Changes to Work Arrangements of Dependant's Pass Holders w.e.f. May 2021

Heads up! If you have moved to Singapore to take a job and are hoping to bring members of your family over to join you, the rules for doing that are about to change!

How the System Currently Works:

People who hold an Employment Pass or an S-Pass are allowed to bring over dependants as long as they meet the following criteria:

1. Each individual person working must have a minimum fixed monthly salary of $6,000.

  • So, if you and your working spouse want to bring over a family member or dependant, your combined household income would need to be at minimum $12,000 fixed monthly salary.

2. You must already be sponsored by an established company that is based in Singapore.

  • Typically, this is your employer. However, a company doesn’t have to actually employ you within its ranks to sponsor you.

Entre pass holders can also get passes for spouses, minor-aged dependants, or their parents but the rules are stricter. If you hold an Entre Pass, here are the criteria you must currently meet if you want to bring someone into Singapore:

1. If you want to bring over your spouse or your children, you must:

  • Have at least $100,000 in total business spending for the year
  • Employ at least 3 LQS (local qualifying salaries/full-time employees) *OR* 1 local PME (professional, manager or executive)

2. If you want to bring your parents over, you must:

  • Have at least $200,000 in total business spending for the year
  • Employ at least 6 LQS or 2 local PMEs

While those Dependant's Pass (DP) Holders are here, they may be allowed to work as employees and/or start their own businesses as long as they apply and are approved for an LOC (Letter of Consent) for working in Singapore.

Work Arrangement Changes for Dependant's Pass Holders
Changes for Business Owners who are Dependant's Pass Holders

Change Overview

Starting on 1 May 2021, new rules are going to take effect regarding who can apply for and be granted DP as well as for DP holders who run their own businesses in Singapore. Here is an overview of those changes:

For Employees: If your dependents wish to work as employees (work for someone else’s company) while they are in Singapore, they must obtain a work pass, such as a work permit, an Employment Pass, or an S-pass instead of a LOC.

DP holders, if you currently hold an LOC, you can continue to work until your LOC expires. At that point you will need one of the new permissible work passes.

  • Exception: DP business owners who meet specific criteria

For Local Business Owners: Should you wish to continue employing your current DP LOC holders after their LOCs expire, you will need to apply for a work pass for each of them.

For DP-Holders Who Own Their Own Businesses:

As you know, you will only be granted an LOC if you promise and can prove you are employing local workers. After May 1, 2021, you will be able to continue operating under your existing LOC provided the following criteria are met:

  • You are the sole proprietor -or-
  • If you are a partner or company director, you must hold a minimum 30% share in the company
  • -and-
  • You hire at least one local Singaporean or Permanent Resident and pay them a minimum $1,400 per month with 3 monthly CPF contributions.

If you don’t meet these criteria you can still continue to run the business on your existing LOC and then, when it expires, apply for a single extension that will expire on April 30, 2022. After that you will need to meet the criteria that becomes effective on May 1.

For DP-Holders Who Want to Start Their Own Businesses: 

You can apply for a LOC, but your business must meet the criteria set out above for it to be granted.

 
Sprout Logo

More questions?

Schedule a call with Sprout for a complementary consultation. We can provide insights on how we can add value by providing more insight into your business' financial performance and cash flow, allowing you to make better decisions.

Read other blogpost 

 

February 10, 2021

Page [tcb_pagination_current_page] of [tcb_pagination_total_pages]

Page [tcb_pagination_current_page] of [tcb_pagination_total_pages]

Subscribe to our awesome mailing list

Get the latest posts delivered right to your inbox