HR & Payroll Insights: November 2026

HR & Payroll Insights is a monthly round-up of HR and payroll updates for organisations with employees in Singapore. Each edition summarises regulatory changes and compliance requirements relevant to employers and HR teams, from established local businesses to companies that have expanded into Singapore and are building familiarity with local employment rules. Where relevant, it also covers developments in other markets across the region.

This November edition looks at wage changes on both sides of the Causeway: the revised Progressive Wage Model (PWM) and Occupational Progressive Wage (OPW) requirements in Singapore, and the Budget 2027 measures in Malaysia affecting minimum wage, income tax and salary payments. With further increases scheduled for 2027 and 2028, organisations may wish to review pay structures and manpower budgets ahead of the new year.

In this edition

Singapore: PWM and OPW Wage Requirements for 2026-2028
Malaysia: Budget 2027 Measures for Employers
Resource: Navigating HR Compliance in Singapore e-book
Frequently Asked Questions

Singapore: Progressive Wage Model Updates for 2026-2028

Revised PWM and OPW requirements took effect in July and September 2026, with further increases scheduled for 2027 and 2028. The table below summarises the monthly wage requirements for full-time employees across different job levels in Food Services, Cleaning, Administrators, Drivers and Retail.

These are not the only sectors covered by PWM and OPW requirements. Employers should refer to the latest Ministry of Manpower (MOM) guidelines for the full requirements applicable to their business.

Sector	Effective from	2026	2027	2028
Food Services	1 July	S$2,220–S$2,875	S$2,360–S$3,020	S$2,500–S$3,165
Cleaning*	1 July	S$2,080–S$3,040	S$2,250–S$3,250	S$2,420–S$3,460
Administrators	1 July	S$2,170–S$3,340	S$2,360–S$3,520	-
Drivers	1 July	S$2,370–S$2,555	S$2,550–S$2,790	-
Retail	1 September	S$2,435–S$2,950	S$2,565–S$3,100	-

Figures are monthly gross wages excluding overtime, except *Cleaning, which is based on monthly basic wages and is also subject to the PWM Bonus. Administrators and Drivers fall under OPW. Retail's 2027 rates apply from 1 Sep 2027.

Planning for the wage increases ahead?

If your organisation is reviewing pay structures or manpower costs for 2027 and beyond, speak with our team to discuss your workforce planning needs.

Speak with our team

Across the Border: Malaysia Budget 2027

For organisations with employees in Malaysia, Budget 2027 introduces measures that may affect payroll costs, monthly tax deductions and how salaries are paid. Some measures remain subject to further clarification and implementation guidelines.

Minimum Wage

The minimum wage increases from RM1,700 to RM2,000 per month. Micro, small and medium enterprises (MSMEs) with annual sales below RM50 million are exempted. Affected employers may see higher wage costs and should review payroll budgets accordingly.

Individual Income Tax

Non-MSME employers may claim tax deductions on wages only when salaries are paid through bank accounts permitted under the Employment Act 1955. Salary payment processes should be reviewed against these conditions.

Salary Tax deductibility

Non-MSME employers may claim tax deductions on wages only when salaries are paid through bank accounts permitted under the Employment Act 1955. Salary payment processes should be reviewed against these conditions.

Preparing your HR & payroll in Malaysia for 2027?

Our PayrollServe Malaysia team can support you.

Speak to us

HR Compliance Resource: Navigating HR Compliance

Wage requirements are one part of a wider set of employer obligations. Our complimentary e-book, Navigating HR Compliance in Singapore, covers key statutory, HR and payroll requirements. It may be particularly useful for organisations that are new to HR compliance in Singapore.

Looking to keep your HR and payroll processes on track?

Get your free copy

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Sources:

Ministry of Manpower Singapore, Progressive Wage Model, 22 October 2026

Ministry of Finance Malaysia, The Fifth MADANI Budget 2027, 9 October 2026

Frequently Asked Questions

What are the key Progressive Wage Model (PWM) and Occupational Progressive Wage (OPW) changes in Singapore for 2026 to 2028?

Revised PWM and OPW requirements took effect in July and September 2026, with further increases scheduled for selected sectors in 2027 and 2028. The updates cover Food Services, Cleaning, Administrators, Drivers and Retail, with wage requirements varying by sector and job level.

How much will wage requirements increase across the sectors covered by Singapore's PWM and OPW updates?

For Food Services, monthly gross wages range from S$2,220–S$2,875 in 2026, increasing to S$2,360–S$3,020 in 2027 and S$2,500–S$3,165 in 2028. For Cleaning, monthly basic wages increase from S$2,080–S$3,040 in 2026 to S$2,250–S$3,250 in 2027 and S$2,420–S$3,460 in 2028. For Administrators, wages increase from S$2,170–S$3,340 in 2026 to S$2,360–S$3,520 in 2027, while Drivers’ wages increase from S$2,370–S$2,555 to S$2,550–S$2,790. For Retail, wages increase from S$2,435–S$2,950 (from 1 September 2026) to S$2,565–S$3,100 (from 1 September 2027).

How can Singapore employers prepare for the upcoming wage increases?

Employers can review the applicable wage schedules, compare them against existing employee pay structures and identify potential salary adjustments. Assessing the impact on manpower costs can also help organisations plan their workforce budgets for 2027 and beyond.

What are the key Malaysia Budget 2027 measures affecting employers?

Malaysia Budget 2027 introduces changes to minimum wage, individual income tax and salary tax deductibility. The minimum wage increases from RM1,700 to RM2,000 per month, while personal tax relief increases from RM9,000 to RM12,000 alongside revised tax rates. The measures also set conditions for non-MSME employers claiming tax deductions on wages.

How could Malaysia Budget 2027's changes affect payroll costs and employee take-home pay?

The minimum wage increase may raise payroll costs for affected employers. Changes to personal tax relief and individual income tax rates may also affect employees' tax liabilities and Monthly Tax Deduction (MTD) calculations, with potential implications for take-home pay.

What should employers review to prepare for the HR and payroll changes in Singapore and Malaysia?

Employers should review the wage requirements relevant to their employees, assess potential changes to manpower costs and check their payroll and salary payment processes. In Singapore, this includes the applicable PWM and OPW schedules, while Malaysian employers should consider the minimum wage, tax deduction and salary tax deductibility measures outlined in Budget 2027.

Where can employers find monthly HR and payroll updates for Singapore?

PayrollServe, part of RSM Stone Forest, publishes HR & Payroll Insights, a monthly round-up of HR and payroll updates for organisations with employees in Singapore. Each edition summarises recent regulatory changes and what they mean for employers. Employers can subscribe to the newsletter to receive each edition by email.

Does HR & Payroll Insights cover markets outside Singapore?

HR & Payroll Insights focuses mainly on Singapore, with updates from other markets in the region, such as Malaysia, when there are developments relevant to employers. This can be useful for organisations managing employees across more than one country or expanding into Singapore from overseas.

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Resources

HR & Payroll Insights: November 2026

Singapore: Progressive Wage Model Updates for 2026-2028

Planning for the wage increases ahead?

Across the Border: Malaysia Budget 2027

Preparing your HR & payroll in Malaysia for 2027?

HR Compliance Resource: Navigating HR Compliance

Stay updated with HR & Payroll Insights

Frequently Asked Questions

What are the key Progressive Wage Model (PWM) and Occupational Progressive Wage (OPW) changes in Singapore for 2026 to 2028?

How much will wage requirements increase across the sectors covered by Singapore's PWM and OPW updates?

How can Singapore employers prepare for the upcoming wage increases?

What are the key Malaysia Budget 2027 measures affecting employers?

How could Malaysia Budget 2027's changes affect payroll costs and employee take-home pay?

What should employers review to prepare for the HR and payroll changes in Singapore and Malaysia?

Where can employers find monthly HR and payroll updates for Singapore?

Does HR & Payroll Insights cover markets outside Singapore?

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How the IFRS Sustainability Disclosure Standards could impact the small to middle market

“We help executives thrive by offering solutions focused on your goals and based on a deep understanding of your industry.”

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