The Ministry of Manpower (MOM) will increase the Local Qualifying Salary (LQS) from $1,600 to $1,800 effective 1 July 2026.
What is the Local Qualifying Salary (LQS)?
- The LQS is the minimum monthly salary a Singapore Citizen or Permanent Resident must earn for an employer to count that person toward the company’s foreign worker quota.
- This is to ensure employers hire a baseline number of local employees before hiring foreign workers, linking quota entitlement to genuine local employment.
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: MOM Factsheet
