Employer of Record in Singapore

Basic information

Currency：Singapore Dollar SGD

Capital：Singapore

Official Language：English, Tamil, Malay, and Mandarin Chinese

Salary Payment：Monthly

Localized benefits for employees

• Pension Fund
• Public Health Insurance
• Skill Development Levy (SDL)
• Commercial insurance (optional)

Pay&Tax

1. Minimum Wage Requirements  There is no minimum wage requirement in Singapore.  But there is minimum wage requirement for work visa applicants.
2. Individual Income Tax

The individual income tax ranges from 0% to 22%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income	Tax Rate (%)
Up to SGD – 20,000	0
Up to SGD – 30,000	2
Up to SGD – 40,000	3.5
Up to SGD – 80,000	7
Up to SGD – 120,000	11.5
Up to SGD – 160,000	15
Up to SGD – 200,000	18
Up to SGD – 240,000	19
Up to SGD – 280,000	19.5
Up to SGD – 320,000	20
Over SGD – 320,000	22

3. Payroll Cost

Employer cost is generally 17.25% of employee salary

• Pension Fund (Central Provident Fund or CPF)* – 17%
• Skill Development Fund – 0.25%

*Please note that 17% is the maximum contribution rate and the amount varies based on the employee’s citizen status, age, and salary. The maximum salary for the calculation of this contribution is SGD 6,800.

4. Overtime Pay & Maximum Hours

Standard working hours are Up to 9 hours per day or 44 hours a week. The standard workweek is from Monday to Friday.

  Overtime payment is not mandatory and is assumed included in employee salary.

Leave policy

1. Maternity Leave

Pregnant employees who have worked for 3 consecutive months are entitled to 16 weeks of paid leave. 4 weeks must be taken before the child’s birth and 8 weeks after the birth. The remaining 4 weeks can be used as the employee wishes. The employee will receive 100% of their average salary during this period, and the employer will be responsible for the first 8 weeks and Social Security for the second 8 weeks.

2. Paternity Leave

Employees who have worked for 3 consecutive months are entitled to 2 weeks of paid paternity leave. The 2 weeks must be taken continuously anytime within the 16 weeks of maternity leave. The employee will receive their normal salary capped at $2500 per week and Social Security will be responsible for this pay.

3. Parental Leave

In Singapore, no law covers parental leave. However, fathers are entitled to share 4 weeks of the mother’s 16 weeks of maternity leave. The employee will receive their normal salary capped at $2500 per week.

4. Sick Leave

Employees are entitled to paid sick leave for up to 14 days provided they have worked for at least 3 months. The number of sick days varies depending on the length of service. Employees will receive 100% of their salary while on sick leave paid by the employer.

Employees are also entitled to paid hospitalization leave for up to 60 days provided they have worked for at least 3 months. The number of sick days varies depending on the length of service. Employees will receive 100% of their salary while on sick leave paid by the employer.

Months of Service	Paid Outpatient Sick Leave (days)	Paid Hospitalisation Leave
3	5	15
4	5	30
5	11	45
6 or more	14	60

Termination

1. Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Singapore can be complex. There is no at-will termination in Singapore for employers and termination must be done for just cause.

  Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• By the expiration of the contract
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job

2. Notice Period  The minimum notice period is 1 day and will be increased according to the length of the employment.
   • 1 day if the length of service is less than 26 weeks
   • 1 week if the length of service is between 26 weeks and 2 years
   • 2 weeks if the length of service is between 2 years and 5 years
   • 4 weeks if services if longer than 5 years
3. Severance for Employees

In Singapore, there is no obligation to pay severance.

Statutory time off

1. Paid Time Off

Full-time employees are entitled to 7 days of paid time off (PTO) a year. PTO accrues monthly 0.58 days per month. Employees are eligible for annual leave after 3 months of work. Employees are entitled to one additional day for each year of service until reaching 14 days.

2. Public Holidays  Singapore celebrates 10 national holidays which last 11 days in total. National public holidays include:
   • New Year’s Day
   • Chinese New Year (2 days)
   • Good Friday
   • Labour Day
   • Hari Raya Puasa
   • Vesak Day
   • Hari Raya Haji
   • National Day
   • Deepavali
   • Christmas Day

Onboarding

1. Onboarding  Onboarding takes 2 business days after the client signs the SOW.

Additional info

1. Employment Contract Details

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions

2. Probation Period

Probation periods are not mandatory. The minimum probation period is 3 months and the maximum probation period is 6 months.