Hire in Singapore

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. 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	0 2	0 200
First $30,000 Next $10,000	– 3.50	200 350
First $40,000 Next $40,000	– 7	550 2,800
First $80,000 Next $40,000	– 11.5	3,350 4,600
First $120,000 Next $40,000	– 15	7,950 6,000
First $160,000 Next $40,000	– 18	13,950 7,200
First $200,000 Next $40,000	– 19	21,150 7,600
First $240,000 Next $40,000	– 19.5	28,750 7,800
First $280,000 Next $40,000	– 20	36,550 8,000
First $320,000 Next $180,000	– 22	44,550 39,600
First $500,000 Next $500,000	– 23	84,150 115,000
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,

1. Salary: must be paid within 7 days after the last day of the salary period
2. 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.

Additional Information

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:

1. Details of Employment
2. Working Hours and Rest Day
3. Salary
4. Leave and Medical Benefits
5. 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 Employer of Record services in Singapore are designed to provide a comprehensive, 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 varies.

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.