Singapore LQS Hike to $1,800 in July 2026: What Workers and Employers Need to Know

Last Updated: May 2026

Starting 1 July 2026, Singapore’s Ministry of Manpower (MOM) will officially raise the Local Qualifying Salary (LQS) from $1,600 to $1,800 per month for full-time local employees. For part-time local workers, the hourly rate will also see a corresponding adjustment.

This landmark policy change is designed to uplift the wages of lower-income local workers while keeping pace with economic growth. However, it also brings major changes to how companies calculate their foreign worker quotas (Work Permit and S Pass numbers).

1. What is the Local Qualifying Salary (LQS)?

The LQS is a regulatory mechanism used by MOM to determine a company's entitlement to hire foreign employees. In Singapore, firms cannot hire foreign workers freely; their foreign workforce quota is tied directly to the number of local citizens or Permanent Residents (PRs) they employ who earn at least the LQS threshold.

2. The "Half-Count" vs. "Full-Count" Rule in 2026

Not every local employee grants a company the same foreign worker quota. Under the updated 2026 framework, locals are counted based on their monthly gross salary:

3. Impact on Local Employees: Check Your Net Pay & OT Rights

If you are a local full-time worker currently earning between $1,600 and $1,799, your employer must raise your basic salary to at least $1,800 by July 2026 if they wish to maintain their current foreign staff quota.

Keep in mind that an increase in gross salary also means your CPF contributions will change, which impacts your final take-home pay. Furthermore, if you are performing overtime hours, your hourly rate for 1.5x or 2.0x OT must be calculated accurately based on your updated salary structure.

4. Impact on Employers and HR Managers

For businesses in labor-intensive sectors like F&B, retail, logistics, and construction, the July 2026 LQS adjustment poses two immediate challenges:

• Rising Manpower Costs: Direct salary top-ups for local staff to hit the $1,800 mark.
• Risk of Quota Crunch: If an employer fails to adjust salaries to $1,800, some local staff will drop to "half-counts," instantly shrinking the company's legal allocation for Work Permits or S Passes.

Conclusion: Stay Ahead of the July 2026 Deadline

With July 2026 fast approaching, both employees and employers need to review their current payroll contracts. Ensure that your monthly salary, CPF deductions, and Ministry of Manpower (MOM) overtime entitlements are fully compliant with the new $1,800 LQS standard.

Keywords: Singapore LQS 2026, Local Qualifying Salary July, MOM Foreign Worker Quota, Singapore Minimum Salary Requirement, 1800 LQS Update.