Singapore
  • Hong Kong
  • UK
  1. Osome Blog Singapore
  2. New MOM Law: Dependant Pass Holders To Apply for Work Passes From May 1 2021

New MOM Law: Dependant Pass Holders To Apply for Work Passes From May 1 2021

New MOM Law: Dependant Pass Holders To Apply for Work Passes From May 1 2021

Starting 1 May 2021, Dependant Pass (DP) holders who are currently working with a Letter of Consent (LOC) in Singapore will be allowed to continue working until the validity of their current approved Letter of Consent. Subsequent to that, they will need to apply for a work pass in Singapore- either an S Pass or an Employment Pass, or work permit. Previously, if DP holders wanted to work in Singapore, a Letter of Consent had to be applied to the Ministry of Manpower by the employer, upon the approval of which they could start their employment.

What Happens After the LOC Expires?

Employers will need to apply for a work pass such as an employment pass, S Pass or work permit for DP holders, and any qualifying salary, dependency ratio ceiling and levies will apply. The change aims to bring people in line with the requirement for other foreigners working in Singapore, according to Singapore’s manpower minister Josephine Teo.

I Am a DP Holder Running a Business, How Am I Affected?

If DP holders who run local businesses are either operating as the sole proprietor, a partner, or a director with at least 30% of the shares of the company and creating employment at their local locations, a letter of consent will allow them to continue to work their businesses. However, there are conditions.

For the business to meet the local employment requirement, it must hire at least one Singaporean or permanent resident earning at least S$1,400 and pay contributions to the employee's Central Provident Fund (CPF) account for at least three months.

For current DP holders who fail to meet the new criteria, they can continue working until their current letter of consent expires, but the work pass application must be made before the letter of consent expires for them to continue working with the company. There is also a one-off extension that can be applied for the letter of consent until 30 April 2022 while renewing the DP.

Starting May 1 2021, foreigners living in Singapore on Dependant Passes (DP) will now need a work pass rather than a Letter of Consent in order to work.

With this change, spouses and other dependents of Employment Pass (EP) and S-Pass holders will face the same requirements as other foreigners who want to work here.

Employers will need to apply for an EP or S Pass permit. The relevant qualifying salary, dependency ratio ceiling, and levy will apply.

FACT

As of June 2020, there were about 1.1 million work pass holders in Singapore, excluding foreign domestic workers, which suggests there were about 11,000 Dependant's Pass holders working on letters of consent. LOC holders make up around 1 per cent of all work pass holders.

As an Employer, What Can I Do to Keep My Staff on Dependant Pass?

It can get confusing.

Get some clarity on the difference between an Employment Pass and S Pass.

As Dependant Pass holders must now apply for a work permit, employers must either hire more locals to adhere to the dependency ratio ceiling, which is the maximum ratio of foreign workers to the total workforce that a company can employ depending on the sector it is in OR increase the pay of the employee to hit the S-Pass minimum criteria of S$2,500.

Singapore is home to a large number of foreign entrepreneurs who use their ability to work to start up new businesses. With this new change, businesses will need to adopt hiring strategies to look at a wider pool of candidates.

Share this post:

Tips to run your business smarter.
Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

You might like it

5 Tips for a Streamlined Payroll Process for SMEs
Payroll

5 Tips for a Streamlined Payroll Process for SMEs

For a business to run smoothly, the payroll process must be streamlined and error-free. It is easy to streamline and optimize your payroll and other back-office processes within your SMB. Did you know that this can improve your cash flow?

Phase 2 Heightened Alert Support Package for SMEs (July to August 2021)
Government Grant

Phase 2 Heightened Alert Support Package for SMEs (July to August 2021)

From 22 July 2021, Singapore has reverted to Phase 2 (Heightened Alert). Fortunately, the Singapore Government will be cushioning the impacts of the harsher COVID-19 restrictions with a $1.1 billion support package.

How To Offer Free Shipping Profitably
E-commerce

How To Offer Free Shipping Profitably

Should a customer or seller bear the shipping cost? Let’s explore how a profit margin can still be maintained while offering free shipping.

What Is a Register of Controllers and Why Singapore Companies Now Have To Submit This Document
Secretary

What Is a Register of Controllers and Why Singapore Companies Now Have To Submit This Document

In April 2020, Singapore businesses will have to submit the Register for Registrable Controllers to ACRA. Before, your company was only obliged to maintain it internally. Now you will have to file the Register with ACRA electronically and maintain it updated at all times.

SG Govt Will Extend Loans for SMEs by 6 Months as Part of Heightened Alert Support Measures
Government Grant

SG Govt Will Extend Loans for SMEs by 6 Months as Part of Heightened Alert Support Measures

Singapore's Phase 2 and 3 periods of heightened alert have undoubtedly affected many businesses, especially Small- and Medium-sized Enterprises (SMEs). As such, Finance Minister Lawrence Wong has announced additional support measures for these Singapore-registered companies on 5 Jul 2021.

Clickshare Media Ventures Scales Up E-commerce Operations With Osome as Accounting Partner
Seller Spotlight

Clickshare Media Ventures Scales Up E-commerce Operations With Osome as Accounting Partner

Clickshare Media Ventures (CSMV) is one of the fastest-growing e-commerce companies in Southeast Asia. In just 3 years, CSMV has built itself to be an 8-figure business with more than 10 direct-to-consumer e-commerce brands in the baby, beauty, and personal care industries.

The 10 Best E-Commerce Payment Gateway for Online Sellers
E-commerce

The 10 Best E-Commerce Payment Gateway for Online Sellers

Other than branding and marketing, these technologically savvy consumers are well acquainted with the Internet and convenient payment gateways and demand nothing less than a seamless e-commerce transaction.

SMEs Can Apply for Relief Measures and Delay Full Loan Repayments till 30 Sep
Government Grant

SMEs Can Apply for Relief Measures and Delay Full Loan Repayments till 30 Sep

As the pandemic gradually transitions to an endemic, the Monetary Authority of Singapore (MAS) has announced the 'final extension' of relief measures for small and medium-sized enterprises (SMEs) affected by the COVID-19 situation to resume full loan repayments.

8 Tips to Improve Your E-commerce Photos
E-commerce

8 Tips to Improve Your E-commerce Photos

Want to kickstart your start-up or bolster an existing online business? These 8 e-commerce photography tips could have a direct impact on small businesses owners in Singapore, take a look.

Finding And Selling Niche Products Online
E-commerce

Finding And Selling Niche Products Online

Launching an online business is not an easy achievement, with increasingly more entrepreneurs entering the online market space. Competition is fierce, product ideas are saturated, and consumers are getting more well-versed in sieving out the best prices for online products.

A Quick Guide to Wage and Rental Support for SMEs in P3HA
Government Grant

A Quick Guide to Wage and Rental Support for SMEs in P3HA

The Singapore Government has introduced measures to help businesses cushion the impact of the pandemic, including more salary support for affected firms to retain employees, one-off payments for rental relief and individuals for Phase 3 (Heightened Alert).

How To Change My Singapore Company’s Name?
Secretary

How To Change My Singapore Company’s Name?

There might come a point when the name you chose for your company during incorporation no longer fits where you want it to go. Often an application to ACRA to change your company name might be more efficient and cheaper, too.

Tips to run your business smarter. Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

We’re using cookies! What does it mean?