The Ministry of Manpower (MOM) will increase the Local Qualifying Salary (LQS) for full-time local employees from S$1,600 to S$1,800, effective 1 July 2026.
What is the Local Qualifying Salary (LQS)?
- The LQS is the minimum monthly gross wage that a Singapore Citizen or Permanent Resident must earn for the employer to count that employee toward the company’s Work Permit and S Pass quota entitlement.
- This requirement applies to firms hiring foreign workers. Employers must pay PWM wages to local employees covered under the Progressive Wage Model, or at least the LQS to local employees not covered under PWM.
Note: The LQS is not a general minimum wage in Singapore.
Full-time local employees:
The LQS for full-time local employees will increase from S$1,600 to S$1,800 per month.
Part-time local employees:
For local employees working fewer than 35 hours per week, employers must pay at least S$10.50 per hour in gross wages.
For monthly-rated part-time employees, the hourly gross rate is calculated as:
Total monthly gross wages ÷ Total hours worked for the month
Employers who do not meet the LQS requirement may not be able to apply for new Work Permits or S Passes, or renew existing work passes.
What Changes on 1 July 2026
Why MOM Is Raising LQS
Impact on Employers: Key Implications
What Employers Should Do Now
Audit Payroll
Identify local employees earning below $1,800 and quantify the headcount and payroll impact by 1 July 2026.
Assess Quota Exposure
Calculate how many quota-eligible locals will be lost and model scenarios for S Pass and Work Permit entitlements.
Update Workforce Plans
Adjust hiring timelines, consider salary uplifts, prioritise up-skilling/automation, and sequence recruitment to avoid sudden gaps.
Act Early
Implement changes before 1 July to prevent quota shortfalls and ensure continuity of operations.
Contact us today to review your exposure and create a practical, budget-aligned plan for July 2026.
Source:
Singapore Ministry of Manpower (MOM), Local Qualifying Salary
