MOM to raise Employment Pass qualifying salary from 1 January 2025 and Local Qualifying Salary from 1 July 2024

27 March 2024

On 4 March 2024, the Ministry for Manpower (“MOM”) issued a press release on Singapore’s foreign workforce policies. Among other things, MOM announced it will raise the Employment Pass (“EP”) qualifying salary from 1 January 2024 and the Local Qualifying Salary (“LQS”) from 1 July 2024.

Raise EP qualifying salary from 2025

MOM will be increasing the EP minimum qualifying salary from S$5,000 to S$5,600 per month. The qualifying salary will continue to increase progressively with age, up to S$10,700 for a candidate in their mid-40s. This maintains a level playing field for locals across all age groups.

For the financial services sector, which has higher wage norms, a higher EP qualifying salary will continue to apply. The EP minimum qualifying salary for the financial services sector will be raised from S$5,500 to S$6,200 per month. This will also continue to increase progressively with age, up to S$11,800 for a candidate in their mid-40s.

The revised EP qualifying salary will apply to new EP applications from 1 January 2025 and to renewal applications from 1 January 2026.

Raise LQS threshold

The LQS determines the number of local employees that can be used to calculate a firm’s Work Permit and S Pass quota entitlement.

From 1 July 2024, the LQS will be raised from S$1,400 to S$1,600 per month. Firms hiring foreign workers will have to pay all their local workers at least the LQS (or Progressive Wage Model wages where applicable) as follows:

  • At least S$1,600 per month for full-time local workers; or
  • At least S$10.50 per hour for part-time local workers.

The foreign worker quota computation will be correspondingly adjusted with the new LQS:

  • One local workforce count: Per local worker who is paid at least S$1,600 per month; or
  • 5 local workforce count: Per local worker who is paid at least S$800 but less than S$1,600 per month.

Reference materials

The press release is available on the MOM website www.mom.gov.sg.