Dependant's pass holders will soon have to secure a work pass instead of a letter of consent (LOC) if they wish to work in Singapore.

Minister for Manpower Josephine Teo said in her Committee of Supply speech that the vast majority of DP holders do not work during their stay in Singapore.

DP holders to apply for work passes if they want to work

DP holders who have sought employment in Singapore via a letter of consent made up about one per cent of all work pass holders.

From May 1, 2021, DP holders who wish to work in Singapore will have to apply for a relevant work pass such as an Employment Pass, S Pass, or work permit.

Instead of the LOC they currently use.

Teo said companies and existing DP holders working on letters of consent will be provided sufficient time to transition to this new arrangement.

"Most of them meet prevailing work pass criteria, those that do not will have to cease working in Singapore."

According to MOM, existing DP LOC holders will be allowed to continue working until the expiry of their LOC.

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.

DP holders who are business owners will be eligible to continue running their business on an LOC, provided that their business creates local employment. They will need to meet the following criteria:

1. The DP holder is a sole proprietor, partner, or company director with at least 30 per cent shareholding in the business; and

2. The business hires at least one Singaporean/Permanent Resident who earns at least the prevailing Local Qualifying Salary (currently S$1,400) and receives CPF contributions for at least three months.

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 they next renew 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 who wish to start a new business can apply for a LOC to do so, provided that they fulfill the criteria set out above. Further details will be released on May 1, 2021.

Top image by Maverick Asio/SOPA Images/LightRocket via Getty Images and MCI