Singapore is pushing ahead with major workforce reforms aimed at helping older citizens stay employed longer and financially secure in later life.
The move comes as the government responds to an ageing population, rising life expectancy, and growing labour market demands.
Singapore Retirement Age to Increase From July 2026
The Ministry of Manpower announced that from 1 July 2026:
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- The official retirement age will rise from 63 to 64
- The re-employment age will increase from 68 to 69
This means employers will need to offer eligible older workers opportunities to continue working for a longer period.
More Support for Older Workers
Singapore is also extending the Senior Employment Credit (SEC) until the end of 2027.
Under the updated scheme:
- Employers hiring older Singaporean workers will continue receiving wage support
- The highest support tier of 7% will apply to workers aged 69 and above
The goal is simple — encourage companies to retain experienced workers instead of pushing them out early.
CPF Contribution Rates Will Increase
The government will also raise Central Provident Fund contribution rates for senior workers from 2027.
Planned CPF Increases
| Age Group | CPF Increase |
|---|---|
| 55 to 60 years | +1.5% |
| 60 to 65 years | +1% |
These changes follow recommendations from Singapore’s Tripartite Workgroup on Older Workers.
To reduce pressure on businesses, the government will cover 50% of the increase in employer CPF contributions through a transitional wage offset scheme until December 2027.
Employment Pass and S Pass Salaries Going Up
Singapore is also tightening salary requirements for foreign workers.
New Minimum Salary Requirements
| Pass Type | Current Salary | New Salary |
|---|---|---|
| Employment Pass (EP) | SGD 5,600 | SGD 6,000 |
| S Pass | SGD 3,300 | SGD 3,600 |
These new rules will apply:
- For new applications from 1 January 2027
- For renewals from 1 January 2028
Officials said the increases are meant to keep pace with local wage growth and maintain fairness in the labour market.
Local Qualifying Salary Also Increasing
The Local Qualifying Salary (LQS) will rise from SGD 1,600 to SGD 1,800 starting July 2026.
The LQS determines how many local workers companies must employ before they can hire foreign workers under quota systems.
This adjustment is intended to ensure local jobs remain meaningful and properly paid.
SkillsFuture Singapore and Workforce Singapore to Merge
In another major change, the government announced that:
- SkillsFuture Singapore
- Workforce Singapore
will merge into a new agency called:
Workforce and Skills Singapore (WSSG)
The new organisation is expected to provide more integrated support for:
- Career guidance
- Skills training
- Job matching
- Workforce planning
Officials said this will make it easier for workers and employers to adapt to Singapore’s rapidly changing economy.
