What’s the LQS All About?
The Local Qualifying Salary (LQS) is the baseline that every Singapore company must pay its local staff—especially when it hires foreign workers. It’s a simple rule to keep wages fair and proper, and to make sure businesses treat local talent well.
Until now, the LQS has hovered at $1,400 a month, a figure that was bumped up from $1,000 back in 2016 and $1,400 in 2020. This latest step was part of the 2022 wage‑boost strategy that could affect most workers.
Why the Deep Dive Into the Numbers?
Last year, 103,000 full‑time residents earned a gross monthly income below $1,400. That’s roughly 5.3 % of all resident workers.
- After the LQS requirement takes full effect, about 77 % of those people will see their wages climb to at least $1,400.
- The remaining 23 % belong to micro‑businesses that don’t employ foreign staff. They’re mostly tiny family shops and hawker stalls, which are good, but they’re fragile. A sudden wage jump could be detrimental.
Does the LQS Keep Changing?
MP Yip Hon Weng asked whether the LQS will get a regular review.
Senior Minister Zaqy relaxed the worries: “The LQS is a reliable benchmark. It’s been tweaked four times in five years, and we have no plans for another bump right now. Instead, we’ll focus on implementing the new rules and building sound wage benchmarks for each sector.”
Part‑Time Pay & Progressive Wage Models
Part‑timers? The hourly rate will be set at $9 per hour.
Beyond the LQS, progressive wage models will push certain sectors higher:
- Cleaning and landscaping crews could see a monthly salary of about $2,400 by 2028.
“If wage growth outpaces productivity, the solution is for companies to boost their own efficiency,” Zaqy pointed out. He stressed that the next decade is a massive undertaking to lift lower‑wage workers.
Impact on Businesses? A “Run‑In” Approach
MP Edward Chia expressed concerns about the new measures.
“There will be a smooth transition period that emphasizes education and awareness rather than hard enforcement,” said Zaqy. He added that existing reporting processes will be leveraged to keep paperwork light.
Call for Society’s Support
“We need the whole society—workers, consumers, employers, unions, the govt, and the public—to rally behind this effort,” Zaqy concluded. He underlined that a tripartite approach alone won’t suffice; it’s a collective, nation‑wide mission.
These updates come courtesy of The Straits Times (reproduction permission required).
