The Local Qualifying Salary (LQS) sets the minimum salary that local employees must be paid in firms that hire foreign workers. The LQS also determines the number of local employees counted towards a firm’s Work Permit and S Pass quota entitlement. The LQS is $1,800 today.
The LQS ensures that local workers are employed and paid meaningfully, and serves to uplift their wages. The LQS is reviewed regularly to keep pace with rising local wages and ensure that our quota controls remain effective.
LQS requirement
Firms which hire foreign workers (e.g. Work Permit, S Pass or EP holders) are required to meet both of the following conditions:
- Pay Progressive Wage Model (PWM) wages to local employees covered by the relevant Sectoral or Occupational PWMs.
- Pay at least the LQS to all local employees not covered under the PWMs.
Firms that do not comply with the requirements will not be able to apply for new work passes or renew existing work passes.
The LQS requirement is as follows:
For locals working part-time
i.e. < 35 hours/week |
≥ $10.50/hr gross
For monthly rated part-timers, the hourly gross rate is calculated as follows to check if it meets the ≥ $10.50/hr gross requirement:
(total monthly gross wages) ÷ (total hours worked for the month)
|
For full-time employed locals
i.e. 35-44 hours per week |
≥ $1,800 gross
|
For full-time employed locals working overtime
i.e. > 44 hours/week |
LQS requirement will increase for every hour of overtime work. You can refer to the LQS wage schedule.
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Employees can check their wage details, job details and if employers are paying them the correct wages using the Progressive Wage Portal (PW Portal).
How is the Local Qualifying Salary (LQS) used in the computation of foreign employee quota
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 at least $1,800 per month.
- 0.5 local worker if they earn at least $900 to below $1,800 per month.
Calculation of foreign worker quota
You hire a part-time local worker:
- He works 10 hours per week, and earns $500 monthly gross wages (i.e. $11.50/hour).
- Hence, you will fulfil the LQS requirement for part-timers.
- You can continue to hire new foreign workers and renew existing foreign workers.
- However, your part-time local will not be counted towards your quota entitlement as he earns a monthly gross wage below $900.