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.
- 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.