Singapore's Budget 2026 introduced several changes to the country's foreign workforce framework, and for the approximately 200,000 Filipinos living and working here, some of these changes are worth understanding clearly. Here's what you need to know, broken down without the jargon.
The Big One: Local Qualifying Salary Goes Up
The Local Qualifying Salary (LQS), the minimum wage a company must pay its local employees to be allowed to hire foreign workers, is increasing from SGD 1,600 to SGD 1,800 per month for full-time workers.
This takes effect on 1 July 2026.
Why does this matter for Filipinos? The LQS affects how many foreign workers a company is allowed to hire under the government's quota system. If a company doesn't have enough local workers meeting the new salary floor, their quota for foreign workers decreases, which can affect job availability in certain sectors.
Part-time local workers must also now be paid at least SGD 10.50 per hour, up from the previous rate.
Levy Changes for Work Permit Holders
The Foreign Worker Levy (FWL), the monthly fee employers pay to the government for each Work Permit holder they employ, is going up in two key sectors:
Marine shipyard sector: levy increases by SGD 100 per month
Process sector: levy increases by SGD 150 per month
These changes apply to Basic-Skilled (R2) Work Permit holders. Importantly, all Work Permit levy changes only take full effect from 2028, so there's still time for employers and workers to adjust.
For Filipinos in the services and manufacturing sectors, the government is also simplifying the levy framework by merging the current Tier 1 and Tier 2 into a single structure. Full details and timelines will be released by MOM in due course.
Employment Pass and S Pass: Salary Thresholds Going Up
Singapore has been systematically raising the minimum qualifying salaries for the Employment Pass (EP) and S Pass over the past few years, and Budget 2026 continues that trend.
If you're on an EP or S Pass, or planning to apply for one, verify the latest minimum qualifying salary with your employer or at mom.gov.sg, salaries that qualified in 2024 or 2025 may no longer meet the threshold in 2026.
What About Foreign Domestic Workers?
Filipino domestic workers (FDWs) on Work Permits are not subject to CPF contributions. The concessionary FDW levy remains at SGD 60 per month for eligible households, no change was announced to this specific rate in Budget 2026.
If you employ a Filipino domestic helper, your costs for the levy itself remain the same for now.
What Filipino PRs and Citizens Get
If you are a Filipino-Singaporean PR or citizen, Budget 2026 includes:
CDC vouchers: S$800 in two tranches (May 2026 and January 2027) per household. Spendable at participating heartland merchants and supermarkets. Helpful for Lucky Plaza grocery runs that take CDC.
Workfare top-up: Lower-income Singaporeans (including PRs in the Workfare scheme) get an additional 10 percent top-up on the next two payouts.
SkillsFuture top-up: All Singapore citizens aged 40 and above receive an additional S$4,000 SkillsFuture Level-Up Credit, usable on selected mid-career courses. PRs do not get this top-up but standard SkillsFuture remains in place.
Baby Bonus: Increased gift package for newborns from April 2026; eligibility unchanged.
For the day-to-day cost picture in Lucky Plaza and the wider economy, see the LQS and levy notes above — both indirectly affect F&B and remittance-shop pricing in Filipino-dense areas.
How to Read the Salary Floor Changes
The EP minimum salary moves to S$6,000 in January 2027 for general applications and S$6,600 for financial services. Renewals follow one year later. We covered the detailed playbook in our EP S$6,000 piece. The short version:
If you are currently on an EP at S$5,600 to S$5,999, you have time to negotiate a salary bump before renewal.
New applications in 2026 are still assessed at S$5,600 (general) or S$6,200 (FS).
Sponsorship deals, allowances and bonuses can sometimes be structured to lift the basic salary; talk to HR early.
For Filipinos on the S Pass, the minimum qualifying salary stays at S$3,150 for general roles and S$3,650 for financial services in 2026, with sub-sector reviews continuing.
The Bigger Picture
Budget 2026 continues Singapore's playbook of raising workforce quality, lifting local wages, and gradually shifting the workforce composition. For skilled Filipino professionals in healthcare, technology, finance, education, hospitality and accounting, Singapore remains a competitive destination — but the bar to enter and renew is moving up.
If you are on a Work Permit in manufacturing, marine or process industries, talk to your employer about how the 2028 levy increases will affect renewal and bonus structures. If you are on an EP or S Pass, build your case for a salary review well before the 6-month renewal window.
Verify before you act
Official sources to confirm anything in this guide:
Ministry of Manpower: mom.gov.sg — work-pass changes, levy schedules, Budget 2026 statement
Ministry of Finance: mof.gov.sg — full Budget 2026 statement and annexes
CPF Board: cpf.gov.sg — for any CPF-related changes
IRAS: iras.gov.sg — tax thresholds and reliefs
Last reviewed May 2026. Implementation dates and rates change; verify with the official sources before acting on specifics.
