to review existing equity compensation plans to assess potential Singapore tax implications. Private companies may also need to consider how equity awards are valued when determining whether the qualifying income threshold is met.

MOM is expected to release further implementation details closer to the launch.

Policy Objective

The latest policy updates reflect Singapore’s ongoing strategy to:

• Maintain a high-quality and complementary foreign workforce
• Encourage businesses to invest in productivity and workforce transformation
• Strengthen the local talent pipeline and wage growth
• Continue attracting top global talent in strategic sectors such as artificial intelligence and advanced technologies.

Employment Pass (EP) and S Pass Qualifying Salary

Announced in our recent budget alert, the minimum qualifying salaries for Employment Pass (EP) and S Pass holders will increase as follows, effective 1 January 2027 (new applications) and January 2028 (renewal applications):

Employment Pass (EP)

• Financial Services sector: From S$6,200 to S$6,600, increasing progressively with age up to S$12,700 for candidates in their mid-40s.
• All other sectors: From S$5,600 to S$6,000, increasing progressively with age up to S$11,500 for candidates in their mid-40s.

COMPASS exemption criteria remain unchanged.

S Pass

• Financial Services sector: From S$3,800 to S$4,000, increasing progressively with age up to S$5,650 for candidates in their mid-40s.
• All other sectors: From S$3,300 to S$3,600, increasing progressively with age up to S$5,100 for candidates in their mid-40s.

These adjustments reflect the Government’s continued effort to benchmark foreign workforce salaries against local wage growth, ensuring ongoing complementarity of foreign manpower rather than substitution. The Minister had indicated that by 2030, the S Pass minimum qualifying salary is expected to be around SGD$4,000 to SGD$4,500, subject to prevailing local wages and economic conditions.

Work Permit Framework Updates

Announced in our recent budget alert, the monthly levy rate for basic-skilled workers will be revised in selected sectors as follows:

• Marine sector: From S$500 to S$600 (increase of S$100)
• Process sector, Malaysia, North Asian Sources, PRC: From S$450 to S$600 (increase of S$150)
• Process sector, Non-Traditional Sources: From S$650 to S$800 (increase of S$150)

Levy tier structures will be simplified for both the manufacturing and services sectors, with changes taking effect in 2028 to give businesses time to adjust.

Additionally, the Ministry of Manpower will expand the list of eligible source countries for Work Permit holders, widening the manpower pool for sectors that depend on operational workers.

Changes to the Local Qualifying Salary (LQS)

The Local Qualifying Salary (LQS), which determines how local employees count towards a company’s foreign workforce quota, will increase from S$1,600 to S$1,800 per month, from 1 July 2026.

Employers must ensure that local employees earn at least the LQS to be counted towards the firm’s Dependency Ratio Ceiling (DRC) when calculating foreign workforce quota entitlement.

The adjustment supports Singapore’s ongoing policy objective of strengthening wage growth and workforce quality among local employees.

What employers should do now

With several policy changes taking effect over the next two years, employers should begin assessing the potential impact on their workforce strategy and hiring plans.

Recommended actions include:

• Review workforce composition and compensation
  Assess whether current foreign employees will continue to meet the revised EP and S Pass salary threshold
• Assess quota planning and local workforce requirements
  Companies employing Work Permit and S Pass holders should review their local workforce composition to ensure employees meet the revised Local Qualifying Salary (LQS) requirements for quota calculations.
• Evaluate medium-term labour cost impacts
  Rising qualifying salaries and future Work Permit levy adjustments may increase labour costs. Employers should review hiring budgets and workforce planning ahead of the 2027–2028 implementation timelines.
• Consider opportunities under the ONE Pass framework
  ONE Pass may provide greater flexibility for organisations seeking to attract senior global talent, particularly in technology, AI and innovation-related roles,
• Leverage workforce analytics to support planning
  Vialto Partners’ proprietary workforce analytics tools can provide data-driven insights into the potential impact of evolving manpower policies on an organisation’s workforce, including:

• Model the impact of salary threshold changes on existing and future work pass holders
• Identify employees at renewal risk for proactive business continuity planning
• Assess quota and workforce composition scenarios
• Forecast labour cost implications under different scenarios
• Review compensation structure and associated tax considerations
• Support strategic workforce planning and talent mobility decisions

Early analysis can help organisations identify potential risks, manage costs, and align talent strategies with Singapore’s evolving foreign workforce framework.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Yang Li
Partner

Irin Ou
Director

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