June 2026 Spotlight on APAC: Salary Threshold and Minimum Wage Changes Across the Region

In our Spotlight on APAC series, we highlight the latest workforce and immigration developments across the region. In this article, we provide an overview of the qualifying salary changes introduced across the APAC region in 2026, covering both local workforce requirements and work pass salary thresholds.  We can see a trend across 2026 of increased minimum salary levels throughout APAC.

 

Singapore

Local Qualifying Salary

With effect from 01 July 2026, the Local Qualifying Salary (LQS) for full-time local employment will be updated from $1,600 to $1,800. The LQS is a local workforce requirement that is reviewed periodically. It is used to determine whether local employees can be counted towards an employer’s S Pass and Work Permit quota entitlement.

As part of the requirement to hire foreign workers, employers must:

• Pay Progressive Wage Model (PWM) rates to local employees covered by the relevant sectors
• Pay at least the prevailing LQS to local employees who are not covered by the PWM, where they are counted towards S Pass or Work Permit quota entitlement

Similar salary threshold or minimum wage initiatives have also been introduced across other APAC jurisdictions through 2026, as summarised below.

 

Country	Update
Malaysia	Employment Pass Qualifying Salary, with effect from 01 June 2026: Categories I: MYR 20,000 and above Category II: MYR 10,000 to 19,999 Category III: MYR 5,000 to 9,999 The revised salary thresholds apply to both new and renewal Employment Pass applications. Category II and III approvals are also subject to a succession plan requirement.
Thailand	With effect from 1 January 2026 for existing BOI-promoted companies, revised minimum monthly salary requirements apply to foreign employees of BOI-promoted companies, depending on position level. Executives: THB 150,000 per month. Management-level with no relevant educational qualifications: THB 75,000 per month. Management-level with relevant educational qualifications: THB 50,000 per month. Operational & R&D staff: THB 50,000 per month. Operator roles under certain IBPO/TISO-IBPO activities may be subject to a lower THB 35,000 threshold.
Vietnam	With effect from 01 January 2026, the following changes apply: Increase in regional wage by 7.2%. Increase in minimum hourly wage. Employers should also ensure that the minimum wage increase does not result in the reduction or removal of existing employee benefits or allowances. The revised minimum wage levels apply to those working under employment contracts and may affect payroll compliance for both local and foreign employees, depending on the employment arrangement.

 

Employers should take note of the applicable qualifying salary requirements when planning their hiring activities and upcoming immigration applications.

For more information on the above developments, or if you require assistance with APAC immigration matters, please do not hesitate to contact Rachel.ang@magrath.sg or hazimah@magrath.sg.

 

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