EOR Service in Singapore

Shraddha Saxena

Hire, Onboard and Pay Employees in Singapore Quickly and Efficiently

Hiring in Singapore at a glance

CURRENCY
Singapore Dollar (SGD)
working hours
44 hours per week
public/bank holidays
11
capital
Singapore
language
English
date format
DD/MM/YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Singapore Dollar (SGD)
public/bank holidays
11
capital
Singapore
language
English
date format
DD/MM/YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
USD 515.55 billion
working hours
44 hours per week

Employer of Record in Singapore

A Singapore Employer of Record (EOR) offers valuable support to businesses looking to hire and expand their operations in the country. With an EOR, companies can overcome the challenges of establishing a legal entity and compliantly hiring with local employment regulations in the country. 

An EOR ensures legal compliance with Singapore's labor laws, including employment contracts, benefits administration, and payroll processing.By partnering with an EOR, you can seamlessly hire talent in Singapore without worrying about compliance risks associated with labor laws, taxation, and employment regulations. EORs assume the responsibility for compliance, allowing companies to focus on their core operations.

Why use Singapore EOR?

Singapore has elaborate labor laws and that’s the biggest reason why companies should partner with Singapore EORs to enter the market. Here are a few employment regulations that companies must comply with to hire and operate in Singapore.

  • Though a contract isn’t mandatory, employers must provide employees with a written document that details roles and responsibilities.
  • When hiring contractors and employees, right classification is a must. Misclassifying employees as contractors can lead to fines up to SGD 60,000 and prison time.
  • Work permit holders are not allowed to get pregnant or give birth in Singapore unless they are already married to a Singaporean citizen or permanent resident with the Ministry of Manpower's (MOM)'s approval.

Gloroots’ Singapore EOR services can help you comply with the specific laws when hiring employee, contractor, and unskilled or semi-skilled migrant workers. Our platform ensures reducing legal risks and penalties and streamlining hiring operations while complying with the employment regulations.

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EOR Costs in Singapore

EOR/PEO pricing in Singapore can vary depending on factors such as the number of employees, services required, and the chosen provider. Typically, EOR/PEO pricing is based on either a percentage of the employee's salary or a fixed monthly fee per employee. The pricing range for EOR/PEO services in Singapore generally falls between 5% and 15% of the employee's compensation. Additional fees may apply for specific services or customization. 

Gloroots offers a simple pricing model that provides optimum investment value. We manage employment-related admin tasks and legal compliances. Moreover, Gloroots offers a live dashboard that helps you track your Indian workforce expenses in real time. It also offers HR support and benefits management to the employees hired through EOR.

Key Metrics For Foreign Employers

Singapore ranks 2nd globally for talent competence in INSEAD’s Global Talent Competitiveness Report

The table below depicts key indicators from the Report for employers wishing to hire from Singapore.

Factors Global Ranking Interpretation
Rule of law 4 Indicates effectiveness of law enforcement
Labour-employer cooperation 3 Indicates positive labor-employee relationships
Reading Maths, and Science 2 Indicates average scores in OECD's survey of 15-year old students
University Ranking 11 Indicates average QS rankings
Labour productivity per employee 1 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 39 Indicates findability of skilled talent
Workforce with tertiary education 3 Indicates % of workforce with PG degrees
Digital Skills 21 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent.

Why work in Singapore?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

In Singapore, the issue of "employee misclassification" arises when employers inaccurately classify workers, often labeling them as independent contractors to avoid providing employment rights and benefits that are typically granted to permanent employees. This misclassification occurs even when the workers perform duties similar to those of permanent employees.

By partnering with a Professional Employer Organization (PEO) or Employer of Record (EOR) in Singapore, you can ensure accurate worker classification and the preparation of proper employment agreements. These experienced professionals are well-versed in labor laws and can provide guidance to ensure compliance. They handle precise payroll processing and offer comprehensive benefits, allowing your business to focus on core operations while entrusting employment-related obligations to seasoned experts. With their support, you can avoid the pitfalls of employee misclassification and ensure a fair and compliant workforce.

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Employing in Singapore

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

INCOME TAX

Salary Range Income Tax Rates
Up to 20,000 0%
20,000 - 30,000 2%
30,000 - 40,000 3.5%
40,000 - 80,000 7%
80,000 - 120,000 11.5%
120,000 - 160,000 SGD 15%
160,000 - 200,000 SGD 18%
200,000 - 240,000 SGD 19%
240,000 - 280,000 SGD 19.5%
280,000 - 320,000 SGD 20%
Above 320,000 SGD 22%

Other Taxes and Social Security contribution

Employer contribution:

Contribution Type Rate (%) Description
Central Provident Fund (CPF) 17.00 Pension for employees aged 55 and below, reduces progressively to 7.5% as age increases
Skills Development Levy (SDL) 0.25 Levy for skills development initiatives
Foreign worker surcharge 350 USD Surcharge for employing foreign workers
S PASS holders 450 SGD Additional cost for employing S PASS holders (mid-skilled foreign employees performing specialized roles)
Total Employment Cost 17.00% – 17.25% + 350 USD/month + 450 SGD/month Total cost of employment, including CPF, SDL, foreign worker surcharge, and S PASS holder cost.

Employee contribution:

Contribution Type Rate (%) Description
Central Provident Fund (CPF) 20.00 Pension contribution for employees aged 55 and below, reduces progressively to 5% as age increases
Total Employee Cost 20.00 Total cost borne by the employee including CPF contribution and income tax

Separation

Termination Process

The termination of the employment relationship can be initiated by either the employer or the employee, following the legally required notice period, as long as it is not for unlawful reasons such as discrimination against protected groups. The termination should also align with the terms stipulated in the employment contract.

When an employee leaves, they should receive payment for any accrued and outstanding holiday entitlement, unless the termination is due to misconduct. Before making the final payment, the employer must obtain appropriate tax clearance from IRAS (Inland Revenue Authority of Singapore).

If the employer terminates the contract or the employee resigns and fulfills the entire notice period, the payment is typically made on the last day of employment or within three days if that is not feasible.

In the event that an employee resigns without providing notice and does not work during the notice period, the payment should be made within seven days from the last day of employment.

Notice Period

Weeks of Service Duration of notice period
<26 weeks One day
26 weeks - 2 years One week
2 - 5 years Two weeks
> 5 years Four weeks

During the probation period, which is typically at the beginning of the employment, either the employer or the employee can terminate the contract with a notice period of five days.

Severance Pay

In Singapore, when an employee completes two years of service, employment contracts or collective agreements often include provisions for "retrenchment benefits" or severance pay to be paid upon termination. It is customary for these benefits to amount to 2-4 weeks' pay for each year of employment.

Probation Periods

In Singapore, the probation period is typically specified in the employment contract or collective agreement and commonly ranges from 3 to 6 months.

Start Hiring in Singapore today

When it comes to global hiring, ensuring compliance can be a complex endeavor. Employers need to navigate employment laws, payroll procedures, DE&I compliance, data protection regulations, and other legal requirements to ensure a smooth and legally compliant onboarding process. Setting up the necessary infrastructure and staying updated with the ever-evolving compliance landscape can introduce significant complexities to the hiring process.

At Gloroots, we simplify this journey for you. Our comprehensive solutions offer a centralized platform to efficiently manage all aspects of hiring in Singapore. With our in-house experts, you can confidently navigate cross-border employment and payroll compliance risks. We provide support in generating employment contracts, ensuring timely payments, and offering compliant benefits, enabling you to focus on screening and selecting the right talent.

Our commitment is to provide you and your employees with a seamless global employment experience.

Contact our experts today to kickstart your global hiring campaign in Singapore.

Grow your team in Singapore

In Singapore, employers are required to establish a local legal entity and leverage local resources to manage compliance, payroll, tax, and benefits administration. The intricate nature of employment regulations in Singapore can make it challenging to ensure full compliance with the ever-evolving laws and regulations.

Fortunately, Gloroots offers an exceptional global Employer of Record (EoR) service designed to alleviate the burdens associated with payroll, tax, benefits, and compliance in Singapore. By entrusting Gloroots with these critical responsibilities, you can shift your focus towards nurturing your employees and driving the growth of your company. Let Gloroots handle the intricate details, ensuring adherence to Singapore's employment regulations, while you can devote your energy to strategic initiatives and maximizing business potential.

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Experience Seamless Hiring in Singapore?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Singapore.

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