Current Local Qualifying Salary Level and Alignment with Lower-income Worker Wages

64 Mr Melvin Yong Yik Chye asked the Acting Minister for Manpower (a) what percentile of the wage distribution of full-time employed resident workers does the current Local Qualifying Salary (LQS) of $1,800 per month correspond to; (b) what is the latest nominal gross monthly income from work, excluding employer CPF contributions, at the 10th percentile; and (c) whether the current LQS remains aligned with lower-income workers' wages.

Ms Jasmin Lau: Based on the latest available data, the current Local Qualifying Salary (LQS) of $1,800 per month corresponds to about the 6th percentile of the income distribution of full-time resident employees. The nominal gross monthly income from employment (excluding employer/platform operator CPF contributions) of full-time employed residents at the 10th percentile was $2,000.

The Government reviews LQS regularly, taking into account wage growth at the lower-end of the wage distribution and business considerations. LQS is part of a broader set of Progressive Wage moves to uplift our lower-wage workers. Following the increase in LQS from $1,600 to $1,800 that took effect on 1 July 2026, up to nine in 10 lower-wage workers benefit from Progressive Wage moves¹.