Singapore Minimum Wage: Employer Guide

Singapore has no universal minimum wage. The applicable pay floor depends on the role, employer and worker: check the Progressive Wage Model (PWM), Local Qualifying Salary (LQS) and relevant work-pass requirements.

As of November 2026, LQS is S$1,800 gross per month for full-time local employees working 35–44 hours a week at firms hiring foreign workers. Covered PWM roles may require more. EP and S Pass salary thresholds are separate eligibility tests.

Start with the legal employer, the employee’s citizenship or permanent-resident status, duties and working hours. An EOR employee remains an employee; using a provider does not change the wage rules that apply.

Use the tables below to check the applicable rules before making an offer. Government wage support and market salary benchmarks help with budgeting, but do not replace legal pay requirements.

Does Singapore Have a National Minimum Wage?

Singapore does not have a universal national minimum wage that applies to every worker across all industries. Instead, Singapore uses a targeted wage system designed to uplift lower-wage workers while maintaining flexibility for broader wage setting.

The most important wage frameworks employers should understand are:

• Progressive Wage Model: Mandatory wage and training requirements for specific sectors and occupations.
• Local Qualifying Salary: A wage threshold linked to foreign worker quota entitlement and local worker wage requirements.
• Progressive Wage Mark: An accreditation scheme for employers that pay progressive wages.
• Progressive Wage Credit Scheme: Government co-funding support for eligible wage increases.
• Work pass salary thresholds: Minimum qualifying salary requirements for foreign workers under Employment Pass, S Pass, and other pass routes.
• Market salary benchmarking: Employer-driven compensation based on role, seniority, industry, and talent competition.

Separate mandatory wages, work-pass eligibility, voluntary pay benchmarking and government support when setting the budget.

Singapore Wage Rules at a Glance

The table below explains how different wage frameworks apply in practice.

Progressive Wage Model: Singapore’s Sector-Based Wage Floor

The Progressive Wage Model is the closest equivalent to a sector-specific wage floor in Singapore. It does not apply to every job, but where it applies, employers must follow the relevant wage and training requirements.

MOM’s Progressive Wage Model guidance states that employers must pay at least the PWM wage to eligible workers for their job level and meet PWM training requirements. PWM was developed by tripartite committees consisting of unions, employers, and the government.

Employers should check PWM requirements if they hire Singapore Citizens or Permanent Residents in covered sectors or occupations. PWM coverage includes sectors and occupations such as:

• Cleaning
• Security
• Landscape
• Lift and escalator maintenance
• Retail
• Food services
• Waste management
• Administrators
• Drivers

For these roles, wage compliance is not only a salary question. Employers also need to review job level, worker classification, training requirements, working hours, and payroll setup.

Local Qualifying Salary: Important for Employers Hiring Foreign Workers

For firms hiring foreign workers, LQS sets the pay requirement for local employees not covered by PWM. MOM’s Local Qualifying Salary page explains that the LQS determines how many local employees are counted towards a firm’s Work Permit and S Pass quota entitlement.

Since 1 July 2026, the Local Qualifying Salary (LQS) for full-time local employees working 35 to 44 hours a week has been S$1,800 in gross monthly wages. For full-time employees working more than 44 hours a week, the required amount increases with overtime under MOM’s LQS wage schedule. For local part-time employees working fewer than 35 hours a week, the threshold is at least S$10.50 in gross wages per hour. See MOM’s current LQS guidance.

For firms hiring foreign workers, MOM states that employers must:

• Pay Progressive Wage Model wages to local employees covered by relevant Sectoral or Occupational PWMs.
• Pay at least the Local Qualifying Salary to local employees not covered under PWMs.

Non-compliant firms cannot apply for new work passes or renew existing ones. Check actual monthly pay and hours, not only the salary stated in the contract.

Progressive Wage Credit Scheme: Employer Support for Wage Increases

Singapore also supports employers through the Progressive Wage Credit Scheme. The Progressive Wage Credit Scheme was introduced in Budget 2022 to provide transitional wage support for employers adjusting to mandatory wage increases under PWM and LQS requirements, as well as employers voluntarily raising wages for lower-wage workers.

IRAS states that PWCS support runs from 2022 to 2028. For 2026 and 2027, the government co-funding rate is 30% for qualifying wage increases, and for 2028 it is 20%. Employers do not need to apply for PWCS; eligible payouts are expected to be received by the first quarter of the following year.

Eligibility includes wage and CPF-record conditions. The minimum qualifying wage increase is S$100 for 2026 and S$200 for 2027–2028; qualifying 2026 increases below S$200 that are sustained in 2027 can still receive support. Confirm eligibility before budgeting for a payout.

Progressive Wage Mark and Employer Reputation

The Progressive Wage Mark is another part of Singapore’s wage framework. MOM explains that the PW Mark helps consumers and corporate buyers identify and support employers that pay progressive wages to lower-wage workers.

Check PW Mark requirements when bidding for government work and when a customer requires accreditation.

Work Pass Salary Requirements Are Not the Same as Minimum Wage

Employment Pass (EP) and S Pass qualifying salaries are work-pass eligibility requirements, not a universal minimum wage. A migrant-worker Work Permit does not have a minimum qualifying salary, although the employer must declare and pay the worker’s fixed monthly salary. The relevant rule therefore depends on the pass.

For an EP, the current starting qualifying salary is S$5,600 a month outside financial services and S$6,200 in financial services; the required amount increases with the candidate’s age. For new applications from 1 January 2027, those starting figures rise to S$6,000 and S$6,600 respectively. The new figures apply to renewals of passes expiring from 1 January 2028. EP candidates must also meet MOM’s other eligibility requirements, including COMPASS unless exempted.

For an S Pass, the current starting qualifying salary is S$3,300 a month outside financial services and S$3,800 in financial services, with higher amounts for older candidates. For new applications from 1 January 2027, the starting figures rise to S$3,600 and S$4,000 respectively; they apply to renewals of passes expiring from 1 January 2028. S Pass hiring also involves quota and levy requirements. See MOM’s S Pass eligibility guidance.

EP and S Pass qualifying figures refer to fixed monthly salary: basic monthly salary plus fixed monthly allowances. Bonuses, commissions, overtime payments and other variable components do not count toward that figure. For a Work Permit holder, the employer must pay the fixed monthly salary declared to MOM even though there is no minimum qualifying salary. See MOM’s salary definition and Work Permit salary rules.

Companies planning to hire foreign talent in Singapore should establish the employer and work-pass route before issuing an offer. For EP and S Pass candidates, the fixed monthly salary must meet the threshold for the candidate’s age and sector; a package that relies on a variable bonus to reach that figure may not qualify.

Minimum Wage vs. Total Compensation in Singapore

Even when a role is not covered by PWM, LQS, or work pass salary thresholds, employers should still benchmark total compensation carefully. Singapore is a competitive talent market, and salary is only one part of the package.

Total compensation may include:

• Base salary
• CPF contributions where applicable
• Variable bonus
• Commission or incentive pay
• Allowances
• Medical, dental, or insurance benefits
• Flexible work arrangements
• Annual leave and public holidays
• Training and development support
• Relocation support for foreign employees

Budget employer contributions and benefits separately from salary. See employee benefits in Singapore, covering CPF rates by age, leave entitlements and the 2026 changes.

How Singapore Wage Rules Affect Payroll

Wage compliance becomes operational through payroll. Employers need to calculate salary, CPF where applicable, allowances, deductions, overtime where relevant, bonuses, claims, benefits, and payslips correctly.

If your company is the legal employer, Singapore payroll outsourcing covers agreed salary calculations, CPF calculations, payslips and payroll reports. You retain employer responsibilities and approve payroll inputs. Global payroll support can coordinate reporting across countries.

When EOR Is Useful for Singapore Wage Compliance

An Employer of Record can be useful when a foreign company wants to employ a Singapore citizen or permanent resident before setting up its own local entity. Under NNRoad’s Singapore EOR service, our Local Team employs the person and handles the employment contract, payroll and applicable CPF administration, while the client directs the employee’s day-to-day work.

A foreign candidate who needs a new EP, S Pass or Work Permit requires a separate hiring-path assessment. MOM states that an EOR cannot apply for a work pass so a foreigner can be based in Singapore while working for an overseas company. That case should be assessed under the appropriate Singapore employer and work-pass arrangement, rather than assumed to fit EOR.

Before choosing a provider, use the Singapore EOR provider checklist to review accountability, payroll visibility and employment administration.

For companies hiring in several countries, a global Employer of Record model can help coordinate employment administration across markets, while Singapore wage rules still need local review.

When Independent Contractor Engagement Fits

For a genuinely independent assignment, NNRoad’s Singapore On-Demand Talent service recruits, contracts with and pays contractors. You define the required outputs and coordinate delivery within the agreed independent arrangement.

Assess the actual working relationship, including control, integration and commercial independence. A short project or fixed end date alone does not make a worker an independent contractor.

Employers should be careful not to use on-demand talent or contractor structures to avoid wage or employment obligations for roles that are employee-like in practice.

Step-by-Step: How Employers Should Check Singapore Wage Compliance

Step 1: Identify the worker type

Determine whether the relationship is employment or independent contracting. For an employee, identify the legal employer, citizenship or permanent-resident status, and any work-authorization requirement.

Step 2: Check whether PWM applies

Review the worker’s sector, occupation, job level, and training requirements. If the role is covered by a Sectoral or Occupational PWM, pay at least the required PWM wage.

Step 3: Check LQS if the company hires foreign workers

If the firm hires Work Permit, S Pass, or EP holders, confirm whether local employees meet PWM wages where applicable and at least LQS where not covered by PWM.

Step 4: Apply the salary rule for the work-pass type

For EP and S Pass candidates, use the fixed monthly salary threshold for their age and sector. A migrant-worker Work Permit has no minimum qualifying salary, but the employer must declare and pay the agreed fixed monthly salary and meet the applicable sector, quota and levy requirements. See MOM’s Work Permit guidance.

Step 5: Align payroll and CPF setup

Confirm salary, allowances, deductions, CPF status, payslips, payroll reports, and employee records before the first pay cycle.

Step 6: Review government support

Check whether wage increases may qualify for PWCS or whether the company can use support schemes related to productivity, training, or wage progression.

Step 7: Review total compensation

Benchmark base salary, benefits, variable pay, allowances, and employment cost against the market. Compliance thresholds are only the minimum; market competitiveness may require more.

Singapore Wage Compliance Checklist

Common Mistakes When Interpreting Singapore Minimum Wage

Assuming Singapore has no wage rules because there is no universal minimum wage

Singapore does not have a single national minimum wage, but employers may still need to comply with PWM, LQS, work pass salary thresholds, CPF, payroll, and salary documentation rules.

Using old sector-specific wage examples

Older examples for cleaners or security officers may be outdated. Employers should check the current MOM PWM pages for the specific sector or occupation before budgeting.

Confusing LQS with a universal minimum wage

LQS is a pay requirement for local employees at firms hiring foreign workers, as well as a basis for Work Permit and S Pass quota calculations. It is not a universal minimum wage.

Ignoring foreign worker salary thresholds

Foreign hiring has its own salary rules. EP and S Pass salary criteria should be checked before the offer is issued.

Separating wage planning from payroll

Wage compliance must appear correctly in payroll. Employers should align salary, CPF, allowances, deductions, payslips, and reporting before employees start.

How NNRoad Supports Singapore Wage and Payroll Compliance

Choose support according to who employs the worker and how the work will be performed.

For local EOR hires, our Local Team employs the person while you manage their work. Payroll outsourcing supports calculations and reporting when you remain the employer. Expat Employment starts with a lawful employment and work-authorization assessment. On-Demand Talent recruits, contracts with and pays genuine independent contractors.

Our risk-management support depends on accurate information, timely notice of changes and your following our advisers’ recommendations. Confirm the applicable wage rules before approving an offer or changing an assignment.

Quick FAQs

Talk to NNRoad About Singapore Wage Compliance

Tell us the role, work location, working hours, proposed salary, candidate’s residence status and whether you already have a Singapore employer. NNRoad will assess the relevant service and next steps. We respond within 24 hours and propose a solution within three days.