From 1 July 2026 the Local Qualifying Salary is S$1,800 a month. Firms hiring foreign workers must pay the applicable LQS or Progressive Wage Model wage to local employees, and the salary also controls how locals count towards Work Permit and S Pass quota entitlement.
This guide is for a Singapore employer of local staff and Work Permit, S Pass or EP holders. It resolves one practical task: recalculate pay and local workforce counts before a work-pass application or renewal fails. Start with the branch that matches the real facts, then retain the cited record that controls the outcome.
Find the branch that matches
| Situation | Practical next step |
|---|---|
| Local earns at least S$1,800 monthly | May count as one local worker, subject to MOM’s full conditions |
| Local earns at least S$900 but below S$1,800 | May count as half a local worker under the current computation |
| Worker is covered by a PWM | Pay the applicable PWM requirement; LQS does not replace it |
| Firm misses the wage requirement | New work-pass applications or renewals can be affected |
What the evidence can and cannot decide
MOM Local Qualifying Salary page controls the core rule used here: current S$1,800 requirement, employer scope and quota-count computation. MOM Committee of Supply announcement supplies the second check: increase from S$1,600 to S$1,800 from 1 July 2026 and policy context. Read both against the current facts rather than lifting one number or sentence out of its conditions.
For a Singapore employer of local staff and Work Permit, S Pass or EP holders, those sources can organise the decision and show which evidence is missing. They cannot approve an application, interpret an individual contract, guarantee availability, diagnose a condition, value an asset or replace an authority’s issued result. The useful outcome is a dated file that makes recalculate pay and local workforce counts before a work-pass application or renewal fails and records why the selected branch applies.
The date and amount changed
MOM raised the LQS from S$1,600 to S$1,800 from 1 July 2026. The change is live, not a future Budget proposal. Audit July payroll, contract hours and recurring allowances against the current MOM definition before using older headcount models. MOM Committee of Supply announcement.
Separate wage compliance from quota count
The LQS sets a minimum for local employees in firms that hire foreign workers when those employees are not covered by an applicable Progressive Wage Model. It also determines local-worker counting for Work Permit and S Pass quotas. Meeting one salary line does not override sector, occupation or pass-specific rules. MOM Local Qualifying Salary page.
Rebuild the local-count worksheet
Under MOM’s current page, at least S$1,800 can count as one local employee and at least S$900 but below S$1,800 can count as half. For example, three workers at S$1,800 and two at S$900 create a planning count of four locals. MOM’s actual system and CPF contribution data control. MOM Local Qualifying Salary page.
Check the salary evidence
Reconcile employment terms, hours, basic wage, fixed components, payroll, bank payment and CPF submissions. Do not lift one-off reimbursements or discretionary bonuses into a recurring monthly LQS calculation without confirming MOM’s treatment. Correct underpayments transparently and retain the payment trail. MOM Local Qualifying Salary page.
Run the pass-impact test early
A firm that does not meet the applicable wage requirements cannot assume pass renewals will proceed. Forecast the local count and foreign-worker dependency ratio before hiring, renewal or a payroll change. Keep a dated screenshot or export of the official quota calculator result when the decision is material. MOM Local Qualifying Salary page.
Worked example or route
A firm has three locals paid S$1,800 and two paid S$900 each. The editorial worksheet counts 3 + 0.5 + 0.5 = 4 local workers before any other MOM conditions. If one S$900 employee’s recurring pay drops to S$850, the planning count changes and the firm reruns the official quota position before a pass renewal.
Build the action file
- Confirm the 1 July 2026 payroll change
- Identify PWM-covered employees
- Recalculate full and half local counts
- Trace salary to CPF and bank evidence
- Forecast Work Permit and S Pass quotas
- Save the official result before applications
The two reusable decision tools are a full-versus-half local-worker count table and a payroll-to-pass-renewal evidence sequence. Both are editorial working methods; an issued notice, contract, live timetable, clinical instruction or authority decision prevails.
Limits and costly missteps
- Using the old S$1,600 figure
- Treating LQS as a substitute for PWM
- Counting reimbursements as stable wages
- Waiting for a rejected renewal to test quota
- Using an editorial worksheet as MOM approval
Pause when the controlling date, eligibility fact, payment destination, safety condition, product term or live availability is unclear. Open the linked source again and save the acknowledgement or result that applies to the actual case.
Continue with the adjacent check
After this task, it may help to map the company’s annual-return deadline. A second useful step is to audit written employment terms. These links move to different reader tasks rather than repeating this page.
Common questions
What is the LQS now?
MOM states S$1,800 a month. MOM Local Qualifying Salary page.
When did it rise?
The S$1,800 level took effect on 1 July 2026. MOM Committee of Supply announcement.
Does every S$900 employee count as half?
Use MOM’s full computation and data conditions; the salary threshold alone is not the entire assessment. MOM Local Qualifying Salary page.
Checked against the cited sources for this publication run. Rules, schedules and service details can change; verify the live official page before acting on a consequential decision.
