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SINGAPORE: Lower Dependency Ratio Ceiling in 2020

Effective 1 January 2020, the Dependency Ratio Ceiling (DRC) and S Pass Sub-DRC for companies in the services sector will be lowered. The DRC is the percentage of foreign workers (Work Permit and S Pass holders) that a company can hire.

The services DRC for Work Permit holders, currently 40%, will decrease to 38% from 1 January 2020 and to 35% from 1 January 2021.

The services sub-DRC for S Pass holders, currently 15%, will decrease to 13% from 1 January 2020 and to 10% from 1 January 2021.

Employers in the services sector who exceed the new DRC or sub-DRC will be allowed to retain their excess Work Permit and S Pass holders until pass expiry, to avoid business disruption. However, they will not be allowed to hire new Work Permit or S Pass holders, or renew their existing Work Permit or S Pass holders, until they come within the new DRC or sub-DRC.

Our Advice

  • In the services sector, employers who wish to maintain or increase the foreign national percentage of their workforce beyond current pass expiry will need to either remove Work Permit and S Pass holders or hire more locals.
  • Employers who may be affected are encouraged to contact a Newland Chase immigration specialist for case-specific advice.
DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2021 Peregrine Immigration Management Ltd.