Local qualifying salary for full-time employees to rise from S$1,600 to S$1,800

Eligible local employees see minimum salary raised in Budget 2026, older workers get extended support

In the Budget 2026 statement, Prime Minister (PM) Lawrence Wong announced more support for workers, including raising the minimum salary for eligible local employees.

Additionally, the government will extend support for the Senior Employment Credit (SEC), benefitting older employees in the workforce.

Local Qualifying Salary to be raised to S$1,800 for support of lower-wage workers

PM Wong, who is also the Finance Minister, listed a series of measures in his Budget 2026 statement, on 12 Feb, aimed at benefitting employees.

He announced that the Local Qualifying Salary (LQS) will be raised from S$1,600 to S$1,800.

The LQS sets a minimum salary threshold for full-time local employees in firms that hire foreign workers.

“We will continue to strengthen support for lower-wage workers,” Mr Wong said about the measure.

To help businesses defray costs, the government will raise its co-funding of salary increases from 20% to 30% under the Progressive Wage Credit Scheme (PWCS).

There will also be an extension to the PWCS, from 2026 until 2028.

Workforce Singapore and SkillsFuture Singapore merging

In the Budget 2026 speech, Mr Wong announced the upcoming merger of Workforce Singapore and SkillsFuture Singapore into a single statutory board, jointly overseen by the Ministry of Manpower (MOM) and the Ministry of Education (MOE).

He mentioned that the new agency will be a “one-stop shop” for skills training, career guidance, and job-matching services.

Budget 2026 announces more support for mid-career and older workers

In 2024, the government launched the SkillsFuture Level-Up Programme to support mid-career workers.

Mr Wong stated that over 60,000 Singaporeans aged 40 have benefitted from the programme’s training courses.

From March, the mid-career training allowance will be extended to those doing part-time training. The government will also include more industry-relevant courses in the programme.

For senior workers, aged 60 and above, PM Wong announced the extension of the Senior Employment Credit (SEC) by one year to 31 Dec 2027.

Under the SEC, the government provides wage offsets for employers who hire older Singaporeans earning S$4,000 or less per month.

“We will also equip employers to design age-friendly jobs and multi-generational workplaces,” Mr Wong said.

Also read: CPF Board launching new investment scheme with potential higher returns, will give S$1.5K top-up to eligible S’poreans

Have news you must share? Get in touch with us via email at news@mustsharenews.com.

Featured image adapted from MS News and Lawrence Wong on YouTube.