Singapore Local Qualifying Salary Raised to S$1,800 from July 2026, Higher Employment Threshold for International Students
Singapore's Ministry of Manpower announces that the Local Qualifying Salary (LQS) will increase from S$1,600 to S$1,800 per month effective July 1, 2026. This adjustment directly affects S Pass quota calculations and indirectly raises the employment threshold for international students seeking work passes after graduation. Meanwhile, Japan has relaxed employment restrictions for technical school graduates, expanding pathways to non-related industries.
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.
Specific Impact of LQS Adjustment on International Student Employment
Higher S Pass Application Threshold: International students who wish to apply for S Pass after graduation must now earn a monthly salary of S$1,800 (previously S$1,600). This presents a significant challenge for recent graduates, especially those in non-STEM fields.
Changes in Employer Quota Calculations: When hiring foreign employees, employers need to calculate S Pass quotas based on the LQS. The LQS increase may prompt employers to reassess recruitment strategies, prioritizing positions that can bring higher value.
Increased Competition in the Job Market: With the higher LQS, international students need to compete with local graduates on salary expectations. Employers may prefer hiring local talent whose salary requirements align with market levels.
Impact on Long-term Career Planning: This adjustment reminds international students to plan their career paths early, enhancing their skills and competitiveness to meet the rising employment threshold.
Comparison with Japan's New Policy for Technical School Graduates
Meanwhile, Japan has also adjusted employment policies for technical school graduates (専門学校卒業生) in 2026. Main changes include:
- Application deadline moved forward from end of March to January 31
- First-time allowance for technical school graduates to work in industries unrelated to their field of study
- Expanded scope of "Designated Activities" visa No. 46
Japan's policy adjustments aim to alleviate labor shortages and provide more flexible work pathways for international students. This contrasts with Singapore's policy tightening, showing different strategies countries adopt to attract international talent.
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Will it be harder for international students to find jobs in Singapore after the LQS increase?
Besides salary requirements, what other factors affect international students' work pass applications?
1. Educational background: Singapore has different pass requirements for different educational levels, such as Employment Pass typically requiring a bachelor's degree or higher.
2. Work experience: Relevant work experience can improve application success rates.
3. Company background: The employer's industry, size, and hiring record also affect pass approval.
4. Quota restrictions: Some industries have quota limits for foreign employees.
5. Personal skills: Special skills or talent in shortage areas are more welcome.
What advantages does Japan's new policy for technical school graduates have compared to Singapore's policy?
1. Professional flexibility: Allows employment in unrelated industries, broadening career choices.
2. Policy friendliness: Aims to alleviate labor shortages and actively attract international talent.
3. Application time window: Although the deadline is earlier, the policy is clear, giving international students earlier planning time.
4. Diverse visa pathways: Besides work visas, there are various options such as designated activity visas.
In contrast, Singapore's policy focuses more on protecting the local job market, with gradually increasing thresholds. International students should choose suitable destinations based on their major, career plans, and long-term goals.