Singapore

In Singapore, there are four ways to hire. You can employ someone through your home country entity for short-term arrangements, engage contractors for independent work, set up a local entity to hire directly, or partner with an Employer of Record. Each option carries different compliance and operational responsibilities. An EOR is often used to employ workers without setting up a local company.

Setting up a local company in Singapore is relatively straightforward. However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed.

HR compliance in Singapore means your policies and procedures respect all applicable Singaporean employment laws and regulations. When you hire in Singapore, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (7-14 days based on tenure), CPF contributions, tax credits, and working hours. Following these is fundamental for running the business well.

As with every other country, there are certain costs associated with employing a worker in Singapore that come on top of the gross salary you are offering. A Singapore employer must make monthly contributions to the Central Provident Fund and Skills development fund for all employees who are Singapore citizens or Permanent Residents. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.

An Employer of Record is the legal employer of the individual in Singapore for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 16 weeks of maternity leave and CPF contributions for citizens and Permanent Residents. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless as the Employer of Record Singapore files all pertinent taxes and other contributions as they relate to the compliant employment of an individual in Singapore.

Boundless partners with employment lawyers and advisers in each country we operate in, including Singapore. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.

Boundless ensures compliance with Singapore-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Any new employee that is locally employed through an Employer of Record gets full employment rights and benefits as specified in Singapore employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more.

In Singapore, both employers and employees have to pay taxes. Employers make contributions to the Central Provident Fund and Skills Development Fund for all employees who are Singapore citizens or Permanent Residents. Employees contribute to the Central Provident fund and pay personal income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator.