Corporate Immigration — Singapore increase in Local Qualifying Salary (LQS) impacting firm’s foreign worker quota entitlement
Santa Fe publication date
26 February 2024
Overview
Deputy Prime Minister (DPM) Lawrence Wong announced in his 2024 budget statement that the local qualifying salary (LQS) will be raised from S$1,400 to S$1,600 monthly. The minimum hourly rate has also been increased to S$10.50 per hour (up from S$9).
Who will be affected?
Employers intending to hire S Pass and work permit holders.
Background
Under the LQS, a Singaporean or Permanent Resident employee employed under a contract of service is counted as one local employee if they earn the LQS of at least S$1,600 a month, or 0.5 local workforce count per local worker who is paid at least S$800 but less than S$1,600 per month.
As per the Ministry of Manpower (MOM), the LQS determines the number of local employees who can be used to calculate a company’s Work Permit and S Pass quota entitlement.
The LQS is regularly reviewed to keep pace with wage growth, uplift lower-wage workers, and maintain foreign workforce controls.
Impact
Companies hiring foreign employees (Work Permit and S Pass holders) can anticipate a decrease in their respective foreign workers quota, and future Work Permit and S Pass applications may be impacted.
Date of implementation
1 July 2024
Santa Fe recommendation
Given the changes in requirements, we encourage companies to perform the following to maintain their workforce:
- Review their internal workforce salary.
- Reviewed their available Work Permit and S Pass quotas.
Contact us
Please get in touch with us for further information or clarification:
Leesa Abdullah
Immigration Manager — Singapore
Santa Fe Relocation
+65 6398 8523
leesa.abdullah@staging.santaferelo.com
Robert Day
Group Head of Immigration Operations
Santa Fe Relocation
+44 7990 021125
robert.day@staging.santaferelo.com
About our Immigration Services
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