Singapore Budget 2026: Announcements for individuals
Budget overview
For businesses
Tax deduction for CPF cash top-ups for platform workers
From 1 January 2026, a tax deduction will be allowed for CPF cash top-ups made by platform operators on behalf of their platform workers (i.e. where individuals provide their services through a digital platform, typically in the gig economy).
Impact
- Platform operators can claim a tax deduction for CPF cash top-ups made on behalf of their platform workers under the Voluntary Contributions to MediSave Account (VC-MA) scheme.
- This change will apply from YA 2027 for CPF cash top-ups made from 1 January 2026.
Insights
- This tax deduction was previously available to employers but not to platform operators.
- This is a welcome change which aligns the treatment of cash top-ups made by a Platform operator with the existing treatment for an employer.
Updates to foreign worker policies
The Employment Pass (EP) salary threshold will be raised to SGD 6,000 (SGD 6,600 for finance sector) and for S Pass will be raised to SGD 3,600 (SGD 4,000 for finance). Foreign Worker Levy (FWL) rates will rise by SGD 100 and SGD 150 for marine shipyard and process sectors. The FWL framework for services and manufacturing sectors will be simplified.
Impact
- The new salary threshold will apply to new applications from January 2027 and for renewals from January 2028.
- The minimum EP qualifying salary for candidates aged 45 and above will also rise to up to SGD 11,500 (SGD 12,700 for those in finance sector).
- The minimum S Pass qualifying salary for candidates aged 45 and above will also rise to up to SGD 4,000 (SGD 5,650 for those in finance sector).
- Businesses looking to hire or renew foreign workers will need to assess their eligibility for an EP or an S Pass against the increased salary threshold.
Insights
- The trend is for the government to periodically raise to ensure that they are in line with local wage rises.
- This will make it increasingly harder to bring in foreign talent, especially at more junior levels.
- For some sectors and jobs, it poses a significant challenge that the government should consider other ways of solving.
CPF transitional support for employers
There will be a one-year CPF Transitional Offset equivalent to half of the 2027 increase in employer CPF contribution rates.
Impact
- The Government announced in 2019 that CPF contribution rates would gradually rise for those aged between 55 and 70.
- In 2027, the employer contribution rate increased by 0.5% for those between 55 and 65.
- This presents a rising cost for employers who will see their employer contribution rates increase for the above age groups.
Insights
- This may discourage companies from hiring individuals above 55 years of age as this increases their employer CPF costs.
- For the individuals, the increase in CPF contributions goes into their Retirement Account and should enhance retirement affordability and defray increased healthcare costs.
No Personal Income Tax rebate
There was no Personal Income Tax rebate announced this year.
Impact
- Individuals will not receive any tax rebates against their YA 2026 tax liability.
Insights
- Without the rebate, individuals will be subject to a slightly higher rate of tax in YA 2026 than in YA 2025.
- There is already a tax by inflation as an individual’s salary generally increases year on year while personal reliefs and progressive tax rates remain static.
- The retraction of the rebate for YA 2026 further increases the impact of the higher tax cost that individuals will experience this year.
Partner - Corporate Tax
Partner - Employer Solutions and Private...
Director - Transfer Pricing Leader
Director - Indirect Tax Leader
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