New Wage Requirement Aims to Ensure Fair Pay for Local Workers
Starting July 1, 2024, companies in Singapore that hire foreign workers will be required to pay their local employees a minimum qualifying salary of S$1,600 for full-time workers. This marks a 14% increase from the previous threshold of S$1,400. For part-time workers, the hourly minimum wage will rise from S$9 to S$10.50.
The adjustment to the local qualifying salary (LQS) is part of the government’s strategy to keep pace with wage growth and ensure that local workers are fairly compensated. The LQS is a key factor in determining the foreign worker quota entitlement for businesses, meaning that the number of local workers earning at least the qualifying salary will impact the number of foreign workers a company can hire.
These changes will be implemented in the second half of 2024, reinforcing the government’s commitment to ensuring that local workers benefit from a competitive wage structure while regulating the employment of foreign workers.
