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Foreign Worker Quota against WP and S Pass

Here, we will help you know about Singapore foreign worker quota in several companies. Here, in this page, we will teach you how DRC works when it comes to standardize the intake of foreign employees by the companies. DRC or Dependency Ratio Ceiling is actually the optimum ratio of permitted overseas employees to the total number of employees a company can recruit.

A company or an employer is required to submit the hardcopy or online application to MOM in order to declare their business activity. Thereafter, MOM checks out the overall activities in the business and assigns a company/employer when business activity is verified that was declared in application. When it comes to announce business activity, a company/employer should have contributed CPF and opened CPF account for the local staff for maximum one month. Usually, online declaration of the business can instantly be processed within hardly one or two business days and declaring business activity with hardcopy can be done in more than 7 days.

HOW BUSINESS ACTIVITY IS DECLARED?

In order to announce activities of the business, the company/employer should possess individual CPF account and they are required to allow calculation of foreign employee quota for a company that is associated with the local manpower assigned in the business activity and according to the ratio of business dependency to which that activity is related to, for the relevant industry.

MANPOWER QUOTA COMPUTATION

According to the CPF account made by the company, the actual foreign employee quota can be determined by MOM. The employer’s total contribution is said to be the indicator of assigned local manpower in a particular activity of the business.

Whether permanent resident or citizen in Singapore, each local employee, who is serving the company for full time in a calendar month or one headcount (i.e. 1 FTE or Full Time Employee), is counted by 2 local workers who are working part time, in order to determine the total workforce of local workers. By excluding the previous and current month, the contribution of local employees is considered for about three months period, in order to have fair accounting and calculation of small deviations.

This formula is used to calculate exact number of local workers to determine the maximum foreign workforce according to DRC quota.

Max Foreign Workforce = [DRC% × Local Workforce] / [100% – DRC%]

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