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  • 14 Jul, 2022
  • 5 min read

DP holders in Singapore will need a Work Pass from 1 May 2021

DP holders in Singapore will need a Work Pass from 1 May 2021
Dependant’s Pass Singapore (DP): In a bid to align the requirements for DP holders who wish to work here, with the requirements for all other foreigners working in the country, Singapore’s Ministry of Manpower (MOM) in an announcement on Wednesday, said, “From May 1, 2021,  all foreigners holding a Dependant’s Pass will need an applicable work pass (e.g. Employment Pass, S Pass or Work Permit) to work in Singapore, instead of a LOC [Letter of Consent].” Currently,  DP holders who are dependants of Employment Pass, EntrePass, or Personalised Employment Pass holders, can apply for a LOC to work in Singapore.

Importantly, existing DP LOC holders will be allowed to continue working until the expiry of their LOC. But, MOM added, “Employers will need to apply for an applicable work pass should they wish to continue employing existing DP LOC holders after their current LOC expires. For employers and DP LOC holders who wish to do so, MOM will facilitate the transition to a work pass. The relevant qualifying salary, dependency ratio ceiling, and/or levies for the respective work passes will apply.”

Increment in Work Pass Salary Criteria

Singapore Increment in Work Pass Salary Criteria

The Singapore government raised the salary criteria for Employment Pass (EP) and S Pass applications in the mid of 2020 to provide more support for local employment amid the pandemic. Here are the new salary criteria for the following work passes:

Employment Pass

Effective 1st September 2020, all companies applying new Employment Passes for foreign candidates will have to ensure that the minimum monthly salary for inexperienced applicants is S$4500 and more for experienced candidates.

Furthermore, for new EP applicants in the Financial Sector, the minimum monthly salary has been raised to S$5000 with effect from 1st December 2020.

For all EP renewals of current foreign employees, the above salary criteria will be in effect from 1st May 2021.

S Pass

Effective 1st October 2020, S Pass applicants are required to have a minimum monthly salary of $2,500 for inexperienced candidates and more for experienced candidates.

Read more: What are the Changes in Salary Criteria for Singapore Work Pass applicants?

Changes for Singapore DP holders running businesses

Changes for existing Singapore DP holders running businesses

Dependant’s Pass holders who are currently running their own businesses may continue running their businesses on a LOC if they meet the following criteria:

  • The DP holder is a sole proprietor, partner, or company director with at least 30% shareholding in the business; and
  • The business hires at least one Singaporean/Permanent Resident who earns at least the prevailing local qualifying salary (currently $1,400) and receives CPF contributions for at least three months

DP holders who do not meet the criteria

DP holders who currently do not meet the above criteria can continue to run their business on their existing LOC until its expiry, or apply for a one-off extension of their LOC until April 30, 2022, when next renewing their DP. Thereafter, they will need to meet the criteria stated above in order to renew their LOC or obtain an applicable work pass to continue working in Singapore.

DP holders starting a new business

DP holders who wish to start a new business on a LOC will no longer be able to apply for a LOC with effect from 1st May 2021.

To start a new business, DP holders should get in touch with InCorp to incorporate a company and apply for an EP, should they wish to be a registered Director.

Singapore’s Manpower Minister Josephine Teo while commenting on the change in the country’s Parliament, during the debate on her ministry’s this year’s budget on Wednesday, assured, “The vast majority of DP holders do not work during their stay in Singapore. DP holders who have sought employment in Singapore via a LOC constitute only about 1% of all Work Pass holders,” adding, “We will provide sufficient time for existing DP holders working on a LOC, as well as their employers, to transit to this new arrangement. Most of them meet prevailing work pass criteria. Those that do not will have to cease working in Singapore.”

Further details will be released on May 1, this year, the Minister informed.

How InCorp can help

Our team of immigration experts can help your company navigate these crucial changes and assist with the transition of work passes for DP holders.

As a leading corporate service provider in Singapore and in Asia, we put you first and ensure the entire work pass application process for your foreign employees is handled seamlessly, with great care, and in a timely manner. Contact us today to learn more about how we can help.

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FAQs

I am a DP holder currently running a business in Singapore. How will the new MOM requirement affect me?

Dependant’s Pass holders who are currently running their own businesses may continue running their businesses on a LOC if they meet the following criteria:

  • The DP holder is a sole proprietor, partner, or company director with at least 30% shareholding in the business; and
  • The business hires at least one Singaporean/Permanent Resident who earns at least the prevailing local qualifying salary (currently $1,400) and receives CPF contributions for at least three months

What happens if DP holders who run their own business do not meet the criteria?

DP holders who currently do not meet the above criteria can continue to run their business on their existing LOC until its expiry, or apply for a one-off extension of their LOC until April 30, 2022, when next renewing their DP.

Thereafter, they will need to meet the criteria stated above in order to renew their LOC or obtain an applicable work pass to continue working in Singapore.

I just renewed my LOC. Will I need to apply for a Work Pass now?

Existing DP LOC holders will be allowed to continue working until the expiry of their LOC. Upon your LOC expiry, the employer will need to apply for an applicable work pass should they wish to.

The relevant qualifying salary, dependency ratio ceiling, and/or levies for the respective work passes will apply in the application process.

What are the changes in salary criteria for a Singapore Employment Pass?

Effective 1st September 2020, all companies applying new Employment Passes for their foreign employees will have to ensure that the minimum monthly salary for inexperienced applicants is S$4500 and more for experienced candidates.For new EP applicants in the Financial Sector, the minimum monthly salary has been raised to S$5000 with effect from 1st December 2020.

What are the changes in salary criteria for S Pass?

Effective 1st October 2020, S Pass applicants are required to have a minimum monthly salary of $2,500 for inexperienced candidates and more for experienced candidates.

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About the Author

Mel Bakar

Mel specializes in Employment Pass and Work Pass applications through the Ministry of Manpower. She also handles Long-Term Visit Pass applications through the Immigration and Checkpoints Authority.

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