Employment & MOM Guidelines

In 2026, new rules around Work Permit eligibility and levies will make compliance much tougher. Employers — especially in sectors like construction and manufacturing — need to plan more carefully. If you’re not using HR software in Singapore to stay on top of these changes, you risk falling behind or making decisions too slowly to keep up with new requirements. Work Permit rules are now changing more frequently than they used to. Each new hire or renewal has to meet current MOM rules. If you’re not keeping a close eye on quotas or checking that each worker meets updated salary and levy rules, you risk breaching MOM compliance. The guide will walk you through recent changes and show you how HR software in Singapore can help you manage compliance more easily. What are the changes in the work permit? Based on recent updates from MOM and MTI, employers should prepare for four main changes affecting Work Permit approvals and renewals: Tighter Dependency Ratio Ceilings (DRC) in selected sectors Higher levies for lower-skilled workers Stronger emphasis on digital compliance and traceable HR records Narrower eligibility for source countries and job scopes Now is a good time to adjust your hiring decisions and adopt better workforce planning practices. You can also start using all-in-one HR software in Singapore so you can track everything in one place. What are the latest criteria for work permit eligibility? The core WP requirements remain in place, including approved source countries and age limits. But in sectors like services and manufacturing, the eligibility rules have become more specific, so it’s important to pay closer attention to sector-based restrictions and quota conditions if you are in these industries. Here is a consolidated view of key 2026 eligibility conditions based on MOM guidance: Approved source countries You can only hire Work Permit holders from MOM-approved source countries, and the list depends on your sector. Since these lists can change, it’s important to check the latest version before making an offer. Age requirements Workers must be at least 18 to qualify. For non-Malaysians, the maximum age is usually 50. Malaysians can be hired or renewed up to age 58, depending on the sector you’re in. Medical requirements You, as an employer, must ensure that all Work Permit holders undergo a pre-employment medical examination. You’ll also need to make sure that your workers go for their six-monthly medical exams (6ME) and stay covered under valid medical insurance throughout their employment. Security bond If you’re hiring non-Malaysian Work Permit holders, you’ll usually need to post a $5,000 security bond per worker. Some employers may qualify for an insurance guarantee instead—check MOM’s conditions to see if you’re eligible. Quota and levy compliance Every Work Permit is tied to a quota and a monthly levy. These limits vary by sector, so you’ll need to track them carefully. If you go over your quota or miss levy payments, you risk fines—or having future applications rejected. How can Adaptive Pay support work permit compliance? Staying compliant in 2026 requires real-time HR software in Singapore that can help your business keep pace with policy changes. Adaptive Pay helps you manage Work Permit obligations through automated calculations and audit-ready logs. With a unified system, our platform gives you more visibility into quota limits and levy tiers while keeping all the required documentation in order. This reduces your reliance on manual tracking and keeps you compliant, even as regulations tighten. Request a demo of our HR software in Singapore today to see how it can help your organisation stay Work Permit–compliant with greater confidence.

Singapore’s retirement age is rising to 64 — and re-employment age to 69 — starting July of next year. You will need a comprehensive HR software in Singapore that lets you track eligibility and manage transitions properly. Key Takeaways • Singapore’s statutory retirement age will increase from 63 to 64 on 1 July 2026, while the re-employment age will rise from 68 to 69.• Employers must understand the difference between retirement and re-employment obligations under MOM.• CPF contribution rates continue to be determined by an employee’s age, not the statutory retirement age.• HR and payroll systems should be updated to reflect the latest MOM and CPF changes for compliant workforce management. Why is Singapore increasing its retirement age? Singapore is progressively raising both the retirement age and re-employment age to support longer life expectancies. Here’s are the changes you need to note: Date Retirement age Re-employment age Current (since July 2022) 63 68 Starting 1 July 2026 64 (born on or after 1 July 1963) 69 (born after 1 July 1958) By 2030 65 70 These adjustments help your organisation keep experienced employees longer and improve financial stability for seniors. Using HR software in Singapore will make it easier to ensure fair pay and compensation for everyone. Retirement and re-employment framework from MOM To comply with MOM guidelines, your HR teams must understand how retirement age differs from the re-employment age, and how each affects workforce management. The retirement age is the earliest point at which you may end employment based solely on age. You’re not allowed to dismiss an employee for age-related reasons before they reach this statutory minimum. Meanwhile, the re-employment age sets the upper limit for how long eligible employees can continue working if they wish to do so. Employers must offer re-employment to those who meet MOM’s criteria — including satisfactory performance, medical fitness, and at least three years of service — allowing them to stay on beyond the retirement age, up to the re-employment ceiling. Senior Employment Credit (SEC) Through the Senior Employment Credit, you can get support that offsets wages when you hire or retain older Singaporean workers. The support is greater when your employees are in older age groups, allowing your business to adapt to the rising retirement and re-employment ages. SEC eligibility You may qualify for SEC payouts (for wages from 2023 to 2026) if you hire: Singapore Citizens aged 60 and above Employees for whom mandatory CPF contributions are made on time Employees earning below S$4,000 per month For wages paid between 1 January 2024 and 31 December 2026, you can receive up to 7% wage offsets depending on the employee’s age and salary. The 2025 Budget extends SEC support into 2026, and you’ll need to adjust your payroll settings accordingly. Employees turning 69 in 2026 now qualify for the highest support tier (up from 68 last year). Does retirement age affect CPF contributions? CPF contribution rates are based on age bands and not the statutory retirement age. However, you need to consider both when managing older employees. If someone remains employed past the retirement age, you must apply the CPF rate that matches their age group — including reduced rates for employees above 55, 60, 65, and 70 — to remain compliant. What happens to CPF at age 55? Turning 55 is a key milestone for CPF members. At this point, CPF restructures savings to prepare for retirement and opens up limited withdrawal options. Once your employee turns 55, CPF automatically sets up a Retirement Account (RA) and begins moving savings into it. Funds from the Special Account (SA) and/or Ordinary Account (OA) are transferred into the RA, up to the Full Retirement Sum (FRS). The RA earns the same long-term interest rate that previously applied to the SA. Employees can start withdrawing some of their CPF savings from age 55, depending on how much savings they’ve built up. Between ages 55 and 65, any new CPF contributions go into the RA until the FRS is fully met. After that, contributions are directed to the OA, which the employee can access for withdrawals. If FRS is not met, employees may still withdraw up to S$5,000 from their OA. Any remaining balance stays in the RA to support retirement payouts. The Enhanced Retirement Sum has been raised to twice the FRS in January 2025. Employees aged 55 and above can now top up more voluntarily to increase future payouts. CPF contribution rate changes after 55 Once employees turn 55, CPF contribution rates are gradually reduced. Contributions are split between the RA, MediSave Account (MA), and OA according to CPF’s age-based tiering system. Accurate tracking is essential to avoid underpayment or compliance errors. Streamline retirement management in your organisation Rising retirement and re-employment ages combined with regular CPF updates can place a significant compliance load on your HR teams. Adaptive Pay helps reduce this burden by providing a reliable HR software solution for your Singapore business. Our all-in-one cloud HRMS is continuously updated to reflect MOM and CPF changes, making payroll management for senior employees more accurate and stress-free. Frequently Asked Questions 1. What is Singapore’s retirement age in 2026? From 1 July 2026, the statutory retirement age will increase to 64, while the re-employment age will increase to 69, in line with the Government’s planned schedule. 2. What is the difference between retirement age and re-employment age? The retirement age is the earliest age at which an employer may retire an employee based on age. The re-employment age is the age until which eligible employees must be offered re-employment if they satisfy the relevant criteria. 3. Does the retirement age affect CPF contribution rates? No. CPF contribution rates are determined by an employee’s age band, not by the statutory retirement age. Employers should apply the correct CPF rates based on the employee’s age. 4. Can an employee continue working after reaching retirement age? Yes. Eligible employees who meet the relevant criteria may continue working through re-employment arrangements until the statutory

Did you know that 80% of workers globally want to work at home or remotely at least 3 times a week? To cater to this trend, the TG-FWAR has established guidelines on (1) how employees should request and (2) how employers should manage FWA. Singapore-registered companies with at least 30% local ownership can also apply for the PSG to fund FWA tools — such as remote collaboration software, video conferencing platforms, and project management tools — as long as those tools are used within Singapore. If you haven’t adopted flexible work arrangements yet, now is a good time to do so. Here at Adaptive Pay, we offer an all-in-one cloud HRMS in Singapore to support your transition to a flexible work setup. Our platform is meticulously updated and managed to help you fulfil local labour laws such as the Employment Act and tripartite guidelines. Read on as we share an overview of these guidelines and how our HRMS solution can help your organisation comply. Understanding flexible work arrangements FWAs are based on mutual agreements between you and your employees to deviate from standard work arrangements. This could mean allowing employees to work from home or any location outside the traditional office as long as they meet their responsibilities. FWA can also include adjustments to work hours or workloads to accommodate individual employee preferences and needs. The importance of FWA Technological advancements and an evolving society are changing how we work, resulting in FWA becoming a strategic way to attract top talent, foster employee satisfaction, and enhance your company’s agility. Essentially, it encourages a more adaptable and inclusive work environment. On April 16, 2024, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) issued and announced the latest Tripartite Guidelines on FWA Requests. These guidelines became effective on December 1, 2024, and mandated the minimum requirements for Singapore employers to consider formal requests from employees regarding FWA. Adaptive Pay HRMS in Singapore can help your organisation adopt flexible work arrangements and comply with the TAFEP. Types of FWA Flexible work arrangements in Singapore fall into one or more of these categories. Flexi-place allows employees to work flexibly from different locations besides the usual office, as in the case of working from home or telecommuting. Flexi-time lets employees adjust their work schedules, choosing when they start and finish work, as long as they complete their required total hours and workload. Flexi-load (often used for part-time work or job-sharing arrangements) lets employees choose their work hours and workload, with corresponding adjustments to their pay. Which flexible work arrangements are you adopting? Regardless of your choices, make sure you have a reliable HRMS in Singapore to keep track of payroll, claims, attendance, and more, even when your employees are not in the office. Who qualifies for FWA? The new guidelines state that all organisations and non-probation employees are eligible to request flexible work arrangements. This shows Singapore’s inclusive approach and commitment to empowering workers and honing an innovative and flexible workplace culture. Recommendations for Tripartite Guidelines on FWA Requests Singapore’s government approved several recommendations from the Tripartite Workgroup to establish sufficient expectations and norms on flexible work arrangements. These guidelines also outline the process for requesting FWAs and how supervisors and employers can manage requests. Here are some of the key recommendations: Establish clear workplace norms for FWA requests and approvals to manage expectations for everyone involved. Use the Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) as the primary resource for handling FWA requests. Consider FWA requests based on legitimate business reasons while also encouraging employees to use FWAs responsibly. Formalise the FWA request process by using the TG-FWAR and documenting all relevant information for informed decision-making. The TG-FWAR guidelines apply to all employees who have completed their probation period. While job seekers aren’t required to request FWAs during the hiring process, employers are encouraged to share their FWA policies in job interviews and advertisements. Ensure your organisation’s FWA policies are inclusive and accessible to all employees. Provide employees with training and resources on how to effectively request and utilise FWAs. Considerations when implementing FWA How will you handle benefits and salaries when employees’ responsibilities or workloads change under an FWA? Prorated compensation may be necessary. Traditional performance reviews may need to be adapted for remote or flexible work. Consider implementing online performance evaluation and appraisal systems. Clear KPIs and expectations are essential for successful FWAs. Determine how you’ll measure performance and what criteria employees must meet to be eligible for and maintain their FWA. Ensure smoother FWA adoption with Adaptive Pay Let Adaptive Pay take the guesswork out of implementing flexible work arrangements. Learn more about our HRMS in Singapore by requesting a demo here.

As an employer, one of your responsibilities is filing Form IR21 for your employees. This form details their employment and income up until their last working day or the day before they leave Singapore. It’s also your duty to withhold funds from non-Singaporean employees for tax clearance purposes upon their departure. Given the complexity of the process, we recommend using a comprehensive HR software solution in Singapore to make filings more accurate. Adaptive Pay provides a robust HRMS platform equipped with an advanced payroll module designed to ease the complexities of tax filing. This cloud-based software simplifies tax-related processes while boosting your overall operational efficiency. With features encompassing leave and claims management, attendance tracking, and employee appraisals, Adaptive Pay ensures that your HR tasks are managed effectively and efficiently. Understanding IR21 and the tax clearance process is vital for compliance with Singapore’s local regulations. This guide aims to equip you with the latest information and insights on these topics, ensuring you stay compliant and informed.  Understanding tax clearance in Singapore Tax clearance is a mandatory process for employers with non-Singapore citizen employees (this includes Singapore Permanent Residents and foreign employees). Employers must notify the Inland Revenue Authority of Singapore (IRAS) and withhold any payments owed to these employees when they are about to end their employment or if they plan to leave Singapore for more than three months, including if they are relocating for an overseas assignment. However, there are specific scenarios where tax clearance isn’t required: If the employee was in Singapore for no more than 60 days within the calendar year. This exemption doesn’t apply to company directors, public entertainers, or professionals in similar roles. If the employee has been working in Singapore continuously for more than 183 days over two years and their annual earnings have not exceeded $21,000. This is relevant for foreign employees who arrived in Singapore from January 1, 2007, onwards. If the Non-Singapore Citizen employee has worked in Singapore for at least 183 days in a calendar year and earns less than $21,000 annually. If the employee has been with your company for three consecutive years, with an annual salary below $21,000.  Payments to withhold from Non-Singapore Citizen employees  As an employer, you must withhold all monies, including reimbursements, allowances, overtime and leave pays, lump sum payments, and gratuities due to the employee from the date you become aware of their impending departure from Singapore or termination of employment. If you’re unable to withhold these payments for some reason, you must clearly state your reasons on Form IR21. Failing to do so could make you responsible for any taxes the employee owes to the IRAS. It’s important to note that the Employment Act prohibits employers from deducting parts of an employee’s monthly salary to cover tax clearance funds. What is Form IR21? IRAS requires employers to file Form IR21 for all non-Singapore citizen employees. This form reports the employee’s income and employment details up to their last day of work or the day before they leave Singapore. Filing Form IR21 helps prevent foreign tax defaulters. It ensures that employees pay any taxes they owe before leaving Singapore. To ensure a smooth exit process for your employee, you should file Form IR21 at least one month before any of these events: They end their employment with your company in Singapore. They leave Singapore for a period exceeding 3 months. They depart for an overseas work assignment. Submitting Form IR21 Use IRAS’ myTaxPortal for a quicker tax clearance process. This online service requires authorisation through your company’s Corppass login. To avoid delays, you need to make sure that the information on your employee’s Form IR21 is accurate: Include all your employee’s income earned during the year they are leaving or their cessation year. If you did NOT electronically report their income from the previous year using the Auto-Inclusion Scheme (AIS), include that as well. Provide details on any severance payments offered as compensation for loss of office. IRAS will determine if these payments are taxable. Use your HR software (if applicable) to confirm the amount of gratuity your employee receives for past services. Remember, gratuity and any salary payments made in place of notice are taxable income and should be reflected on the form. These are just some of the things you must know about Form IR21 and tax clearance. Request a demo of Adaptive Pay today to see how HR software in Singapore can help you with the tax clearance process.

Key takeaway: According to Section 68(2) of the Income Tax Act, if your company has 5 or more employees, you’re required to enrol in the AIS. This also applies to companies with fewer than 5 employees if they’ve received a ‘Notice to File Employment Income of Employees Electronically’ under AIS. If you have 5 employees and haven’t joined the AIS yet, it’s recommended that you do so. The AIS allows employers to electronically submit their employees’ employment income information to the Inland Revenue Authority of Singapore by March 1 of each year. Understanding AIS  AIS aims to simplify tax filings for employees by allowing employers to submit employment income directly to IRAS online. Employees can go to myTaxPortal to check their payslips to see their employment income and auto-included information through the ‘Income, Deductions and Relief Statement’ when they file their individual income tax returns. In this guide, we will share more details about AIS to make submissions a breeze. AIS registration  The AIS registration for YA (Year of Assessment) 2024 is closed. However, registrations for YA 2025 will start from April 1, 2024, to December 32, 2024. If you missed the registration deadline on December 31, you can register for the next YA from April to December of the following year.  To register, visit myTaxPortal and choose from any of these registration methods:  1. Personal Tax  Enter your Singpass Choose ‘More,’ then ‘Register for AIS.’ Choose your organisation’s UEN type and input the tax reference number Click ‘Next’ Fill out the registration details and click ‘Register.’  2. Business Tax  This registration process is only for employers with an existing Preparer/Approver role with the IRAS’ digital service (such as Corporate Tax and GST).  Enter your UEN/Entity ID and Singpass before logging in Pick ‘Employers,’ ‘Register for AIS’ Click ‘Next’ Complete the registration by providing the necessary details and clicking ‘Register.’  3. Tax Agent Login via Business Client  This applies only to tax agents with existing Approver or Preparer roles with the IRAS’ digital service.  Enter the Tax Agent Company’s UEN or Entity ID and your Singpass to log in. Choose ‘Employers,’ ‘Register for AIS’ Pick your client’s organisation UEN type and provide the tax reference number. Click ‘Next’ Fill out the details and click ‘Register.’  Who is expected to participate in the AIS?  Starting YA 2024, joining the AIS is compulsory for the following types of employers:  1. Those who have 5 or more employees, including:  Full-time and part-time resident employees Non-resident employees (this includes employees who are based overseas and are required to provide their services in Singapore during the year) Company director, including a non-resident one Pensioner Board member receiving Committee or Board member fees Employee who left the organisation but has received income in the reporting year  2. Those who received the ‘Notice to File Employment Income of Employees Electronically under the AIS.’  Voluntary AIS participation  Employers are encouraged to participate in the AIS, even if they have less than 5 employees.  Experience Adaptive Pay Adaptive Pay makes tax filing straightforward for AIS employers by removing the need to distribute and fill forms IR8A, IR8S, Appendix 8B, and Appendix 8A. Instead, Adaptive Pay’s payroll module automatically prepares and submits these documents, saving time and reducing errors for both employers and employees. As a verified and approved partner of the IRAS, Adaptive Pay allows you to directly submit to the AIS without the hassle of handling forms. Request a demo to discover how our software can streamline your tax filing process, saving you valuable time and effort.