Budget 2026 for EP Holders & PR Applicants: Signals Decoded

If you're on an Employment Pass, just got PR, or are thinking about applying—Budget 2026 contains critical immigration signals you need to decode. PM Wong didn't announce dramatic policy shifts, but the incremental changes add up. Here's what foreign professionals need to know, and what the signals mean for your future in Singapore.

What Changes for Foreign Workers

EP Salary Floor: $6,000 Is the New Normal

The Employment Pass minimum qualifying salary rises to $6,000 for most sectors and $6,600 for financial services. This applies to new applications from January 2027, with renewals affected from 2028.

What this actually means: If you're currently on an EP earning between $5,600 (old minimum) and $6,000, your next renewal will require a salary adjustment. Your employer needs to raise your salary to $6,000+ or your EP won't be renewed. Start this conversation now—not when your renewal comes up.

For aspiring EP applicants, the bar is higher. Combined with COMPASS (the points-based system), you need both salary qualification AND complementarity points. The era of easy EP access at lower salaries is ending.

The Government's Tone: Still Welcoming, But Selective

PM Wong's language was carefully balanced. He explicitly said: "Foreign professionals strengthen our teams, transfer knowledge"—maintaining the positive stance towards skilled immigration. But the complementarity framework is clear: Singapore wants foreign talent that adds something local workers can't provide.

He also highlighted that Google, Microsoft, and quantum computing companies are choosing Singapore, and a Nobel laureate's startup is collaborating with A*STAR and NUS. The signal: Singapore actively courts world-class talent, but raises the floor for everyone else.

What This Means for PR Applications

Budget 2026 doesn't directly change PR criteria, but it sends signals:

• Higher EP salaries = stronger PR applications (income is a key factor)
• "Singaporean core" language continues—demonstrating how you complement (not compete with) local talent strengthens your case
• Community integration matters: The SG Partnerships Fund and volunteer scheme signal that civic participation is valued
• AI skills are premium: If you bring AI expertise, you're exactly the talent Singapore is trying to attract

Practical tip: If you're planning to apply for PR, the 250% corporate volunteer scheme deduction makes it easier to get your employer to support community involvement—which strengthens your PR application.

Sectors Actively Recruiting Foreign Talent

Reading between the lines of government spending:

• AI / Machine Learning: National AI Council, AI park at one-north, 60+ AI centers of excellence — actively recruiting globally
• Quantum computing: New systems, NUS Center for Quantum Technologies — niche but growing
• Semiconductors: Advanced packaging, chip design — strong demand
• Financial services: SGX-NASDAQ bridge, $1.5B FSDF — growth but higher salary bar
• Healthcare / Biomedical: National AI Mission sector, $37B RIE 2030 — research and clinical roles

The LQS Increase: Indirect Pressure

The Local Qualifying Salary (minimum that companies must pay local employees to count them for foreign worker quota) rises from $1,600 to $1,800. This increases the cost floor for companies maintaining their foreign worker ratio.

What this actually means for you: Your employer's total cost of maintaining a mixed local-foreign workforce goes up. Some companies may reduce foreign headcount to manage costs. Others will absorb the increase, especially in sectors with genuine talent shortages.

Senior Employment Credit: Valuing Experience

The Senior Employment Credit (wage offset for employing workers 55+) is extended to 2027. For experienced foreign professionals, this signals that Singapore values maturity and expertise—not just young, cheap talent.

Financial Planning as a Foreign Professional

Unlike citizens and PRs, your CPF situation is different. Foreign professionals often need to build their own retirement safety nets. Key considerations from Budget 2026:

• SRS contributions: You can contribute $35,700/year (higher than citizens' $15,300) for tax deductions, and invest in gold ETFs through SRS
• No capital gains tax: Your investment returns in Singapore remain untaxed—a significant advantage over many home countries
• Gold as portable wealth: If you might eventually relocate, physical gold is GST-exempt in Singapore and portable. See our guide on where to buy gold in Singapore

Read More Budget 2026 Guides

• Budget 2026: Top 10 Things You Need to Know
• Budget 2026 for Salaried Employees
• Budget 2026: Stay or Go?
• Budget 2026 for High-Income Earners
• Budget 2026 for AI & Deep-Tech

Frequently Asked Questions

What is the new EP minimum salary after Budget 2026?

EP minimum salary rises to $6,000 for most sectors ($6,600 for financial services) from January 2027. Renewals are affected from 2028. Current EP holders between $5,600–$6,000 must negotiate salary increases before renewal.

Does Budget 2026 affect PR applications?

Not directly, but higher EP salaries strengthen PR applications (income is a key factor). Community involvement through the corporate volunteer scheme and SG Partnerships Fund demonstrates integration—another important PR criterion.

Is Singapore still welcoming foreign professionals?

Yes, selectively. PM Wong explicitly praised foreign talent's contributions. Singapore is actively courting AI, quantum, and deep-tech specialists. But the bar is rising for mid-level generalists—higher salaries, COMPASS points, and complementarity are required.

What should EP holders do to prepare for the salary increase?

Start salary discussions with your employer well before renewal. Document your value-add and complementarity to local workers. Consider upskilling in AI (the government offers free premium AI tools with SkillsFuture courses). If your sector isn't in high demand, explore lateral moves.

Can foreign professionals invest in SRS for tax benefits?

Yes. Foreign professionals can contribute up to $35,700/year to SRS (vs $15,300 for citizens), receiving full tax deduction. SRS funds can be invested in stocks, bonds, and gold ETFs. This is one of the best tax optimisation tools for EP holders.