From 1 July 2026, Singapore's Local Qualifying Salary (LQS) rose from S$1,600 to S$1,800 per month for full-time local employees. The LQS is the minimum a local worker must be paid to count toward a firm's S Pass and Work Permit quota; locals paid between S$1,600 and S$1,799 now count as only half a headcount, shrinking a company's foreign-worker entitlement unless wages are raised to S$1,800.
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Singapore Local Qualifying Salary rises to S$1,800/month from 1 July 2026
Why this matters for founders
Founders in F&B, retail, and local services who rely on foreign-worker quota should audit payroll now and lift any local staff earning under S$1,800 to the new floor to preserve their S Pass/Work Permit headroom, tapping the enhanced 2026 Progressive Wage Credit Scheme co-funding to offset the cost.
Source: RSM Stone Forest
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