Singapore | Local qualifying salary increase announced

The Ministry of Manpower (MOM) has confirmed that the local qualifying salary will be raised to Singaporean $1,600 (about US$1,190), effective July 1.

Key Points:

• During the Budget 2024 speech presented to parliament on Feb. 16, Finance Minister Lawrence Wong announced the local qualifying salary would increase from SG$1,400 to SG$1,600 this year.
• The local qualifying salary determines the number of local employees who can be used to calculate a firm’s Work Permit and S Pass quota entitlement.
• Previously known as the full-time equivalent salary, the local qualifying salary is reviewed regularly to keep pace with rising local wages and maintain quota controls.
• The increase takes effect on July 1, 2024.

Additional Information: The local qualifying salary was first created to prevent companies from “gaming” the system by paying token salaries to local workers to allow them to hire more foreign employees. The local In his Budget 2024 speech, Wong stated, “We will tackle immediate challenges for households and businesses. Pursue better jobs, better growth and equip our workers for life. Create more paths for equality and mobility.” Computation of the foreign employee quota and local qualifying salary requirements are outlined on the MOM website.

BAL Analysis: MOM noted that calculation of foreign worker quotas for firms will remain unchanged with the new local qualifying salary requirement. Employers are encouraged to be mindful of annual salary notification deadlines. Personalized Employment Pass holders whose passes were issued from Jan. 1, 2023, will be required to submit their annual salary notification in 2025.

Read the latest Singaporean immigration news here.

This alert has been provided by the BAL Global Practice Group.

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