Singapore's Budget 2022 – The Highlights

On 18 February 2022, Finance Minister Lawrence Wong presented the Singapore’s Budget 2022.

Some of the major Budget announcements are highlighted below:

Work Pass minimum salary thresholds

As of 1 September 2022, the minimum qualifying salary for Employment Pass holders will be raised from SGD 4,5000 to SGD 5,000. For EP holders in the financial services sector, the minimum qualifying salary will increase from SGD 5,000 to SGD 5,500.

The minimum qualifying salary for S Pass holders will be raised in phases, from currently SGD 2,500 to SGD 3,000 in September 2022, SGD 3,150+ in September 2023, and SGD 3,300+ in September 2025. For S Pass holders in the financial services sector, a higher minimum qualifying salary of SGD 3,500 will be introduced.

Please note that the qualifying salaries for older and more experienced candidates in their 40s will be raised correspondingly, and will remain around double the minimum qualifying salary for the youngest applicants.

Foreign Worker Levy Rates

The monthly foreign worker levy for S Pass holders will be raised progressively from currently SGD 330 to SGD 450 in September 2022, SGD 550 in September 2023, and SGD 650 in September 2024.

Personal Income Tax

With effect from the Year of Assessment 2024, Personal Income Tax rates for tax residents will be raised to 23 percent for income exceeding SGD 500,000 up to SGD 1 million per year, and to 24 percent for income exceeding SGD 1 million per year.

Currently, the maximum tax rate for tax residents is 22 percent for income exceeding SGD 320,000 per year.

CPF Contributions

Employer and employee CPF contribution rates for workers aged 55 to 70 will increase by 1.5 percent to 2 percent as of 1 January 2023.

Increased Goods and Services Tax

GST will be increased from currently 7 percent to 8 percent as of 1 January 2023, and to 9 percent as of 1 January 2024.

Property Tax

Non-owner-occupied residential properties, such as investment properties, will face higher taxes of 12 percent - 36 percent, up from currently 10 percent - 20 percent.

For owner-occupied homes, the Property Tax rates for the portion of annual value in excess of SGD 30,000 will be increased to 6 percent - 32 percent, from currently 4 percent - 16 percent.

Going Green

Singapore’s carbon tax will be raised to SGD 50 - SGD 80 per tonne of emissions by 2030.

The current carbon tax of SGD 5 per tonne will be increased to SGD 25 in 2024 & 2025, to SGD 45 in 2026 & 2027, and finally to SGD 50 - SGD 80 in 2030.

The Government will issue up to SGD 35 billion in green bonds by 2030 to fund public sector green infrastructure projects.