- An LOC is only available to Dependant’s Pass holders who want to run their own registered business in Singapore. It has no minimum salary or qualification requirement, but it lapses automatically if the underlying DP expires or is cancelled.
- An EP is Singapore’s main work pass for foreign professionals with a job offer. It requires a minimum salary of S$5,600/month (S$6,200 in financial services) and a COMPASS score of at least 40 points. Rising to S$6,000/S$6,600 from 1 January 2027.
- LOC renewal from 1 July 2026 requires the business to employ at least one Singapore citizen or PR earning the new Local Qualifying Salary of S$1,800/month with three months of CPF contributions. Businesses with local staff currently below S$1,800 need to act before the next renewal.
A Letter of Consent (LOC) allows a Dependant’s Pass holder to run their own business in Singapore without needing a separate work visa. An Employment Pass (EP) is for foreign professionals who have a job offer with a Singapore employer and meet the minimum salary and COMPASS requirements. The right choice depends on whether you want to be self-employed or employed by a company.
If you hold a Dependant’s Pass (DP) in Singapore, the question of work authorisation comes up quickly. Can you just start working? Do you need a separate pass? And what’s the difference between the LOC that everyone mentions and a full Employment Pass? The two options operate on entirely different tracks, with different eligibility rules, different costs, and different consequences if you choose the wrong one.
This 2026 guide walks through both options side by side, starting with the comparison table, then covering each path in detail, and closing with three regulatory changes you need to factor in before applying. Whether you’re a DP holder wanting to incorporate, or a foreign founder exploring whether your new company can sponsor your own EP.
LOC vs EP: At a Glance
The table below summarises the key differences. The sections that follow go into the detail behind each row.
Criterion | Letter of Consent (LOC) | Employment Pass (EP) |
Who it is for | Dependant’s Pass (DP) holders who want to run their own business in Singapore | Foreign professionals, managers, and executives with a job offer from a Singapore employer |
Pass type required | Valid DP (spouse or child of EP, S Pass, PEP, or ONE Pass holder) | No existing pass required. Your employer applies on your behalf |
Minimum salary | None | S$5,600/month (general sectors); S$6,200/month (financial services). Rising to S$6,000/S$6,600 from 1 January 2027 |
Qualification requirement | None | Recognised degree or relevant professional experience. Qualifications must be verified by a MOM-approved screener |
Who applies | You (the DP holder). Business must be ACRA-registered first. | Your employer, through MOM’s EP eService |
Employment type | Self-employed only (sole proprietor, partner, or director with at least 30% shareholding) | Employed by the sponsoring company only. Cannot change employer without a new EP |
Initial duration | Shorter of one year from issue date or DP expiry date | Up to two years |
Renewal duration | Up to DP expiry date | Up to three years |
Renewal conditions | Must hire at least one SG/PR employee earning at least the prevailing Local Qualifying Salary (LQS) with at least three months of CPF contributions | Must meet updated COMPASS threshold and current salary benchmarks for the renewal year |
COMPASS applies? | No | Yes (unless salary is S$22,500/month or above) |
Linked to | Your Dependant’s Pass. If DP expires or is cancelled, LOC is automatically cancelled. | Your specific employer. Change jobs, and you need a new EP. |
The table contrasts two distinct work authorisation routes for foreign nationals in Singapore.
- Who they’re for. An LOC is only available to Dependant’s Pass holders who want to run their own business. An EP is for foreign professionals with a job offer from a Singapore employer, and requires no prior pass.
- Eligibility bar. The LOC has no salary or qualification threshold. The EP requires a minimum of S$5,600/month (S$6,200 in financial services), rising in January 2027, plus a recognised degree or equivalent experience that must be verified by a MOM-approved screener.
- Application and employment structure. The DP holder applies for their own LOC, but must register a business with ACRA first. For an EP, the employer applies on the candidate’s behalf, and the pass is tied exclusively to that employer.
- Self-employment vs employment. The LOC covers self-employed roles only: sole proprietor, partner, or director with at least 30% shareholding. The EP covers salaried employment only, and a job change requires a fresh EP application.
- Duration. Both start with shorter initial periods (LOC: up to one year; EP: up to two years), with longer renewals (LOC: up to DP expiry; EP: up to three years). The LOC’s duration is capped by the underlying DP, so if the DP expires or is cancelled, the LOC falls away with it.
- Renewal conditions. LOC renewal requires the business to employ at least one Singapore citizen or PR at the prevailing Local Qualifying Salary with CPF contributions on record. EP renewal must clear the COMPASS points framework (unless the salary exceeds S$22,500/month).
The core distinction is dependency: an LOC is anchored to a Dependant’s Pass and enables entrepreneurship; an EP is anchored to an employer and enables professional employment.
Who Is Eligible for a Letter of Consent as a DP Business Owner?
To apply for a DP business owner LOC, you must meet all of the following conditions.
- Your Dependant’s Pass must be valid with at least three months remaining at the time of application.
- You must be a sole proprietor, a partner, or a company director with at least 30% shareholding in the business. An ACRA registration number is required before MOM will process the application.
- There is no minimum salary requirement and no need to hold qualifications from a recognised institution.
On first approval, the LOC is valid for the shorter of one year from the issue date or the remaining validity of your DP. On renewal, your business must have hired at least one Singaporean or Permanent Resident employee earning at least the prevailing Local Qualifying Salary (LQS), with at least three months of CPF contributions on record.
The LQS threshold is S$1,600 per month until 30 June 2026, rising to S$1,800 per month from 1 July 2026. If you have a local employee currently earning between S$1,600 and S$1,799 per month, you will need to raise their salary before your next LOC renewal if the renewal date falls on or after 1 July 2026.
One practical point: the LOC is directly tied to your Dependant’s Pass. If your DP is cancelled or expires, the LOC is automatically cancelled with it. Renew your DP before your LOC renewal date to avoid any gap in work authorisation.
Timing your LOC application: the business must be registered with ACRA before MOM will process the LOC. Incorporate first, then apply. If the DP has less than three months remaining, renew it before starting the LOC application.
Requirements for a Letter of Consent
An LOC has a lower eligibility bar than most Singapore work passes. There is no minimum salary, no qualification from a recognised institution, and no requirement for specialised skills or prior work experience.
To be eligible, the Dependant’s Pass must have at least three months of remaining validity at the point of application.
For DP holders whose spouse holds an EP, S Pass, or Personalised Employment Pass, the applicant must also be one of the following types of business owner in an ACRA-registered entity:
- A sole proprietor
- A partner
- A company director with at least 30% shareholding
LOC renewal conditions
Renewal carries one additional requirement. The business must employ at least one Singapore citizen or Permanent Resident who earns at least the prevailing Local Qualifying Salary and has received CPF contributions for a minimum of three consecutive months.
The LQS threshold is S$1,600 per month until 30 June 2026, rising to S$1,800 per month from 1 July 2026. If your local employee’s salary currently falls between those two figures, wages will need to be adjusted before your next renewal to avoid a refusal.
From 1 January 2027, the salary floors will rise to S$6,000 per month for general sectors and S$6,600 per month for financial services, following the Budget 2026 and Committee of Supply 2026 announcements. If you’re currently earning close to the S$5,600 floor, it’s worth factoring this into your 2026 planning.
Requirements for an Employment Pass
An EP requires a confirmed job offer from a Singapore-registered employer. The employer applies on the candidate’s behalf through MOM’s EP Online system.
The minimum qualifying salary in 2026 is S$5,600 per month for most sectors, and S$6,200 per month for financial services roles. Older and more experienced candidates are benchmarked against higher salary expectations, so the effective floor is often well above the published minimum. These thresholds rise to S$6,000 and S$6,600 respectively from 1 January 2027.
Beyond salary, candidates must score at least 40 points on the COMPASS framework, which assesses salary competitiveness against industry benchmarks, qualifications, the employer’s local workforce profile, and skills in shortage areas. Candidates earning S$22,500 or more per month are exempt from COMPASS.
Qualifications from recognised institutions strengthen a COMPASS application, particularly under the qualifications component. Candidates without a degree-level credential may still qualify, but will typically need a stronger salary profile to compensate. All academic qualifications claimed in an EP application must be verified by a MOM-approved screening agency.
The sponsoring company must also demonstrate sufficient finances to meet its annual staff costs.
Before applying
MOM’s Self-Assessment Tool gives candidates an early indication of eligibility before a formal application is submitted. A result showing ineligibility is a firm signal not to proceed: a rejected application is recorded by MOM and can affect future applications. A result showing eligibility does not guarantee approval, but significantly improves the odds.
EP vs LOC: Which One Do You Need?
The right answer depends on what you’re actually trying to do in Singapore. Here’s how to think through the four most common situations.
1. You want to run your own business
The LOC is your route. Incorporate your Singapore company with ACRA first (the LOC application requires an active ACRA registration), then apply to MOM. You don’t need a job offer, a minimum salary, or COMPASS points.
2. You have a job offer in Singapore
If a Singapore employer wants to hire you, the EP is the standard path. Your employer handles the application. You meet the salary floor and COMPASS threshold, and MOM issues you a pass tied to that employer. If you change jobs, you’ll need a new EP from your new employer.
3. You want flexibility to change employers
Neither the LOC nor the standard EP offers full portability across employers. If you’re a more senior professional, the Personalised Employment Pass (PEP) is worth exploring. The PEP requires a monthly salary of at least S$22,500 and is not tied to a single employer, though it’s non-renewable and lasts three years.
4. You’re a DP holder whose sponsor holds a ONE Pass
ONE Pass holders’ spouses can apply for an LOC as an employee (to work for a Singapore employer), not just as a business owner. This is a specific carve-out that doesn’t apply to DP holders whose sponsors hold a standard EP. Check the MOM website for the current eligibility conditions, as this rule was introduced alongside the ONE Pass framework.
What Can Go Wrong With an LOC or EP Application?
The pass application system in Singapore is strict, and the most common errors are preventable. Here are the failure points to watch for on each path.
LOC pitfalls
- Failing to hire a qualifying local employee before renewal. This is the most common LOC renewal failure. The employee must earn at least the prevailing LQS and have at least three months of CPF contributions recorded before you submit the renewal.
- LQS threshold change caught mid-cycle. From 1 July 2026, the LQS rises from S$1,600 to S$1,800 per month. If your local employee currently earns between S$1,600 and S$1,799, your next LOC renewal will fail unless you raise their salary before the renewal date.
- DP expires or is cancelled before LOC renewal. The LOC is automatically invalid the moment the underlying DP lapses. Renew your DP first; don’t assume you can process them simultaneously without a gap.
- Applying with the wrong business structure. The LOC is only for sole proprietors, partners, or company directors with at least 30% shareholding. An employee role, even at your own company, does not meet this condition.
EP pitfalls
- Missing the COMPASS 40-point threshold. A low C1 score (salary below sector benchmark) combined with a thin diversity score is the most common rejection reason. Re-run the MOM self-assessment tool with the 2026 C1 benchmarks before submitting.
- Unverified qualifications. Degrees must be assessed by a MOM-approved screener before submission. Submitting an unverified degree stalls or fails the application.
- Salary not scaling with age. Older candidates face higher COMPASS C1 benchmark salaries. A candidate in their mid-40s in a tech role may need approximately S$10,700 to S$11,800 per month to score adequately under the revised 2026 benchmarks.
- Employer missing the MyCareersFuture advertising window. The 14-day job advertisement on MyCareersFuture is a prerequisite. Starting the MOM application before the advertising period closes means the application cannot proceed.
What LOC and EP Regulatory Changes Apply From 2026?
Three changes are either already in effect or will take effect within the next twelve months. All three affect active LOC or EP holders, not just new applicants.
1. LQS rises from S$1,600 to S$1,800 per month from 1 July 2026.
Announced in Budget 2026 and confirmed on MOM’s Local Qualifying Salary page. The change affects all LOC holders who renew on or after 1 July 2026. Any local employee earning below S$1,800 must receive a raise before the renewal date, or the renewal will fail. DP business owners with a local employee currently earning S$1,600 to S$1,799 need to act now, three weeks before the change takes effect.
2. COMPASS C1 salary benchmarks updated from 1 January 2026.
The C1 benchmarks, which compare your salary to peer salaries in the same occupation and sector, were revised on 1 January 2026 for new applications and take effect for renewals from 1 July 2026. If you passed COMPASS comfortably in 2025, re-run the MOM self-assessment tool against the 2026 benchmarks before your renewal. The full benchmark table is on the MOM eligibility page.
3. EP salary floors rise to S$6,000/S$6,600 from 1 January 2027.
Announced at Budget 2026 and the Committee of Supply 2026. Founders currently drawing exactly S$5,600 per month should revisit their salary structure before the end of 2026 if they plan to renew their EP after January 2027.
How Sleek Helps You Navigate the LOC vs EP Decision
Both the LOC and the EP are well-established pathways, and which one fits you depends almost entirely on one question: are you running your own business, or are you joining someone else’s? For DP holders who want to be founders, directors, or sole proprietors, the LOC path is lower-barrier and faster to obtain. For foreign professionals with a job offer, the EP is the standard route.
Sleek is a licensed ACRA Filing Agent and MOM Employment Agency (Licence No. 17S8937), handling both the ACRA company incorporation and the MOM work pass application in one engagement. For the LOC path, that means incorporating the business first, then applying for the LOC. For the EP path, Sleek’s work visa services prepare your COMPASS self-assessment, document qualifications, and manage the MOM application end to end.
Sleek’s LOC service is S$450 (new and renewal). The EP service (new application) is S$1,088, which includes the S$330 in MOM government fees. Prices may vary with current promotions. Check the latest on the relevant page.
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FAQs on Letter of Consent (LOC) vs Employment Pass
Can a Dependant's Pass holder work in Singapore without an Employment Pass?
Yes, in two specific situations. A DP holder who incorporates or joins an ACRA-registered business as a sole proprietor, partner, or director with at least 30% shareholding can apply for a business-owner LOC from MOM. Separately, DP holders whose sponsors hold a ONE Pass or Tech.Pass may also apply for an employee-route LOC to work for a Singapore employer. In all other cases, a DP holder who wants to work for a Singapore company needs a separate work pass, typically an EP.
What is the minimum salary for a Singapore Employment Pass in 2026?
The minimum is S$5,600 per month for general sectors and S$6,200 per month for financial services, effective for new applications from 1 January 2025 and renewals from 1 January 2026. These are the floors, not the recommended figures. Older and more experienced candidates need higher salaries to score enough COMPASS C1 points. From 1 January 2027, the floors rise to S$6,000 per month and S$6,600 per month respectively, following the Budget 2026 announcement.
Can I apply for an LOC if my spouse holds an S Pass?
Yes. DP holders whose sponsors hold an S Pass are eligible to apply for a business-owner LOC, as long as the business is ACRA-registered and you hold at least 30% shareholding (for company directors). The business-owner LOC eligibility conditions are consistent across DP sponsor types: EP, S Pass, PEP, and ONE Pass sponsors all qualify. The one distinction is the employee-route LOC, which is only available to DP holders of ONE Pass or Tech.Pass sponsors.
How long does an Employment Pass application take in Singapore?
MOM processes the majority of EP applications within ten working days for complete online submissions. Applications involving regulated sectors, unusual job titles, or qualification verification queries may take longer. Processing times are indicative and subject to change without notice. Re-verify on MOM’s eService page before confirming timelines with any applicant or employer.
