Local Qualifying Salary (LQS) Update July 2024

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The monthly Local Qualifying Salary (LQS) for local employees (Singaporeans or Permanent Residents) will be adjusted from 1 July 2024 to keep pace with wage growth.

The changes are as follows:

  • LQS increased from $1,400 to $1,600.
  • Half LQS limit increased from $700 to $800.

Impact on Organisations’ Work Permit and S Pass Quota

The Ministry of Manpower (MOM) uses Central Provident Fund (CPF) contributions made by your organisation to the CPF Board to determine the salaries of your local employees. The number of local employees whose salaries meet the monthly LQS directly impacts your organisation’s Work Permit and S Pass quota.

Calculation of Local Employees from 1 July 2024

Based on the monthly salary of a local employee:

  • Less than $800: The employee will not count as a local employee for the purpose of calculating the Work Permit and S Pass quota.
  • $800 to less than $1,600: The employee will be counted as 0.5 of a local employee.
  • $1,600 and above: The employee will be counted as 1 local employee.

Recommended Actions

To prepare for this change, you should:

  • Review the salaries of your existing local employees.
  • Ensure timely declaration of local employees’ salaries and CPF contributions. Your organisation’s quota entitlement is based on a three-month average of your local employees’ CPF data.

For example, if salary declaration and CPF contribution are completed before 14 July 2024, your quota for August will be based on data from May, June, and July. Otherwise, it will be based on data from April, May, and June.

Organisations without sufficient quota will be unable to apply for or renew Work Permits and S Passes and will need to cancel any excess Work Permits and/or S Passes. To check your quota entitlement, please use our foreign employee quota calculator.

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