5 Things Foreign Employers Must Know About the Singapore Employment Act

Tourlife Consultants Private Limited has been supporting Japanese entrepreneurs since 2009 with recruitment, executive search, payroll, HR support, work pass applications, and relocation services. With our bilingual expertise (Japanese, English, and Chinese) and SME 500 Awards 2023 & 2024 recognition, we ensure that foreign businesses entering Singapore stay fully compliant with the latest 2026 MOM regulations.

📑 Table of Contents

What’s New for Employers in 2026?
1. Expansion of the Employment Act Scope
2. New 2026 CPF Salary Ceiling & Rates
3. Updated EP & S Pass Salary Benchmarks
4. 2026 Shared Parental Leave Expansion
5. Workplace Fairness & Retirement Age Updates
💼 How Tourlife Consultants Can Help
❓ Frequently Asked Questions

📘 What’s New for Employers in 2026?

Singapore’s labor laws are dynamic. In 2026, the Ministry of Manpower (MOM) has introduced significant updates to support a “Made for Families” society and to keep pace with rising wages. For Japanese entrepreneurs, these changes mean that 2024/2025 handbooks and payroll settings must be updated immediately to avoid non-compliance.

1️⃣ Expansion of the Employment Act Scope

The Employment Act covers almost all employees under a contract of service.

Coverage: Both local and foreign employees are covered, including PMEs (Professionals, Managers, and Executives).
Part 4 Protections: Statutory protections for rest days and overtime still apply to non-workmen earning up to SGD 2,600 and workmen earning up to SGD 4,500.

Employers should note that the Workplace Fairness Act is also now in full force, requiring formalized grievance handling processes.

2️⃣ New 2026 CPF Salary Ceiling & Rates

As of January 1, 2026, the final phase of the CPF Ordinary Wage (OW) ceiling increase has taken effect:

Monthly OW Ceiling: Now raised to SGD 8,000 (up from SGD 7,400 in 2025).
Contribution Rates: CPF rates for workers aged 55 to 65 have increased by another 1.5 percentage points to strengthen retirement adequacy.

Japanese firms hiring Singaporean or PR staff must ensure their payroll software is calibrated to this new $8,000 limit.

3️⃣ Updated EP & S Pass Salary Benchmarks

Hiring foreign talent in 2026 requires meeting higher qualifying salaries to pass the COMPASS framework:

Employment Pass (EP): The minimum qualifying salary remains SGD 5,600 (higher for Financial Services), but renewals for passes expiring from 2026 now strictly follow the latest age-adjusted benchmarks.
S Pass: The minimum qualifying salary is SGD 3,300.
LQS Update: From July 1, 2026, the Local Qualifying Salary (LQS) rises to SGD 1,800. You must pay your local staff at least this amount to count them toward your foreign worker quota.

4️⃣ 2026 Shared Parental Leave Expansion

A major update for 2026 is the expansion of Shared Parental Leave (SPL):

The Update: For children born on or after April 1, 2026, eligible parents are entitled to 10 weeks of shared leave (up from 6 weeks in 2025).
Total Package: Combined with Maternity and Paternity leave, a couple can now access up to 26 weeks of government-paid leave in a child’s first year.

Employers must grant this leave if the 4-week notice period is met, though the timing can be negotiated.

5️⃣ Workplace Fairness & Retirement Age Updates

Singapore is shifting its demographic policies to support an aging but active workforce:

Retirement & Re-employment: On July 1, 2026, the statutory retirement age increases to 64 and the re-employment age to 69.
Anti-Discrimination: The Workplace Fairness Act now allows employees to seek redress for discrimination based on age, nationality, or family status.

💼 How Tourlife Consultants Can Help

With the complexity of 2026 regulations, we act as your local HR department:

Recruitment & Executive Search – Strategic hiring under COMPASS rules
Work Pass Applications – Expertise in 2026 salary benchmarks
Payroll Outsourcing – Automated for the SGD 8,000 CPF ceiling
HR Consulting – Updating handbooks for the 10-week SPL update

❓ Frequently Asked Questions

Q1. Does the $8,000 CPF ceiling apply to my Japanese expats? No. CPF is only mandatory for Singapore Citizens and Permanent Residents. However, it affects your budget for local “Singapore core” hires.

Q2. Can I refuse the new 10-week Shared Parental Leave? If the employee is eligible and gives 4 weeks’ notice, you are legally required to grant the leave. You can, however, discuss the scheduling to minimize business disruption.

Q3. What is the new retirement age as of July 2026? The retirement age is 64. You cannot terminate an employee based on age before they reach this limit.

Q4. Has the Employment Pass (EP) advertising period changed? No, the 14-day MyCareersFuture advertising requirement remains a core part of the Fair Consideration Framework (FCF) in 2026.

Q5. How does Tourlife handle these 2026 updates for clients? We provide an “End-to-End Compliance Audit,” ensuring your contracts, payroll settings, and hiring practices match the 2026 MOM and CPF requirements.

✨ Ensure your business is 2026-ready with expert HR and recruitment support. Contact Tourlife Consultants today at enquiry@tourlife.sg or WhatsApp us directly at +65 9380 7956.