Key takeaways from the MOM announcement on DP Holders

5 minute read


The Singapore Manpower Ministry announced today (March 3) that spouses and family members of foreign workers will be required to obtain a work pass from May 1 to continue working in Singapore.

Currently, DP (Dependant Pass) holders looking for employment can receive a Letter of Consent (LOC) from MOM. However, starting May 1st, the requirements will be changed. The initiative is said to better align the requirement with other foreigners working in Singapore. Read on below for a recap of the key takeaways that might be relevant for you.

Overview:

What it means for existing DP Holders

Starting May 1, DP holders will have to apply for an applicable work pass such as an Employment Pass, S Pass, or work permit to continue working in Singapore. However, those who are already working on Letter of Consent (LOC) can continue working until LOC expires.

What it means for existing DP business owners

For existing business owners that are DP holders, you will be able to continue operating if your business can create local employment. The only types of businesses allowed are sole proprietor, partner, or director with at least 30% shareholding in the business.

The company need to have at least one Singaporean or permanent resident who earns at least S$1,400 and receives Central Provident Fund (CPF) Those who do not fulfil these criteria can continue to run their business on their existing Letter of Consent until its expiry, or apply for a one-off extension until Apr 30, 2022.

What it means for aspiring DP business owners

If you are looking to start a new business, you can apply for a Letter of Consent but bear in mind that your company must meet the conditions mentioned above.

How to apply for an EP pass

To be eligible for EP, you need to first secure a job offer. An employer has to apply for an Employment Pass on behalf of the candidate. Once the pass is approved, a first-time candidate can stay and work in Singapore for up to 2 years. Every next renewal grants the duration of stay of up to 3 years. There is no foreign worker levy or quota that is required.

Note: Increasing salary requirements for EP pass

It was announced last Aug that the minimum qualifying salary for Employment Passes and S Passes will be raised to S$4,500. The qualifying salaries for older and more experienced Employment Pass candidates in their 40s were also raised to around double the minimum qualifying salary for the youngest applicants.

For more information on the announcement and Employment Pass application, feel free to refer to the articles below.

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