Singapore DRC and S Pass Quota: Employer Guide

The Dependency Ratio Ceiling (DRC) limits the proportion of Work Permit and S Pass holders in an employer’s workforce. S Pass hiring also has a separate sub-quota. Employers need to check both limits before planning a hire.

DRC and S Pass quota by sector

Source: MOM’s quota and levy requirements. Other restrictions, including applicable Work Permit sub-quotas, may also affect hiring.

Does the DRC apply to Employment Pass holders?

Employment Pass holders are not subject to a foreign-worker quota or levy. EP eligibility is assessed separately. Do not treat EP holders as S Pass or Work Permit holders in a quota calculation. See MOM’s EP key facts.

A simple example: overall quota versus S Pass quota

Suppose a services employer has a hypothetical quota-counted workforce of 100: 70 qualifying local employees, 20 Work Permit holders and 10 S Pass holders.

• The combined Work Permit and S Pass share is 30%, below the 35% overall DRC.
• The S Pass share is already 10%, at the S Pass sub-quota.
• Replacing one Work Permit holder with an S Pass holder would keep the total workforce at 100 but raise the S Pass share to 11%, above that limit.

This illustrates why unused overall quota is not automatically an available S Pass slot. It is not a hiring entitlement calculation: use MOM’s actual workforce-counting rules and quota balance for your company.

How local headcount affects quota

MOM uses CPF information and average local employment over the preceding three months. The Local Qualifying Salary determines which local employees count towards quota entitlement. The denominator is therefore not simply every name on payroll.

Before forecasting additional hires, ask the payroll and HR teams to reconcile their records. Check whether the headcount used in the plan matches the information recognised for quota purposes. A spreadsheet based on current office headcount may give a different result from the official calculation.

Where to check your available foreign-worker quota

Use MOM’s foreign-employee quota calculator for planning. Check Work Permit Online for your company’s current workforce and quota.

Record when the balance was checked and who checked it. Revisit the plan when staff leave, new hires join or the intended application date changes. Avoid promising a candidate a start date based solely on an old quota estimate.

Quota and levy are different checks

Quota limits hiring numbers; levy is an employer charge. The monthly S Pass levy is S$650 across sectors and tiers. Work Permit levy rules are separate and depend on the applicable worker and sector categories.

Budgeting for a levy does not create an additional quota slot. For salary requirements and other candidate checks, use our S Pass eligibility guide.

Employer checklist before an S Pass application

1. Confirm the company’s sector classification.
2. Review qualifying local employment and CPF records.
3. Check both overall quota and the S Pass sub-quota.
4. Confirm the candidate meets the separate eligibility requirements.
5. Budget for levy, insurance, government charges and any service fees.
6. Assign an HR owner to recheck the plan before submission.

For application preparation and submission assistance, visit TIP’s work-pass application service page. Bring the company’s current quota position and proposed hiring requirements to the discussion.

Quota and levy information checked on 28 September 2026. Follow MOM’s current rules and the quota shown for your company.