Budget 2026: Quick takes on salary threshold adjustments for EP, S-Pass holders 

[SINGAPORE] Minimum qualifying salaries for employment pass (EP) and S Pass holders will be raised, said Finance Minister Lawrence Wong in his Budget speech on Thursday (Feb 12).

The qualifying salary for new EP applicants will be set at S$6,000, up from S$5,600. Additionally, the salary threshold for those in the financial services sector is now S$6,600 – an increase from S$6,200 previously.

S Pass holders will see the minimum salary threshold rise to S$3,600 from S$3,300, and to S$4,000 from S$3,800 for those in financial services.

The measures take effect for new applicants starting January 2027, and 2028 for those renewing their passes.

They come as local wages rise, too, amid the local qualifying salary (LQS) for local workers in companies employing foreign workers increasing to S$1,800 from S$1,600 in 2026.

Here’s what analysts and observers have to say about these moves:

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Budget 2026: Singapore to raise EP and S Pass qualifying salaries from 2027

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Lily Cheang, partner, people advisory services tax, global immigration at EY Solutions

• “Budget 2026 introduces targeted refinements to Singapore’s foreign manpower regime by adjusting levies and increasing qualifying salaries for both Employment Pass and S Pass holders. These changes reinforce the government’s continued focus towards a higher quality and more competitive workforce.”
• “Businesses will need to reassess manpower strategies, manage cost impacts, and deepen local talent development to stay aligned with the evolving requirements.”

Lennon Lee, tax leader at PwC Singapore

• “Increasing the minimum qualifying salary for new applicants for EP and S Pass for foreign workers in 2027, coupled with potential higher work permit levies, can result in higher operating costs for some segments of the economy that rely heavily on foreign workers, including service, F&B and the retail industry.”
• “A key question which remains is whether these businesses will eventually have to pass on the higher costs to consumers instead, given the tight local labour market.”

The Singapore Manufacturing Federation

• “Although we understand the need to maintain the quality of the foreign workforce, these adjustments will undoubtedly add to the cost pressures for manufacturers, 66.7 per cent of whom are already grappling with wage inflation. We are concerned that the increase in costs may affect our long-term competitiveness.”

Christina Karl, immigration leader at Deloitte Singapore and Global

• “This move reinforces the stance that foreign professionals must come in at salary levels that reflect genuine expertise and productivity, and that they should complement, not undercut, the local workforce.”
• “The higher LQS threshold, which affects how many locals can be counted towards a company’s S Pass quota, further tightens access to lower-cost foreign manpower at the S Pass level.”
• “By requiring employers to pay locals at or above the revised LQS before they can avail of the S Pass quota, the government is now nudging firms to invest more meaningfully in their Singaporean core, instead of relying on ‘token’ local hires to support a larger pool of foreign S Pass holders.”

For more of BT’s Budget 2026 coverage, go to bt.sg/budget26