Singapore Budget 2026 raises the Local Qualifying Salary, lifts levies for some Work Permit sectors from 2028, and keeps pushing EP and S Pass salary floors up. For Filipino workers, the FDW levy stays the same, and Filipino PRs and citizens get vouchers and top-ups.
About 200,000 Filipinos live and work in Singapore. Here is what changes for each group.
The big one: Local Qualifying Salary goes up
The Local Qualifying Salary (LQS) is the minimum a company must pay its local employees to be allowed to hire foreign workers. It rises from SGD 1,600 to SGD 1,800 per month for full-time workers on 1 July 2026.
The LQS sets how many foreign workers a company can hire under the quota system. Too few locals at the new floor means a smaller foreign worker quota, which can cut job openings in some sectors.
Part-time local workers must now get at least SGD 10.50 per hour, up from the previous rate.
Levy changes for Work Permit holders
The Foreign Worker Levy (FWL) is the monthly fee employers pay for each Work Permit holder. It rises in two sectors:
Marine shipyard sector: up SGD 100 per month
Process sector: up SGD 150 per month
These apply to Basic-Skilled (R2) Work Permit holders. All Work Permit levy changes take full effect only from 2028, so employers and workers have time to adjust.
In the services and manufacturing sectors, the government will merge Tier 1 and Tier 2 into a single levy structure. MOM will release full details and timelines later.
EP and S Pass salary thresholds in 2026
Budget 2026 keeps raising the minimum qualifying salaries for the Employment Pass (EP) and S Pass. A salary that qualified in 2024 or 2025 may miss the 2026 threshold, so check with your employer or MOM.
The EP minimum moves to S$6,000 in January 2027 for general applications and S$6,600 for financial services. Renewals follow one year later. Our EP S$6,000 piece has the full playbook.
On an EP at S$5,600 to S$5,999? You have time to negotiate a raise 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 basic salary. Talk to HR early.
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The S Pass minimum stays at S$3,150 for general roles and S$3,650 for financial services in 2026, with sub-sector reviews continuing.
What about foreign domestic workers?
Filipino domestic workers (FDWs) on Work Permits do not pay CPF. The concessionary FDW levy remains at SGD 60 per month for eligible households. Budget 2026 announced no change to this rate.
If you employ a Filipino helper, your levy cost stays the same for now.
What Filipino PRs and citizens get
CDC vouchers: S$800 per household in two tranches (May 2026 and January 2027). Spend them at participating heartland merchants and supermarkets, including Lucky Plaza grocers that take CDC.
Workfare top-up: Lower-income Singaporeans (including PRs in the Workfare scheme) get an extra 10 percent on the next two payouts.
SkillsFuture top-up: Singapore citizens aged 40 and above get an extra S$4,000 SkillsFuture Level-Up Credit for selected mid-career courses. PRs do not get this top-up; standard SkillsFuture stays.
Baby Bonus: a bigger gift package for newborns from April 2026; eligibility unchanged.
The LQS and levy changes also feed into F&B and remittance-shop prices in Filipino-dense areas like Lucky Plaza.
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What Filipino workers should do now
For skilled Filipinos in healthcare, technology, finance, education, hospitality and accounting, Singapore stays competitive, but the bar to enter and renew keeps rising.
On a Work Permit in manufacturing, marine or process? Ask your employer how the 2028 levy increases will affect renewal and bonuses.
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.