1. Key employment measures from the Committee of Supply 2026 by the Ministry of Manpower[1]
During the 2026 Committee of Supply Debate, Ministry of Manpower (“MOM”) unveiled a series of measures aimed at helping businesses and workers adapt to a rapidly evolving economic landscape. These initiatives reflect Singapore’s broader strategy to remain competitive in a global environment shaped by technological change, shifting labour markets and increasing demand for high-skilled talent.
The announced measures are structured around three main pillars: (1) empowering Singaporeans through all stages of life, (2) enabling thriving businesses in a changed landscape, and (3) building workplaces that work for all so that no one is left behind.
Among the most notable developments for employers and international mobility is the planned adjustment of the minimum qualifying salaries for key work passes[2]. The minimum gross monthly salary requirement for the employment pass will increase from SGD 5,600 to SGD 6,000, while the threshold of the S Pass will rise from SGD 3,300 to SGD 3,600. These changes will apply to new applications from 1 January 2027, and to renewals from 1st January 2028. The Government has also indicated that the S Pass qualifying gross monthly salary could reach approximately SGD 4,000 to SGD 4,500 by around 2030, reflecting the ongoing alignment of foreign workforce policies with local wage benchmarks.
Another significant announcement regards Singapore’s strategy to attract global technology and artificial intelligence (“AI”) talent. From January 2027, the Government will introduce a new “ONE Pass” (AI and Tech) track, which will replace the current “Tech Pass”[3]. The new pass is designed to better recognise leading innovators and industry experts in AI and advanced technologies, further strengthening Singapore’s position as a global hub for high-value digital talent.
In parallel, the Government is also supporting businesses in adapting their workforce to technological transformation. Under the enterprise workforce transformation package[4], launching in March 2026, companies will be able to access financial support to redesign jobs, reskill employees and adopt new technologies, including AI tools. Through the SkillsFuture Workforce Development Grant (Job Redesign+), enterprises can receive funding covering up to 70% of qualifying project costs, capped at SGD 150,000 per company. The initiative aims to provide businesses with practical resources to implement workforce transformation while improving productivity and long-term competitiveness.
These measures illustrate Singapore’s continued effort to balance economic openness with workforce development, while ensuring that businesses remain able to attract global talent and adapt to technological change.
2. Retirement and re-employment ages from July 2026[5]
Singapore will gradually raise the statutory retirement age to 64 and the re-employment age to 69, effective 1st July 2026. This follows the Government’s broader strategy to support longer careers and address demographic changes.
At the same time, the senior employment credit will be extended until December 2027. Under this scheme, employers hiring older workers can benefit from wage support of up to 7% for employees aged 69 and above.
These measures aim to provide older workers with greater flexibility to remain active in the workforce, while helping employers retain experienced employees and maintain workforce stability.
3. New central provident fund investment scheme in 2028[6]
The Central Provident Fund (“CPF”) board has announced the introduction of a new investment scheme expected to launch in the first half of 2028, aimed at helping CPF members potentially achieve higher retirement returns while maintaining a simplified investment approach.
The scheme will complement the existing CPF investment scheme and target members who are willing to take some investment risk but prefer simpler and professionally managed investment options.
Under the new framework, selected commercial providers will offer low-cost, diversified life-cycle investment products. These products will automatically adjust the asset allocation over time, gradually shifting from higher-risk assets such as equities to lower-risk assets such as bonds as members approach retirement. This automatic rebalancing is designed to help investors stay invested for the long term without needing to actively manage their portfolios.
Participation in the scheme will be entirely voluntary, and investment proceeds will eventually be transferred into members’ Retirement Accounts, supporting their future CPF lifelong income for the elderly retirement payouts.
The CPF board will begin engaging industry providers in March 2026, with selected providers expected to be announced in 2027, ahead of the scheme’s launch in 2028.
For more details: cpf.gov.sg/newinvestmentscheme
4. Highlights from the labour market advance release fourth quarter 2025[7]
According to the MOM’s labour market advance release for the fourth quarter of 2025, Singapore’s labour market continued to expand in 2025 alongside sustained economic growth. Total employment increased by 57,300 over the year, compared to 44,500 in 2024, with job creation driven mainly by the financial services and health & social services sectors for residents, and construction for non-resident workers.
Unemployment rates remained low and stable, standing at 2.0% overall, 2.9% for residents, and 3.0% for citizens in December 2025, broadly in line with levels observed over the past two years.
Retrenchments also remained relatively limited. Around 3,600 employees were retrenched in the fourth quarter of 2025, bringing the total to 14,400 for the year, slightly higher than in 2024. Most retrenchments were linked to business reorganisation or restructuring, particularly in sectors such as transportation & storage and financial services.
Looking ahead to 2026, the labour market is expected to continue expanding, although employers can adopt a more cautious approach to hiring. At the same time, a growing share of firms expects to increase wages, suggesting continued competition for talent in certain sectors.
The full report is available at: https://stats.mom.gov.sg/Pages/Labour-Market-Advance-Release-4Q-2025.aspx
[1] Ministry of Manpower’s website, “Partnering Businesses And Workers To Thrive In A Changed World”
[2] Ministry of Manpower’s website, “Foreign Workforce Policy Announcements At Cos 2026”
[3] Ministry of Manpower’s website, “Foreign Workforce Policy Announcements At Cos 2026”
[4] Ministry of Manpower’s website, “Factsheet on Enterprise Workforce Transformation Package”
[5] Ministry of Manpower’s website, “Partnering Businesses And Workers To Thrive In A Changed World”
[6] Ministry of Manpower’s website, “CPF Board to introduce new investment scheme in 2028 offering simplified, low-cost, and diversified commercial investment products”
[7] Ministry of Manpower’s website, “Labour Market Advance Release Fourth Quarter 2025”
// Astrid Cippe / Candy Xiong
Disclaimer: This newsletter and its content are for informational purposes only and do not constitute legal advice. Readers should seek legal or professional advice before taking or refraining from any action.