New Dependent Pass And LOC Rules From Singapore Ministry Of Manpower: What You Need To Know

4 Tips to Secure an Employment Pass in Singapore Successfully

 

Earlier, the dependents (usually, spouses and children) were not required to obtain a Work Pass in order to work in Singapore, they only had to get a Letter of Consent (LOC) from the Ministry of Corporate Affairs (MOM). But, from May 1, the MOM made it mandatory for the dependents to acquire Work Pass in order to work in Singapore.

 

What Changed?

Spouses, children, and all other dependents of Work Pass holders will be subject to the same conditions as all other international Work Pass holders in order to work in Singapore as a result of this amendment.

 

Time Required For Migration From Dependent Pass?

The Manpower Ministry stated that it would give current Dependent’s Pass holders with LOC, as well as their employers, enough time to switch to the new arrangement. The Ministry also stated that while some DP holders meet the current Work Pass requirements, but those who do not, would be required to stop working in Singapore.

 

For Salaried Persons :

What About The Existing LOC?

The existing DP Holders can continue to work until the expiry of the LOC.

But, when the LOC gets expired, the employers of the Dependent’s Pass Holders would have to apply for an applicable Work Pass if they need to keep them in their payroll.

The Ministry added that these employers would be subject to the applicable qualifying salary, dependency ratio ceiling and levies for the appropriate work passes.

Why Was This Done?

The change aims to harmonize the conditions for DP holders who want to work in Singapore with those for all other foreigners employed here, as well as add clarity to recent work pass system changes.

 

For Self Employed Persons :

Are there exemptions for self-employed persons?

According to MOM, those business owners with DPs are given an exemption.

As per the ministry, these DP holders will continue to operate their businesses with a LOC if they create employment opportunities.

What are the criteria for claiming this exemption?

They must meet the following requirements:

  • The DP holder is a sole proprietor, partner, or company director who owns at least 30% shareholding of the company.
  • At least one Singaporean or permanent resident is employed, earning at least the existing Local Qualifying Salary (currently S$1,400) and receiving CPF contributions for at least three months.

MOM uses the Local Qualifying Salary to decide whether local employees are meaningfully working and not only given token wages to enable the employer to recruit foreign workers.

What if the requirements are not met?

If DP holders who own businesses do not meet the requirements, they will continue to operate them until the LOC expires.

When they (being the business owners) next review their DP, they can also request a one-time extension of their LOC until April 30, 2022, per the MOM.

“Thereafter, they must meet the requirements… in order to renew their LOC or receive an applicable work pass to continue working in Singapore,” it said, adding that further information about the changes will be published on May 1.

 

Note: Please feel free to reach out to us for assistance in case of any queries or applying for a work pass. We are a professional services firm having experience in providing support with relation to work passes and would be happy to be of assistance.

 

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