These infographics show what you must know about dependency ratio ceilings

Services sector DRC to be cut to 40%.

As announced by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in the 2013 Budget Statement, the Ministry of Manpower (MOM) will tighten the eligibility requirements for S Pass holders in all sectors.

Foreign worker levies (FWL) for S Pass Holders (SPHs) and Work Permit Holders (WPHs) will also continue to be increased up to 2015. Dependency Ratio Ceilings (DRCs) for the Marine and Services sectors will also be reduced. To further help Services sector companies progress towards higher productivity, the Job Flexibility Scheme will be introduced.

Dependency Ratio Ceilings (DRC) will be reduced.

Services sector DRC to be lowered to 40%, from 45%, S Pass sub-DRC for Services sector will be lowered to 15%, from 20%.

These DRC reductions do not immediately affect existing workers.

Marine Sector DRC will be lowered from 1 local: 5 foreign workers (FWs) currently to 1: 4.5, with effect from 1 January 2016.

The DRC will be further lowered from 1: 4. 5 to 1:3.5, with effect from 1 January 2018.

Companies are advised to make use of the lead time from now till 2016-2018 to make the necessary adjustments to their business planning.

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