SINGAPORE: In a recent address, Prime Minister Lawrence Wong unveiled significant updates regarding the Employment Pass and S Pass salary thresholds, marking a change in hiring practices from January 2027. These adjustments aim to ensure that Singapore’s workforce policies remain aligned with the nation’s economic needs and support for local workers.
New Salary Guidelines for Foreign Workers
Starting January 2027, the qualifying salary for Employment Pass holders will rise from S$5,600 to S$6,000. Similarly, salaries in the financial services sector will be increased from S$6,200 to S$6,600. For S Pass holders, the new minimum salary will increase from S$3,300 to S$3,600, while financial services will see a new minimum of S$4,000, up from S$3,800.
- Employment Pass: S$5,600 ➡️ S$6,000
- Financial Services: S$6,200 ➡️ S$6,600
- S Pass: S$3,300 ➡️ S$3,600
- Financial Services S Pass: S$3,800 ➡️ S$4,000
These new salary thresholds will also apply to renewal applications starting from January 2028, ensuring a gradual transition for employers.
Supporting Local Workers
To bolster local wages, the qualifying salary for full-time local employees will also be adjusted from S$1,600 to S$1,800 starting July 2024. This is part of the government’s initiative to ensure fair wages across the board as firms hire foreign talent. Employers will also benefit from increased co-funding support under the Progressive Wage Credit Scheme, which aims to help them meet these new wage requirements.
Budget Surplus Forecast for 2025
In related fiscal updates, Singapore’s budget surplus for the 2025 financial year is expected to soar to S$15.1 billion, more than double previous estimates. Prime Minister Wong attributed this robust financial position to improved economic performance, particularly in corporate tax collections, which are now projected at S$35.2 billion.
Future Expenditure Plans
The total expenditure for financial year 2025 is anticipated to be S$124.5 billion, leading to a revised budget size of S$143.3 billion, or approximately 17.9% of GDP. As the government gears up for future challenges, spending on key areas such as development, security, and healthcare will see significant increases.
With a roadmap for managing revenues responsibly, Mr Wong emphasised Singapore’s commitment to maintaining sound public finances, allowing the nation to invest innovatively in programs that benefit all Singaporeans.