The glitz of Singapore's business ecosystem needs no introduction. According to the 2018 Economic Freedom Index, Singapore ranks #2 for financial freedom as well as for labor-employee relations.
Singapore is also the most accessible place in the world to start a business. Although several countries are practicing capitalists, it has always been more accessible and quicker to register a company in Singapore- it takes one day to tick off all the boxes to start a business, provided you have the necessary documents in place.
Moreover, Singapore's position as a financial powerhouse - with over 128 commercial banks, 31 merchant markets, 604 capital markets services license holders - supports activities such as wealth management and investments. The governments in Singapore are also politically stable, which provides exceptional levels of personal and societal freedom.
Although you can make a relatively easy entry into Singapore, you should still be mindful of compliance. Singapore has a mature employment scene. Employers should be aware of local labor laws, benefits, employment contracts, payroll, etc.
Here is where a Singapore PEO or an Employer of Record can help. Multiplier's PEO solution acts as your co-employers. We assume responsibility for all your HR operations in Singapore - onboarding, payroll, compliance management, employment contracts - while you focus on business matters in the country.
Why use a Singapore PEO?
Singapore's Employment Act covers all workers in Singapore. Although the laws are easy to learn, compliance is one aggravating factor to watch out for when operating internationally.
Additionally, the Ministry of Manpower has strict guidelines that employers should follow while they manage their workers. For instance, Singapore laws view any form of discrimination in the workplace seriously. Thus, employers usually do not list any attributes such as age, race, gender, religion, family status, or disability to avoid choosing candidates based on skills, experience, and ability to perform the job.
Singapore PEO Costs
Usually, PEOs charge based on two pricing models - fixed and variable. A PEO based on the fixed pricing model charges a transparent fee ranging between $200 - $1000 per employee per month.
Multiplier is one such PEO solution. Our costs for Singapore start from $200 per employee per month. The final cost depends on the complexity of employment laws of the employee’s jurisdiction.
Our prices are designed to ensure that you get the most out of your employee spending. Every employee hired through our PEO also receives HR support, benefits management, and a live dashboard to track workforce spending in real-time.
How to hire in Singapore
Innovation and wealth are abundant, leading to a constant influx of new jobs in Singapore. This allows local talent to choose their desired employer with significant levels of flexibility. Moreover, Singapore's robust business environment will enable professionals to develop into able leaders and specialists in their chosen field.
With employees being spoiled for choice while choosing jobs, you have to be meticulous in streamlining and perfecting your hiring and onboarding process. Providing top-class employee experience is vital.
Partnering with a Singaporean PEO like Multiplier can help you here. Our SaaS-based PEO and EOR solutions, assist global brands gain a competitive edge in Singapore. Talk to us to handle your global HR operations while you focus on growing your business.
If you want to go about it yourself, here are a few tips that can help you compliantly expand into Singapore.
Employers should meticulously carry out drafting employee contracts for a Singapore employee. Any hint of inconsistencies or discrepancies in the employment contract can cause the employee to lose trust.
Generally, employment contracts in Singapore should include the job description, responsibilities, compensation, and benefits.
Additionally, the contract should entail details such as probationary details, working hours, overtime allowances, termination clauses, etc.
The employer should stipulate the salary of the employee in Singaporean dollars rather than USD.
Are there too many details to process? Partner with Multiplier's Singaporean PEO today.
Income tax in Singapore is progressive - the higher the income, the higher are the taxes. Employees usually have to pay anywhere between 0% - 22% of the annual income as tax.
Employers have to be aware of something called the Central Provident Fund, a nationally mandated social benefit. Employers pay for this fund by paying 17% of each employee's total salary.
Employers must not stipulate work hours more than 44/hours a week.
Employers also cannot tax an employee with overtime work of more than 72 hours a month. It is important to note that you should pay employees 1.5 times their usual wage to compensate for overtime work.
Additionally, employees who work for up to 9 hours a day should work for five days or less. Employees who work for more than days a week should work for no more than 8 hours.
Health Benefits & Leaves
There is no statutory requirement for employers to offer medical insurance. However, supplementary insurance can be provided by the employer.
Multiplier's Singapore PEO covers locally-renowned, homogenous benefits for employees in Singapore. With employee well-being becoming the hot cake for millennial workers, it is wise to consider protecting your employees in an emphatic health insurance scheme.
Employees in Singapore are entitled to 14 days of paid leave annually. Additionally, employees are granted one day for each year of their service to the company in addition to their fourteen-day tally.
In addition to the paid leaves, Singapore employees are entitled to 11 public holidays.
- ~Jan. 1: New Year's Day
- ~The Chinese New Year: For two days
- ~Hari Raya Puasa
- ~Hari Raya Haji
- ~Good Friday
- ~May 1: Labor Day
- ~Vesak Day
- ~Aug. 9: National Day
- ~Dec. 25: Christmas
The statutory minimum for sick leave is seven days. To be eligible for sick leave, an employee must:
- Have been employed for at least three months
- Have informed the employer 48 hours prior
- Have a medical certificate approved by a company-approved doctor or a government doctor in Singapore
Once employees are part of your organization for more than six months, they are entitled to a statutory minimum of 14 days.
Besides, employees are entitled to 60 days of hospitalization leave, which includes the 14 days of outpatient leave.
Note that employees who have been part of your organization for less than six months are also entitled to paid leave.
Refer to the table below:
Being the progressive country it is, Singapore offers paid leaves for both males and employees for the weeks following and after pregnancy.
Female employees are entitled to 4 months of paid maternity leave.
For the first two pregnancies:
- The employer will offer to pay for the first two months.
- The government secures the employee with paid vacation for the next two months
In instances of additional pregnancies, the government pays for the entire leave.
For employees who aren't Singapore citizens, 12 weeks of paid leave is offered unless their employment contract dictates differently. It is likely that beginning in 2017, and women no longer need to be married to be eligible for 16 weeks of paid maternity leave.
For male employees, companies grant two weeks of paid paternity leave; the government funds the leave.
Below are the conditions for a male employee to be eligible for paid paternity leave.
- ~is or was legally married to the child's mother between conception and birth
- ~his child is a citizen of Singapore
- ~has been employed for a continuous period of at least three months before the birth
One month's termination notice on behalf of the employer or employee is the generally agreed term, but this is not fixed. If the notice period is not specified in the employment contract, the following applies:
With Multiplier’s PEO/EOR solution, treading into a new market is as seamless as confidently ice-skating.
Without the hassle of setting up a foreign branch or subsidiary, we can help you onboard your preferred candidate, handle HR issues and payroll, and ensure compliance with local laws.
Once you have chosen your desired talent, start generating and customizing employment contracts for them in a few clicks and manage the workforce from a single platform. You can also pay thousands of employees in Singapore Dollars with a single click.
Hire and expand into Singapore using the best SaaS-based PEO service in Singapore.Contact us to grow your business in Singapore today.