Revisions to Local Qualifying Salary (LSQ)

First of all - What is a Local Qualifying Salary (LQS)?

The LQS determines the number of local employees who can be used to compute a firm’s Work Permit and S Pass quota entitlement. 

Any Singaporean or Permanent Resident individual employed under a contract of service (including the Company’s Directors) is counted as 1 local worker if they earn at least S$1,400 per month and 0.5 local worker if they earn at least S$700 a month. 

Employers can then use the quota calculator to calculate the number of Work Permit or S Pass holders they can employ based on their local headcount and industry. 

As the LQS is put in place to ensure fair employment for Singaporeans and Permanent Residents, as well as to disallow companies from hiring phantom workers to contribute to the quotas, it will constantly be revised to keep quota controls effective. 

The LQS will be increased to S$1,600 effective 1 July 2024. 

In order to keep up with these regular amendments to regulations, why not engage an HR consulting firm to help you? We at Triplicity are able to assist you with your company’s work pass applications and payroll - and we promise to keep you up to date with all these changes!