The Singapore Budget 2026 introduces a series of upcoming statutory changes that will impact payroll processing in Singapore.
This update outlines the key changes that customers using PeopleSoft Global Payroll for Singapore can expect, along with insights into how these updates will be delivered within the product
This Legislative Update covers:
- CPF contribution rate increases for employees aged 55 to 65, effective 1 January 2027
- Foreign Worker Levy (FWL) adjustments, effective 1 January 2028
CPF rate changes effective 1 January 2027 (Employees aged 55–65)
To strengthen retirement adequacy, CPF contribution rates will increase for employees above age 55 up to age 65, applying to wages earned from 1 January 2027 for employees with monthly wages greater than S$750.
Transition support
The Government will provide a one-year CPF Transition Offset to help mitigate increased employer costs. It will have NO impact on PeopleSoft functionality.
Foreign Worker Levy (FWL) changes effective 1 January 2028
Singapore Budget 2026 also announced FWL adjustments aimed at revising levy rates for basic-skilled (R2) Work Permit holders in selected sectors, and simplifying levy tiers in the Manufacturing and Services sectors. The changes mainly impact employer levy costs and reporting structures, with new rates effective from 2028.
The updated Position Statement can be found on My Oracle Support, Doc ID 2973834