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Implications for a company employing a DP holder

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azeaze
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Implications for a company employing a DP holder

Postby azeaze » Wed, 05 Aug 2009 3:25 pm

Hello,

At first, it looks quite easy for a Dependant's Pass (DP) holder to work in Singapore, the only thing required is to apply for a Letter of Consent (LOC) when he/she has found an employer. But the tough part is to find the employer! and it's quite frustrating to see 99% of the job offers mentionning "Singaporeans and PR only".

Also I would like to know what are the implications for company when it employs a DP holder:

- Does the company have to give preference to Singaporeans and PR first?
- In the case the company needs/wants to employ a DP holder, is a justification needed?
- Are there limititaions?
- Does the company need to pay extra charges/taxes if it employs a DP holder?

Thank you in advance for your help.

Regards,

Arnaud

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Re: Implications for a company employing a DP holder

Postby littlegreenman » Wed, 05 Aug 2009 4:40 pm

azeaze wrote:Hello,

At first, it looks quite easy for a Dependant's Pass (DP) holder to work in Singapore, the only thing required is to apply for a Letter of Consent (LOC) when he/she has found an employer. But the tough part is to find the employer! and it's quite frustrating to see 99% of the job offers mentionning "Singaporeans and PR only".

I would suggest you use the search function for the forum and browse a bit. This has been discussed a few times before.

Also I would like to know what are the implications for company when it employs a DP holder:

- Does the company have to give preference to Singaporeans and PR first?
Good question. I would assume this falls into the quota of an employer's EPs so in a way the answer would be yes.
- In the case the company needs/wants to employ a DP holder, is a justification needed?
Based on my answer on the above point: YES! Same as an employer has to justify to MOM why they want to hire a foreigner on EP instead of a local.
- Are there limititaions?
Yes, I am not 100% sure about the quota but an employer can have a max of 50% of their workforce on EP and only 20% on S-Pass. My figures are pretty much not spot on but a rough guideline and I am sure on of the seniors in this forum will correct me in due time with the accurate figures (SMS, where are thou?)
- Does the company need to pay extra charges/taxes if it employs a DP holder?
Well, I imagine they have to pay the processing fee for the EP. But that is negligible. Apart from that they actually save money on employing someone on DP/EP as they do not have to pay CPF contributions for non-citizens and non-PRs

Thank you in advance for your help.

Regards,

Arnaud

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Strong Eagle
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Re: Implications for a company employing a DP holder

Postby Strong Eagle » Wed, 05 Aug 2009 5:59 pm

azeaze wrote:Hello,

At first, it looks quite easy for a Dependant's Pass (DP) holder to work in Singapore, the only thing required is to apply for a Letter of Consent (LOC) when he/she has found an employer. But the tough part is to find the employer! and it's quite frustrating to see 99% of the job offers mentionning "Singaporeans and PR only".

Also I would like to know what are the implications for company when it employs a DP holder:


See ftopic60398.html for more information. Most employers don't know about DP hiring. Simple, no quotas.

- Does the company have to give preference to Singaporeans and PR first?


No.

- In the case the company needs/wants to employ a DP holder, is a justification needed?


No.

- Are there limititaions?
- Does the company need to pay extra charges/taxes if it employs a DP holder?


No. Except that your letter of consent to work is tied to the EP so if the person with the EP loses it, you also lose your right to work.

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Re: Implications for a company employing a DP holder

Postby Strong Eagle » Wed, 05 Aug 2009 6:03 pm

littlegreenman wrote:
azeaze wrote:Hello,

At first, it looks quite easy for a Dependant's Pass (DP) holder to work in Singapore, the only thing required is to apply for a Letter of Consent (LOC) when he/she has found an employer. But the tough part is to find the employer! and it's quite frustrating to see 99% of the job offers mentionning "Singaporeans and PR only".

I would suggest you use the search function for the forum and browse a bit. This has been discussed a few times before.

Also I would like to know what are the implications for company when it employs a DP holder:

- Does the company have to give preference to Singaporeans and PR first?
Good question. I would assume this falls into the quota of an employer's EPs so in a way the answer would be yes.
- In the case the company needs/wants to employ a DP holder, is a justification needed?
Based on my answer on the above point: YES! Same as an employer has to justify to MOM why they want to hire a foreigner on EP instead of a local.
- Are there limititaions?
Yes, I am not 100% sure about the quota but an employer can have a max of 50% of their workforce on EP and only 20% on S-Pass. My figures are pretty much not spot on but a rough guideline and I am sure on of the seniors in this forum will correct me in due time with the accurate figures (SMS, where are thou?)
- Does the company need to pay extra charges/taxes if it employs a DP holder?
Well, I imagine they have to pay the processing fee for the EP. But that is negligible. Apart from that they actually save money on employing someone on DP/EP as they do not have to pay CPF contributions for non-citizens and non-PRs

Thank you in advance for your help.

Regards,

Arnaud


All of these answers, except using the search function are not correct.

a) There are no quotas for EP's and there are no quotas for DP's either.
b) No - a letter of consent is almost always automatically granted unless you are trying to work at tuition services, hair dressing, manicure, fortune telling and the like.
c) Again, you are completely incorrect about EP's and quotas. There are none.
d) There is no EP to process. You file the form letter 'letter of consent' off the web. That is it.

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Postby sierra2469alpha » Wed, 05 Aug 2009 6:14 pm

As Strong Eagle says, no issues. Been there done that.

Just get the LOC and you are all set.

And, as usual, be a little aware of certain postings here.

Mr. P

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Re: Implications for a company employing a DP holder

Postby littlegreenman » Thu, 06 Aug 2009 3:05 am

Strong Eagle wrote:
littlegreenman wrote:
azeaze wrote:Hello,

At first, it looks quite easy for a Dependant's Pass (DP) holder to work in Singapore, the only thing required is to apply for a Letter of Consent (LOC) when he/she has found an employer. But the tough part is to find the employer! and it's quite frustrating to see 99% of the job offers mentionning "Singaporeans and PR only".

I would suggest you use the search function for the forum and browse a bit. This has been discussed a few times before.

Also I would like to know what are the implications for company when it employs a DP holder:

- Does the company have to give preference to Singaporeans and PR first?
Good question. I would assume this falls into the quota of an employer's EPs so in a way the answer would be yes.
- In the case the company needs/wants to employ a DP holder, is a justification needed?
Based on my answer on the above point: YES! Same as an employer has to justify to MOM why they want to hire a foreigner on EP instead of a local.
- Are there limititaions?
Yes, I am not 100% sure about the quota but an employer can have a max of 50% of their workforce on EP and only 20% on S-Pass. My figures are pretty much not spot on but a rough guideline and I am sure on of the seniors in this forum will correct me in due time with the accurate figures (SMS, where are thou?)
- Does the company need to pay extra charges/taxes if it employs a DP holder?
Well, I imagine they have to pay the processing fee for the EP. But that is negligible. Apart from that they actually save money on employing someone on DP/EP as they do not have to pay CPF contributions for non-citizens and non-PRs

Thank you in advance for your help.

Regards,

Arnaud


All of these answers, except using the search function are not correct.

a) There are no quotas for EP's and there are no quotas for DP's either.
b) No - a letter of consent is almost always automatically granted unless you are trying to work at tuition services, hair dressing, manicure, fortune telling and the like.
c) Again, you are completely incorrect about EP's and quotas. There are none.
d) There is no EP to process. You file the form letter 'letter of consent' off the web. That is it.


Sh1t lor. Sorry for getting that all wrong. I could have sworn that there is a quota on how many EPs a company can hire.

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Postby ksl » Thu, 06 Aug 2009 1:13 pm

Littlegreenman:Sh1t lor. Sorry for getting that all wrong. I could have sworn that there is a quota on how many EPs a company can hire.


Well you are right about the quota, but it doesn't apply to a dependant pass holder, all they need is the LOC...and it doesn't affect a companies quota to employ a DP.

If a DP holder is directly related to the company, like spouse, they can also work for the company without it affecting quotas' but not aunties or uncles, they must apply for EP which affects the quota's.

No big deal, everyone can make errors, if we assume :)

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Postby Strong Eagle » Thu, 06 Aug 2009 2:10 pm

ksl wrote:
Littlegreenman:Sh1t lor. Sorry for getting that all wrong. I could have sworn that there is a quota on how many EPs a company can hire.


Well you are right about the quota, but it doesn't apply to a dependant pass holder, all they need is the LOC...and it doesn't affect a companies quota to employ a DP.

If a DP holder is directly related to the company, like spouse, they can also work for the company without it affecting quotas' but not aunties or uncles, they must apply for EP which affects the quota's.

No big deal, everyone can make errors, if we assume :)


There are no quotas associated with EP's. I can hire 10 EP's if I wish without so much as a single Singaporean citizen or PR.

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Postby sundaymorningstaple » Thu, 06 Aug 2009 2:34 pm

SE's correct. Quotas are only imposed on Work Permit holders (encompassing "WP" & "S" Passes). You can have all the EP's and DP's you want as they are not controlled by quotas at all. However, they are dependent of the EP holder's continued employment and expires at the same time as the EP does.

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Postby littlegreenman » Thu, 06 Aug 2009 3:19 pm

Thanks for clarifying guys.

azeaze
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Postby azeaze » Fri, 07 Aug 2009 4:10 pm

Thanks for your replies. I have got an answer from the MOM which says the same.

littlegreenman, you said:
"they actually save money on employing someone on DP/EP as they do not have to pay CPF contributions for non-citizens and non-PRs"


Is it the company or the employee who pays the CPF contribution? I thought it was deducted from the emplyee's salary.

Thanks a lot.

Arnaud

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Postby Strong Eagle » Fri, 07 Aug 2009 5:00 pm

azeaze wrote:Thanks for your replies. I have got an answer from the MOM which says the same.

littlegreenman, you said:
"they actually save money on employing someone on DP/EP as they do not have to pay CPF contributions for non-citizens and non-PRs"


Is it the company or the employee who pays the CPF contribution? I thought it was deducted from the emplyee's salary.

Thanks a lot.

Arnaud


Only citizens and PR's are subject to CPF. By law, there is an employer and employee component, each paying a share. But a lot of chickensh*t companies deduct the whole amount out of the employee's salary, then when IR8A is filed show a lower salary so that employer CPF can be shown.

azeaze
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Postby azeaze » Thu, 13 Aug 2009 8:40 am

ok, thanks a lot for all these details...

Regards,

Arnaud


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