You can hire employees in Singapore without the need for an entity.
Typically, to hire employees in Singapore, your business must have an entity, which involves establishing a local office, registering an address as a subsidiary, and opening an account with a local bank. Managing regional benefits, payroll, tax, and HR laws throughout this process can take several months.
Singapore has separate regulations for contractors compared to full-time employees, making it crucial to avoid misclassification to avoid potential penalties. ATA streamlines the process of hiring employees in Singapore, ensuring speed, simplicity, and compliance. Additionally, our platform automates tasks such as tax document collection, payroll, benefits, and more.
Our quickstart guide to hiring in Singapore
Navigate the tabs below to learn everything you need to know about hiring an employee in Singapore
- Minimum Wage Requirements
- In Singapore, there is no prescribed minimum wage, which means that workers are not entitled to a mandatory minimum rate of pay. Instead, they must negotiate their pay rates with their employers through collective bargaining or other methods to ensure a fair living wage.
- Individual Income Tax
- The range of individual income tax varies from 0% to 22% and is calculated using progressive rates. The total tax rates can be influenced by additional factors such as household status and the number of children.
|Type of leave||Time period|
|Annual leave/Earned Leave||7 days|
|Sick Leave||14 days|
|Maternity Leave||16 weeks|
In Singapore, an employment contract may be terminated under the following circumstances: the employee resigns, the employer dismisses the employee for misconduct, or the contract or project comes to an end. If either party decides to terminate the contract, a notice must be given in accordance with the terms and conditions outlined in the contract of service.
The notice period for Singaporean employees will be up to 30 days.
Typically in Singapore, severance pay is tied to the concept of Responsible Retrenchment, which provides eligible employees with at least two years of service in a company with certain benefits. The amount of retrenchment benefits paid out, usually equivalent to two weeks to one month of salary per year of service, depends on the financial situation of the company.
Singapore’s statutory benefits encompass several components, such as the mandatory Central Provident Fund (CPF) retirement savings plan that requires contributions from all Singaporean citizens and permanent residents. Employers must enroll their employees in CPF, and it cannot be avoided.
Other statutory benefits include entitlements such as annual leave, maternity/paternity pay, sick leave, and childcare leave.
After the client signs the SOW, the onboarding process typically requires two-three business days.
- Employee contract
- In Singapore, employment contracts can be formed through written, oral, or implied agreements. However, the Ministry of Manpower suggests that written contracts are advisable to avoid any potential disputes.
While there are no specific language requirements for employment contracts, English is commonly used as the medium in most businesses.
- Probation period
- In Singapore, it is common for companies to subject new employees to an initial probationary period of six months, after which the employment contract will terminate. If the employer intends to retain the new employee by offering a permanent role, a new employment contract must be drafted.
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