Employer of Record Singapore
Embark on your business expansion in Singapore with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.
As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Singapore market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.
Singapore Employment Regulations
Singapore’s main labour law is the Employment Act, which provides the basic terms and conditions for employees covered by the Act. Employees who are not covered by the Employment Act are to refer to their employment contract’s terms and conditions.
| Description |
Who is Covered |
Who is Not Covered |
| Employment Act |
All employees working under a contract of service with an employer, exclusion applies (refer to Not Covered column) |
- Seafarers
- Domestic Workers
- Statutory Board Employees or Civil Servants
|
| Part IV of the Employment Act (Rest Days, Hours of Work, Other Conditions of Service) |
- Workman earning a monthly basic salary of SGD 4,500 or less
- Non-workman, but who is covered by the Employment Act, earning a monthly basic salary of SGD 2,600 or less
|
- Managers
- Executives
- Professionals with tertiary education, specialised knowledge or skill:
- Advocates and Solicitors
- Chartered Accountants
- Practicing Doctors and Dentists
|
Source:
Ministry of Manpower
Key areas include:
Statutory Contributions
The Central Provident Fund (CPF) is a mandatory pension savings scheme for Singaporeans and Permanent Residents, where both employers and employees contribute a percentage of the monthly salary according to employees’ age and subject to a salary ceiling. Compliance with CPF contributions is essential for businesses operating in Singapore.
Contribution rates from 1 January 2024
(monthly wages > SGD 750)
| Employee’s age(years) |
Employer contribution
(% of wage) |
Employee contribution
(% of wage) |
Total contribution
(% of wage) |
| 55 and below |
17 |
20 |
37 |
| Above 55 to 60 |
15 |
16 |
31 |
| Above 60 to 65 |
11.5 |
10.5 |
22 |
| Above 65 to 70 |
9 |
7.5 |
16.5 |
| Above 70 |
7.5 |
5 |
12.5 |
Source:
Central Provident Fund (CPF)
Income Tax
Singapore’s income tax system is progressive, and businesses must ensure accurate and timely tax deductions for their employees. Understanding the tax regulations is crucial to remain compliant and optimise tax obligations.
Income tax rates from YA 2024 onwards
| Chargeable Income |
Income Tax Rate (%) |
Gross Tax Payable ($) |
First $20,000
Next $10,000 |
02 |
0200 |
First $30,000
Next $10,000 |
-3.50 |
200350 |
First $40,000
Next $40,000 |
-7 |
5502,800 |
First $80,000
Next $40,000 |
-11.5 |
3,3504,600 |
First $120,000
Next $40,000 |
-15 |
7,9506,000 |
First $160,000
Next $40,000 |
-18 |
13,9507,200 |
First $200,000
Next $40,000 |
-19 |
21,1507,600 |
First $240,000
Next $40,000 |
-19.5 |
28,7507,800 |
First $280,000
Next $40,000 |
-20 |
36,5508,000 |
First $320,000
Next $180,000 |
-22 |
44,55039,600 |
First $500,000
Next $500,000 |
-23 |
84,150115,000 |
First $1,000,000
In excess of $1,000,000 |
-24 |
199,150 |
Source:
Inland Revenue Authority Singapore (IRAS)
Minimum Wage
While Singapore does not have a universal minimum wage policy, some sectors such as cleaning and security have specific wage requirements under the Progressive Wage Model (PWM). Businesses must stay informed about these sector-specific regulations to ensure compliance.
For the full list of sectors included in the Progressive Wage Model (PWM), refer to MOM’s website.
Payroll
Managing the payroll cycle in Singapore requires accurate salary calculations, deductions, and statutory contributions. Timely and accurate payroll processing may foster compliance and employee satisfaction.
The payroll cycle in Singapore is typically once a month. However, employers can also choose to pay employees at a shorter interval so long as the following conditions are met,
-
Salary: must be paid within 7 days after the last day of the salary period
-
Overtime work: must be paid within 14 days after the last day of the salary period
It is important to note that mandatory contributions such as the Central Provident Fund (CPF), Skill Development Levy (SDL), and Self-help Group Funds (SHG) are part of employees’ salary contributions. It is also mandatory to provide itemised pay slips to employees covered by the Employment Act.
Source:
Ministry of Manpower
Working Hours
The standard working hours in Singapore are capped, with regulations stipulating maximum working hours per day and week, including stipulations for overtime compensation.
| If you work |
Your contractual hours of work are |
| 5 days or less a week |
Up to 9 hours a day or 44 hours a week |
| More than 5 days a week |
Up to 8 hours a day or 44 hours a week |
Source:
Ministry of Manpower
Paid Time Off
Employees in Singapore are entitled to various forms of paid time off, including annual leave, public holidays, and sick leave, each with specific eligibility criteria and entitlements.
Leave
Beyond the basic leave entitlements, Singapore’s employment law also covers annual, maternity, paternity, childcare, adoption, and extended sick leave, requiring businesses to manage a range of leave administration processes.
| Types of Leave |
Entitlement |
| Annual Leave |
Mandated by the Government: minimum of 7 days, starting from first year of service.
Typically, 14 – 18 days. |
| Sick Leave |
Outpatient: 14 days
Hospitalisation: 60 days |
| Maternity Leave |
16 weeks
Requirements:
- Child is a Singaporean citizen
- Mother is legally married to the child’s father
- Child is born on or after 1 January 2017
- Parent have worked for an employer or are self-employed for at least 3 continuous months before the birth
|
| Paternity Leave |
2 weeks
Requirements:
- Child is a Singaporean citizen
- Father is or had been legally married to the child’s mother between conception and birth
- Parent have worked for an employer or are self-employed for at least 3 continuous months before the birth
|
| Shared Parental Leave |
Fathers can share up to 4 weeks of the wife’s maternity leave, subject to wife’s agreement.
Requirements:
- Child is a Singaporean citizen
- Mother qualifies for Government-Paid Maternity Leave (GMPL)
- Parent have worked for an employer or are self-employed for at least 3 continuous months
|
| Childcare Leave |
6 days
Requirements:
- Child is a Singaporean citizen
- Age of youngest child is below 7 years old
- Father is lawfully married to the child’s mother
|
Source:
Ministry of Manpower
Termination
Termination of employment in Singapore is regulated, with specific procedures for notice periods, severance pay, and dispute resolution. Compliance with termination regulations is critical to avoid potential legal issues.
In Singapore, a termination letter in writing is compulsory to confirm the termination. Without a termination letter, the individual will still be considered an employee.
For more details on termination in Singapore, please refer to the
Ministry of Manpower website
.
Notice Period
If the employment contract specifies the notice period, the individual must either serve the notice period or pay compensation in lieu of notice to the employer. The notice period can be waived by mutual consent between the employer and employee.
With BIPO’s Employer of Record services, you can confidently navigate the complexities of Singapore’s employment landscape. Our expertise ensures full compliance with local laws, allowing you to focus on growing your business while we manage the intricacies of HR and payroll.
In Singapore’s context, key employment terms (KETs) are a must-have when hiring employees (including part-time and casual workers) who are employed for a continuous period of 14 days or more. Employers should include the following items in the KETs:
- Details of Employment
- Working Hours and Rest Day
- Salary
- Leave and Medical Benefits
- Others (Probation and Notice Period) – add padding
Please note that the information listed above does not constitute legal or professional advice.
For more information, please refer to
Singapore’s Ministry of Manpower website
.
BIPO as your Employer of Record
BIPO’s total hr solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.
As your EOR partner, our services are designed to provide acomprehensive, hassle-free experience:
-
Initial Consultation:
The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
-
Payroll Management:
We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Singaporean regulations.
-
Contributions and Taxes:
Our expertise in managing Central Provident Fund (CPF) contributions and local income tax ensures your business complies with Singapore’s financial obligations.
-
Compliance with Minimum Wage and Working Hours:
We guarantee that your employment practices adhere to Singapore’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
-
Leave and Paid Time Off Management:
Implement and manage leave policies that comply with Singaporean laws, ensuring a fair and transparent leave management system for your employees.
-
Regulatory Compliance:
Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
-
Other services:
Work visa, permit applications, termination procedures.
Services may vary across countries.
Benefits of BIPO Employer of Record Service in Singapore
Unlock your growth potential with BIPO’s Employer of Record service in Singapore. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.
From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities
