Guide to employing in Singapore

Singapore

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Capital City

Currency

Singapore Dollar, SGD, (1=100 cent)

Population Size

5,600,000

Language Spoken

English, Malay, Tamil, Mandarin

Overview

XPANDIUM is an expert EOR platform in Singapore providing a range of services to companies looking to hire employees compliantly and efficiently and manage payroll across borders.

Through our Employer or Record (EOR) services, we can assist your business in navigating the complexities of employment laws and regulations without having to establish their legal entity within Singapore. When you partner with XPANDIUM as your Employer of Record in Singapore, we handle the hiring process by utilising our PEO entity. This enables your business to tap into the Singapore labour market while remaining fully compliant with labour laws in Singapore.

At XPANDIUM, we take care of every aspect of the hiring process, including onboarding and efficient payroll administration. We manage tax payments, benefits administration and other HR-related tasks to ensure compliance with regulations - leaving you to focus on the vital part – optimising your workforce and unlocking your business’ full potential.

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Xpandium - Hire your employees in Singapore

XPANDIUM is your trusted employer of record service providers in Singapore. We make the hiring process simple and efficient for businesses looking to expand across borders.

Singapore’s labour market is governed by a set of laws set in place to safeguard employee rights and ensure a safe and transparent working environment. These laws encompass all aspects of employment, such as working hours, leave policies and termination procedures.

Expanding your business operations into Singapore will require you to have an understanding of the Employment Act from 1968 and other relevant regulations. These laws govern the employment standards for employee rights and benefits XPANDIUM can help you navigate this legal landscape and ensure your business remains compliant.

The recent increase in demand for skilled workers and the significant presence of the banking and finance sector emphasises the importance for companies to adapt and thrive within this landscape. By leveraging XPANDIUM's expertise you can rest assured that your employees will be sufficiently managed while you can focus on your business's core objectives.

The following information is a basic guideline for employing full or part-time in Singapore, and the salary calculator can easily help you understand the basic costs of a mid-range salary.

Employment Contract

Employment relationships may be agreed on for

fixed term employment (temporary) or
indefinite duration (open-ended, permanent).

Probation period

Probation period is optional and cannot exceed 4 months.In case of fixed-term contracts, the probation period can not be more than 50% of the term of the contract.

Working hours

Full time employment is considered 8 hours per day and 40 hours per week in Singapore. Less hours will mean part-time work.

Hours worked above 8 hours per day / 40 per week or on public holidays are considered overtime. Employer and Employee must agree on working overtime.

Overtime hours cannot exceed a total of 8 hours within a 7 days’ period and must be compensated during payroll for overtime as per local law.Parties may agree that the overtime hours over a 4-months’ time-frame schedule be an average 12 hours for every 7 calendar days.

Minimum wage

The current minimum wage is 584 EUR for full-time employment or 3.84 EUR for hourly work in Singapore.

13th month salary

Not required.

Benefit package

In Singapore, there are no obligatory fringe-benefits that an Employer must offer, however a custom benefit plan may be set up for your team (see more details at the Benefit section).

Payroll Cycle

Salaries are payrolled and paid on a monthly basis.

Health insurance in Singapore

The health insurance system in Singapore is a solidarity-based social insurance system. This means it provides healthcare for everyone, including persons insured by employment agreement. Singapore is covered by health care and treatment is equally available in all regions. Employees can order a European Health Insurance Card or its replacement certificate in the State Portal.

Employer taxes

33.8% total employment cost in Singapore.

Public Holidays

Public holidays play a crucial role in maintaining a work-life balance for employees in Singapore. In addition to the 10 national public holidays, each locality may have its own regional or municipal public holidays. Employees are entitled to take off the local holiday that corresponds to their place of work, however, the holiday date should be verified through the local authority.

It's worth noting that if a public holiday falls on a Sunday, it will be observed on the following working day as a day off. Furthermore, when public holidays fall on a Saturday, employers have the choice to either provide a day off or compensate their employees accordingly.

As your Employer of Record (EOR) in Singapore, XPANDIUM takes care of ensuring compliance with these regulations. We handle your workforce management while considering these holidays and make sure that your employees receive the benefits to which they are entitled.

The following is a list of important Public Holidays in Singapore:

NAME

DATE

INFO

New Years Day

January 1

Independence Day

February 24

Good Friday

April 2

Friday before Easter Sunday

Easter Monday

April 4

Varies yearly

Labor / Spring Day

May 1

Pentecost

May 23

Victory Day

June 23

Jaanipäev

June 24

Singapore Day

August 20

Singapore Restoration of Independence

Christmas Eve

December 24

Christmas Day

December 25

2nd Day of Christmas

December 26

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Popular benefits in Singapore

When partnering with XPANDIUM to hire employees in Singapore, it is crucial to offer a range of perks and benefits. This will help in attracting and retaining talent within the market. While specific benefits are not mandated by the labour laws in Singapore, XPANDIUM adopts an approach that allows you to create a tailored benefits plan that aligns with your company's requirements.

Apart from providing salary, compensation packages can contribute significantly to promoting work-life balance and fostering an appealing work environment for employees. With XPANDIUM's EOR services in Singapore, administering these benefits becomes seamless, ensuring both employers and employees enjoy a hassle-free experience. Some examples of these salary benefits could include:

Annual Leave

Medical Insurance

Dental Benefits

Retirement Savings

Childcare Leave

Flexible Work Arrangements

Education and Training

Transportation Benefits

Wellness Programs

Bonus and Incentive Schemes

Stock Options

Employee Assistance Programs (EAPs)

By partnering with XPANDIUM as your EOR service provider in Singapore, you can provide benefits packages that resonate with your workforce.

Benefit planning process includes

As expert EOR providers in Singapore, XPANDIUM’s aim is to assist you in creating a structured and customised benefits plan that meets your employee’s needs. The process involves steps to ensure planning and implementation:

1. Determining the annual amount you want to offer employees – this amount can be divided into 12 instalments and integrated into the regular payroll.

2. Select the specific benefit items your company would like to offer its employees – this may include voluntary benefits such as medical insurance, additional paid time off and flexible work schedules.

3. Creating internal policies that will outline the details of the benefits plan -These policies must be formally and thoroughly communicated to relevant employees and integrated with the monthly payroll.

4. Ensuring employees have accurately completed benefit statements – specifying preferred benefits and respective amounts. These statements must be completed, signed and provided to the Singapore Employer of Record for processing.

5. Side agreements - If you decide on select group benefits, XPANDIUM’s experienced advisors will guide you through planning and signing any additional agreements that align with employment contracts.

XPANDIUM’s Employer of Record (EOR) services in Singapore streamline this process, ensuring efficient, compliant and customised benefits planning that caters to the needs of your workforce.

Types of Leaves

Paid leave

Employees are entitled to 28 days.

Public holidays

There are 12 public holidays in Singapore.

Sick leave

An employee is entitled to 182 sick-leave days yearly while enrolled in the national social security system.

Payment is 70% of the employee’s average salary, which is paid by the Employer from the 4th day of sickness but from the 9th day the payment is taken over by the State.

Pregnancy and maternity leave

Expecting women can have a total of 20 weeks / 140 days.

Maternity leave may include and start 70 days prior to giving birth. State health insurance covers maternity leave with 100% payment.

Parents receive a one-time 320 EUR allowance for child birth and in case of triplets the payment is 1,000 EUR per child.

Paternity / paternal leave

The father is entitled to 10 working days off for paternity leave which can be granted within 2 months of the expected child’s birth date. After the birth, fathers are entitled to 2 months of paternity leave with the payment of 100% average salary payment, however it is capped at 3 times of the minimum wage amount.

Other / Child Adoption leave

Employees are entitled to a special leave if adopting a child under the age of 10.

Other / Child care leave

Any parent may take paid leaves for taking care of a child.

Leave varies based on the age of child:

3 days - up to 2 children under the age of 14
6 days - 3+ children under the age of 14

Payment for days taken is calculated based on the minimum wage.

Employment termination

Employers have the below options to terminate an employment contract in Singapore:

Termination under probation period

Termination by the Employer is immediately effective with a special 15 days’ written notice to the Employee.

Resignation by Employee

Employees may freely terminate their employment contract with a written notice of minimum 14 days to 1-month notice.

Termination by Employer with notice

An employment agreement may be terminated by the Employer by notice with below period of notices.

If employment period is

up to 1 year period: 15 calendar days
from 1 to 5 years of employment: 30 calendar days
from 5 to 10 years of employment: 60 calendar days
10+ years of employment: 90 calendar days

Termination of fixed term contract

If termination is due to Employer’s redundancy, the employee is entitled to the salary that they would have received from the date of termination to the expiry date of the contract.

Termination by mutual consent

The termination by mutual consent allows the Employer and Employee to agree freely in a written agreement with each other on the conditions of termination.

Expiry of employment contract

When the employment contract expires then such employment is automatically terminated.

Severance pay

Employee is entitled to severance pay if the Employer terminates the contract due to redundancy. The severance pay is the average salary calculated based on the latest 6 months salary.

Employees are entitled to receive higher amounts of severance pay depending on the length of employment with the Employer:

From 5-10 years of employment: +1 month salary
over 10 years of employment: +1 month salary

How Employer of Record (EOR) Works in the Singapore

XPANDIUM provides employer of record services to companies looking to hire, onboard and support employees across borders compliantly. When you choose to partner with XPANDIUM as your employer of record service provider in Singapore, your employees will work as if they are employed by your business in-house, while XPANDIUM acts as their local employer.

XPANDIUM will ensure your employees are hired and managed in line with the specified local employment regulations – ensuring your employees are employed compliantly. When you partner with XPANDIUM, we take care of payroll administration, salary payments and filing employment-related taxes and returns.

Simplify the process of hiring employees in Singapore by contacting XPANDIUM for a customised solution.

Payments to employees in Singapore

When it comes to building a team in Singapore, finding the right payroll partner is absolutely essential. It is crucial to partner with an entity that not only understands the intricacies of local labour laws, compliance requirements and other regional details but also offers EOR expertise on a global scale.

XPANDIUM will go above and beyond to assist you in managing payroll in Singapore. While a local partner may provide you with knowledge about Singapore’s landscape, XPANDIUM offers comprehensive solutions that cater to an international workforce.

By utilising XPANDIUM’s payroll services in Singapore, you can eliminate the need for payroll systems across regions. We offer flexibility when it comes to payment methods and withdrawals, ensuring that we accommodate workers regardless of whether they're based in your home country or residing elsewhere. Rest assured that XPANDIUM keeps up with changing payroll regulations to ensure your employees are employed compliantly.