Updated on

$1,800 a month in Singapore: take-home pay at the new LQS

Reviewed by Radif Partners

The salary that became a legal floor on 1 July 2026

Since 1 July 2026, $1,800 is the Local Qualifying Salary: the minimum a firm must pay a full-time local employee for that person to count towards its foreign worker quota. It replaced a floor of $1,600. A citizen aged 30 paid exactly this amount contributes $360 to CPF and takes home $1,440 a month, while the employer adds $306. No income tax is due: twelve months of salary come to $21,600, and after the earned income relief and the CPF relief the chargeable income is $16,280, inside the tax-free first $20,000. At this level the CPF split is worth watching, because $4,969 a year goes to the Ordinary Account, which is what many young workers use later for an HDB flat.

Basic pay plus fixed allowances and overtime, before CPF

Paid once a year; CPF applies up to the Additional Wage ceiling

More tax reliefs

Spouse, child, parent, NSman, SRS, CPF cash top-ups: all reliefs together are capped at $80,000

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Monthly take-home pay

$1,440

$1,800 gross − $360 employee CPF · set aside $0 a month for tax

68 %
17 %
15 %
Take-home pay
Your CPF
Employer CPF
Gross monthly salary$1,800
Your CPF (20.0 %)− $360
Take-home pay per month$1,440
Employer CPF (paid on top)$306
Into your accounts: OA · SA · MediSave (per year)$4,969 · $1,296 · $1,728
Annual gross$21,600
Reliefs: earned income $1,000 + CPF $4,320− $5,320
Income tax YA 2027 on $16,280 chargeable− $0
Net after CPF and tax, per year$17,280
Employer cost per year (salary + CPF + SDL)$25,326

CPF Board rates from 1 January 2026; ordinary wage ceiling $8,000 a month, annual ceiling $102,000. Tax at IRAS resident rates for YA 2027, no rebate assumed. Estimates only, see the methodology.

How this is calculated

Workfare on top of the salary

Workers aged 30 and above earning this salary are within the income range of the Workfare Income Supplement, which the government pays partly in cash and partly into CPF, without any deduction from pay. It does not appear on the payslip and is not taxable. On MOM’s hourly formula, $1,800 corresponds to $9.44 an hour on a 44-hour week.

$1,800 a month by age and status

SituationEmployee CPFTake-homeEmployer CPFTax YA 2027Net per year
Citizen, 30$360$1,440$306$0$17,280
Citizen, 58$324$1,476$288$0$17,712
Citizen, 62$225$1,575$225$0$18,900
PR year 1, 30$90$1,710$72$0$20,520
PR year 2, 30$270$1,530$162$0$18,360
Foreigner, 30$0$1,800$0$12$21,588

Figures computed with the CPF Board rate tables from 1 January 2026 and the IRAS resident rates for YA 2027, without bonus unless stated. Estimates only: your payslip and notice of assessment prevail.

Once the employer’s CPF share is removed, MOM’s June 2025 figures put the median full-time resident salary at about $4,900 a month and the 20th percentile at about $2,700. A salary of $1,800 a month is 63 % below the median of about $4,900, which places it in the lowest-paid fifth of full-time residents. These are estimates based on the published income figures, which include employer CPF. Average and median salary in Singapore.

Questions people ask

Is $1,800 the minimum wage in Singapore?

Not for everyone. $1,800 is the Local Qualifying Salary from 1 July 2026, the pay a firm must give a full-time local worker for that worker to count in its foreign worker quota. Sectors covered by a Progressive Wage Model have their own minimums, and there is no single national minimum wage.

Do I pay income tax on $1,800 a month?

No. A year at $1,800 a month is $21,600. After the $1,000 earned income relief and the CPF relief of $4,320, chargeable income is $16,280, below the $20,000 on which the resident rate is 0 %. IRAS may still ask you to file a return.

How much CPF goes into my account on $1,800?

$666 a month in total: $360 deducted from your pay and $306 paid by your employer. At 30, about 62 % goes to the Ordinary Account, 16 % to the Special Account and 22 % to MediSave, which is $4,969, $1,296 and $1,728 over a year.

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Sources

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Rates for 2026, last checked on