Singapore PEO & Employer of Record Services
Global PEO Services (GPS), a Safeguard Global company, helps companies hire employees in Singapore without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by our Singapore PEO, while the new hires and headquarter teams focus on your business goals. Using a Singapore PEO is the fastest and most efficient way to develop a workforce in Singapore.
When hiring employees in Singapore, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
We hire the employees on your behalf, legally contracting them through our subsidiary in accordance with Singapore labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Singapore. With our Singapore PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Singapore - Country Overview
Singapore experienced rapid economic growth driven by its workforce and external trade. These changes have turned the country into a global center for technology, manufacturing, tourism, entertainment, education, and healthcare. With a population of less than six million, Singapore has one of the lowest unemployment rates in the world at 2.02%. Singapore ranks high in the World Bank’s Ease of Doing Business Rankings.
Capital City
Singapore
Currency
Singapore Dollar (S$)
Principal Language
English, Malay, Mandarin Chinese
Government
Unitary State, Parliamentary Republic, Constitutional Republic
Employment Contracts in Singapore
In Singapore, an employment contract can be either in writing or verbal.
To minimize disputes on the terms and conditions of contracts, the Ministry of Manpower recommends writing contracts.
Some of the details typically mentioned in the written employment contract in Singapore include:
- Employer’s and employee’s full name
- Employment commencement date
- Employment duration
- Probationary period
- and more
The different types of employment relationships are:
- Permanent Employment – Per the Employment Act of Singapore, permanent employment is regular and continual that lasts more than 14 days. The employment contracts must include essential conditions, such as working hours and notice period.
- Fixed-Term Contracts – A fixed-term contract ends at the expiration of a specific term unless renewed.
- Temporary Employment – There is no specific provision in Singapore’s Employment Act for temporary employment.
Probationary Period
The Employment Act of Singapore does not regulate the length of probationary periods for employees. The employment contract or collective bargaining agreement terms determine this.
Working Hours in Singapore
The standard workday in Singapore is nine hours for a five-day workweek, eight hours for longer workweeks, and in most cases cannot exceed 12 hours. A standard workweek has 44 hours per week.
Overtime
Employees are not permitted to work more than 72 hours of overtime per month. The employer must pay at least 1.5 times the hourly basic rate in Singapore for overtime work.
Employee Leave in Singapore
Employees are entitled to the following leaves:
Annual leave in Singapore – Employees who have worked for an employer for at least three months are entitled to seven days of paid annual leave and accrue one additional day for each subsequent year of service after the first up to a maximum of 14 days of paid annual leave. An employee who has completed at least three months of service in a given calendar year is entitled to leave in proportion to the number of months of service completed in that year.
Maternity leave in Singapore – Female employees receive maternity leave for 16 weeks if f they have worked for their employer for at least three months and the child is or will be a Singapore citizen. The first eight weeks of leave are paid for by the employer; the remaining eight weeks are paid for by the government. The paid benefit is capped at S$10,000 per month.
Sick leave in Singapore – An employee with at least six months’ service is entitled to paid sick leave up to 14 days per year if no hospitalization is required. If hospitalization is required, sick leave is limited to less than 60 days or 14 days plus the number of days the employee was hospitalized. An employee with at least three months’ service but less than six months is entitled to sick leave proportionate to the time worked.
Paternity leave in Singapore – Working fathers who have been continuously employed for at least three months are entitled to two weeks of government-paid paternity leave if:
- They are married to the child’s mother
- The child is a citizen of Singapore or will become a citizen of Singapore by the time he or she is one year old.
The two weeks of leave can be taken:
- In a continuous block within 16 weeks of the child’s birth
- Within 12 months from the child’s birth (subject to an agreement with the employer).
Public Holidays
The following are the statutory national holidays observed in Singapore:
- New Year’s Day
- Chinese New Year (two days)
- Good Friday
- Labor Day
- Vesak Day
- National Day
- Hari Raya Puasa
- Deepavali
- Hari Raya Haji
- Christmas Day
Employee Termination in Singapore
Employers are required to provide employees with the following notice periods in Singapore based on their continuous service:
- Employment of less than 26 weeks – 1 day
- Employment of 26 weeks to two years – 1 week
- Employment of 2 to 5 years – 2 weeks
- Employment of more than five years – 4 weeks
Global Mobility in Singapore
There are typically the following categories of visas in Singapore:
- Visa for professionals
- Visa for skilled and semi-skilled workers
- Visa for trainees and students
- Visa for family members
- Exemptions and passes for employment during a visit
Generally, work permits in Singapore are of the following types:
- Work permit (includes a training work permit)
- Employment pass (includes a training employment pass)
- Personalized employment pass
- EntrePass
- S pass
- Work holiday pass
- Miscellaneous work pass
- Letter of consent
Employee Benefits in Singapore
Retirement Plans
Employers must to enroll employees in retirement and savings plans covered under the Central Provident Fund (CPF). Citizens and foreign workers can also contribute to a Supplementary Retirement Scheme (SRS).
Health Insurance
Providing health insurance to employees is not a statutory requirement, but working professionals automatically qualify for a low-cost plan called Medishield which offers essential protection.
Accident and Hospitalization Benefits
Many organizations offer medical insurance plans that provide extended benefits to dependents that typically cover personal accidents and hospitalization.
Per Diem
Many organizations provide their employees a per-day allowance, transportation allowance or reimbursement of expenses for travel-related jobs. The per diem amount depends on the places employees are traveling for business purpose.
Relocation Package
Most organizations in Singapore provide a relocation allowance to employees who need to move with their family from their country of origin to Singapore. An expatriate compensation package typically includes paid airfare, paid shipping of personal effects, free or subsidized accommodation, payment of utility bills, paid childcare, and school fees for children.
Employee Stock Option Plan (ESOP)
Most organizations offer employee stock purchase plans, particularly to senior employees, and these plans may have specific eligibility criteria.
Some examples of social insurance programs in Singapore are:
- Dependents’/Survivors’ Benefit – Upon the death of an employee, the Central Provident Fund of Singapore pays benefits to the named nominees and any savings that the deceased employee had in the Ordinary, Special, MediSave, or Retirement accounts as a lump sum.
- Life and Disability Insurance/Benefit – As part of its ElderShield program, the Central Provident Fund of Singapore offers severe disability insurance. People with a severe disability receive a monthly cash payout for up to 72 months without any registration or assessment. CPF members with MediSave Accounts will are enrolled in the program upon reaching 40 years of age.
Updated: October 25, 2024