Employer of Record (EOR) in Singapore
Use EOR to hire compliantly in Singapore
An Employer of Record (EOR) in Singapore acts as the designated legal employer for all your employees in Singapore. It assumes multiple legal responsibilities and obligations of the employer like managing payroll, benefits, taxes, and compliance. Partnering with an EOR in Singapore allows you to accelerate your market entry into Singapore, ease administrative burden, reduce costs, lower compliance risks, and scale efficiently.
- HR Administration
- Payroll
- Compliance
Starting at US $300/employee/month
Leading enterprises across all industries rely on us
Employment & hiring statistics in Singapore
SGD $
Salary payment currency
English
Contract language
44
Working hours per week
None
Min. hourly salary
7.75% - 17.25%
Employer cost
10
Bank holidays per year
The all-in-one guide to hiring in
Singapore
Hire and manage your workforce anywhere in APAC
Contracts & Agreements
Employment contracts in Singapore should be clear and strongly written. Common clauses for employer protection include intellectual property and confidentiality as well as a job description. The 2 main types of contracts in Singapore are:
Permanent Contracts
Permanent contracts offer a long-term employment relationship where the employee is hired on a permanent basis, subject to the terms and conditions outlined in the contract.
Fixed-term Agreement
Contracts that define a fixed number of months or years of employment are known as fixed-term contracts. These contracts are commonly used for project-based work, seasonal employment, or temporary staff hiring.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.
Compensation & Benefits
Minimum Pay
Singapore has no minimum wage laws or regulations as it prefers to allow businesses and workers to negotiate based on individual experience and market demand.
In some industries, Singapore has introduced Progressive Wage Models (PWM) to benchmark salaries according to skills and provide a clear career path.
Payout Cycle
The standard payroll cycle in Singapore is monthly and salary is typically paid at the end of the month.
Working Hours
The standard workweek in Singapore is of 44 hours, with a maximum of 8 hours of work per day. Lunch breaks of at least 30 minutes are mandatory.
Guaranteed Benefits
- All employees in Singapore receive basic health insurance, via the national system. However, employers have the discretion to provide supplemental insurance.
- Employers that don’t provide a supplemental insurance can provide a small allowance that can be allocated towards supplemental insurance.
- Depending on the age of the employee, employers have to contribute between 7.5% to 17% into the Central Provident Fund (CPF) which funds the social security programs such as family protection, healthcare, home ownership, retirement etc.
Ask us for a Salary Benchmark for your EOR worker.
Find out how Employer of Record (EOR) can help you make your first hire in Singapore
Taxes & Costs
Tax for Employees
Income tax is applied to an employee’s salary, according to the following structure:
| Taxable income band (SGD) | National income tax rate | |
|---|---|---|
|
0 - 20000 |
No tax |
|
|
20000 - 30000 |
2% |
|
|
30000 - 40000 |
3.5% |
|
|
40000 - 80000 |
7% |
|
|
80000 - 120000 |
11.5% |
|
|
120000 - 160000 |
15% |
|
|
160000 - 200000 |
18% |
|
|
200000 - 240000 |
19% |
|
|
240000 - 280000 |
19.5% |
|
|
280000 - 320000 |
20% |
|
|
320000 & above |
22% |
|
Employer Cost
Employers in Singapore must contribute to Central Provident fund depending on the age of the employee. Additionally, they must also pay a Skills Development Levy (SDL) up to 0.25%, with a minimum contribution of $2 for an employee earning less than $800 a month and a maximum contribution of $11.25 for an employee earning more than $4,500 a month.
Here is the CPF contribution structure:
| Employees age (years) | Contribution by employer (% of wage) | |
|---|---|---|
|
55 & below |
17% |
|
|
55 - 60 |
14.5% |
|
|
60 - 65 |
11% |
|
|
65 - 70 |
8.5% |
|
|
Above 70 |
7.5% |
|
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.
Leaves
Every employee working in Singapore is provided different types of leaves throughout the year. These include:
Annual Leave
All employees are entitled to 7-14 days of paid annual leave depending upon the number of years they’ve been working for an organization.
| Year of service | Annual Leave Entitlement (Days) | |
|---|---|---|
|
1 |
7 |
|
|
2 |
8 |
|
|
3 |
9 |
|
|
4 |
10 |
|
|
5 |
11 |
|
|
6 |
12 |
|
|
7 |
13 |
|
|
8 and above |
14 |
|
Sick Leave
After 6 months of employment, an employee gets 14 days of paid sick leaves per annum. If hospitalisation is required, 60 days are granted to an employee. Employers should be informed about the sick leave within 48 hours.
Parental Leave
Working mothers in Singapore are entitled to 16 weeks of paid maternity leave. Working fathers are entitled to 2 weeks of paid paternity leave.
In addition to these leaves, employees are granted Bereavement Leave, Marriage Leave, Voting Day Leave, and more. For a
full list of leaves and public holidays that your new hire in Singapore is entitled to, talk to one of our experts
.
Termination & Severance
Termination
Employers in Singapore may terminate an employee's contract for different reasons like:
- Poor performance - The employee is not working up to the standards expected by the employer
- Redundancy - The job for which the employee was originally hired for is no longer relevant
- Medical reasons - The employee is not able to carry out job responsibilities due to a medical condition.
- Mutual agreement - Both the employee and employer agree that ending the employment contract is the best way forward for both parties.
One month’s termination notice – from both the employee and employer – is normally agreed upon in the contract.
Severance Pay
When an employee is terminated after two years of employment, he or she may receive a retrenchment benefit. Any entitlement amount is usually specified in the employment agreement and typically ranges from 2 to 4 weeks' pay for each year of employment. For those with less than 2 years service, or no specific clause in their employment agreement, an ex-gratia payment may be made by an employer out of goodwill.
Ready to expand your business across multiple countries in the APAC region?
Why choose an Employer Of Record (EOR)
in Singapore?
An Employer Of Record (EOR) solution is relevant for multiple use cases:
- Enter new markets quickly & expand internationally with ease.
- Hire skilled talent in a foreign location.
- Avoid contractor misclassification & convert contractors to employees.
- Mobilize existing talent for secondment or remote opportunity.
- Focus on core business activities while you outsource HR administration.
Why trust BGC as your Employer Of Record (EOR)?
Industry Expertise
Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.
Technology Leverage
Streamline operations with advanced technology which result in quicker time to onboard and pay.
Cost-effective pricing
Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.
Talk to us and make hiring in APAC a breeze!
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