Dependency Ratio Ceiling (DRC) Reduced in 2020

January 2, 2020 | Singapore

Dependency Ratio Ceiling (DRC) and S Pass sub-DRC limits will be reduced on January 1, 2020 in the services industry. Companies can employ fewer foreign workers holding a Work Permit or an S Pass.

The DRC is the percentage of foreign workers allowed in a company’s workforce. Currently, the DRC in the services sector for Work Permit holders is 40%. It will be reduced to 38% on January 1, 2020 and 35% on January 1, 2021. The sub-DRC limit is currently 15% for S Pass holders. It will decrease to 13% on January 1, 2020 and 10% on January 1, 2021.

Companies with a labor force above the current DRC or sub-DRC can continue to employ their existing foreign employees until their Work Permits or S Passes expire. However, such employers may not hire additional Work Permit or S Pass holders or renew Work Permits or S Passes until they fall within the new DRC or sub-DRC limits.