The Ministry of Manpower (MOM) has announced that Dependant’s pass (DP) holders will soon need to obtain a work pass rather than a Letter of Consent (LOC) if they wish to work in Singapore. Existing DP LOC holders will be allowed to continue working until the expiry of their LOC.
The shift in policy is intended to adjust the requirements to be in line with other foreigners currently working in Singapore, according to a ministry fact sheet. This change is to take effect on May 1, 2021.
The policy change means Singapore companies that hire DP holders will have to comply with the same conditions required to hire foreign workers, including quotas, levies, and qualifying salaries.
Table of Contents
New DP holders who wish to work in Singapore
Effective 1st May 2021, DP holders will not be able to get a LOC and will need to obtain an EP, S Pass or Work Permit to work in Singapore. Existing DP holders can continue to work in Singapore under the Letter of Consent (LOC) till it expires. Upon expiry, the employer will need to apply for a Work Visa.
As it stands, DP holders working in Singapore with a letter of consent only make up about one percent of all work pass holders, according to Manpower Minister Josephine Teo in a speech last Wednesday.
“We will provide sufficient time for existing DP holders working on a LOC, as well as their employers, to transit to this new arrangement,” said Mrs Teo. “Most of them meet prevailing work pass criteria. Those that do not will have to cease working in Singapore.”
DP holders currently running a Singapore business
DP holders that are currently business owners will be allowed to continue without a work pass if their business employs locals. To continue without a work pass, they will need to hire at least one Singaporean or Permanent Resident who earns at least S$1,400 and is also the recipient of Central Provident Fund (CPF) contributions for at least three months.
If DP holding employer does not fully meet these criteria, they can continue to run their business on their current LOC until it expires. They can also apply for a one-off extension until April 30, 2022, when they will need to renew their DP.
DP holders starting a new Singapore business
MOM will update the public further on this new policy in May.
How can Rikvin help?
Our team of immigration specialists will assist your business in navigating these important changes and transitioning DP holders to work permits in Singapore.
We ensure that the entire work pass application process for your international employees is done with ease and without you experiencing the hassle.
- Yes, a Dependant’s Pass holder is allowed to work in Singapore. Previously, a DP holder could work on a Letter of Consent (LOC). However, effective 1st May 2021, all DP holders must obtain a Work Pass.
- A DP holder can either apply for an Employment Pass, S Pass, or Work Permit subject to conditions.
- Existing DP holders with a LOC can continue to work in Singapore till it expires. Afterwhich, your employer will need to apply for a work pass.
- DP holders that are currently business owners will be allowed to continue without a work pass if their business employs locals. To continue without a work pass, they will need to hire at least one Singaporean or permanent resident who earns at least S$1,400 and is also the recipient of Central Provident Fund (CPF) contributions for at least three months.If DP holding employer does not fully these criteria, they can continue to run their business on their current letter of consent until it expires. They can also apply for a one-off extension until April 30, 2022, when they will need to renew their DP.
Secure your Singapore Work Pass today
Rikvin’s team of immigration experts ensure that DP holders can transition to a work pass with a seamless application process.
Rikvin’s content team includes in-house and freelance writers across the globe who contribute informative and trending articles to guide aspiring entrepreneurs in taking their business to the next level in Asia.