Where your levy stands in 2026

The levy you pay depends on your sector, your worker’s skill tier and how much of your quota you use. Rates are tiered so that firms hiring close to their quota ceiling pay more per worker. Here are the current monthly rates for the two sectors this guide covers:

Services sector (DRC 35 percent)

Quota	Basic-skilled	Higher-skilled
Tier 1: up to 10% of workforce	S$$450	S$$300
Tier 2: above 10% to 25%	S$$600	S$$400
Tier 3: above 25% to 35%	S$$800	S$$600

Manufacturing sector (DRC 60 percent)

Quota	Basic-skilled	Higher-skilled
Tier 1: up to 25% of workforce	S$$370	S$$250
Tier 2: above 25% to 50%	S$$470	S$$350
Tier 3: above 50% to 60%	S$$650	S$$550

Two structural notes. First, your quota position is calculated from your workforce composition, which is where the Local Qualifying Salary change covered below matters. Second, if you hire under the NTS Occupation List, your workers sit inside an 8 percent sub-DRC and must earn at least S$2,000 fixed monthly salary. Our guide to the eight new NTS occupations covers that route in detail.

What changes in 2028

Budget 2026 simplified the levy framework for the two biggest Work Permit sectors. From 2028:

• Services: Tiers 1 and 2 merge into one tier at S$600 for basic-skilled and S$400 for higher-skilled workers. Tier 3 stays at S$800 and S$600.
• Manufacturing: Tiers 1 and 2 merge at S$470 basic-skilled and S$300 higher-skilled. Tier 3 stays at S$650 and S$550.
• Marine Shipyard: the basic-skilled levy rises by S$100, from S$500 to S$600.
• Process: the basic-skilled levy rises by S$150, from S$450 to S$600 for Malaysia, North Asian and PRC workers, and from S$650 to S$800 for Non-Traditional Sources workers. Higher-skilled rates in these two sectors are unchanged.

MOM has stated it will release the implementation timeline in due course, so the 2028 rates are confirmed but the exact effective month is not yet published.

Winners and losers by tier

The merged structure redistributes cost between low-quota and mid-quota employers. The table below shows what each position pays from 2028 versus today:

Position in 2026	Rate today	Rate 2028	Change
Services T1, basic-skilled	S$$450	S$$600	+S$150 (+33%)
Services T1, higher-skilled	S$$300	S$$400	+S$100 (+33%)
Services T2, either skill	S$$600 / $400	S$$600 / $400	No change
Services T3, either skill	S$$800 / $600	S$$800 / $600	No change
Manufacturing T1, basic-skilled	S$$370	S$$470	+S$100 (+27%)
Manufacturing T1, higher-skilled	S$$250	S$$300	+S$50 (+20%)
Manufacturing T2, either skill	S$$470 / $350	S$$470 / $350	No change

The practical reading: if your Services firm runs under 10 percent Work Permit density today, your per-worker levy rises by a third from 2028. If you sit between 10 and 25 percent, nothing changes. This is why the 2028 change is a planning problem, not a uniform cost shock. Firms below the mid-tier should either plan for the higher rate or deliberately structure their workforce mix to sit in the merged tier’s economics.

The quota change that arrives first: LQS from July 2026

Before the levy moves, a quieter change hits your quota maths. From 1 July 2026, the Local Qualifying Salary (LQS) rises from S$1,600 to S$1,800 per month. Every local employee earning below the LQS stops counting as a full local worker in your DRC calculation, which can shrink your Work Permit entitlement before a single levy dollar changes.

Audit your local payroll now: any Singaporean or PR employee earning between S$1,600 and S$1,799 needs a salary review or a headcount plan adjustment before July 2026, otherwise your quota base erodes silently.

Pass floors rising in 2027

The levy is only one line in the pass-mix budget. From 1 January 2027, the EP minimum qualifying salary rises to S$6,000 (S$6,600 for financial services) for new applications, and renewals follow from 1 January 2028. The S Pass floor moves to S$3,600 for all sectors and S$4,000 for financial services. Roles squeezed out of these passes either get re-benchmarked upward or shift to the Work Permit route, which is exactly where the how to hire under the new NTS list becomes relevant for food services, childcare and air transport roles.

Three budgeting moves to make in Q4

1. Map every worker to their 2028 rate. List each Work Permit holder by sector, skill tier and current quota position, then price the merged 2028 rate. For most firms this is a one-afternoon spreadsheet exercise that removes the biggest unknown from the 2028 budget.
2. Fix LQS exposure before July 2026. Identify local staff between S$1,600 and S$1,800 and decide whether to raise salaries or absorb the quota effect. This change lands before the levy does and is fully in your control.
3. Re-benchmark pass mix against the 2027 floors. Roles sitting between the old and new EP and S Pass floors need a decision: raise pay, restructure the role, or move it to the Work Permit route. Deciding in Q4 2026 avoids renewals surprises through 2027 and 2028.

For the full per-hire cost picture beyond the levy, including security bonds, insurance and medical cover, see what each foreign hire costs beyond the levy, and for the salary floors specifically, our which of your staff fall below the new floors lists which staff fall below the new floors.

How Corestaff helps you plan the pass mix

Corestaff, the Singapore recruitment agency, builds levy and pass-mix projections into every foreign hiring plan, so the budget you approve in Q4 holds through 2028. Whether you need new hires under the current rules or a re-plan of your existing workforce, our our foreign worker recruitment services handles sourcing, pass applications and quota checks end to end. get a costed foreign hiring plan to get a costed plan for your headcount.

Frequently asked questions