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SINGAPORE – Local Qualifying Salary Increase
June 11, 2024
By: Patricia Clarino
Companies operating in Singapore are reminded that this update will be implemented on July 1, 2024. In anticipation of this update, it is prudent to take the necessary actions:
- Review the salaries of the current local employee population.
- Ensure timely declaration of local employees’ salaries and CPF contributions. The company’s quota is determined by a three-month average of your local employees’ CPF data
Companies failing to meet quota requirements will be unable to lodge any new or renewal applications for Work Permits and S Passes. Work Permits and S Passes in excess of the quota will have to be cancelled.
Original update, February 26, 2024
In its 2024 budget statement, Singapore revealed that a rise in the Local Qualifying Salary (LQS) from SGD 1,400 to SGD 1,600 per month is forthcoming. With effect from July 1, 2024, the adjustment affects the calculation of a firm’s Work Permit and S Pass quota entitlement.
Under the updated guidelines, which are expected to take effect on 1 July 2024, any Singaporean or Permanent Resident employed under a contract of service including company directors, will be calculated as:
- 1 local worker if their monthly earnings reach or exceed SGD 1,600.
- 0.5 local worker if their monthly earnings are at least SGD 800 but less than SGD 1,600.
As always, don’t hesitate to reach out to your Newland Chase dedicated contact or submit an inquiry here should you have any specific questions regarding this announcement.
