An employer/a company must declare the business activity to MOM by submitting an online or hard copy application. MOM will review the business activity and assign the employer/company to the most relevant industry after evaluating the business activity declared in the application. The employer/company, at the point of declaring business activity, must have opened a CPF account and must have made CPF contribution for at least one month for its local employees. Processing of business declaration online is faster – it is usually processed in two working days while hard copy declarations take up to seven working days.
Declaration of Business Activity
Note: Each business activity is required to have a separate CPF account to facilitate the computation of foreign worker quota for the company relative to the local workforce employed in that activity and in accordance with the dependency ratio set for that industry to which the activity belongs.
Calculation of Manpower Quota
MOM determines the foreign worker quota for a company based on the CPF account of the company. The contribution made by the employer indicates the local workforce employed in the business activity.
Each local worker (Singapore Citizen or Permanent Resident) working on a full-time basis for a calendar month or two part-time local workers constitute one headcount (one local Full Time Employee FTE) for local workforce. For the purpose of fair computing and accounting for minor deviations, contributions over a period of three months is taken into account after excluding the current and preceding month.
The maximum no of foreign workers, based on the DRC quota, is derived after determining the total local work force using the formula:
Read more about Singapore Foreign Worker Quota at Rikvin.com.
