Singapore Employer Sponsorship Cost Explained 2026

The employment of international talent in Singapore is a growth step, yet the Singaporean financial plan of sponsorship has become more complicated in 2026. As the entire process of MOM COMPASS Framework and a substantial increase in the cost of obligatory medical insurance is implemented, the monthly salary is not the primary criterion that employers may take into account.

Direct Government Fees and Administration fees

The establishment of a new work pass begins with the ministry of man power (MOM) portal. These charges are non-reimbursable and form the minimum expense when hiring an individual.

Application Fee (EP) $105: Applicants must pay an application fee to open and maintain a new Employment Pass (EP).
EP Issuance Fee (225): It is paid after the approval of the pass to produce the digital and physical card.
S Pass Issuance Fee ($100): The government fee of middle level skilled talent.
Work Permit Application and issue of the permit cost(s): a single fee is 35 dollars to apply and another 35 dollars to issue the permit.
Multi Journey Visa (MJV) Fee ($30): This is an extra charge to the candidates of some countries who are to have a visa to enter.
My MOM Portal Transaction Fees: Standard electronic handling fees which are charged during the myMOM Portal submission.

Foreign Worker Levy (FWL) & Quota Costs

In the case of S Pass and Work Permit holders, the recurring cost of the monthly charges can be the most significant cost. In 2026, MOM has narrowed them down to promote local-first hiring.

S Pass Levy Harmonization ($650)

The S Pass Levy Harmonization came into effect in late 2025, and the rate has been equalized to 650 in every industry. This makes budgeting easy and more expensive to sectors that used to be enjoying a lower level.

Tiered Work Permit Aughts & Quota

Use The Dependency Ratio Ceiling (DRC) is the highest proportion of foreign workers to your total workforce.

Local Qualifying Salary (LQS) $1,600: In order to qualify as a single local employee in your quota, your Singaporean/PR employee must earn more than $1,600.
Tiered Levies (up to $950): Your company may have to pay Tier 3 work permit levies up to 950 per employee should your company exceed these quota levels.
The Eligibility of the Levy Waiver: You can seek a waiver in case your worker spends at least 7 consecutive days on home leave or is hospitalized.

Compulsory Insurance & Financial Security

According to Singapore law, it is the employers who have the entire responsibility of medical and injury risks. These expenses are not debited in the salary of the employee.

Improved Medical Insurance (60,000): Within 2026, every S Pass and Work Permit holder is to have a minimum annual cover of 60,000.12 Expect premiums will be in the range of 300-500 annually per employee.
Non-Malaysian Security Bond ($5,000): A security that must be guaranteed by every non-Malaysian holder of a Work Permit (13) to ensure that they do not have to place out any money as a security.
WICA Insurance Premiums 2026: WICA is a compulsory work injury compensation scheme that is obligatory to all manual employees and non employees earning an income that is not greater than 2,600 USD.
Primary Care Plan (PCP): This is compulsory to the workers in the CMP (Construction, Marine, Process) industries, which includes the primary healthcare in the specialized medical centers.

On boarding and Compliance “Hidden” Expenses

Administrative hurdles the new employer will be surprised to face are known as invisible costs.

C2 Background checks: under COMPASS, MOM-recognized agencies such as DataFlow or Verity will confirm the educational qualification of their candidates, which can cost between 200 and 600USD.
Settling-In Programme (SIP) Fee (75-100):17 A one-day compulsory orientation of the first-time migrant workers.
Safety Orientation Course (SOC): This is mandatory in high-risk industries and the cost depends on the nature of the course.
Repatriation Liability: This is mandated by law and employers will require to pay the return flight as soon as the work pass is cancelled which will have to be included in the exit budget.

FAQs

Am I allowed to share the insurance costs with my employee?

No. MOM does not allow the cost of mandatory medical insurance or levies to be passed to the employee. Voluntary insurance upgrades may however be co-paid in case it is stated in the contract.

What is the Age-Progressive Salary?

MOM demands older candidates to be paid more salaries based on their experience.The qualifying salary required of an EP at the middle of 40s years is about twice the minimum rate to enable him to pass the COMPASS test.

What is the price of non-payment of the levy?

Penalty will be 2% per month in case of late payment. In case not paid, MOM will cancel all the work passes and prevent the company to apply to get new ones.

Final Thoughts

In 2026, the investment in high-tier skills would be sponsoring a foreign professional in Singapore. Although the EP Minimum Qualifying Salary and the S Pass Levy are the most noticeable numbers, the compliance package, comprising verification fees and increased insurance, may cost an additional 1,500-3,000 on your first year of onboarding cost.

Disclosure

This is only an informational and educational article. The Ministry of Manpower (MOM) is a trustworthy source; therefore, readers should ensure they have checked information related to the article on the official site before acting.