Singapore 2025 Labor Regulations and Market Insights
As a global business hub, Singapore continues to optimize its labor regulations to adapt to global economic shifts. In 2025, companies should pay close attention to the following key changes and market trends:
Core Regulatory Updates
Foreign Talent Policy Adjustments
-Employment Pass (EP): Starting January 2025, the minimum monthly salary is raised to SGD 5,600 for non-financial sectors and SGD 6,200 for financial sectors. Renewal criteria follow the same rule. Salary thresholds increase with age.
-S Pass: From September, the minimum monthly salary will rise to SGD 3,300, with a maximum requirement of SGD 4,800 for applicants over 40. Tier 1 quota levy increases to SGD 650.
-Work Permit (WP): From July, the maximum validity period will be removed, maximum employment age extended to 63, and more occupations and source countries will be allowed.
-Mandatory CPF (Central Provident Fund): Employers and foreign employees will each contribute 2% of monthly salary to CPF, reducing the social security gap with local workers.
Enhanced Protection for Local Talent
-Fair Consideration Framework (FCF): Employers must advertise job openings on official platforms for 14 days and prioritize local candidates before hiring foreigners.
-Anti-Discrimination Legislation: In 2025, workplace fairness laws will be enhanced to prohibit discriminatory behavior in recruitment and promotion.
Institutionalization of Flexible Work Arrangements
-The Ministry of Manpower (MOM) will release implementation guidelines covering flexible work locations, hours, and workloads to provide standardized frameworks for enterprises.
Upgraded Welfare Policies
-Paternity leave extended to 4 weeks;
-Laid-off Singapore citizens can apply for job search support of up to SGD 6,000 (will extend to Permanent Residents in 2026).
Market Trends & Insights
Cooling Labor Market
Only 2,300 new jobs were created in Q1 2025 (down from 7,700 in Q4 2024); unemployment edged up slightly to 2.1%, still low by global standards.
Diverging Wage Growth
Overall salary growth has narrowed to 2%-5%, but key roles in tech, finance, healthcare, and logistics continue to see higher increases.
Intensified Talent Competition
Nearly half of job switchers expect salary increases of 15%-20%; work flexibility and skills development opportunities are now key retention factors.
Focused Skills Demand
There is an acute shortage of talent in AI, cybersecurity, fintech, and biomedical sectors. Business restructuring has overtaken poor performance as the main cause of layoffs (only 3,300 layoffs recorded in Q1 2025).
Recommendations for Employers
Compliance First: Track real-time updates to EP/S Pass salary thresholds and CPF contribution requirements.
Revise Compensation Strategies: Combine financial and non-financial incentives (e.g., flexible work arrangements) to meet rising employee expectations.
Accelerate Skills Investment: Implement retraining programs in high-demand domains.
Innovate Management Systems: Develop standardized flexible work policies to enhance employee experience.
