Answer ... Dependant Passes: From 1 May 2021, Dependant Pass (DP) holders who are currently working with a letter of consent in Singapore will be allowed to continue working for the duration of 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 (EP) – or a work permit. Previously, if DP holders wanted to work in Singapore, a letter of consent had to be obtained from the Ministry of Manpower (MOM) by the employer before they could start their employment.
Practically, when applying for a work pass for a DP holder, an employer should consider:
- whether the DP holder meets the relevant minimum qualifying salary for that type of work pass;
- whether this will have any impact on the employer’s dependency ratio – in particular, whether it will cause the employer to exceed the prescribed dependency ratio ceiling (DRC) for its business sector; and
- the payment of the relevant foreign worker levy to MOM.
A DP holder may continue to work under a letter of consent on the basis that the business creates local employment if:
- the DP is a business owner and owns at least 30% of the business’s shares; and
- that business employs at least one Singaporean or permanent resident earning at least S$1,400 a month and has made contributions to the employee’s Central Provident Fund account for at least three months.
If the DP holder’s business does not meet the new criteria, he or she can continue working until the current letter of consent expires.
Ratio of foreign workers: Singapore is reducing the ratio of foreign workers in the construction, marine shipyard and process sectors in a two-step process beginning in 2021, according to the new budget.
As from 1 January 2021, companies in the construction, marine shipyard and process industries will only be permitted to employ S Pass holders as 18% of their total workforce, and the cap will drop again to 15% on 1 January 2023. The current permissible percentage is 20% for these industries. For companies in the manufacturing industry, the ratio for S Passes will be reviewed at a later date because of economic uncertainty.
- Implementation timeframe: The two-phase implementation will take place on 1 January 2021 and 1 January 2023.
- Visas/permits affected: S Pass holders; EP holders who may potentially be downgraded depending on their EP eligibility.
- Business impact: Companies in the construction, marine shipyard and process sectors should plan for these changes and may need to reduce their reliance on foreign workers and upskill their Singaporean workforce.
The allowable percentage of foreign workers to Singaporean workers is referred to as DRC, and S Passes are a sub-category of the overall DRC. The government has observed an increase in the number of S Pass holders in the construction, manufacturing, marine shipyard and process sectors, and these numbers are expected to increase further over the next several years. However, S Pass holder growth must be sustainable. The government is already working closely with enterprises to grow local manpower, including mid-career workers. The manufacturing industry will be reviewed in the future and may undergo similar sub-DRC reductions.
The following table shows the changes to the DRC and sub-DRC in all sectors in the coming years.
|
DRC |
Sub-DRC |
Sector |
Current |
1 Jan 2021 |
1 Jan 2023 |
Current |
1 Jan 2021 |
1 Jan 2023 |
Construction |
87.5 |
No change |
No change |
20 |
18 |
15 |
Marine shipyard |
77.8 |
No change |
No change |
20 |
18 |
15 |
Process |
87.5 |
No change |
No change |
20 |
18 |
15 |
Manufacturing |
60 |
No change |
No change |
20 |
To be reviewed |
Services |
38 |
35 (based on Budget 2019) |
13 |
10 (based on Budget 2019) |
Following last year’s announcement during the budget on reducing dependency on the DRC and S Pass sub-DRC thresholds in the services sector, this announcement on tightening the foreign workforce quota in three additional sectors has come as no surprise. The reduction in the sub-DRC is aimed at encouraging employers in the construction, marine shipyard and process sectors to enhance their Singaporean workforce by hiring and training more Singaporean workers and transferring skills from their foreign employees to the local workforce.
COVID-19 requirements: From 1 January 2022:
- unvaccinated employees will not be allowed to return to the workplace unless they test negative for COVID-19 within 24 hours before their return;
- the test should be a pre-event test administered by a Ministry of Health-approved test provider; and
- work-from-home remains the default arrangement until 21 November 2021, including for vaccinated employees.
From 1 November 2021, MOM, the Ministry of Education and the Immigration and Checkpoints Authority have implemented vaccination as an entry requirement for long-term pass holders.
The vaccination requirement applies to those entering Singapore via the Work Pass Holder General Lane and the Student’s Pass Holder Lane. For travellers applying for entry via the Familial Ties Lane, priority will be given to those who are fully vaccinated.