The new ways in which the global market is gradually opening up, it has presented opportunities for employers to connect with the right candidates in Singapore However, it is a task that requires a Singapore Employer of Record to take care of all the legalities and compliances.
We at Globalization Solutions offer an extensive range of corporate and employment solutions to help your business with global expansion. In addition to assisting you in streamlining your business expansion, we also help you with end-to-end recruitment solutions to deploy strategic sources for hiring and onboarding skilled and fresh professionals!
Hiring in Singapore
Hiring in Singapore can be daunting for a company without a legal entity. Companies should be well aware of the employment regulations of Singapore. Labor regulations in Singapore are outlined in the Employment Act of 1968, a comprehensive piece of legislation that specifies the employment terms and conditions in the nation. The most significant finding in Singapore labor law is that any employment conditions given must be equivalent to or more advantageous than the regulations set by the Employment Act.
Organizations in Singapore need to ensure that their employment contracts comply with the country's legal principles and Employment Act obligations. As your official employer of record in Singapore, we can guarantee that every engagement for every employee complies with all applicable laws and regulations. We can also give you information on societal beliefs and recruiting best practices and keep you up to full speed on any changes in employment rules.
Employment Contracts in Singapore
Here are some basic rules you'll need to be aware of when hiring staff in Singapore, as well as information on how an employer of record Singapore may assist you with your specific HR requirements.
For holidays that fall on a Sunday, the following non-holiday is designated as an official holiday. An additional day's pay or another day off is available for employees who are compelled to work on a holiday.
Type of Contracts in Singapore - The following are the four most common employment in Singapore:
•Permanent Employees: Workers that are employed under a contract with no set expiration date are referred to as "permanent" employees. In such a situation, the employer and the employees each have their respective employment rights until one or the other decides to call it quits.
• Part-time Employees: On average, part-time workers work only about 35 hours per week and are paid hourly rather than monthly. A part-time employee may still be entitled to basic employee compensation such as medical leave and vacation time, even if they are no longer considered full-time employees. There are exceptions to this rule for part-time employees who are protected by an employment contract that states otherwise.
• Fixed-Term Contract Employees: As the name implies, employees engaged under a fixed-term agreement are obligated to work for a certain period of time, an agreement may not specify a set expiration date but may indeed be terminated when a certain project is finished or satisfied.
• Interns, Apprentices, or Trainees: Many educational institutions and businesses in Singapore make use of an internship program known as an Apprenticeship. To qualify for the three months to a 1-year program, students must be in the process of completing their academic credentials.
Working Hours in Singapore- In Singapore, working hours are capped at eight hours a day, 44 hours per week. Employees are not required to work more than 6 consecutive hours without a break. Worker status and the applicable wage ceiling determine how much an employee can be compensated in overtime, which can range from 100 percent to 150 percent of his or her basic rate of pay. Employees are entitled to claim for overtime if they are a non-workman earning up to $2,600 or a workman earning up to $4,500.
Public holidays in Singapore - Employers in Singapore are required to provide paid time off on the following ten public holidays.
• New Year’s Day
• Chinese New Year (two days)
• Good Friday
• Labor Day
• Vesak Day (Buddha’s birthday)
• National Day
• Hari Raya Puasa (End of Ramadan)
• Deepavali (Hindu New Year)
• Hari Raya Haji (Feast of Sacrifice)
• Christmas Day
Bonuses - Even though there is no law in Singapore requiring employers to pay incentives, most of them do. Thus, the bonuses are laid out on employment agreements. The average annual bonus is equivalent to 1 months’ salary
Probationary Period - Probation periods are not required under Singapore employment rules; nonetheless, if an employer demands probation for a job, it must be explicitly stated in the employment agreement. Still, a probationary term of three to six months is standard practice.
Termination and Severance - Unless otherwise stipulated by Singapore labor regulations, either the employee or employer may end the employment contract with written notice to the other party. Unless the notice period is specifically stated in the contract of employment, labor rules demand the following:
• For jobs lasting fewer than 26 weeks, provide a one–day notice.
• For employment lasting at least 26 weeks, a one–week notice period is required.
• A two–week notice period is required for engagement of at least two years.
• For service of five years or longer, a four–week notice period is required.
Employers or employees may cancel a contract without giving notice provided they compensate the other party for the wage received during the period of notice.
As an employer of record Singapore, Employers may count on us to manage the unexpected termination of an employee, offering legal advice and a customized strategy that keeps them out of labor court.
Coordinating employment contractual terms, benefits, and personnel expenses is something we at Globalization Solutions are very experienced with. As your employer of record, we also take care of any severance or termination settlements that may be required. We keep you up to date on changes in Singapore’s employment rules.
Singapore compensations & benefits
Employer-provided benefits are often known as a perk or peripheral benefits. In addition to a normal salary, workers are given a variety of other benefits. Compensation packages in Singapore may include paid time off for ill or injured employees; paid annual and paternity leaves; moving expenses; health insurance; pension contributions; housing allowances; education allowances; childcare allowances; remunerations for transportation costs; and other monetary rewards and perks.
As an employer in Singapore, it may be challenging to keep up with the ever-changing regulatory requirements surrounding employee perks and rights. The Employer of Record may provide a hand in ensuring that the company remains fully enforceable with the country's recruiting rules. It is no longer necessary for you to be saddled with tedious paperwork or to waste your valuable time on difficult bureaucratic activities when you have an Employer of Record.
Singapore Compensation Law - The employer must pay at least monthly and within 7 days after the end of the term, according to Singapore compensation legislation. When an employee gets reimbursement, employers are required to pay their employees within fourteen days of the wage interval specified.
Guaranteed benefits - Guaranteed benefit management in Costa Rica includes 2 weeks of vacation after 50 weeks of work. It also consists of 9 paid public holidays. Depending on the job position, the paid employees are also entitled to holiday on Cultural day and Virgin of Los Angeles day. Additionally, they are especially entitled to a bonus of Aguinaldo as a 13th-month salary. Other than these, employers also offer sickness benefits and paid maternity leave. Such complicated legal procedures would certainly require assistance from the experienced Employer of Record for the purpose.
The Singapore Labour Law establishes minimum and maximum work and extra hours, compensated and unplanned vacations, medical leave, and paid parental leave entitlements. Before employing a worker or establishing an employment agreement, ensure that you are familiar with the Singapore Labour Law and the region's unique employment regulations.
Consider outsourcing via Globalization Solutions, rather than managing the procedure on your own. For years to come, we, as your official Employer of Record in Singapore will make sure your workers are delighted with the perks they're given. Discover more about our offerings by contacting us now!
Maternity Leave - There is maternity leave available to expectant moms in Singapore. When it comes to the duration of maternity leave, the citizenship of the child has an impact. 16 weeks of parental leave may be used by mothers who have children who are Singapore citizens. In other cases, a working woman may take 12 weeks of maternity benefits from her employer if she has worked for the company for consecutive three months, as per the Employment Act.
Paternity Leave - In order to get two paid weeks of paternal leave, all working fathers, citizens, permanent residents, and foreign nationals must satisfy the following criteria:
• The infant is a Singaporean national.
• Between conception and childbirth, the father was married to a Singapore national.
• At least three months before the child's birth, the father was employed by or self-employed for at least three months.
Annual Leaves - In Singapore, annual leaves depend on the tenure of employment. Under Singapore Employment Act, an employee is entitled to seven days of annual leaves if worked for at least three months. Workers accrue one additional day per year for each year of service, up to a maximum of 14 days paid vacation leaves.
Sick Leave - Workers who have been employed for at least six months are eligible for 14 days of paid sick leave and 60 days of paid hospital leave. In order to qualify for paid sick leave, an employee must be evaluated by a licensed medical professional of the employer's choice and at the cost of the company.
As your employer of record in Singapore, we make sure to abide by all legal obligations and provide you with all insights about employee compensation to help you to make a competitive employment offer.
Taxes in Singapore
In Singapore, taxes are levied on a per-area basis. In other words, Singapore-based revenue is the primary source of taxation for both employers and employees. Profits earned outside Singapore (such as dividends and interest) are subject to Singapore's statutory tax rates of 5% unless they were previously taxed in the country where they were earned.
The maximum corporation tax rate in Singapore is 17%. Foreign investors are still flocking to Singapore because of the country's low corporation tax rate. Tax paid by a corporation on its earnings in Singapore is not passed on to its shareholders, since the country has a single-tier corporate taxation structure.
Non-residents pay a flat 15 percent to 22 percent tax rate in Singapore, whereas citizens pay a zero percent tax rate (over S$320,000).
In 1994, the Goods and Services Tax (GST) was enacted to strengthen the tax base's resiliency. Current GST rates are 7.5%. As a result, Singapore's fiscal situation is more resilient to fluctuations in the economy because of a well-balanced tax structure on income and consumption
At Globalization Solutions, we, as Singapore Employer of Record, help our customers in handling their payrolls while taking care of all human resource and tax concerns on their behalf, enabling them to focus on their primary business operations.
Payroll Deductions and Contributions
The government of Singapore does not collect any payroll tax. To take advantage of the economic growth opportunities in Singapore, companies must adhere to the country's payroll and taxes regulations. Keeping up with Singapore's payroll taxes is easy when you work with an Employer of Record in Singapore.
When you engage with a Singapore Employer of Record like Globalization Solutions, payroll management becomes much easier. Since Globalization Solutions has been around for a long time, the process of implementing payroll is also streamlined because of this.
Rates for social security and Medicare withholding
It is mandated that employers pay 17 percent of wages to the Central Provident Fund (CPF). Employees are expected to put in 20% of their gross pay as a contribution.
Singapore Employer of Record Features and Benefits for the Employer
Employers are often in charge of all legal elements of their worker’s employment. This procedure will likely be more time-consuming if you are in a new nation.
At Globalization Solutions, we have a wealth of knowledge and expertise dealing with the payroll and tax systems in Singapore, as well as other local rules and regulations. We can assist you with a variety of tasks.
- A solution that is specifically designed to meet the demands and future ambitions of your firm.
- Local professionals can provide you with all of the information you need about the Singapore market.
- Offering EOR best practices in the areas of taxation, agreements, costs, and social security benefits
- Hiring with lightning speed and with efficiency
- Start your operations within days.
Singapore Employer of Record Features and Benefits for the Employee
Your company's most important asset is its employees. They are responsible for keeping the motivation up, and it is thus critical to develop a solid agreement that is acceptable to both the employees and the employer.
Globalization Solutions as your Employer of Record in Singapore is responsible for ensuring that your workers are satisfied with the terms of the employment contract. A wide range of excellent perks as well as a dependable and legally acceptable hiring process are available because of our extensive network and team of professionals. We will see to it that they have a good time by providing them with:
- Quick and clear onboarding.
- A written employment contract that complies with local laws and requirements.
- A monthly payment that is agreed upon and paid on time.
- Great benefits such as pensions and insurances.
- The presence of a frequent point of contact
- Details and counseling on changes in local rules that are up to date are provided
Why Globalization Solutions?
If you're a business owner looking forward to expanding your business to Singapore, undergoing all the processes and expenses to solidify the whole setup is not the only option! We at Globalization Solutions are here to help you in getting started with your business operations in Singapore with our comprehensive employment solutions.
We are a team of proficient expansion and proliferation experts, and so we can efficiently accelerate the expansion of your business into the Singapore market. Be it your requirement for dealing with employee taxes, visa application benefits, insurance sponsorship applications for other transactions, we are here as your Singapore Employer of Record at your service
Contact us today to expand the horizons of your business's successful reach across Singaporean markets