Singapore performs juggling acts with its foreign worker policies, constantly influenced by the local job market to balance the economic needs. The significant changes in 2026 are the imposition of stricter quotas in some areas, a rise in levies, and the discontinuation of a unique arrangement for performing artists.
The modifications are crucial at present as companies are enduring the dual challenge of increasing costs and employee shortages, whereas local workers are making their own demands for the best salaries and conditions. The changes in policy are intended to attract a more skilled workforce but the impact is not the same for every group.
Flexibility for Basic-Skilled Workers
Starting from 2025, (continuing into 2026), there is no longer a limit on the duration of employment for just about all Work Permit holders. The maximum age raises to 63, and new source countries such as Bhutan, Cambodia, and Laos become available.
This is beneficial as it allows for the retention of skilled workers without frequent renewals.
Tighter Rules in Marine and Offshore
The marine shipyard industry has its Dependency Ratio Ceiling (DRC) reduced from 1:3.5 to 1:3 locals-to-foreigners and higher levies imposed from January 2026 onwards.
This compels companies to increase the number of locals hired and enhance their productivity.
End of Performing Artiste Scheme
As of June 2026, there will be no more new Work Permits issued for foreign singers, dancers, or musicians in nightlife venues. Existing permits can complete their durations.
MOM mentions wide-scale misconduct connected to organized crime.
Increased Charges for Mid-Skilled S Pass
S-pass minimum remuneration and levies are increasing (incremental changes from 2025-2026), making it unaffordable to employ mid-level foreign workforce.
This promotes upskilling of local talent.
Good News for Experienced Foreign Workers
Increased durations of stay and age limits are a guarantee of job security for trustworthy basic-skilled foreigners, especially those from new sources.
They will be able to progress in their careers longer in Singapore.
Good News for Local Workers
Stricter quotas and higher local qualifying pay mean more job opportunities and higher salaries for the Singaporeans. Mainly, these are in marine and service sectors.
Low-income locals get indirect advantages.
Challenges for Nightlife Venues
The lack of foreign artists during the night will make it more expensive to find alternative staff like service providers.
This can lead to less lively places.
Main Policy Modifications Overview
A table summarizing the major impacts of 2026 is given below:
| Change | Effective Date | Winners | Losers |
|---|---|---|---|
| No duration limit & age to 63 | Ongoing from 2025 | Experienced WP holders, employers in manpower-short sectors | None major |
| Marine DRC tighten & levy up | Jan 2026 | Local workers in marine | Marine/offshore employers |
| End Performing Artiste WP | Jun 2026 | Integrity of system | Nightlife venues, foreign artistes |
| S Pass/EP salary & levy rises | Phased 2025-2026 | Higher-skilled locals | Employers needing mid-level foreign talent |
Challenges for Employers Overall
Most companies, particularly SMEs, find themselves in a situation of swallowing levies and quotas that entail training locals or going for automation.
Upskilling Opportunities
The government grants are there to support the transformation of the workforce and to help the companies get used to the changes.
The foreign workers’ policies of Singapore for the year 2026 are more of a systematic control: it is a win for locals and experienced basics, but at the same time, it is a challenge for some of the employers and the nightlife as well.
Look up MOM.gov.sg for the rules applicable to your sector, calculate the quotas, or apply for training grants to stay on top of things.