In brief
From 1 May 2021, Dependant's Pass (DP) holders who wish to work in Singapore will need to apply for a relevant work pass such as an Employment Pass, S Pass or Work Permit instead of a Letter of Consent (LOC). Existing DP holders with LOC will be allowed to continue working until the LOC expires. However, employers will have to apply for an applicable work pass for them if they wish to continue employing them after the existing LOC expires.
In more detail
Currently, dependants of Employment Pass, EntrePass or Personalised Employment Pass holders who hold a DP can apply for LOC to work in Singapore, and do not require a separate work pass. With this upcoming change that is effective from 1 May 2021, they will have to apply for a relevant work pass such as an Employment Pass, S Pass or Work Permit, instead of an LOC, unless they are business owners who meet specific criteria.
Existing employees will be able to continue working until the expiry of their LOC. However, employers will need to apply for an applicable work pass for them to continue working after the expiry of their LOC. The MOM will facilitate the transition to a work pass. Prevailing qualifying salary, dependency ratio ceilings and levies for the respective work passes will apply.
DP holders who are business owners will be eligible to continue running their businesses on an LOC, provided that their business creates local employment. They will need to meet the following criteria:
- The DP holder is a sole proprietor, partner or company director with at least 30% shareholding in the business.
- The business hires at least one Singaporean/Permanent Resident who earns at least the prevailing local qualifying salary (currently SGD 1,400) and has been receiving Central Provident Fund contributions for at least three months.
In the event the businesses owned by the DP holders do not meet the criteria, they are only allowed to run their businesses until the end of the LOC validity. However, they may apply for a one-off extension of their LOC until 30 April 2022 during their next DP renewal. Thereafter, they will need to meet the prevailing criteria in order to renew their LOC or obtain an applicable work pass to continue working in Singapore. Further details will be released by the Ministry of Manpower (MOM) on 1 May 2021.
Comments
This change in aligning the requirements for DP holders who wish to work in Singapore with the requirements for all other foreigners working in Singapore further reinforces MOM's goal in the eventual building of a Singaporean core among employers.
