Singapore: Key employment law developments for 2026 and beyond

At a glance

• The Central Provident Fund (CPF) ordinary wage ceiling rose to SGD8,000 in January 2026, requiring updates to payroll systems and contribution calculations.
• Shared parental leave increased from six to ten weeks in April 2026, strengthening support for working parents.
• Statutory retirement and re-employment ages will increase to 64 and 69 respectively from 1 July 2026.
• Work pass reforms include a new ONE Pass track for AI and technology talent and higher Employment Pass salary thresholds from 2027.
• A major review of the Employment Act is underway, with details of the proposed reforms expected in the second half of 2026.

Key developments are on the horizon for employers operating in Singapore. While some reflect incremental changes to existing frameworks, others indicate more significant reforms ahead. Employers should consider the implications for workforce planning and compliance.

CPF contribution changes

The government has continued its approach of incrementally raising the CPF contribution ceiling on a year-on-year basis. The current Ordinary Wage ceiling, which has been applicable since 1 January 2026, is SGD8,000 per month. The CPF annual salary ceiling remains at SGD102,000, and the formula Additional Wage ceiling (SGD102,000 – Total Ordinary Wage subject to CPF for the year) remains. Employers should ensure that payroll systems are updated to reflect the revised ceiling and that both employer and employee contributions are calculated accordingly.

Enhanced parental leave

From April 2026, shared parental leave entitlements increased from six weeks to ten weeks. This enhancement reflects the government's continued commitment to supporting working parents and encouraging a more equitable distribution of caregiving responsibilities. Employers should review their internal leave policies to ensure alignment with the updated statutory entitlements and consider the operational implications of the extended leave period.

Retirement and re-employment age

From 1 July 2026, the statutory retirement age will increase from 63 to 64 and the statutory re-employment age will increase from 68 to 69. This forms part of the government's phased approach to raising both thresholds in recognition of longer life expectancy and the desire to support older workers in remaining economically active. Employers should review their employment contracts and HR policies to ensure compliance with the new statutory ages and consider any necessary adjustments to workforce planning.

New ONE Pass (AI and technology track)

The government has introduced a new ONE Pass (AI and Tech) track under the existing Overseas Networks & Expertise (ONE) Pass framework, specifically targeting professionals in the artificial intelligence and technology sectors. It is intended to replace the existing Tech Pass which is a visa that is administered by the Singapore Economic Development Board. The new ONE Pass (AI and Tech track) sits within the current ONE Pass structure and applicants must meet the prevailing ONE Pass criteria (including salary thresholds) to be eligible for the pass.

Employment Pass and S Passes: Minimum qualifying salary increase

The Singapore government has announced an increase to the minimum qualifying salary for Employment Pass (EP) and S Pass holders / applicants. The minimum qualifying salary thresholds will increase from SGD5,600 to SGD6,000 per month, while applicants in the financial services sector will see an increase from SGD 6,200 to SGD 6,600 per month. Likewise, the minimum qualifying salary thresholds will increase from SGD3,300 to SGD3,600 per month, while applicants in the financial services sector will see an increase from SGD3,800 to SGD4,000. Note that these salary thresholds reflect the minimum qualifying salaries and will increase progressively with age.

These revised thresholds will take effect from 1 January 2027 for new EP applications. For EP and S Pass renewals, the new salary requirements will apply from 1 January 2028.

Upcoming review of the Employment Act

Perhaps the most significant development on the horizon is the government's announcement of a comprehensive review of the Employment Act (Act), Singapore's principal employment legislation. The Act has not undergone a substantive review since 2019, and the government has signalled its intention to carry out a significant overhaul. A tripartite work group has been established to develop recommendations, and a report setting out those recommendations is expected to be published in the second half of 2026.

While the specific details of the proposed reforms have not yet been released, it is anticipated that the review may result in increases to statutory minimum leave entitlements, changes to overtime entitlements, and potentially changes to statutory automatic business transfer provisions. Employers should continue to monitor developments in this area and keep a watching brief for the tripartite work group's recommendations.