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Singapore Dollar is the official currency of Singapore. Its currency symbol is S$, SGD.
Estimated at 17% of employee’s salary.
Within 48 hours with Emerald Technology.
Singapore’s official languages are; Malay, English, Tamil, Mandarin, Chinese and Singaporean Mandarin.
The population of Singapore is 5.454 million (based on World Bank numbers as of 2021).
Salaries are paid monthly and it is common for employers to pay an end of year bonus.
To start growing your team in the Singapore, you must establish a local entity- including an account with a local bank, a local office and an address registered as a
subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Singapore currently ranks second in the World Bank’s Ease of Doing Business index as a result of its investment-oriented business environment and its strong and stable
economy. The government is focused on supporting start-ups and small businesses, with several grants and incentives specifically designated to this category. Corporate
tax for all businesses also remains lower than neighbouring countries, at 17%. Despite its relatively small population, Singapore’s talent pool is diverse and productive.
However, Singapore has one of the highest costs of living in Southeast Asia and, as a result can generate high costs for businesses. As well as this, the myriad of
government schemes to help businesses can be inefficient, as assistance offered is primarily monetary and the sheer number of schemes can make it difficult to receive the
appropriate aid.
Despite the high cost of living, Singapore provides a good location for remote working due to its proximity to other ASEAN countries. For instance, Kuala Lumpur is
reachable by an hour’s plane journey, which unlocks the opportunity for further travel for digital nomads. In addition to this, Singapore maintains advanced yet accessible
technology which is beneficial for those working remotely. More specifically, across Singapore there is a free public Wi-Fi service available in all public buildings, such as
malls and train stations.
Start growing your remote workforce now
| Central Provident Fund (CPF): | 17% |
Pension Fund.
Public Health Insurance.
Skill Development Levy.
Contracts in Singapore must include:
All employers are required to issue key employment terms (KETs) in writing, as well as itemised payslips, to employees who will be employed for a continuous period of 14 days or more. KETs should be provided within 14 days from the start of employment and may be in soft or hard copy. Other than as set out above, there are no legal requirements for employers to have employment contracts in writing with employees, and there are no formalities that need to be complied with, although written contracts are recommended.
Emerald Technology requires the following information to create a contract in Singapore:
Though not legally stipulated, the standard probation (or assessment) period in Singapore ranges between three and six months, serving as an opportunity to gauge the
performance level of the new employee.
Emerald Technology can onboard employees in Singapore within 48 hours.
Providing medical insurance is not a requirement for employing Singapore citizens or Employment Pass (EP) holders; however, employee health insurance is a common inclusion in most, if not all, benefits and compensation packages offered by companies in Singapore.
Employees contribute 20% of their monthly salary into the Central Provident Fund (CPF), in addition to a 17% contribution from their employer, up to an income ceiling of SGD 6,000. Reduced rates apply for employees who are earning less than SGD 750 per month, as well as for those above 55 years of age, although these rates are being gradually increased. The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage employees and the self-employed to save for retirement over and above their CPF savings. The maximum amount to be contributed is subject to an income cap of SGD 102,000. Employers are allowed to contribute to their employees’ SRS accounts, subject to contribution limits of 15% for Singapore citizens or permanent residents and 35% for foreign citizens. Employees will be taxed on these employer contributions, but are entitled to corresponding tax relief.
If a mother’s child is a Singapore citizen, a pregnant employee is entitled to 16 weeks of government-paid maternity leave. If their child is not a Singapore citizen, the employee is entitled to 12 weeks of maternity leave (provided she is covered by the Employment Act). In the latter case, only the first 8 weeks of maternity leave are paid by the government.
All working fathers are eligible for two weeks of paid paternity leave, as long as they have been married to a Singapore citizen between conception and birth, and the baby is a Singapore citizen.
Employees are generally entitled to sick leave if:
They have completed at least three months’ continuous service They have informed their employer within 48 hours of their absence Their sick leave is certified by the company’s doctor, a company-approved doctor, or a government doctor The number of days of paid sick leave is dependent on length of service. Employees who have worked for at least six months are eligible for 14 days of outpatient, non-hospitalisation leave and 60 days of hospitalisation leave, which includes the 14 days of outpatient leave.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
As the legal employer, Emerald Technology requires the information detailed in the employment contract to compliantly onboard an employee in Singapore.
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | In the event of resignation, if the employment contract specifies a notice period, the employee must either serve the notice or pay compensation in lieu of notice. Notice can be waived by mutual consent of the employer and employee. If the employment contract does not specify the notice period, it is based on length of service as follows: Less than 26 weeks’ employment: 1 day’s notice 26 weeks to 2 years’ employment: 1 week’s notice 2-5 years’ employment: 2 weeks’ notice 5+ years’ employment: 4 weeks’ notice. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | In the event of redundancy, it is common practice for employers to pay between 2 weeks’ and one month’s salary per year of service as a severance payment. Employees with less three years’ service in a company are not entitled to retrenchment benefits under the Employment Act. |
The legal requirement for annual leave is a minimum of seven days; however, it is common practice in Singapore to grant employees a minimum of 14 days of annual leave. An additional one day of annual leave will be granted for each full year of service.
Singapore has no minimum wage laws or regulations, apart from for cleaners and security guards.
Working hours in Singapore should not exceed 44 per week. Employees who work five or fewer days per week should not work more than nine hours per day. Those who work five or more days per week should not work more than eight hours per day.
Overtime is payable to: Non-workmen earning up to $2,600. Workmen earning up to $4,500 The overtime rate payable for non-workmen is capped at the salary level of $2,600, or an hourly rate of $13.60. Employers must pay at least 1.5x their employee’s normal hourly basic salary for overtime and payment must be made within 14 days of the last day of the salary period.
The payroll cycle in Singapore is generally monthly, with wages paid before the last working day of each month.
It is common for employees to receive an end of year bonus, which – in good economic times – could be two or three times their monthly salary.
Similar to other countries, Singapore has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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