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. 

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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.

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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.

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.

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.

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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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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.

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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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Employment Contract

In Singapore, employment contracts can take various forms and don't necessarily require written documentation to be legally binding. However, it is recommended to provide employees with written employment contracts in Singapore, outlining at least the fundamental terms of employment, including:

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•  Identities of both parties involved
• Commencement date (and employment duration for temporary contracts)
• Workplace details (optional)
• Job description and responsibilities
• Basic salary, overtime pay, and other forms of compensation or bonuses
• Working hours and rest days
• Allowances and deductions
• Leave entitlements
• Additional medical benefits
•  Probation period
•  Notice periods for termination of employment

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Having a written employment contract helps ensure clarity and mutual understanding between employers and employees, reducing the risk of disputes and promoting a harmonious working relationship.

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This might sound overwhelming, but it doesn't have to be. Gloroots eliminates these barriers for you. With Gloroots' Employer of Record offering, hiring and managing employees globally is a piece of cake.

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Get an overview of what you need to know when hiring in Singapore. Contact us.

Working Hour 

According to Part IV of the Singapore Employment Act, the prescribed limit for the maximum number of working hours in Singapore is 44 hours per week.

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Overtime

For employees who fall under the scope of Singapore’s Employment Act, overtime work is compensated at a rate of 150% of their regular hourly pay. 

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Employers cannot task their employees for more than 12 hours of work in a single day and 72 hours in a month. 

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The maximum monthly overtime pay differs depending on the classification of the employee: 

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Note: Employers must ensure that overtime wages are paid within 14 days from the last day of the salary period.

Minimum Wage

In Singapore, there is no national minimum wage policy in place. However, there has been a growing trend of setting minimum wages for certain industries, such as cleaning, security, and landscape sectors.

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To support low-wage workers who are Singapore citizens and aged 35 and above, there is a scheme called Workfare. This program provides assistance to individuals with a gross monthly income not exceeding 2,300.00 SGD. The Workfare scheme aims to provide additional support and uplift the income levels of eligible workers in need.

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Maternity Leave and Paternity Leave

An expectant employee in Singapore, who has been employed for a minimum of three months before the due date and whose child is a Singaporean citizen, is entitled to 16 weeks of paid maternity leave. The maternity leave is divided into two periods: the woman can take up to 8 weeks before the anticipated due date, with a minimum of 28 days, and the remaining weeks after the baby is born.

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If the child is not a Singaporean citizen, the maternity leave period is reduced to 12 weeks. For the first and second child, the employer is responsible for paying the regular gross salary during the first eight weeks. The additional eight weeks can be reimbursed by the Government, capped at 10,000 SGD every four weeks or a total of 20,000 SGD per child.

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However, starting from the birth of the third child, the Government directly reimburses all 16 weeks of maternity leave, with a cap of 10,000 SGD every four weeks or a total of 20,000 SGD per child.

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Annual leave

The minimum requirement for annual leave in Singapore is seven days as mandated by law. As employees gain more years of service, they earn an additional paid day off each year, reaching a maximum of 14 days of annual leave. However, in practice, many employers provide between 14 and 20 paid vacation days per year.

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Public holidays

Furthermore, Singapore observes eleven public holidays. If a public holiday falls on a rest day, the following working day is automatically treated as a paid holiday. If a public holiday falls on an employee's non-working day, the employee is entitled to either an additional day off or an extra day's pay, depending on the employer's policies.

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Sick Leave

After completing six months of service, employees in Singapore are entitled to 14 days of paid sick leave per year. If hospitalization is necessary, the employee is entitled to 60 days of paid sick leave per year.

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If the employee has served for less than six months, the number of paid sick days is as follows:

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To avail sick leave, employees must inform their employer within 48 hours of their inability to work and provide a medical certificate from a healthcare professional

upon returning to work for any period of sickness.

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INCOME TAX

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Other Taxes and Social Security contribution

Employer contribution:

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Employee contribution:

Termination Process

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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.

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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).

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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.

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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.

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Notice Period

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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.

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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.

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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.

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Navigating international hiring and compliance can be daunting for businesses. From ensuring employment law adherence to payroll processes, DE&I compliance, and data protection regulations like GDPR, the challenges are numerous. However, with Gloroots, you can minimize these efforts. Our EOR services streamline onboarding, payments, tax compliance, and more. We handle employment contracts, timely payments, and compliant benefits, reducing cross-border employment and payroll compliance risks. This way, you can focus on selecting the right candidates for your company and let Gloroots handle the complexities of building a global team.