September 2025 has seen Singapore’s Ministry of Manpower (MOM) introduce changes to its S Pass framework affecting how companies employ mid-skilled foreign workers. The changes that have been implemented are part of the government’s broader push to raise the standards of the workforce and ensure fairer opportunities for Singaporeans.
Higher Minimum Qualifying Salaries
One of the biggest changes is the qualifying salary for new S Pass applications, which has been raised from SGD 3,150 to SGD 3,000 for most industries, applicable to both renewals and new applications. While exact salary benchmarks vary slightly depending on the industry and the age of the applicant, the overall trend is clear: Singapore is strengthening its move towards attracting higher-calibre mid-skilled professionals while ensuring fair opportunities for local talent.
For employers, this means recruitment budgets may need to be revisited. Roles traditionally supported by S Pass holders will now require a careful review to ensure salaries stay compliant while still appealing to skilled candidates.
Revised S Pass Levy Rates
In addition to salaries, the basic levy rate for S Pass holders has also been raised. Tier 1 levy, previously costing SGD 550, has now been aligned with Tier 2 levy, now costing SGD 650 across all sectors. These adjustments will directly affect the overall cost of employing foreign staff, and businesses with a sizable S Pass workforce are likely to feel the change more significantly.
With these changes, workforce planning will become critical. Employers who rely heavily on mid-skilled foreign talent may need to rethink their workforce strategy, invest more in local talent development, or restructure hiring priorities to balance rising manpower costs.
Why These Changes Matter
The updates are part of Singapore’s broader effort to strengthen its local workforce and maintain a competitive, sustainable labour market. By tightening salary and levy requirements, the government aims to ensure a fair playing field for Singaporean workers while continuing to welcome skilled foreign professionals who can fill genuine workforce gaps.
Simon Duff, Director at Leap29, shares his perspectives on the changes:
“The new S Pass changes in Singapore will catch a lot of employers off guard. It’s not just the higher qualifying salaries—it’s the levy increase on top that really shifts the cost base for businesses relying on mid-skilled foreign talent. For companies running on tight margins, this can quickly add up.“
“In my view, the key here is planning. Employers need to start reviewing their S Pass renewals now, looking at where local upskilling is possible, and factoring the levy changes into future budgets. Too many businesses treat these MOM updates as a compliance headache when actually they should be seen as a chance to rethink workforce strategy and reduce over-reliance on one talent pool.”
Leap29 Recommendations
Employers should start adjusting their human capital strategies now to mitigate the impact of these changes. Some steps to consider:
- Review current and upcoming S Pass renewals to check for compliance with the new salary threshold.
- Assess workforce mix to understand how the levy changes affect your bottom line.
- Explore upskilling for local staff to reduce reliance on the foreign workforce. Introduce initiatives to strengthen your local talent pipeline.
- Check hiring policies to reflect the new costs to maintain competitiveness.
How Leap29 Can Help
Our Singapore Employer of Record (EOR) Services offers a practical solution for companies navigating regulatory changes, supporting companies with HR management, payroll compliance and employee benefits. Our tailored platform helps businesses to stay compliant with Singapore’s evolving employment laws, reducing the administrative burden.
