What is called Full-Time Equivalent salary?
The Local Qualifying Salary (LQS) determines the number of local employees who can be used to calculate your Work Permit and S Pass quota entitlement. The LQS was previously known as the Full-Time Equivalent salary.
The LQS ensures that local workers are employed meaningfully, rather than being employed on token salaries to allow the employer access to foreign workers. This also ensures that quota controls remain effective and keep pace with income levels.
A Singaporean or Permanent Resident employee employed under a contract of service, including the companyβs director, is counted as:
Qualifying SalaryΒ From 01-July-2024: |
A Singaporean or Permanent Resident employee employed under aΒ contract of service, including the companyβs director, is counted as:
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The following employees are also not counted when calculating your quota:
- If your employeeβs salary is less than $800.
- With effect from 01-Jul-2024: If your employeeβs salary is less than $800.
- Business owners of sole proprietorships or partnerships.
- Employees who receive CPF contributions from three or more employers.
If you have multiple CPF accounts in your company, you should not contribute CPF for the same employee under the different accounts to get more quota.
If youΒ hired new employees recently, you wonβt see an immediate adjustment in your quota. It depends on when you pay the CPF contribution for each employee.
You can use the Quota calculator at MOM website at: www.mom.gov.sg