Find out what support is available for workers
Whether you are switching careers, upskilling or looking for career assistance.
Find out moreBudget 2026 raises wage support for lower-wage workers, extends training and employment support for mid-career and senior workers, and updates foreign worker policies.
Uplifting Lower-Wage Workers
Local Qualifying Salary
The Local Qualifying Salary (LQS) sets the minimum salary that local employees must be paid in firms that hire foreign workers. It also determines the number of local employees counted towards a firm’s Work Permit and S Pass quota entitlement.
Under Budget 2026, the LQS for full-time local employees will be raised from $1,600 to $1,800 per month from 1 July 2026. Firms that hire foreign workers must pay full-time employed local workers at least $1,800 per month.
Visit the Ministry of Manpower website for more information on the LQS .
Progressive Wage Credit Scheme
The Progressive Wage Credit Scheme (PWCS) provides transitional wage support for employers to adjust to mandatory wage increases for lower-wage workers covered by the Progressive Wage Model and Local Qualifying Salary requirements, and to voluntarily raise lower-wage workers’ wages.
Under Budget 2026, the PWCS co-funding support for employers will be raised from 20% to 30% for wage increases given in qualifying year 2026. The enhanced rate also applies to wage increases given in Qualifying Year 2025 and sustained in 2026. The PWCS will also be extended to wage increases given in qualifying years 2027 and 2028.
Payouts will automatically be credited to employers' GIRO bank account for Income Tax/GST. For those without GIRO accounts, the payout will be credited to their bank account that is registered with PayNow Corporate. Employers who are not already on these direct crediting modes will have to sign up for these modes to receive their payouts.
Visit the IRAS website for more information on the PWCS .
Is my firm eligible for the PWCS?
Your firm will automatically qualify if you give wage increases to resident employees who:
- Received CPF contributions from a single employer for at least 3 calendar months in the preceding year,
- Have been on your firm’s payroll for at least 3 calendar months in the qualifying year (i.e. you must have paid your employee CPF contributions for at least 3 calendar months in qualifying year), and
- Have an average gross monthly wage increase of at least $100 for qualifying years 2022 to 2026, and gross monthly wage increase of at least $200 for qualifying years 2027 and 2028
Local government agencies, businesses not registered in Singapore, foreign high commissions, embassies, trade offices and international organisations do not qualify for PWCS.
Wages paid to business owners i.e. sole proprietors of sole proprietorships, or partners of a partnership, or both a shareholder and director of a company, will not be eligible for PWCS.
See the full employer exclusion list .
What is the minimum qualifying wage increase for the PWCS?
The minimum qualifying wage increase for the PWCS rises to $200 for wage increases given in qualifying years 2027 and 2028:
| Qualifying Year (i.e., year that wage increase was given) | Payout Period | Minimum Qualifying Wage Increase |
| 2026 | 1Q 2027 | $100 |
| 2027 | 1Q 2028 | $200 |
| 2028 | 1Q 2029 | $200 |
Workfare Skills Support
The Workfare Skills Support (WSS) (Basic) encourages lower-wage workers to undertake training that leads to more impactful employment outcomes.
Under Budget 2026, the training allowance for eligible workers under the basic tier of the WSS will be increased from $6 per hour to $10.50 per hour, capped at 180 hrs per year, from July 2026.
Visit the Skills and Workforce Development Agency website for more information on the WSS (Basic) .
Who is eligible for WSS (Basic)?
You can qualify for WSS (Basic) if you:
- Are a Singapore Citizen
- Are aged 30 and above as of 31 December of the work year (13 and above for persons with disabilities)
- Earn an average gross monthly income of not more than $3,000 for the past 12 months
- Have declared your net trade income and made MediSave contributions in full, if you are self-employed
- Live in a property with an Annual Value of $21,000 and below as of 31 December of the preceding year
- Own not more than one property
If you are married:
- You and your spouse together do not own more than one property
- Your spouse’s assessable income does not exceed $70,000 in the preceding Year of Assessment
To check your eligibility for WSS (Basic), please login to the Workfare eService using your Singpass.
Support for Mid-Career & Senior Workers
SkillsFuture Mid-Career Training Allowance
The SkillsFuture Mid-Career Training Allowance supports eligible mid-career Singaporeans to upskill and reskill by providing training allowance for selected long-form training.
Budget 2026 extends the SkillsFuture Mid-Career Training Allowance to support both full-time and part-time long-form training for Singapore Citizens aged 40 and above to upskill and reskill.
Applications for the Mid-Career Training Allowance are open for both full-time training from March 2025 and part-time training from February 2026.
Visit the MySkillsFuture website to apply for and for more information on the Mid-Career Training Allowance .
Who is eligible for the Mid-Career Training Allowance?
Singapore Citizens aged 40 and above can receive the allowance for either of the following:
- Full-time training allowance: individuals who take time off work to pursue full-time, long-form training (usually during working hours).
Note: only individuals with income in the latest 12 months before the course start date are eligible for training allowance.
- Part-time training allowance: employed individuals who take up part-time, long-form training (usually outside working hours).
Note: only individuals with income in the latest 12 months before the course start date or the date of training allowance application, whichever is later, are eligible for training allowance.
Senior Employment Credit
The Senior Employment Credit (SEC) provides wage offsets to help employers of Singaporean workers adjust to the higher Retirement Age and Re-employment Age. Higher support is given for the older age bands.
Under Budget 2026, the SEC will be extended to 2027. For wages paid between 1 January 2024 and 31 December 2027, employers receive up to 7% of the wages of Singaporean workers aged 60 and above who earn up to $4,000 per month, depending on their age and wage.
Employers do not need to apply for the payouts. IRAS will notify eligible employers regarding the amount payable to them by post. They can also log in to myTax Portal to view the electronic copy of their letter.
Visit the IRAS website for more information on the SEC .
Who is eligible for the SEC?
All employers that employ employees (Singapore Citizens) aged 60 years and above, earning below $4,000 per month and have made timely CPF contributions for the employee will qualify for the payout for 2023 to 2027.
Wages paid to business owners or employers trading in their own personal capacity will not be eligible for the SEC even if they made CPF contributions for themselves through their entity.
Local government agencies, International Organisations and businesses not registered in Singapore do not qualify for the schemes.
Updating Foreign Worker Policies
Minimum Qualifying Salary for Employment Pass and S Pass
The minimum qualifying salary is the lowest monthly salary that a foreign worker must earn to qualify for an Employment Pass or S Pass .
Under Budget 2026, the minimum qualifying salary will be increased for new applicants from 1 January 2027:
- Employment Pass: From $5,600 to $6,000 per month, except for those in the financial services sector which will be raised from $6,200 to $6,600 per month
- S Pass: From $3,300 to $3,600 per month, except for those in the financial services sector, which will be raised from $3,800 to $4,000 per month
Visit the Ministry of Manpower website for more information on the minimum qualifying salary for Employment Pass or S Pass .
Work Permit Levy Adjustments
The Work Permit levy is a monthly amount that employers pay for each Work Permit holder they employ.
Under Budget 2026, Work Permit levies will be adjusted from 2028:
- Marine sector: the levy for basic-skilled workers will be raised by $100 per month
- Process sector: the levy for basic-skilled workers will be raised by $150 per month
- Manufacturing and Services sectors: the current tiered levy structure will be simplified.
Visit the Ministry of Manpower website for more information on the Work Permit levy adjustments .
Related Content
Singapore Budget 2026 is part of the Ministry of Finance, Singapore. Visit website