Is 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.

Singapore Letter of Consent (LOC) Changes from 1 July 2026: The DP Business Owner’s Guide

Published: 3 July 2026 · Last reviewed: 5 October 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.

Table Of Content

The Three Deadlines DP Business Owners Need to Diary

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

What is a Letter of Consent (LOC)?

A Letter of Consent is a permission from the Ministry of Manpower (MOM) that lets certain pass holders work in Singapore without their own Employment Pass, S Pass or Work Permit. Two groups use it:

Long-Term Visit Pass (LTVP / LTVP+) holders – typically the spouse of a Singapore citizen or PR, taking up employment.
Dependant’s Pass (DP) holders who run their own business – a director with at least 30% shareholding, a sole proprietor, or a partner in a registered Singapore company.

Since 1 May 2021, DP holders who are ordinary employees can no longer work on an LOC, they must obtain their own pass, such as an Employment Pass. The LOC route remains open to DP business owners and to LTVP/LTVP+ holders.

What Exactly Changes on 1 July 2026?

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

The Full LOC Renewal Conditions (2026)

An LOC renewal is not automatic. To renew as a DP business owner, you generally need to satisfy all of the following:

Ownership : you are a sole proprietor, a partner, or a director with at least 30% shareholding in an ACRA-registered company.
Local hire : the business employs at least one Singapore citizen or PR paid at or above the LQS (S$1,800 from 1 July 2026).
CPF history : that local employee has received CPF contributions for at least three consecutive months before you apply MOM checks this to confirm the job is genuine.
Operating business : MOM may review revenue, activity, employment records and ACRA filings; a dormant company can be refused.
DP validity : your Dependant’s Pass must have at least three months’ validity remaining when you apply.

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.

Why your Renewal Could be Refused and The Cost

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.

Your Three Options if The LQS Change Affects You

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)

The EP also requires passing COMPASS. If your salary already clears S$30,000/month, the ONE Pass is worth considering, it’s self-sponsored and COMPASS-exempt.

Option 3 — Step back from the work pass, keep the business

You can remain a shareholder while a local or EP-holding director runs day-to-day operations, or pursue an EntrePass if the business is innovative or venture-backed.

Working Without Authorisation is Not an Option

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.

Renewing your LOC before the LQS change hits?

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.

Frequently
Asked Questions

Is 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.