[Legal update] Singapore Employment Law: September 2025 updates

I. Work Injury Compensation Act 2019: new compensation limits effective 1 November 2025[1]

As a reminder, as part of its regular review to keep pace with wage growth and rising healthcare costs, the Ministry of Manpower (“MOM”) has updated the compensation limits under the Work Injury Compensation Act 2019 (“WICA”).

The revised maximum compensation limits, effective 1 November 2025, will increase:

  • For death: from SGD225,000 to SGD269,000.
  • For permanent incapacity: from SGD289,000 to SGD346,000.
  • For medical expenses: from SGD45,000 to SGD53,000.
WICA protects employees who suffer work-related injuries or occupational diseases by allowing them to claim compensation through a simplified, low-cost process without filing a civil suit under common law. Compensation is provided regardless of fault, with statutory caps to protect employers from excessive liabilities.More information is available at: go.gov.sg/wica.

II. Tripartite Workgroup to review the Employment Act 1968 held their first meeting on 4 August 2025[2]

A Tripartite Workgroup (“TWG”) has been formed to review the Employment Act 1968 (“EA”), Singapore’s main labour law governing basic employment terms and working conditions. The review aims to maintain a lasting balance between protecting workers and preserving business flexibility.

The TWG is co-chaired by Mr Ng Chee Khern (Permanent Secretary, MOM), Ms Cham Hui Fong (Deputy Secretary-General, NTUC) and Mr Kuah Boon Wee (Vice-President, SNEF), and brings together union, employer and senior government representatives.

At its first meeting on 4 August 2025, the TWG agreed on the scope and key focus areas of its work.

The TWG’s work will focus on three key objectives:

  • Safeguarding basic employment standards.
  • Balancing business and worker interests while allowing room for sustainable agreements.
  • Keeping Singapore’s labour market competitive through a productive workforce and thriving businesses.

It will study and propose updates to the Act to address the changing workforce profile, new forms of work and a challenging economic environment. The review will also look at strengthening protections for different groups of workers while streamlining the Act to lower regulatory and compliance costs for businesses.

The TWG will consult and engage a wide range of stakeholders including employers and employees to help shape its recommendations. It expects to complete its review and submit its proposals to the Government in the second half of 2026.

III. COMPASS C1. Salary benchmarks: August 2025 update[3]

The MOM recently released the new Complementary Assessment Framework (“COMPASS”) C1. Salary benchmarks by sector (the “Benchmarks”). Updated once a year, these new benchmarks are aimed to reflect the latest market conditions.

COMPASS effective since September 2023, is a transparent points-based system assessing EP applications. It provides businesses with greater clarity and certainty for manpower planning and allows employers to recruit high-quality foreign professionals while enhancing workforce diversity and strengthening the local talent base[4].C1. Salary is one of four core criteria, Salary, Qualifications, Diversity and Support for Local Employment. It compares a candidate’s fixed monthly pay with that of local professionals, managers, executives and technicians (PMETs) in the same sector, and recognises applicants whose salaries meet or exceed those of leading local peers of similar age. This assessment is separate from the EP qualifying salary[5].

The new benchmarks, released in August 2025, shall apply to:

  • New Employment Passes (“EPs”) applications from 1 January 2026.
  • Renewals of EPs expiring from 1 July 2026.

The August 2024 benchmarks remain in force for:

  • New EPs applications from 1 January 2025 to 31 December 2025.
  • Renewals of EPs expiring from 1 July 2025 to 30 June 2026.

Benchmarks are derived from MOM’s Manpower Research and Statistics Department’s (the “MRSD”) annual Comprehensive Labour Force Survey.

IV. Labor market figures for 2Q 2025 have been published on 17 September 2025[6]

The MRSD released the “Labor Market Report 2Q 2025” on 17 September 2025.

The full report is available at: https://stats.mom.gov.sg/Pages/Labour-Market-Report-2Q-2025.aspx

V. A second bill related to the Workplace Fairness Act passed by Singapore Parliament on January 8, 2025, is expected before the end of the year

The Workplace Fairness Act 2025 (“WFA”) passed by Singapore Parliament on January 8, 2025, is expected to take effect in 2026 or 2027. It enforces into legal obligation, the prohibition of discrimination based on eleven (11) protected characteristics for employment such as age, sex, race, nationality, religion, pregnancy, disability, mental health condition and language ability, caregiving responsibilities. The second bill related to the WFA will focus on how individuals can file workplace discrimination claims against private employers. On August 26, 2025, the MOM invited members of the public to provide feedback on the proposed approach to resolving workplace fairness disputes and procedures for making workplace fairness claims under the WFA Second Bill. The consultation has run from 26 August to 19 September 2025. More details will be provided in our next Newsletter.

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[1] Ministry of Manpower’s website, “Higher Compensation Limits Under the Work Injury Compensation Act”, 8 February 2024.

[2] Ministry of Manpower’s website, « Tripartite Workgroup Convenes First Meeting to Develop Recommendations for Review of Employment Act”, 4 August 2025.

[3] Ministry of Manpower’s website, “COMPASS C1. Salary benchmarks”.

[4] Ministry of Manpower’s website, “Eligibility for Employment Pass”.

[5] Ibid.

[6] Ministry of Manpower’s website, “Labour Market Report 2Q 2025”, 17 September 2025.

Astrid Cippe