Published: 3 July 2026 · Reviewed by Ray Tay, Co-Founder & Managing Director, VIVOS PTE. LTD. (ACRA Filing Agent FA20240323 · MOM EA Licence 24S2425)
Short answer: The Letter of Consent (LOC) is not being abolished. What changes on 1 July 2026 is the Local Qualifying Salary (LQS), which rises from S$1,600 to S$1,800 a month for full-time local employees (the part-time requirement is at least S$10.50 an hour gross), announced in Budget 2026. Because a Dependant’s Pass (DP) business owner’s LOC renewal requires employing at least one local Singaporean or PR paid at the LQS, any renewal submitted on or after 1 July 2026 must show that local employee earning at least S$1,800. Below that, your renewal can be refused. Audit your payroll and update contracts before your renewal date.
| Date | What changes | Who it hits |
|---|---|---|
| 1 July 2026 | Full-time LQS rises to S$1,800/month | LOC renewals & foreign-worker quota counts |
| 1 Jan 2027 | Higher EP & S Pass salary floors for new applications | DP holders switching from LOC to their own pass |
| 1 Jan 2028 | Higher EP & S Pass floors apply to renewals too | Existing EP/S Pass holders |
The change is to the Local Qualifying Salary, the monthly salary a local employee must earn for the employer to count them towards its Work Permit and S Pass foreign-worker quota:
| Measure | Until 30 Jun 2026 | From 1 Jul 2026 |
|---|---|---|
| Local Qualifying Salary — full-time (monthly) | S$1,600 | S$1,800 |
For part-time local employees (under 35 hours/week), the LQS requirement is at least S$10.50 an hour gross. The LQS is not a general minimum wage. MOM counts a local employee paid at the full LQS as one worker, and one paid at half the LQS as 0.5 , so from 1 July 2026, with the LQS at S$1,800:
| Local employee’s monthly salary | Counts as |
|---|---|
| At least S$1,800 | 1 full local worker |
| S$900 to under S$1,800 | 0.5 of a local worker |
| Below S$900 | Does not count |
An LOC renewal is not automatic. To renew as a DP business owner, you generally need to satisfy all of the following:
Note: if the main pass holder’s pass (e.g. your spouse’s Employment Pass) is cancelled, your DP and your LOC are cancelled automatically.
The Trap: if your LOC is up for renewal in the second half of 2026 and your local employee is still paid, say, S$1,650, a renewal submitted on or after 1 July 2026 can be refused even though that salary was compliant a month earlier. The fix has to be in place and documented (with CPF history) before you apply, not at the counter.
Raising a local from around S$1,650 to S$1,800 also lifts employer CPF by roughly S$25.50/month per worker under age 55 (17% employer rate), before the pay rise itself. To cushion this, the Progressive Wage Credit Scheme (PWCS) has been enhanced the government co-funds a larger share of 2026 wage increases for eligible lower-wage Singaporean staff and the scheme runs through 2028.
Option 1 — Renew the LOC (raise the local salary first):
Best if you have a genuine local hire and an operating business. Lift their pay to S$1,800, confirm three months of CPF, and renew before your DP expiry. No salary floor applies to you as the DP business owner.
Option 2 — Switch to an Employment Pass through your own company
Best if you can’t meet the local-hire condition or want more stability. Note the rising thresholds for new applications:
| Pass | Current minimum | From 1 Jan 2027 (new applications) |
|---|---|---|
| Employment Pass | S$5,600 | S$6,000 (S$6,600 financial services) |
| S Pass | S$3,300 | S$3,600 (S$4,000 financial services) |
Option 3 — Step back from the work pass, keep the business
Operating or working in Singapore without a valid LOC or work pass is an offence under the Employment of Foreign Manpower Act. Penalties can reach a fine of up to S$20,000, imprisonment of up to two years, or both, plus damage to future pass applications. If your renewal is at risk, switch paths early rather than lapse.
Renewing a DP business-owner LOC before 1 July, or weighing LOC vs Employment Pass vs ONE Pass? Talk to VIVOS ,we run the work passes and the incorporation, payroll and CPF compliance behind them, so the renewal isn’t the thing that trips you up.
Tell us your local employee’s current salary and renewal date, and our immigration team will confirm whether you meet the new S$1,800 threshold. VIVOS handles the LOC application and the payroll, CPF and incorporation compliance behind it, so nothing gets missed.
2 January, 2025
2 January, 2025Is the Letter of Consent being removed in 2026?
No. The LOC scheme continues. The 1 July 2026 change is an increase in the Local Qualifying Salary from S$1,600 to S$1,800 a month, which tightens the conditions behind LOC renewals and foreign-worker quotas.
What is the new Local Qualifying Salary in Singapore?
From 1 July 2026 the full-time Local Qualifying Salary is S$1,800 per month, up from S$1,600 (Budget 2026). The part-time requirement is at least S$10.50 an hour gross.
Will my LOC renewal be rejected if my local employee earns less than S$1,800?
If you submit the renewal on or after 1 July 2026 and your local employee is paid below S$1,800, the application can be refused. Raise the salary, update the contract, and ensure at least three consecutive months of CPF contributions before you apply.
Can a Dependant’s Pass holder still work in Singapore on an LOC?
Only if they own and run a registered Singapore business — a director with at least 30% shareholding, a sole proprietor, or a partner. DP holders who are ordinary employees have not been eligible for an LOC since May 2021 and need their own work pass.
What if I can’t meet the local-hire requirement?
Consider switching to an Employment Pass through your company (minimum salary rising to S$6,000 for new applications from 1 January 2027), the ONE Pass if you earn S$30,000+ a month, or an EntrePass for an innovative or venture-backed business. You can also step back and let a local or EP-holding director run operations.
Does the LQS change affect Employment Pass or ONE Pass holders?
No. The Employment Pass and the Overseas Networks & Expertise (ONE) Pass are assessed against their own salary criteria, not the Local Qualifying Salary.
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