The Ministry of Manpower (MOM) of Singapore has announced that, effective July 1, 2024, the Local Qualifying Salary (LQS) will increase from SGD 1400 per month to SGD 1600 per month.
LQS Information
A Singaporean or Permanent Resident employee employed under a contract of service, including the company’s director, is counted as:
- 1 local worker if they earn the LQS;
- 0.5 local worker if they earn at least half the LQS but less than the LQS.
Since September 1, 2022, firms employing foreign employees (e.g., Work Permit, S Pass, or Employment Pass holders) are required to pay:
- Progressive Wages (PWs) to local employees covered by the relevant Sectoral or Occupational PWs; and
- At least the LQS to all other local employees not covered under the PWs.
Background
The LQS determines the number of local employees who can be used to calculate a firm’s Work Permit and S Pass quota entitlement. It ensures that local workers are employed meaningfully, rather than on token salaries for firms to access to foreign workers, and was previously known as the Full-Time Equivalent salary.
Erickson Insights and Analysis
Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.