Singapore has announced big changes to its work pass framework for attracting top global AI and tech talent, while simultaneously raising wage floors for lower-income workers and strengthening retirement support for seniors.
A new ONE Pass (AI and Tech) replaces the existing Tech Pass from January 2027, offering longer five-year tenures. Employment Pass and S Pass minimum salaries are also being raised. On the domestic front, retirement ages are going up, CPF contribution rates for older workers are being increased, and free access to premium AI tools is being offered to workers who take up SkillsFuture courses — all aimed at keeping Singapore’s workforce competitive in an uncertain global economy.
To strengthen Singapore’s position as a global hub for AI and tech talent, the Ministry of Manpower (MOM) will introduce a new ONE Pass (AI and Tech) track in January 2027, replacing the existing Tech. Pass. The One Pass (AI and Tech) is likely to be a five-year work pass, renewable for five additional years, in contrast to the Tech Pass, which is valid for two years and can be renewed once for another two years.
Salary Restructuring
MOM is also introducing several other changes. The Employment Pass (EP) minimum qualifying salary will be increased from $5,600 to $6,000, and the S Pass minimum qualifying salary will be increased from $3,300 to $3,600 to keep pace with local wage benchmarks.
These changes will apply to new applications from 1 January 2027 and renewals from 1 January 2028. In addition, the S Pass minimum qualifying salary is expected to be around $4,000 – $4,500 by around 2030.
Lower-wage workers will benefit from enhanced wage and training measures. The Local Qualifying Salary will be raised from $1,600 to $1,800 from 1 July 2026 to keep pace with rising wages and ensure meaningful employment.
The Progressive Wage Credit Scheme (PWCS) will be extended to 2028 and increased to 30% co-funding to help cushion the impact for businesses. The qualifying wage increase for PWCS will be raised from $100 to $200 from 2027 to encourage more meaningful wage increases.
The Workfare Skills Support (Basic) will also provide greater financial support, while enhancements to the Workfare Skills Support (Level-up) scheme will make it easier for workers to pursue both full qualifications and shorter courses.
Helping Young Professionals, Managers and Executives
To support fresh graduates who need more help amidst a more uncertain economic outlook, the Government will continue to offer Graduate Industry Traineeships (GRIT) to 2025 graduates.
For young PMEs who are looking to broaden their exposure, the Overseas Markets Immersion Programme (OMIP) will be expanded to provide earlier access to international experience, helping them build global perspectives and networks that strengthen their employers’ and Singapore’s competitive position.
To help Singaporeans gain confidence to work alongside AI and thrive, the Government will provide free access for six months to premium versions of AI tools for those who take up selected SkillsFuture AI courses.
This encourages learners to apply their skills through regular use and experimentation with AI tools. This initiative will roll this out in the second half of the year.
The retirement and re-employment ages will be raised to 64 and 69, respectively, on 1 July 2026.
Senior Employment Credit (SEC) will be extended until December 2027, with the highest SEC wage support tier of 7% applying to workers aged 69 and above. This will give seniors more flexibility and assurance to continue working if they wish to, while enabling employers to retain workers with valuable experience.
The Central Provident Fund (CPF) contribution rates for senior workers aged above 55 to 60, and those aged above 60 to 65 will be increased by 1.5 and 1 percentage point respectively from 2027, in line with the recommendations of the Tripartite Workgroup on Older Workers.
At the same time, the CPF Transition Offset will be extended by another year to December 2027, to cover 50% of the increase in employer CPF contributions in 2027.
To provide a new option for members to grow their CPF savings, the CPF Board will introduce a new investment scheme in the first half of 2028. This scheme will offer simplified, low-cost life-cycle investment products from commercial product providers for CPF members who wish to take on investment risk for potentially higher returns.
Finally, the Government has introduced a Budget 2026 CPF Top-up to provide additional support to boost the retirement adequacy for eligible seniors aged 50 and above with lower CPF balances.