Guide to employment, payroll and benefits in

Singapore

Rivermate offers complete payroll, benefits and compliance services for

Singapore

01. Overview

Last updated: 

August 19, 2021

Currency
Singapore Dollar
Capital
Singapore
Ease of doing business
86.2
Language
English
Population
5850342
GDP growth
3.62%

02. Grow your team in

Singapore

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Singapore

, particularly if you don't have established local relationships. You can hire employees in

Singapore

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Singapore is a sovereign island city-state in Southeast Asia, formally known as the Republic of Singapore. It is located about one degree north of the equator, off the southern tip of the Malay Peninsula, and is bordered to the west by the Straits of Malacca, to the south by the Riau Islands, and to the east by the South China Sea. The country's territory is made up of one main island, 63 satellite islands and islets, and one outlying islet, with a total area that has grown by 25% since independence due to substantial land reclamation projects. It has the world's second highest population density. The nation has a population of nearly 5.7 million people, 61% of whom are Singaporeans. English, Malay, Chinese, and Tamil are the four official languages of Singapore. The lingua franca is English. Multiracialism is a constitutional principle that tends to affect national policies in education, housing, and politics. Sir Stamford Raffles founded modern Singapore in 1819 as a British Empire trading post. The colonies in East Asia were reorganized in 1867, and Singapore was put under direct British rule as part of the Straits Settlements. Singapore was invaded by Japan in 1942 during WWII, but after Japan's surrender in 1945, it was returned to British rule as a separate crown colony. Singapore achieved self-government in 1959 and joined the new Malaysian federation in 1963, along with Malaya, North Borneo, and Sarawak. Singapore was expelled from the union two years later due to ideological differences, and it became an independent nation. Despite a lack of natural resources and a hinterland, the country quickly grew into one of the Four Asian Tigers based on foreign trade, becoming a highly developed country; it is ranked ninth on the UN Human Development Index and has the world's second-highest GDP per capita. All major rating agencies have given Singapore an AAA sovereign rating, making it the only country in Asia to do so. It is a major financial and shipping center that has been rated as the most expensive city to live in since 2013 and has been labeled a tax haven. With a home ownership rate of 91%, Singapore ranks highly in main social indicators such as education, healthcare, quality of life, personal safety, and housing. Singaporeans have one of the world's longest life expectancies, the highest Internet speeds, and one of the world's lowest infant mortality rates. Singapore is a Westminster-style unitary parliamentary republic with unicameral parliamentary government. While elections are widely considered free, the government maintains considerable influence over politics and culture, and the People's Action Party has been in power since independence.

04. Public holidays

05. Types of leave

Paid time off

After working for three months at a firm, employees are entitled to a minimum of seven days of yearly leave. After that, one day is added to each year until the eighth year reaches 14 days.However, the employee is usually given 14 to 20 days of yearly vacation.

Public holidays

There are 11 national holidays in the Singapore. If a public holiday comes on a non-working day, the employee should be given a day's wage or an extra day off in place of the holiday. The next workday will be a paid public holiday if the holiday falls on a rest day.

Sick days

The length of sick leave a worker is entitled to is determined by how long they have been employed by their company.0-3 months: 5 days of non-hospitalization/15 days of hospitalization4th Month: 8 days of non-hospitalization and 30 days of hospitalization5th Month: 11 days of non-hospitalization and 45 days of hospitalizationAfter 6 months, there will be 14 days of non-hospitalization and 60 days of hospitalization.When an employee is unable to work for more than 48 hours, they must notify their employer and produce a medical certificate upon their return.

Maternity leave

Female workers who have worked for more than three months previous to giving birth and whose kid is a Singaporean citizen are entitled to 16 weeks of paid maternity leave. Employers are forbidden from dismissing employment during this time.The first 8 weeks are covered by the employer for the first and second kid, and the additional 8 weeks can be reimbursed by the government. The government may refund all 16 weeks of maternity leave for the birth of a third child or more.Maternity leave is 12 weeks if the kid is not a Singapore citizen.

Paternity leave

In Singapore, paternity leave lasts two weeks.The kid must be a Singapore citizen, and the father must have been lawfully married to the mother during the kid's conception and birth to qualify for Government-paid Paternity Leave (GPPL). If the kid is a Singapore citizen, the father is also entitled for paternity leave if the kid is adopted.

Parental leave

If their youngest kid is under the age of seven and a Singapore citizen, parents are entitled to six days of paid childcare leave each year.

Other leave

Work-Related Injury Leave: The employer is responsible for all work-related injuries that an employee has sustained, whether directly or indirectly through insurance. If the employee is not hospitalized, they should be paid 100 percent of their average monthly wages in the 12 months preceding to the impairment for 14 days. They will collect 66.7 percent after 14 days.As of September 1, 2020, all work-related medical leave must be reported to the Ministry of Manpower.

06. Employment termination

Termination process

When a local employee is terminated, the employee's salary must be paid on the last day of employment if the employee resigns and serves the notice period; within seven days of the last day of employment if the employee resigns without notice and no notice period is served; on the last day of employment if the termination was for misconduct; and on the last day of employment if the termination was for cause.

Notice period

In Singapore, the notice period is as follows. There will be a one-day notice period for employees who have worked less than 26 weeks. Employees who have worked for more than 26 weeks but less than two years will receive a one-week notice period. There will be a two-week notice period for employees who have been employed for more than two years but less than five years. There will be a four-week notice period for employees with more than five years of service.

Severance pay

Severance pay is calculated on the basis of all wages and benefits due on the last day of employment. If an employee has worked for the company for at least two years, they are entitled to "retrenchment benefits." The amount paid to the employee is determined by the terms of the employment contract or collective bargaining agreement, as applicable. In general, retrenchment benefits range from two weeks to one month for each year of service with the company.

Probation period

Probation period in Singapore is optional but the common practice is 3 to 6 months.

07. Working hours

General

Weekly working hours should not exceed 44. Employees who work fewer than five days per week should not exceed nine hours per day. Individuals who work five or more days per week should not exceed eight hours per day.

Overtime

For employees who are covered by the Employment Act, an employee must be paid 150% of the hourly basic pay of rate for any overtime hours.

A non-workman earning up to $2,600 or a workman earning up to $4,500 are the only employees eligible to overtime payment.

08. Minimum wage

General

Singapore does not have a minimum wage policy.

09. Employee benefits

General

Singapore offers universal healthcare, which is financed via a combination of government subsidies and obligatory payments from businesses and workers. Citizens and residents must join in MediShield Life, a national basic health care insurance plan that covers major hospitalization and certain outpatient expenses. While the government subsidizes premiums and the expenses of some treatments, there is an annual deductible of between SGD 1,500 and SGD 3,000, as well as co-payments ranging from 3% to 10%.

Most executives seek additional health and life insurance, although a small business may provide a stipend in place of obtaining insurance. Executives working for US technology firms in Singapore often seek stock options.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Singapore

to hire a team takes time, money, and effort. The labor law in

Singapore

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Singapore

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Singapore

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Singapore

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.