Local Qualifying Salary (LQS) Increase
What is LQS?
The Local Qualifying Salary (LQS) sets the minimum salary that local full-time workers must be paid at companies that hire foreign workers (e.g., Work Permit, S Pass or EP holders). Local workers paid at least the LQS help determine a firm’s foreign worker quota.
Budget 2026 Update:
From 1 July 2026, the LQS will be raised from S$1,600 to S$1,800 per month for full-time local employees.
Part-time local workers must be paid at least S$10.50 per hour.
The LQS is used to compute foreign worker quota as:
1 local workforce count: local employee earning ≥ S$1,800/month
0.5 count: local employee earning ≥ S$900 but < S$1,800
Local employees earning < S$900 are not counted toward quota.
Business Impact:
Employers hiring foreign workers must budget for higher base salaries for local employees.
Workforce planning and foreign worker quota calculations now require adjustment.
The change supports wage growth for lower-wage local workers.
Employment Pass (EP) & S Pass Minimum Salary Revisions
Budget 2026 also revised minimum qualifying salaries for foreign skilled passes to better align them with local wage standards as wage levels rise:
Employment Pass (EP) Minimum Salary
New pass applicants (from Jan 1 2027):
Non-financial sector: S$6,000/month (up from S$5,600)
Financial services sector: S$6,600/month (up from S$6,200)
Renewal applications will align with these thresholds from Jan 1 2028.
S Pass Minimum Salary
New pass applicants (from Jan 1 2027):
Non-financial sector: S$3,600/month (up from S$3,300)
Financial services sector: S$4,000/month (up from S$3,800)
Renewal alignment begins Jan 1 2028.
Business Impact:
Companies hiring foreign professionals must factor in higher salary thresholds from 2027/2028.
The changes aim to ensure that foreign pass holders’ wages keep pace with local workforce norms.