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Hire Employees in Singapore

Looking to hire employees in Singapore? Employment Hero's global teams is your Employer of Record of choice for your hiring needs.

hire employees in Singapore

Key Facts

 

Employment Terms
Timezone GMT +8
Currency Singapore Dollar (SGD)
Capital city Singapore
Official language English, Malay, Mandarin and Tamil
Ease of doing business Very friendly to business (#2 out of 190)
Minimum wage There is no minimum wage in Singapore (with few exceptions)
Estimated employer cost 17 – 17.25%
Employer retirement contribution: Central Provident Fund (CPF) As an employer, you’re required to contribute to the Central Provident Fund (CPF) for your employees who are Singapore Citizens or Singapore Permanent Residents. CPF covers contributions to Retirement, government healthcare and social housing. The contribution rates for employers are:
– Under 55 years old : 17% of ordinary wages (incl. base salary, recurring allowances, etc) capped at SGD 1,020.00 per month + 17% of additional wages (non-recurring remuneration).
– Over 55 years old : From 14% to 7.5% of ordinary wages capped at SGD 1,020.00 per month + 14% to 7.5% of additional wages.

 

About Singapore

The Republic of Singapore is a developed city-state located in Southeast Asia. With a population of around 5.4 million, it has the second highest GDP (PPP) per capita in the world. Its diverse population is also very educated, ranking high in most international education rankings (PISA, QS ranking, …).

Singapore’s employment landscape is governed by the comprehensive Employment Act, which provides flexibility to employers to manage the employment relationship with the employee.

 

Employment in Singapore

Working Hours
  • Work in Singapore is 40 hours per week for a 5-day work week. The law authorises a maximum of 44 hours a week for a 5-day work week, up to 9 hours per day. If the work week is longer than 5 days, the maximum of hours per week remain at 44 hours, but there is a maximum of 8 hours of work per day.
Overtime
  • An employer can request that an employee works reasonable overtime within the limits of 44 hours per week. For non-manual workers, overtime is commonly factored into the salary package, and no additional payments are required for any additional hours worked.
Probationary Period
  • Employers determine the length of probation, which varies depending on the nature of the business and the role. 3 or 6 month probationary periods are common.
Payroll Cycle
  • Employees need to be paid at least once a month, within 7 days of the end of the salary period.

 

Main Types of Leave in Singapore

 

Annual Leave

Minimum Statutory requirement is 7 days per year, with one extra day per year of service, up to 14 days.
However, it is customary to provide at least 14 days to 22 days per year, depending on responsibilities.

Sick Leave

14 days of paid outpatient sick leave.

60 days of paid hospitalisation leave, inclusive of the 14 days sick leave.

Eligibility starts gradually after 3 months of service, and is full after 6 months of service.

*The employer can request for a Medical Certificate (MC).

Parental Leave
Maternity leave

Maternity leave can range from 12 weeks to 16 weeks of leave, for employees with more than 3 months of service. Reimbursement of 8 to 16 weeks of wages is possible via the Government-Paid Maternity Leave scheme (GPML), depending on eligibility (nationality of child, number of children) and capped at SGD 10,000 per 28 days.

Paternity leave

The child’s father is entitled to 2 weeks of paid leave if:

  • The child is a Singapore citizen
  • The father is married to the child’s mother (except for adoption)
  • The father has more than 3 months of service
Other Leave

National Service Leave – Employers are required to grant a leave of absence to Singaporean Citizens & permanent residents called for national service duty (periods going from a few days to a maximum of 40 days per year).

*The employer will be able to claim reimbursement of wages during that period from MINDEF.

Childcare Leave – Parents are eligible to 2 to 6 days of childcare leave or extended childcare leave if:

  • Their child is under 12 years old
  • The employee has more than 3 months of service

*The employer can claim partial reimbursement from MSF subject to conditions.

Employment Termination

Notice Period

Notice periods are typically set in the contract between 1 and 3 months. If the employment contract didn’t specify it, then the notice period will depend on the length of service:

  • 1 day notice for less than 26 weeks of employment
  • 1 week notice for employees who have been employed more than 26 weeks and less than 2 years
  • 2 weeks’ notice for employment of more than 2 years and less than 5 years
  • 4 weeks’ notice for over 5 years of employment

Within probationary periods notice periods are normally not required, or reduced to 1 week.

 

Termination

As long as a due notice has been given, no reason for termination needs to be given. Terminations without notice are possible in the event of employee misconduct or breach of employment terms, such as continuous absence from work without informing the employer.

As an employer, you must provide a written termination letter to the employee.

We recommend that you seek professional advice before taking any action on termination.

 

Severance

In cases of retrenchments, there are no legal minimum requirements, but the norm in Singapore is to provide between 2 weeks to 1 month of salary per year of service to employees who have more than 2 years of service.

For those with a shorter length of service, any retrenchment benefit would be granted out of goodwill.

 

Download the International Hiring Guide

*Information here is current as at 16/09/2022, for full details download the guide.
Hiring Process in Singapore
Sorted.

Hiring an employee in Singapore is no easy task. Especially, if you are overseas, and lack the knowledge of employment law and regulations relating to international HR compliance, payroll, benefits and taxes.

Employment Hero has a local entity Singapore and we fully understand all the ins and outs of hiring in the local market, so we can help you throughout the step-by-step process.

Singapore Employment Law
Decoded.

Singapore has laws that help keep workplaces fair. You should be aware of the rules and what your employer's rights and responsibilities are. Under Singaporean employment law, employers and employees both have rights and responsibilities. Do you know your responsibilities?

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