On 1 July 2026, the Local Qualifying Salary (LQS) in Singapore will increase from $1,600 to $1,800. This regulatory shift directly impacts employers across the country, fundamentally changing how you hire foreign talent and manage your foreign worker quota.
Singapore's labour market is rapidly becoming more selective, expensive, and skills-driven. For middle-market organisations relying on foreign talent, adapting to these changes early is the best way to maintain operational efficiency.
In this article we examine what the Local Qualifying Salary is, why it matters to your business, and the practical steps you can take to adapt your workforce strategy seamlessly.
The Local Qualifying Salary is the minimum monthly wage a local employee must earn to be counted toward a company's foreign worker quota.
The Ministry of Manpower (MOM) sets this threshold to determine exactly which local employees count toward your quota. If you pay local workers below this amount, they simply do not count. Part-time workers are counted on a pro-rated basis, depending on their actual wages.
When the threshold rises to $1,800 on 1 July 2026, you will need to review your payroll to ensure your local employees still meet the criteria.
A higher LQS means fewer local workers qualify for your quota unless you raise their wages. This situation tightens your foreign hiring capacity and reduces your overall foreign worker quota.
The LQS acts as a strict gatekeeper for foreign labour access, naturally leading to increased overall labour costs for your business. For instance, if a mid-sized retail business currently relies on five local workers earning $1,600 to maintain its S-Pass quota, the upcoming change will render those workers ineligible. To keep their S-Pass employees, the business must restructure its payroll and increase local wages to the new $1,800 minimum.
The strategic intent behind these MOM regulations is clear. The government is pushing middle-market organisations to move away from low-wage, labour-heavy models.
This shift encourages higher productivity and better job quality over sheer quantity. By strengthening local wage standards, the government also helps to reduce quota gaming within the system.
Adapting to these changes early gives you the confidence to take charge of change and build a more resilient organisation.
The sooner you adjust your workforce strategy, the less disruptive this shift will be for your daily operations. Proper planning allows you to manage labour costs while maintaining the talent you need to grow.
We can help you manage your foreign workforce strategies and navigate complex work pass applications. Explore our services to see how the upcoming LQS changes will impact your business and find out how RSM Stone Forest can support your specific work pass application needs.
Speak to us today to assess how the upcoming LQS changes will impact your workforce and identify the most effective strategy for your business.