Singapore's Ministry of Manpower (MOM) recently announced that the Local Qualifying Salary (LQS) will increase from the current S$1,600 per month to S$1,800 effective July 1, 2026. This is the first adjustment since 2023, aimed at ensuring local employees' wages keep pace with rising living costs.
LQS is a key metric used by the Singapore government to calculate employers' S Pass quotas. According to regulations, when applying for S Passes (mid-skilled work passes), employers must ensure that foreign employees' monthly salaries are not lower than the LQS. This increase means that from July 2026, employers will need to pay foreign employees at least S$1,800 per month to meet S Pass application requirements.
For international students studying in Singapore, the LQS adjustment indirectly raises the threshold for staying and working after graduation. Many international students hope to apply for work passes (such as Employment Pass or S Pass) to remain in Singapore after completing their studies. With the higher LQS, employers' costs for hiring international graduates increase, which may lead some companies to reduce recruitment of international graduates or prefer hiring local employees with lower salary requirements.