Singapore
Singapore Government accepts the National Wages Council Guidelines for 2025-2026
Impact date: 1 December 2025 to 30 November 2026 On 11 November 2025, the Singapore Government accepted the National Wages Council (NWC) 2025/2026 Guidelines for the period from 1 December 2025 to 30 November 2026. The NWC emphasizes sustainable wage growth tied to productivity, with recommended built-in increases of 5.5%–7.5% or SGD 105–SGD 125 for lower-wage workers (earning up to SGD2,700), depending on business performance. Updated job ladders and higher wage floors for Occupational Progressive Wages (OPW)-covered Administrators and Drivers will take effect from July 2026. Employers are encouraged to fully adopt the Flexible Wage System.
Employer implications/action needed Review pay structures for lower-wage staff and prepare for OPW wage-floor changes; consider implementing or strengthening Flexible Wage System for cost flexibility.
Extension of Part-Time Re-employment Grant
Impact date: 18 December 2025
The Part-Time Re-employment Grant (PTRG) is a Singapore government funding scheme designed to encourage employers to hire or retain senior workers aged 60 and above by offering them part‑time re-employment opportunities.
The PTRG will be extended to 31 December 2027. Employers will receive SGD 2,500 for employing each senior worker aged 60 years and above, subject to a cap of SGD 125,000 per employer.
Employer implications/action needed Employers should note the PTRG and apply for the grant when offering part-time re-employment to eligible senior workers.
Employer risk N/A
CPF contribution changes
Impact date: 1 January 2026 Central Provident Fund (CPF) contributions are mandatory social security contributions that both employers and employees must make. They fund retirement, healthcare, and housing for Singapore citizens and permanent residents.
From 1 January 2026, the following changes are made to CPF contributions:
- the Ordinary Wage (OW) ceiling is increased from SGD 7,400 to SGD 8,000. This increase was implemented in four phases starting from 1 September 2023, providing employers and employees with time to adapt to the changes
- for employees aged above 55 to 65, the CPF contribution rates are increased by 1.5% to enhance their retirement savings. This adjustment comprises a 0.5% rise in employer contributions and a 1% rise in employee contributions. Consequently, the total CPF contribution rate will be 34% for those aged above 55 to 60, and 25% for those aged above 60 to 65
Employer implications/action needed Employers should note the CPF contribution changes.
Employer risk If employers do not apply the statutory CPF rates, they risk having to pay CPF arrears (including the employee share), late‑payment interest, and potential enforcement action by the CPF Board. They also face employee complaints, payroll inaccuracies, and reputational damage.
Enhanced Workfare Skills Support Scheme for lower-wage workers
Impact date: 9 February 2026
The Workfare Skills Support (WSS) Scheme, which supports lower-wage workers to upgrade their skills, will be enhanced through the WSS (Level Up). This enhancement targets lower-wage workers who earn up to SGD 3,000 per month and are aged 30 and above. Key features of the WSS (Level Up) include:
- eligible self-sponsored trainees who pursue long-form training (i.e. substantial, multi‑month training that leads to full qualifications) can receive a higher training allowance of up to SGD 18,000 per year for full-time training and SGD 3,600 per year for part-time training
- trainees can receive support for up to 24 months of long-form training completed before the age of 40, and another 24 months of long-form training from the age of 40
- existing eligibility criteria for WSS (Basic) will apply to WSS (Level-Up)
Employer implications/action needed Employers should note the enhancements for workforce planning and skills development initiatives.
Employer risk N/A
Changes to local qualifying salary
Impact date: 1 July 2026
The local qualifying salary (LQS) is the minimum monthly or hourly wage that a Singaporean or Permanent Resident employee must be paid in order for an employer to count that employee towards its Work Permit or S Pass quota. The Progressive Wage Credit Scheme (PWCS) is a Singapore Government wage‑support scheme that helps employers manage the cost of raising wages for lower‑wage Singaporean and Permanent Resident workers.
During the Singapore Budget 2026 on 12 February 2026, the Singapore Government announced revisions to the LQS.
From 1 July 2026, the LQS will be increased from SGD 1,600 to SGD 1,800 to keep pace with wage growth. To help businesses defray some of the cost, the Singapore government will enhance the PWCS – the PWCS co-funding support for 2026 will be raised from 20% to 30% and the PWCS will be extended for two more years, to 2028. From 2027, the government will raise the minimum wage increase to qualify for PWCS support from SGD 100 to SGD 200.
Employer implications/action needed Employers should note the changes to the LQS.
Employer risk N/A
Uplifts to minimum qualifying salary for Employment Pass and S Pass applicants
Impact date: January 2027
During the Singapore Budget 2026 on 12 February 2026, the Singapore Government announced revisions to the qualifying salary thresholds that foreign workers (Employment Pass (EP) and S Pass holders) must earn to qualify for the relevant work pass.
From January 2027, the minimum qualifying salary for new EP applicants will increase from SGD 5,600 to SGD 6,000. In the financial services sector, the minimum qualifying salary will rise from SGD 6,200 to SGD 6,600. Qualifying salary thresholds for older EP applicants will be adjusted correspondingly. These revised criteria will apply to EP renewal applications from 2028.
Similarly, from January 2027, the minimum qualifying salary for new S Pass applicants will increase from SGD 3,300 to SGD 3,600. In the financial services sector, the threshold will be raised from SGD 3,800 to SGD 4,000. Qualifying salaries for older S Pass applicants will be adjusted in tandem, with the updated requirements applying to renewal applications from 2028.
Employer implications/action needed Employers should note the uplifts to the minimum qualifying salary for EP and S Pass applicants.
Employer risk N/A
Public Consultation on Workplace Fairness Second Bill
Impact date: Anticipated to take effect in end of 2027
The Ministry of Manpower (MOM) launched a public consultation, from 26 August 2025 to 19 September 2025, on the Workplace Fairness Act (WFA) Second Bill (the “Second Bill”), which sets out the process for individuals to make claims against firms if they experience workplace discrimination.
On 4 November 2025, Parliament passed the Second Bill which addresses the following:
- creation of statutory tort of discrimination
- appropriate judicial forum and parameters for workplace discrimination claims
- safeguards against frivolous workplace discrimination claims
- amicable resolution of workplace discrimination claims
Employer implications/action needed Employers should be prepared for more structured dispute resolution processes and possible greater union involvement. It would be prudent to review existing HR and grievance-handling policies to ensure they can withstand scrutiny under the new framework.
Employer risk N/A
Links Ministry of Manpower Press Release (4 November 2025); Ministry of Manpower Press Release (14 October 2025); Ministry of Manpower Press Release (4 August 2025)
Review of Employment Act
Impact date: Awaiting details to be announced.
On 4 August 2025, the Tripartite Workgroup, co-chaired by leaders from the Ministry of Manpower, National Trades Union Congress, and Singapore National Employers Federation, convened its first meeting to develop recommendations for the review of the Employment Act 1968 (the “Employment Act”). The tripartite partners agreed on the scope and focus areas of work in order to account for the changing labor force profile, evolving forms of work and challenging economic landscape. This would include ensuring adequate protection for different groups of workers and streamlining the Employment Act to reduce regulatory and compliance costs for businesses.
Employer implications/action needed Employers should monitor upcoming announcements on the Employment Act review, as potential changes may impact employment terms and HR practices. Early awareness will help ensure timely adjustments, if needed.
Employer risk N/A
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