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Country Guide

Singapore

Hiring in Singapore at a glance

CURRENCY
(SGD) Singapore Dollar
WORKING HOURS
40-44
PUBLIC/BANK HOLIDAYS
11 days
CAPITAL
Singapore
LANGUAGE
Malay, English, Mandarin, Tamil
REMOTE WORKERS
1.2M
MINIMUM HOURLY SALARY
No minimum wage
TAX YEAR
1st Jan - 31st Dec
DATE FORMAT
DD/MM/YYYY
MISCLASSIFICATION PENALTIES
Fines of up to SGD 60,000 and 6-12 months of prison time, plus back payment of employee's entitlements
FUN FACT
Singapore is the least corrupt city in Asia, and the fifth least corrupt in the world.

Employer tax: 

7.75% - 17.25%

Social security - 7.5% - 17%

Skills development fund: 0.25%

Employee tax: 

5%-42%

Social security: 5% - 20%

Income tax:
GROSS INCOMEPROGRESSIVE TAX RATE
Below 20,0000%
20,001 - 30,0002%
30,001 - 40,0003.5%
40,001 - 80,0007%
80,001 - 120,00011.5%
120,001 - 160,00015%
160,001 - 200,00018%
200,001 - 240,00019%
240,001 - 280,000    19.5%
280,001 - 320,00020%
Over 320,00022%

Singapore Employment Cost Calculator

Use our handy calculator to understand what are all the employment costs you have to consider in Singapore.

Provide us with some extra details and we will send you a full breakdown of the salary costs.

Employer of Record in Singapore

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An Employer of Record is the legal employer of a worker in Singapore. As such, the Employer of Record takes care of all Singapore compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

the employer of Record is responsible for:

Ensuring their employment is compliant with Singapore employment laws
Processing local payroll
Filing employment related taxes and returns
Issuing payslips to the employee
Distributing salary payments

How Employer of Record works

COMPANY

Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

BOUNDLESS

Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

EMPLOYEE

The third party to the employment contract, the employee, fulfils all of their obligations as a worker for the company.

Statutory Benefits in Singapore

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Central Provident Fund

Employers must enrol all Singapore Citizen and Singapore Permanent Resident (SPR) employees and make monthly contributions into the national pension fund.

Health insurance

Singapore Citizens and SPRs benefit from MediSave. Employers are required to provide health care to Work Permit and S Pass holder employees.

Common Non-mandatory Benefits in Singapore

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Health insurance
Per diems
Additional holidays
Stock options
Bonus
Relocation package
Visa sponsorship
Flexible working
Career development

Employee Rights and Protections in Singapore

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Written employment agreement
Payslip
Union membership
Flexible working
Whistleblower protection
Protection from harassment
Personal information protection
Health & Safety
Protection against dismissal

Paid time off: 7-14 days (depending on tenure) + bank holidays

Paternity leave: 2 weeks

Paid sick leave: 5-60 days determined on tenure as well as need or not for hospitalisation

Parental leave: 42 days per parent

Maternity leave: 16 weeks

Probationary Period

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There is no statutory requirement for the length of probation periods. However, it is common to agree to a probation period of 3 to 6 months, during which the notice period is shorter.

Payment Frequency

According to the Singapore employment act, salaries are paid monthly within seven days of the end of the salary period (14 days for overtime payments).

End of Employment

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Singapore has been moving away from at-will employment. Employers must have a just cause for termination, present the employee with a termination letter and act responsibly and fairly.

If the employee termination is due to misconduct, there needs to be an inquiry before taking any action. Misconduct includes employment contract breaches, gross misconduct and absence from work for more than two working days without approval.

Termination of foreign employees will result in cancellation of their Employment Pass/S Pass within seven days of the employment coming to an end.

Employers are prohibited from issuing a notice of dismissal to a female employee during her maternity leave, or a notice of dismissal which expires during her maternity leave.

Frequently Asked Questions

What are my options if I want to hire a worker in Singapore?

While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of each way to employ a worker in Singapore, outlining the potential cons.

 

HQ country employment & payroll

While the person is in Singapore, they are employed and payrolled directly by the company’s HQ entity.
Cons: This may appear attractive, but it generally isn't legal in the long term. HQ payroll won't be possible if the person is not a tax resident in the HQ country.

 

Independent contractor agreements

People are locally registered as sole traders or limited liability company owners in Singapore and invoice for their work. There is no direct employment relationship.
Cons: In Singapore, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.

 

Direct local employer setup

The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
Cons: Expensive, time-consuming, high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.

 

Partnering with an Employer of Record Singapore/full-service Professional Employer Organisation

Employment is handled by a platform that specialises in employing people on behalf of customer companies. The Employer of Record helps to hire and pay employees.
Cons: For some countries, the ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work.

How long does it take to set up a company in Singapore?

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. Here is an overview of everything you will find yourself needing to do.

Can I employ people as independent contractors in Singapore?

While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in Singapore, treating them as an independent contractor is a likely breach of Irish employment laws and of those in your country.
 
Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefit, maternity benefit, or other legal measures. Since the individuals you are working with do not receive the benefit of local employment laws and protections that are often afforded to people working full-time hours.
 

What does HR compliance mean in Singapore, and why does it matter?

When you hire employees in Singapore, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with local employment law in Singapore is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, working hours regulations.

How much does it cost to employ someone in Singapore?

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.

What does Employer of Record mean in Singapore?

It means that Boundless is the legal employer of the individual, as far as the Singapore government, tax, and employment authorities are concerned. We are responsible for:
  • informing you about any pre-employment requirements
  • ensuring their employment is compliant with Irish employment law
  • informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
  • providing a locally compliant employment contract
  • processing local payroll
  • filing employment-related tax returns
  • issuing payslips to the employee
  • distributing salary payments
  • payments to the local tax authorities
Customers that work with an Employer of Record in Singapore are responsible for:
  • sourcing and recruiting their own workers
  • managing the employee’s day-to-day work load
  • contributing to the personal / professional development of the employee through their work
  • following any guidance we give on employment and HR best practices or legal obligations in Singapore, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
  • ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

Who is responsible for filing and paying employees' taxes and social insurance contributions in Singapore if employing through an Employer of Record?

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.

How does Boundless as an Employer of Record Singapore ensure HR compliance in Singapore?

We carefully choose employment lawyers or advisories to partner with in each country we operate in, including Singapore. They ensure the Singapore employment contracts, and any other relevant documents required for new employees comply with the local jurisdiction. We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice period or work-from-home regulations. Whenever a potentially sensitive issue arises in Singapore, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

What are the legal responsibilities of a company when they use an Employer of Record service like Boundless in Singapore?

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.

Do employees get all their rights and benefits when employed through an Employer of Record in Singapore?

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. 

What taxes do I need to pay in Singapore?

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, submitting any additional data needed and get a downloadable pdf like this one.

Choose Boundless as your employment partner in Singapore
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