• Insights

Qualifying Salary of Local Employees for Quota Calculation Set to Increase

March 8, 2019

insight-news-default

Country / Territory

  • SingaporeSingapore

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

The situation

The Ministry of Manpower (MOM) in Singapore recently announced that the qualifying salary of local employees included in calculating the quota available for hiring foreign nationals under the S Pass and Work Permit categories will increase starting July 2019.

A closer look

  • SGD 100 increase. Starting July 2019, only local employees earning at least SGD 1,300 can be included in computing an employer’s foreign worker quota allocation, a SGD 100 increase from the current salary threshold of SGD 1,200.
  • Foreign worker quota. A company’s foreign worker quota is calculated by taking into account the number of local employees (Singapore citizens and permanent residents) and foreign employees (S Pass and Work Permit) and the Dependency Ratio Ceiling (DRC) for the particular sector. Employers with more local workers in their workforce are generally granted higher quotas to sponsor foreign nationals.

 

Impact

  • Automatic decrease in foreign worker quota. Once this rule is implemented, a company’s foreign worker quota may automatically decrease, which may mean that it would need to raise the salaries of affected local employees. Companies unwilling to do so may need to reduce their foreign workforce to comply with the lower quota.
  • Future sponsorship of foreign workers. Companies planning to sponsor foreign workers under the S Pass or Work Permit categories after July 2019 will need to plan to ensure that they still have the capacity to do so even after the changes are in place.
  • Employment Pass holders unaffected. Foreign nationals on Employment Passes (EPs) are not counted for purposes of the quota requirements, therefore companies sponsoring foreign nationals under the EP category will not be affected by this requirement.
  • Impact on the services sector. This development will especially affect employers in the services sector given the recent announcement on the upcoming DRC and S Pass sub-DRC reductions for this industry. The services sector includes industries such as business management and consultancy services, engineering activities, information and communications activities, accommodation and accounting services, among others. This is in line with the government’s push to reduce the reliance on foreign manpower for this sector.

 

Background

The qualifying salary has been regularly adjusted by the government to line up with current income trends. The previous increases were made in two stages – from SGD 1,000 to SGD 1,100 in July 2017, and from SGD 1,100 to SGD 1,200 in July 2018.

This latest adjustment follows the Minister of Finance’s recent announcement to cut the quota for foreign workers in the services sector on January 1, 2020 and January 1, 2021. The government has also announced that there will be no further changes to quotas in other sectors and levies this year.

Quotas and ratios are effective tools used by governments worldwide in regulating the intake of foreign workers. Recent examples include Indonesia, Saudi Arabia, Switzerland and the United Kingdom.

Looking ahead

The adjustment is part of the Singaporean government’s continuing effort to increase productivity and ensure that local workers remain competitive compared to other labor markets. When considered together with past regulatory measures, it indicates a more restrictive approach toward immigration that targets semi- and low-skilled workers in favor of highly-skilled foreign nationals.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • SingaporeSingapore

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Times Higher Education: UK Student Visa Applications Fall in October

Senior Manager Jonathan Hill discusses factors behind the decline in UK student visa applications, including recruitment restrictions, rising costs and changes to post-study work rights.

Learn more

Fragomen news

Comment on USCIS’s Proposed Rule to Eliminate Deference to Prior ApprovalsLearn more

Fragomen news

Fragomen Appoints Timo Heck as Managing Partner of DACH Region

Fragomen has appointed Timo Heck as Managing Partner of the DACH region, encompassing Germany, Austria and Switzerland.

Learn more

Awards

Fragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™

Eight professionals in Fragomen’s Mexico City office have been recognized in the 2027 edition of The Best Lawyers in Mexico™ for Immigration Law.

Learn more

Blog post

How Employers Can Support Integration and Retain International Talent in Germany

Senior Manager Katharina Vorländer explores how employers in Germany can look beyond the initial immigration process to support integration, long-term stability and the retention of international talent.

Learn more

Media mentions

Scottish Legal News: Scotland’s Investment Ambitions Depend on Workforce Readiness

Director Kelly Hardman explores why workforce planning is essential to Scotland’s investment ambitions and long-term economic growth.

Learn more

Fragomen news

Comment on DHS Proposal to Eliminate the 60-day Grace PeriodLearn more

Fragomen news

Comment on DHS proposal to impose up to $100,000 in Optional Practical Training FeesLearn more

Media mentions

Human Resources Director: Fixed-Term Contract Limits Squeeze Visa Sponsorship, Research Warns

Co-authors Partner Charles Johanes, Senior Counsel Anna Boucher and Allens Partner Tarsha Gavin explore the intersection of Australia’s migration and employment laws and the implications for employers sponsoring temporary visa holders.

Learn more

Media mentions

Prawo: Pracodawca na pierwszej linii: jak reforma zatrudniania cudzoziemców przesuwa odpowiedzialność na firmy

Partner Karolina Schiffter examines how Poland’s proposed foreign employment reforms could increase employers’ administrative and compliance responsibilities.

Learn more

Blog post

Trusted Digital Identity Is Critical Infrastructure for Global Mobility

In the first blog in a new series, Managing Director, Digital Identity Amit Sharma explores why trusted digital identity is becoming increasingly important to global mobility, how reusable digital credentials could work and why interoperability across systems and jurisdictions will be critical.

Learn more

Blog post

UK Global Talent Visa vs Innovator Founder Visa: A Guide for Tech Professionals, Researchers and Founders

Senior Associate Amelia Haynes compares the UK’s Global Talent and Innovator Founder visa routes, examining who each route may suit, the evidence required, professional flexibility and potential pathways to settlement.

Learn more

Media mentions

Times Higher Education: UK Student Visa Applications Fall in October

Senior Manager Jonathan Hill discusses factors behind the decline in UK student visa applications, including recruitment restrictions, rising costs and changes to post-study work rights.

Learn more

Fragomen news

Comment on USCIS’s Proposed Rule to Eliminate Deference to Prior ApprovalsLearn more

Fragomen news

Fragomen Appoints Timo Heck as Managing Partner of DACH Region

Fragomen has appointed Timo Heck as Managing Partner of the DACH region, encompassing Germany, Austria and Switzerland.

Learn more

Awards

Fragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™

Eight professionals in Fragomen’s Mexico City office have been recognized in the 2027 edition of The Best Lawyers in Mexico™ for Immigration Law.

Learn more

Blog post

How Employers Can Support Integration and Retain International Talent in Germany

Senior Manager Katharina Vorländer explores how employers in Germany can look beyond the initial immigration process to support integration, long-term stability and the retention of international talent.

Learn more

Media mentions

Scottish Legal News: Scotland’s Investment Ambitions Depend on Workforce Readiness

Director Kelly Hardman explores why workforce planning is essential to Scotland’s investment ambitions and long-term economic growth.

Learn more

Fragomen news

Comment on DHS Proposal to Eliminate the 60-day Grace PeriodLearn more

Fragomen news

Comment on DHS proposal to impose up to $100,000 in Optional Practical Training FeesLearn more

Media mentions

Human Resources Director: Fixed-Term Contract Limits Squeeze Visa Sponsorship, Research Warns

Co-authors Partner Charles Johanes, Senior Counsel Anna Boucher and Allens Partner Tarsha Gavin explore the intersection of Australia’s migration and employment laws and the implications for employers sponsoring temporary visa holders.

Learn more

Media mentions

Prawo: Pracodawca na pierwszej linii: jak reforma zatrudniania cudzoziemców przesuwa odpowiedzialność na firmy

Partner Karolina Schiffter examines how Poland’s proposed foreign employment reforms could increase employers’ administrative and compliance responsibilities.

Learn more

Blog post

Trusted Digital Identity Is Critical Infrastructure for Global Mobility

In the first blog in a new series, Managing Director, Digital Identity Amit Sharma explores why trusted digital identity is becoming increasingly important to global mobility, how reusable digital credentials could work and why interoperability across systems and jurisdictions will be critical.

Learn more

Blog post

UK Global Talent Visa vs Innovator Founder Visa: A Guide for Tech Professionals, Researchers and Founders

Senior Associate Amelia Haynes compares the UK’s Global Talent and Innovator Founder visa routes, examining who each route may suit, the evidence required, professional flexibility and potential pathways to settlement.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
November 12, 2026 | MexicoFragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™
November 13, 2026 | CanadaCanada: 2027–2029 Immigration Levels Plan Maintains Overall Targets and Adds Permanent Residence Spaces
November 13, 2026 | United KingdomTimes Higher Education: UK Student Visa Applications Fall in October
November 12, 2026 | United StatesComment on USCIS’s Proposed Rule to Eliminate Deference to Prior Approvals
November 12, 2026 | Austria, Germany, SwitzerlandFragomen Appoints Timo Heck as Managing Partner of DACH Region
November 12, 2026 | MexicoFragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™
November 13, 2026 | CanadaCanada: 2027–2029 Immigration Levels Plan Maintains Overall Targets and Adds Permanent Residence Spaces
November 13, 2026 | United KingdomTimes Higher Education: UK Student Visa Applications Fall in October
November 12, 2026 | United StatesComment on USCIS’s Proposed Rule to Eliminate Deference to Prior Approvals
November 12, 2026 | Austria, Germany, SwitzerlandFragomen Appoints Timo Heck as Managing Partner of DACH Region
November 12, 2026 | MexicoFragomen Professionals Recognized in the 2027 Edition of The Best Lawyers in Mexico™
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.