The government will raise the local qualifying salary for full-time local employees to $1,800 from $1,600 previously.
The move comes as the government seeks to “strengthen support for lower-wage workers,” says Prime Minister and Finance Minister Lawrence Wong at Budget 2026.
To help businesses offset some of the cost, the government will also raise the co-funding support for Progressive Wage Credit Scheme (PWCS) from 20% to 30% this year.
The PWCS will also be extended for two more years to 2028.
Next year, the minimum wage increase to qualify for PWCS support will be increased to $200 from $100. “This will better encourage and reward the firms that invest in their workers,” says Wong.
The measures build on the Progressive Wage Model (PWM), which were developed with the government’s tripartite partners. “The PWM goes beyond a simple flat minimum wage and instead links pay increases to skills, productivity and career progression – and it is delivering results,” says Wong.
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The government will also continue to boost training support for the PWM by enhancing the basic tier of the scheme and increasing the hourly allowance for workers who upgrade their skills.
Senior Employment Credit extended to end-2027
The Senior Employment Credit will be extended to the end of 2027, says Wong, in a bid to support employers to continue to employ senior workers.
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Senior workers, he says, are an “important group”.
He adds that the government will support senior workers including helping them plan for their later-stage careers and supporting them in refreshing their skills.
The Minister of Manpower (MOM) has convened a Tripartite Workgroup on Senior Employment to study these issues; their recommendations will be released later this year
EP minimum qualifying salary increased to $6,000
The minimum qualifying salary for the Employment Pass (EP) will be raised to $6,000 from $5,600 from January 2027.
“This maintains the quality of the EP holders, as local wages rise,” says Wong.
The minimum qualifying salary for EP holders under the financial services sector, which has higher salary norms, will be raised to $6,600 from $6,200.
The qualifying salaries for older EP applicants will be raised in tandem.
The changes will apply in 2028 for application renewals “to give businesses more time to adjust.
