Summary: Governments across Asia and beyond, including Singapore, Dubai (UAE), Hong Kong, India, Japan, Australia, the UK, the US and South Korea, have announced significant updates to foreign workforce policies. In Singapore, key changes include higher minimum qualifying salaries for Employment Pass and S Pass holders from January 2027, a rise in the Local Qualifying Salary from July 1, 2026, and Work Permit levy adjustments set for 2028.

Singapore’s Ministry of Manpower (MOM) has unveiled changes to foreign workforce policies that will roll out between 2026 and 2028, and similar reforms have been announced in jurisdictions including Dubai (UAE), Hong Kong, India, Japan, Australia, the UK, the US and South Korea. These updates will directly influence hiring rules for the tourism and travel sectors, which rely heavily on foreign talent.

What Singapore’s 2026 Budget changes involve

Under Singapore’s Budget 2026 measures, employers must meet higher salary thresholds for new and renewing Employment Pass (EP) and S Pass holders. These adjustments are slated to take effect from January 2027 and target both skilled and mid-level foreign workers employed across hospitality, retail, tourism and other sectors.

  • Employment Pass (EP): Minimum qualifying salary raised from S$5,600 to S$6,000 per month (effective January 2027).
  • S Pass: Minimum qualifying salary increased from S$3,300 to S$3,600 per month (effective January 2027).

Local Qualifying Salary and how it affects quotas

MOM will raise the Local Qualifying Salary (LQS) from S$1,600 to S$1,800 per month, effective July 1, 2026. The LQS determines the minimum local wage an employer must pay for an employee to count towards S Pass and Work Permit quotas — a change that will affect staffing plans across travel agencies, transport providers and hospitality businesses.

Work Permit levy adjustments coming in 2028

A further component of the reforms is an adjustment to Work Permit levies in 2028. These changes primarily target basic-skilled roles in sectors such as marine and process industries, but will also affect tourism and hospitality employers who engage entry-level foreign workers for housekeeping, baggage handling and other operational roles.

Hotel reception staff in Singapore illustrating workforce changes affecting tourism and hospitality
Tourism and hospitality employers in Singapore will need to adapt to higher salary floors and changing permit rules

Implications for the travel and tourism industry

Higher salary floors and future levy increases mean labour costs for hotels, restaurants, travel agencies and transport operators are likely to rise. Businesses that have depended on foreign workers for managerial, mid-level and entry-level roles will need to revisit budgets, staffing mixes and recruitment strategies.

  • Budget adjustments: Employers may face higher payroll bills and should reforecast labour costs.
  • Workforce planning: Firms may increase local hiring, upskill existing staff, or automate certain tasks.
  • Compliance: Travel businesses must track permit rules, LQS changes and levy timelines to avoid fines.

Support measures and broader regional reforms

Singapore’s Progressive Wage Credit Scheme (PWCS) will continue through 2028 to help offset wage increases for eligible Singaporean workers, offering some relief for employers adjusting to higher local wages. The broader set of announcements from Dubai, Hong Kong, India, Japan, Australia, the UK, the US and South Korea similarly signal a global trend toward higher wage floors and tighter controls on foreign labour.

For tourism employers, the cumulative effect of these policies is a nudge toward hiring higher-skilled or local staff and investing in productivity improvements. That shift may change operational models across the travel ecosystem over the next two to three years.

So what? Why this matters to travellers and the industry

Travel businesses will likely pass some increased labour costs onto consumers, adjust staffing levels, or accelerate automation — all of which could affect prices, service availability and booking flexibility. For travellers, this may mean marginally higher prices or altered service offerings; for employers, it underscores the need to plan ahead, upskill local talent, and monitor permit timelines closely.