The Real Cost of Hiring a Foreign Professional in Singapore (2026)

A foreign-hiring budget should separate salary, statutory charges, required insurance, contractual benefits and one-off onboarding costs. The applicable items differ between Employment Pass, S Pass and Work Permit holders. Use official requirements and written quotations for the specific hire rather than a universal percentage added to salary.

Reviewed against official MOM and CPF guidance on 23 October 2026.

Employment Pass: The True Cost in 2026

The Employment Pass is for eligible professional, managerial and executive roles. Current starting qualifying salaries are S$5,600 outside financial services and S$6,200 in financial services, increasing with age. From 1 January 2027 for new applications, and renewals of passes expiring from 1 January 2028, starting figures become S$6,000 and S$6,600. COMPASS applies unless the candidate qualifies for an exemption.

Sources: Official guidance 1.

EP holders do not attract the foreign worker levy or a foreign-worker quota. MOM charges S$105 to apply and S$225 to issue the pass, with S$30 for a Multiple Journey Visa if applicable. These are transaction payments, not annual fees. See our Employment Pass guide for the wider eligibility assessment.

Sources: Official guidance 1.

EP: Worked Cost Example

EP example cost	Amount	Treatment
Salary at S$7,000 a month	S$84,000 over 12 months	Illustrative salary, not pass approval
Foreign-worker levy and CPF for a non-PR foreign employee	S$0	Reassess CPF if status changes
SDL before employer-level rounding	S$11.25 a month; S$135 over 12 months	Apply current CPF Board rules
MOM application and issuance	S$330	One-off cash payment; visa fee if applicable
Medical benefits, travel and other agreed items	Obtain quotations	Not included in the subtotal
Known first-year partial subtotal	S$84,465	Salary + SDL + S$330 only; not an all-in total

SDL is 0.25% of monthly total wages, with a minimum of S$2 and maximum of S$11.25 per employee. Add the amounts for all employees and round the employer total down to the nearest dollar. Employee allocations in these examples are not the final remittance. Obtain quotations for benefits and other costs rather than assuming an insurance premium.

Sources: Official guidance 1.

S Pass: Levy and Quota Add Significant Cost

S Pass eligibility and salary thresholds are separate from levy and quota. Budget S$650 per full month for levy, or S$7,800 over twelve full months. Quota requirements remain relevant. Review the candidate against the age, sector and application or renewal dates, rather than treating the salary example below as an eligibility decision.

Sources: Official guidance 1.

Employers must buy and maintain medical insurance covering inpatient care and day surgery, including non-work-related conditions, with an annual claim limit of at least S$60,000 for each S Pass holder. Employers of S Pass holders do not have to post a security bond. Obtain a compliant insurance quotation because premiums depend on the policy and insured worker. The insurance premium cannot be passed to the worker. Budget separately for any policy-dependent uninsured medical costs and co-payment exposure; the required coverage does not eliminate every employer medical expense.

Sources: Official guidance 1; Official guidance 2.

S Pass: Worked Cost Example

S Pass example cost	Monthly / transaction amount	Twelve-month amount
Salary	S$3,500	S$42,000
S Pass levy	S$650	S$7,800
SDL before employer-level rounding	S$8.75	S$105
Medical insurance	Obtain compliant quotation	Not included
Security bond	Not required	Not applicable
Application and issuance	S$105 + S$100	S$205 one-off
Known partial subtotal	No all-in monthly estimate	S$50,110 before insurance and other applicable costs

This worked budget has a known S$49,905 subtotal for twelve months of salary, levy and pre-rounding SDL. Adding the S$205 application and issuance payments gives S$50,110. Medical insurance, any required Primary Care Plan, work injury compensation insurance, medical examinations, agency services, travel and other applicable costs are additional. It is a partial budget, not an all-inclusive hiring price.

Sources: Official guidance 1.

The Local Qualifying Salary (LQS) and S Pass qualifying salary are separate requirements. From 1 July 2026, the LQS is S$1,800 gross monthly for full-time local employees working 35 to 44 hours a week; different hourly and overtime calculations apply outside that band. Firms employing foreign workers must meet the applicable Progressive Wage or LQS requirements for their local employees, including where the foreign employees hold EPs. The LQS also affects local-workforce counting for Work Permit and S Pass quotas. As at this review, the S Pass minimum qualifying fixed monthly salary starts at S$3,300 outside financial services and S$3,800 in financial services, increasing with age. For new applications from 1 January 2027, and renewals of passes expiring from 1 January 2028, the starting figures become S$3,600 and S$4,000 respectively. Check MOM's age-based table and Self-Assessment Tool for the actual candidate.

Sources: Official guidance 1; Official guidance 2; Official guidance 3.

Work Permit: Levy-Heavy but Quota-Constrained

Work Permits are available for eligible workers in construction, manufacturing, marine shipyard, process and services. MOM does not specify a general minimum qualifying salary for the Work Permit, but specific schemes and occupations may impose salary conditions. Employer quotas and levies depend on the sector and worker category, so use the applicable MOM sector table rather than a single cross-sector range.
Employers must maintain medical insurance with at least S$60,000 annual coverage for inpatient care and day surgery. A S$5,000 security bond is generally required for non-Malaysian Work Permit holders; it is a guarantee amount, not an annual premium. Check any applicable route-specific exception. Employers must also budget for required accommodation, medical examinations, repatriation and sector-specific training. A Primary Care Plan is required for workers in CMP sectors or living in dormitories that accommodate seven or more workers. Work injury compensation insurance may also be required.
Build the cost model from the actual worker's sector, source country, skill classification and accommodation rather than an assumed percentage of salary.

Sources: Official guidance 1; Official guidance 2; Official guidance 3; Official guidance 4; Official guidance 5.

When Does the ONE Pass Become Economical?

ONE Pass has route-specific eligibility requirements and outstanding-achievement alternatives. A salary figure alone is not the entire test. Assess suitability against the actual role and track record. Its flexibility should not be presented as an automatic reason to choose it over another pass. See our ONE Pass guide.

Sources: Official guidance 1.

Hidden Costs Employers Frequently Underestimate

Beyond the direct MOM-regulated costs, several indirect expenses consistently catch employers off guard when hiring foreign professionals:

CPF Uplift on PR Conversion

CPF contributions become payable when an employee obtains Singapore Permanent Resident status. The applicable rate depends on age, wages and the year of PR status. Graduated rates generally apply in the first two years, with full rates from the third year; use CPF Board's applicable tables and any approved higher-rate arrangement. From 1 January 2026, the Ordinary Wage ceiling is S$8,000 a month. Recalculate payroll when status changes instead of assuming an immediate uniform 17% cost. PR approval and timing are not guaranteed by holding an Employment Pass.

Sources: Official guidance 1; Official guidance 2.

Dependant Passes and Letter of Consent

A Dependant's Pass alone does not authorise employment. For a DP holder sponsored by an EP or S Pass holder, a prospective employer can apply for an EP, S Pass or DP Work Permit, subject to the relevant conditions. The LOC route for eligible DP business owners is separate. Spouses of ONE Pass holders have a distinct LOC route, so check the main pass type before advising on work permission.

Schooling and other family expenses should use current written quotations from the chosen providers. They are not MOM pass charges. Read the DP employment-route guide.

Sources: Official guidance 1; Official guidance 2.

Repatriation Costs

Budget for end-of-employment travel and repatriation obligations. MOM states that employers are responsible for repatriating EP and S Pass holders unless the pass holder explicitly agrees to bear the cost in a document signed by that pass holder. Work Permit employers remain responsible for the costs of repatriating their workers. Check the applicable cancellation instructions and settle outstanding salary and employment matters before departure.

Sources: Official guidance 1; Official guidance 2; Official guidance 3.

Planning Your 2026 Foreign Hiring Budget

Choose a pass route by the candidate’s role and eligibility, then prepare a line-item cost model. Separate recurring costs from one-off payments and contingency liabilities. Recheck salary thresholds, quota, levy and insurance before committing to an offer, and review the budget at renewal or when the employee’s status changes.

Keep the cost worksheet alongside the candidate’s pass assessment and written quotations. Record the assumptions and review date so payroll and hiring managers can update the same figures when circumstances change.

Little Big Employment Agency Pte Ltd (Licence No. 19C9790) assists employers with pass strategy, COMPASS scoring analysis, and end-to-end EP and S Pass applications. For a structured review of your foreign workforce cost model, contact the team at Singapore Employment Agency. For companies incorporating in Singapore and structuring their first foreign headcount, Raffles Corporate Services provides integrated corporate and employment support.

The Editorial Team, Little Big Employment Agency

Raffles Corporate Services is an associated business. Its services are offered separately.

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