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Local Qualifying Salary

The Local Qualifying Salary (LQS) determines the number of local employees who can be used to calculate a firm’s Work Permit and S Pass quota entitlement. The LQS is $1,600 today.

The LQS ensures that local workers are employed meaningfully, rather than on token salaries for firms to access to foreign workers. The LQS is reviewed regularly to keep pace with rising local wages and ensure that our quota controls remain effective.

The LQS was previously known as the Full-Time Equivalent salary.

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 Wages (PWs) to local employees covered by the relevant Sectoral or Occupational PWs.
  • Pay at least the LQS to all other local employees not covered under the PWs.

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 locals working full time
i.e. 35-44 hours per week

≥ $1,600 gross
For full-time 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.

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 the LQS of at least $1,600 per month.
  • 0.5 local worker if they earn half the LQS of at least $800 to below $1,600 per month.

Calculation of foreign worker quota for firms will remain unchanged with the new LQS requirement.

More information on how to count your local employees to calculate your Work Permit and S Pass 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 $800.