KEY HIGHLIGHTS
- Singapore MOM introduces 2026 workforce rule changes including LQS increase and retirement age revision
- LQS rises to S$1,800 from 1 July 2026; retirement age to 64 and re-employment age to 69
- Employers must review salaries, quotas, and hiring plans to stay compliant
Singapore’s 2026 MOM updates focus on raising wages, tightening foreign workforce policies, and supporting an ageing population. Employers and workers should act early to avoid compliance risks.
Singapore MOM Rule Changes 2026
| Policy Area | Update | Effective Date |
|---|---|---|
| Local Qualifying Salary (LQS) | Increase to S$1,800 | 1 July 2026 |
| Retirement Age | Increase to 64 | 1 July 2026 |
| Re-employment Age | Increase to 69 | 1 July 2026 |
| EP Minimum Salary | S$6,000 (announced) | 2027 (renewals 2028) |
| S Pass Minimum Salary | S$3,600 (announced) | 2027 (renewals 2028) |
| NTS Occupation List Expansion | New sectors added | Sept 2026 |
Higher Local Qualifying Salary (LQS)
From 1 July 2026, LQS increases from S$1,600 to S$1,800.
This directly affects foreign worker quota calculations. Employers must pay at least this amount for local workers to be counted.
Businesses with tight margins should review payroll structures early to avoid quota reductions.
EP and S Pass Salary Changes (Forward Planning)
Although effective from 2027, MOM has already confirmed:
- Employment Pass: S$6,000 minimum
- S Pass: S$3,600 minimum
This signals stricter standards for foreign hires. Employers should align hiring strategies now, especially for renewals in 2028.
Work Permit Rules Adjusted
A key structural shift in 2026 is the removal of the maximum employment period for Work Permit holders.
However:
- Dependency Ratio Ceiling (DRC) remains
- Levy system continues
This allows retention of experienced workers without loosening overall foreign workforce controls.
Expansion of NTS Occupation List
From September 2026, more roles will be added to the Non-Traditional Source Occupation List.
Key details:
- New sectors: food services, social services, air transport
- Minimum salary: S$2,000/month
- Quota cap: 8%
This provides targeted flexibility for industries facing manpower shortages.
Retirement and Re-employment Age Increase
From 1 July 2026:
- Retirement age rises to 64
- Re-employment age increases to 69
This supports older workers staying economically active while helping businesses retain experienced staff.
COMPASS Framework Updates
The COMPASS system continues tightening in 2026:
- Updated sector-based salary benchmarks
- Revised qualification scoring
- Expanded Shortage Occupation List (SOL)
Employers must meet stricter criteria, making workforce planning more data-driven.
Impact on Employers and Employees
For Employers:
- Higher wage commitments
- Stricter foreign hiring criteria
- Need for long-term workforce planning
For Employees:
- Improved salary standards
- Expanded job opportunities
- Longer working careers
Why This Matters
These changes reflect Singapore’s long-term manpower strategy: prioritising local employment while maintaining access to skilled foreign talent.
The increase in LQS and pass salary thresholds ensures wages remain competitive. At the same time, policies like removing Work Permit limits and raising retirement age address labour shortages.
For businesses, delayed action could lead to quota reductions or higher compliance costs. Early adjustment is the safer approach.
What You Should Do Now
- Review salary structures before July 2026
- Plan hiring budgets for 2027 pass changes
- Assess workforce ageing and retention strategies
- Monitor quota limits and sector eligibility
FAQs
1. When does the new LQS take effect?
The revised LQS of S$1,800 starts from 1 July 2026.
2. Are EP salary changes effective immediately?
No. They apply from 2027, with renewals from 2028.
3. Is the Work Permit employment cap fully removed?
Yes, but quotas and levies still apply.
4. What is the new retirement age in Singapore?
It increases to 64 from 1 July 2026.
5. Which sectors benefit from NTS expansion?
Food services, social services, and air transport are included.
