Singapore

Singapore| photo 1

Singapore PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record services in Singapore to companies willing to enter the Singapore market or hire local/expat employees in this country.

Regular approach requires establishing a subsidiary in Singapore.  However, our solution allows you to start operations in Singapore in a matter of days, thus saving you time and money. WeHG would hire candidates on your behalf while you maintain full operational control of their work. Thus, legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Singapore fast facts

Population, million: 5,850,342
Land area, sq. km: 728 km² 
Capital: Singapore
Local currency: Singapore dollar (SGD)

GDP per capita:$ 58500.00
GDP in currency:$ 340.00 Billion
Economic growth percentage: -6.5 to -6.0
Inflation rate (consumer prices): -0.17%
Volume of export: $ 30 billion
Import of goods and services: $ 359.27 billion
Total population: 5,850,342
Population of working age (15-64): 32.85 %

Singapore is a country with quality working conditions, low unemploymen and a high standard of living.

To work in Singapore must obtain a work permit. However, labor immigration to Singapore has many benefits.

One of  advantages is the equality of local and external employees.In other words, all employees in the country are equally protected by labor and criminal laws. Employers who mistreat external employees or exceed their job responsibilities will be severely punished. The Singapore Ministry of Labor imposes special conditions on employers as part of the issuance of a work permit to protect external workers and ensure their welfare. First, the employer is responsible and bears the cost of technical and medical services. Secondly, it is obliged to provide safe working conditions. Thirdly, under no circumstances does a worker have the right to demand from a external worker and receive payment in monetary or other terms as compensation for hiring this employee. It also does not have the right to claim coverage of expenses related to the employment of a external employee.

Employment and labor Laws in Singapore

Employment agreement/contract 

An employment contract must be in writing form.

Singapore Public holidays

  • New Year’s Day – Jan 1
  • Chinese New Year (2 days) – Jan 25-26 
  • Good Friday – Apr 10
  • Labour Day – May 1
  • Vesak Day – May 7
  • Hari Raya Puasa – May 24
  • National Day – Aug 9
  • Hari Raya Haji – July 31
  • Deepavali – Nov 14
  • Christmas Day – Dec 25

Personal income tax

Top marginal resident tax rate of 22% kicks in at S$320,000 of taxable income.
Non-residents are taxed at the flat rate of 15% or the resident rates whichever results in a higher tax amount.
Tax filing due date for individuals is April 15 of each year.

Social Security

Central Provident Fund (CPF) Contributions CPF is a mandatory retirement savings scheme for Singapore Citizens and Permanent Residents.

The employer and employees who are citizens or permanent residents of Singapore make contributions to the CPF fund every month until the 14th. The maximum CPF contribution rate for employer and employee is 16% and 20%.
For foreign employees who hold a work permit or work permit, there are no CPF contributions. in Singapore.

Vacation leave

14 days.

Singapore Sick Leave

14 days of ambulatory period and 60 days of hospitalization leave.

Maternity and paternity leave in Singapore

The Government Paid Maternity Leave is only available to residents, not foreigners.

The minimum paid maternity leave  is 12 weeks, and if the child will be a Singaporean citizen (the most likely case) it is 16 weeks. Work must begin at least three months before the birth of the child.

For Singaporeans, the employer pays for the first eight weeks and the government pays for the next eight weeks.

Overtime

Overtime work must be made within 14 days after the due wages period.

Bonuses

There is no bonus payment under the law.

Termination of employment 

Basically, 2 weeks notice during the probationary period and 1 month after confirmation of employment. Although the Employment Law provides that both parties can pay wages in lieu of notice, the Singapore courts are of the opinion that an worker cannot terminate the contract by stating his salary instead of notice, because of the practical difficulties faced by the employer in such a situation.

Penalties

Singaporean authorities impose fines of S $ 500 or imprisonment for companies failing to comply with the Act.

Immigration procedure for foreign workers

For foreigners, a work permit is required before starting work, and for people who are in Singapore for a short time, they only need to send an email notification to inform IOM.

Singapore compensation and benefits

Singapore compensation laws

Salary is paid once a month and the Law does not regulate the minimum wage.

Singapore benefits management

There is no statutory requirement under the Employment Act in Singapore to provide employees with private health insurance benefits. Employed professionals who are citizens or permanent residents of Singapore are automatically provided with low-cost health insurance called Medishield – the basic level of coverage for all Singaporeans.

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Singapore

  • Working hours in Singapore

    For common work arrangements, the normal contractual hours of work are as follows: Up to 8 hours a day or 44 hours a week, if employees are required to work more than 5 days a week; Up to 9 hours a day, or 44 hours a week if employees are required to work 5 days or less a week. Break times are not included in the calculation of the hours of work.

  • What are the main holidays in Singapore?

    • New Year’s Day – Jan 1
    • Chinese New Year (2 days) – Jan 25-26 
    • Good Friday – Apr 10
    • Labour Day – May 1
    • Vesak Day – May 7
    • Hari Raya Puasa – May 24
    • National Day – Aug 9
    • Hari Raya Haji – July 31
    • Deepavali – Nov 14
    • Christmas Day – Dec 25
  • What are payroll taxes in Singapore?

    Top marginal resident tax rate of 22% kicks in at S$320,000 of taxable income.
    Non-residents are taxed at the flat rate of 15% or the resident rates whichever results in a higher tax amount. Tax filing due date for individuals is April 15 of each year.

    The employer is responsible for sending the monthly payment, which includes both the employer’s and the employee’s respective contributions, by the 14th of the following month. The employee’s portion is then deducted from the salary. The maximum CPF contribution rate for employer and employee is 16% and 20% respectively and can be lower depending on certain factors such as employee age, permanent resident status, etc.

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