Employment agreements in Singapore

Employers must issue employees a written contract of the key employment terms no later than 14 days after an employee begins work. The key employment terms include the following:

• Job title and work description
• Employment start date
• Daily work hours, work days per week, and rest days
• Salary and pay period
• Types of leave

Probationary periods in Singapore

There is no legal requirement for a probationary period in Singapore, but they are permissible and usually set between three and six months.

Average working hours in Singapore

The Singaporean Employment Act describes normal working hours as not exceeding eight hours daily or 44 hours weekly.

How an employer of record helps you hire in Singapore

An employer of record (EOR) allows you to hire in Singapore without the headache of setting up a legal entity in Singapore. Because most companies don’t have the resources or extensive knowledge to compliantly hire in international markets, an EOR helps you engage top talent from anywhere and support them based on their local needs.

As an industry-leading EOR in Singapore, Velocity Global is a trusted partner in hiring in Singapore. By acting as the legal employer, we hire your new team members through local, compliant employment contracts—and you get back the time and flexibility to focus on your growing business.

Payroll cycles in Singapore

Singapore’s Employment Act designates that an employee’s salary must be paid at least once a month within seven days after a salary period’s end.

Wages in Singapore

According to the Singaporean Ministry of Manpower, there is no prescribed minimum wage for local or foreign employees in Singapore.

Bonus payments in Singapore

There is no legal obligation under the Employment Act of Singapore for employers to reward employees with a contractual or discretionary bonus. However, a 13-month bonus is customary at the inclination of the employer.

How an EOR helps you run payroll in Singapore

An employer of record (EOR) in Singapore helps you compliantly manage your global team payroll, ensuring consistent and accurate pay and tax withholdings for employees living in Singapore. Think of an EOR as your international HR team that understands the complex labor laws and payroll regulations of different markets.

Partnering with a trusted EOR partner like Velocity Global for global payroll administration in Singapore offers numerous benefits, like access to a centralized platform for payroll data and reporting, secure data privacy and protection, and time and cost savings.

Tax due dates in Singapore

Tax returns need to be filed by April 15 for hardcopy filing and by April 18 for electronic filing.

Tax thresholds in Singapore

Regardless of resident status, all Singapore-sourced income is taxable. Income from outside Singapore is only taxable if it’s received within the country by a Singaporean resident through a partnership in Singapore.

Non-resident individuals are taxed at a flat rate of 22% in 2022 and 24% in 2024. However, employment income is taxed at a flat rate of 15% or at resident rates with personal relief, whichever is higher.

The Singaporean income tax brackets for 2022 to 2024 are:

• Up to SGD 20,000: 0%
• From SGD 20,000 to SGD 30,000: 2%
• From SGD 30,000 to SGD 40,000: 3.5%
• From SGD 40,000 to SGD 80,000: 7%
• From SGD 80,000 to SGD 120,000: 11.5%
• From SGD 120,000 to SGD 160,000: 15%
• From SGD 160,000 to SGD 200,000: 18%
• From SGD 200,000 to SGD 240,000: 19%
• From SGD 240,000 to SGD 280,000: 19.5%
• From SGD 280,000 to SGD 320,000: 20%
• From SGD 320,000 to SGD 500,000: 22%
• From SGD 500,000 to SGD 1,000,000: 22% in 2022 and 2023. 23% in 2024.
• Above SGD 1,000,000: 22% in 2022 and 2023. 24% in 2024.

Health insurance in Singapore

Through a mixed financing system, Singapore’s healthcare system is universal with a multiplayer healthcare financing framework. Multiple schemes and payers typically overlap and cover a single medical treatment. The 3Ms system includes the following programs:

• MediShield Life: Singapore’s public statutory insurance system covers large bills from hospital services
• MediSave: Singapore’s national medical savings scheme helps cover out-of-pocket medical payments
• MediFund: Singapore’s national government welfare program caters to the most at-need residents who cannot afford out-of-pocket medical payments

Pension in Singapore

Employees in Singapore are subject to eligibility requirements for the state’s old-age retirement pension. When employees reach 55 years of age, savings from contributions made to their Central Provident Fund’s (CPF) Special account and Ordinary account will be transferred to their Retirement account. Employees 55 years of age are eligible to receive their savings as a lump sum. Employees 65 years of age are eligible to withdraw up to 20% of their Retirement account savings. Additionally, 65 years is the eligibility age for receiving monthly payouts from a CPF account.

How an EOR helps you calculate taxes in Singapore

Payroll taxes are taxes imposed on employers and employees. They vary between countries, making compliance a hurdle for businesses that may not have the expertise or resources to navigate payroll taxes in Singapore.

As an employer of record (EOR) with a tenured global footprint, Velocity Global is knowledgeable in handling all aspects of payroll for you, including calculating and filing payroll taxes, withholding and remitting taxes, and issuing tax forms in Singapore.

Annual leave in Singapore

Employees are entitled to annual leave if they are covered by Singapore’s Employment Act and have at least three months of service. Employees are entitled to a minimum of seven days and receive an additional day of leave after each year of service, limited to a maximum of 14 days.

Parental leave in Singapore

Employees in Singapore are guaranteed 16 weeks of paid maternity leave upon the condition of having worked for at least three months, and the child is a citizen of Singapore. If the child is not a Singaporean citizen, maternity leave consists of 12 weeks.

Employees in Singapore are eligible for two weeks of Government Paid Paternity Leave (GPPL) after meeting the following conditions:

• The child is a citizen of Singapore
• The employee has been legally married to the child’s mother between conception and birth
• The employee has worked for his employer for at least three months prior to childbirth
• Adoptive fathers are eligible for paternity leave if the child is a citizen of Singapore.

Sick leave in Singapore

Employees are eligible for sick leave if:

• They are covered under the Singaporean Employment Act
• They have worked for their employer for at least three months
• They have informed or tried to inform their employer of their absence within 48 hours

The Singaporean Employment Act designates sick and hospitalization leave depending on an employee’s length of service. The leave entitlements are as follows:

Regional and national holidays in Singapore

Singapore has 10 public holidays in a calendar year, which are not included in the minimum paid leave entitlement and are taken in addition to annual leave. The following holidays are national holidays recognized by all of Singapore:

• New Year’s Day (January 1)
• Chinese New Year (January or February, the specific days fluctuate each year)
• Good Friday (March or April, the specific day fluctuates each year)
• Labor Day (May 1)
• Hari Raya Puasa (March, April, or May, the specific day fluctuates each year)
• Vesak Day (May or June, the specific day fluctuates each year)
• Hari Raya Haji (May, June, or July, the specific day fluctuates each year)
• National Day (August 9)
• Deepavali (October or November, the specific day fluctuates each year)
• Christmas Day (December 25)

How an EOR helps you manage leave and PTO in Singapore

An employer of record (EOR) supports companies by managing annual leave, paid time off (PTO), and even local holidays all over the world—including Singapore. When it comes to handling a company’s annual leave requirements, an EOR ensures compliance with local labor laws in Singapore at every step.

Some EOR partners, like Velocity Global, provide a platform that helps you oversee employee time off in Singapore. By outsourcing leave and time-off management to Velocity Global, you can ensure accurate tracking, compliance, and seamless administration, freeing up valuable time and resources for other business priorities.

Federal benefits in Singapore

The Ministry of Manpower provides overall administration of labor relations, workforce needs, and old-age retirement procurement assistance.

The Ministry of Health regulates the country’s public healthcare system.

The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from employers and employees. The CPF is an integral part of the Singaporean Social Security system, as it maintains all employees’ old-age retirement pensions, housing needs, and healthcare coverage.

The CPF funds are classified into three separate accounts: the Ordinary account, the MediSave account, and the Special account. The Ordinary account is used to purchase housing, make investments, or pay for education. The MediSave account is used for medical expenses and health insurance. The Special account is used for retirement savings and pension.

Supplemental benefits in Singapore

Supplemental benefits are additional benefits employers provide to improve workers’ benefits packages. Examples include:

• Private medical insurance
• Home office allowances
• Transportation benefits

While all employees receive basic insurance through the Ministry of Health, employers may provide additional health benefits. In Singapore, offering additional health and life insurance or a small allowance intended for supplemental insurance is standard practice. Other supplemental benefits include commuter and transportation benefits and home office allowances.

How an EOR helps you administer benefits in Singapore

As the legal employer for your employees living in Singapore, an employer of record (EOR) administers statutory benefits and ensures they are enrolled and contributing to the appropriate government benefits. Additionally, an EOR partner manages the administration of supplemental benefits, including ensuring employees in Singapore receive tailored, expert-vetted, and competitive supplemental benefits packages.

Velocity Global makes understanding foreign statutory and supplemental benefits easy and offers your workforce competitive benefits packages tailored specifically to Singapore and beyond.

Notice periods in Singapore

If an employee is covered under Singapore’s Employment Act:

• The notice period’s length must be the same for both the employer and employee
• If the employment contract doesn’t include a notice period, the employer must comply with the Employment Act’s minimum notice periods, which depend on an employee’s length of service and span between one day to four weeks
• Payment in lieu of notice is permissible by either employer or employee
• Either employer or employee may immediately terminate the employment relationship due to a willful breach of contract by the other party

Severance pay in Singapore

Singaporean law does not have any statutory requirements for severance payments. The employment contract must address any entitlement to severance payments.

How an EOR helps you process terminations in Singapore

An employer of record (EOR) is responsible for processing terminations in the event you need to terminate an employee in Singapore. This may include adhering to local labor laws and regulations regarding termination procedures, including notice periods, severance pay, and any other statutory requirements.

As an EOR with experience in terminations, Velocity Global helps businesses minimize the risk of legal disputes or liabilities in Singapore.