Local Qualifying Salary for full-time local employees to increase from S$1,600 to S$1,800: Budget 2026

The Local Qualifying Salary (LQS) for full-time local employees will be raised from S$1,600 to S$1,800 in 2026, said Prime Minister Lawrence Wong during his Budget 2026 speech in Parliament on Feb. 12.

What is the LQS?

Firms that hire foreign workers, such as Work Permit, S Pass or Employment Pass holders, have to meet two conditions:

1. Firms must pay Progressive Wage Model (PWM) wages to local employees covered by the relevant Sectoral or Occupational PWMs; and
2. Firms must pay all local employees not covered under the PWMs at least the LQS.

The LQS sets the minimum salary that local employees must be paid in firms that hire foreign workers to count them towards the Work Permit and S Pass quota.

It ensures that local workers are employed meaningfully and paid fairly, rather than serving as token headcount for hiring quotas.

It is also reviewed regularly to keep pace with rising local wages, to uplift lower-wage workers, and ensure that quota controls remain effective.

LQS will be raised to S$1,800

With the refinement to the LQS, firms hiring foreign workers must now pay full-time employed local workers at least S$1,800 per month.

The salary for part-time local workers has to be minimally S$10.50 per hour.

The computation of foreign worker quotas will correspondingly be adjusted with the new LQS:

• One local workforce count: Per local worker who is paid at least S$1,800 per month; and
• 0.5 local workforce count: Per local worker who is paid at least S$900 but less than S$1,800 per month.

These measures will take effect from Jul. 1, 2026.

Live updates of Budget 2026

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