Singapore Budget 2026: What Every Filipino Worker Needs to Know

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.

The Bigger Picture

These changes are part of Singapore's ongoing effort to raise workforce quality, increase local wages, and gradually reduce dependency on foreign labour in certain sectors. For skilled Filipino workers — particularly those in healthcare, technology, finance, and professional services — Singapore remains a strong destination with competitive salaries and a stable environment.

If you're on a Work Permit in manufacturing or marine/process industries, talk to your employer about how the upcoming levy increases may affect your contract or renewal.

For official details on all changes, visit the Ministry of Manpower at mom.gov.sg.