Formula Banner

Latest Updates

SINGAPORE: Lower Dependency Ratio Ceiling in 2020

, 17/12/2019

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.