What is the upcoming change in Local Qualifying Salary (LQS)?

Is there any new change in LQS (Local Qualifying Salary)?

What is the new changes will take place to hire foreign workers?

What is the announcement by PM about Local Qualifying Salary (LQS)?

What is the effective date of change on Local Qualifying Salary (LQS) condition?

Upcoming Changes

Firms hiring foreign workers must pay all Singapore employees at least a Local Qualifying Salary w.e.f. 01-Sep-2022

Presently, companies are already paying the LQS, but only to some of their local employees, depending on how many foreigners they hire.

Leveraging on the current Work pass system to ensure sustained wage growth, employers will be required to pay the prescribed Progressive Wages and local qualifying salary (LQS) from 01-September-2022, before they can access any foreign workers.

To give an example, this means that if one has 20 local employees in the company, and needs two local employees to qualify for a foreign worker, one will have to ensure all 20 local employees are paid the LQS first, before they can be eligible for the foreign worker quota.

This local qualifying salary will now be used to set the baseline salary for lower-wage workers not covered under the Progressive Wage Model.

The local qualifying salary (LQS) will continue to be used to determine the quota for work permits and S passes for foreign workers that a Singapore employer can hire.

This, however, will not change the calculation of the quota for foreign workers, which will continue to be based on existing calculations.

• The S Pass is for qualified mid-level skilled foreign workers who earn with prescribed prevailing salary per month.
• A work permit is generally issued to unskilled or semi-skilled migrant workers.

(Source: National Day Rally 2021 Speech by the PM on 29-Aug-2021 & Reports by National Wagegroup on 30-Aug-2021)