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Singapore | Ministry of Manpower Plans Changes to Quota Rules

April 10, 2019

To be effective July 1st, 2019 for all companies hiring foreign workers, the Local Qualifying Salary (LQS)* will increase by 100 SGD per month. Additionally, the calculating ratio will be amended as such:

LQS salary Number of local employees
between S$650 to S$1,300 1
>S$1,300 0.5

Also, The Dependency Ratio Ceiling (DRC) will decrease in the next two years from the current 40% for Work Permits to 38% on January 1, 2020, and to 35% on January 1, 2021. The sub-DRC for S-Pass holders currently at 15% will decrease to 13% on January 1,  2020, and to 10% on January 1, 2021. Requirements for the services sector, defined as those who engage in financial, commercial, communications, IT, professional and other services, may include removing current work Permit and S pass holders or hiring more locals before hiring new foreign workers. Companies seeking additional foreign workers may have to raise local employee salaries to qualify for more workers.

*The Local Qualifying Salary (LQS) determines the company quota for Work Permits and S Passes and depends on the number of local employees of a certain salary