FROM May 1, 2021, Dependant's Pass (DP) holders who wish to work in Singapore will have to apply for a relevant work pass, instead of being able to seek employment via a letter of consent (LOC), Manpower Minister Josephine Teo said in the Committee of Supply debate for her ministry on Wednesday.

Currently, dependants of Employment Pass, EntrePass or Personalised Employment Pass holders who hold a DP can apply for a letter of consent to work here, and do not need a separate work pass.

With this upcoming change, they will have to apply for a work pass - such as an Employment Pass, S Pass or Work Permit - instead of submitting an LOC, unless they are business owners who meet specified criteria.

This move to regularise work arrangements of DP holders is for consistency with recent work pass moves, said Mrs Teo.

"The vast majority of DP holders do not work during their stay in Singapore," she noted. DP holders who have sought employment here via an LOC constitute about 1 per cent of all work pass holders, she added.

According to MOM statistics, the total foreign workforce as of June 2020, excluding foreign domestic workers, stood at 1,099,200.

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"We will provide sufficient time for existing DP holders working on an LOC, as well as their employers, to transit to this new arrangement," said Mrs Teo. "Most of them meet prevailing work pass criteria. Those that do not will have to cease working in Singapore."

Existing DP holders with an LOC will be allowed to continue working until the letter expires. After that, their employers will have to apply for an applicable work pass, if they wish to keep employing them. MOM said it will facilitate such a transition.

DP holders who are business owners will be eligible to continue running their business with an LOC, provided that their business creates local employment.

The DP holder must be a sole proprietor, partner, or company director with at least a 30 per cent stake in the business, and the business must hire at least one Singaporean or permanent resident who earns at least the prevailing local qualifying salary of S$1,400, and receives Central Provident Fund contributions for at least three months.

Business owners who are DP holders but do not currently meet these criteria can continue running their businesses until their LOC expires, or - when they next renew their DP - they may apply for a one-off extension until April 30, 2022. After that, they will have to meet the aforesaid criteria to renew their LOC or obtain an applicable work pass to keep working here.

DP holders who wish to start a new business can apply for an LOC to do so, provided that they fulfil the criteria set out above. Further details will be released on May 1.