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Employing and managing employees in Singapore involves following specific procedures and regulations.

Here's what you need to know

  • Type of Contract:
    The most common types of employment contracts in Singapore are permanent, fixed-term, and part-time contracts.

  • Contract Requirements:
    Employment contracts in Singapore must be in writing and include specific terms, such as job description, salary, working hours, and duration of the contract.

  • Probationary Period:
    Employers are allowed to include a probationary period in employment contracts. The maximum length of the probationary period is 3 months for non-executive employees and 6 months for executive employees.
  • Minimum Wage:
    There is no official minimum wage in Singapore, but employees must be paid a salary that is reasonable for the type of work they are performing.

  • Central Provident Fund (CPF):
    Employers are required to contribute to the CPF for their employees. The contribution rate is a minimum of 17% of the employee's gross salary, with the employer contributing 9% and the employee contributing 8%.

  • Income Tax:
    Employees in Singapore are subject to income tax. The amount of tax depends on the employee's salary and other factors.
  • Employment Pass:
    If you're employing foreign workers in Singapore, they may require an Employment Pass (EP) or S Pass. These passes are issued by the Ministry of Manpower (MOM) and have specific requirements and eligibility criteria.

  • Leave Entitlements:
    Employees in Singapore are entitled to various types of leave, such as annual leave, sick leave, and maternity leave. Employers must comply with the specific requirements and regulations for each type of leave.

  • Termination of Employment:
    Employment contracts in Singapore may be terminated by either the employer or the employee. The process for terminating employment must follow specific legal requirements.
Overall, employing and managing employees in Singapore requires attention to specific regulations and requirements. Working with a local expert in employment and payroll can help ensure that you’re meeting all the legal requirements and providing a positive employment experience for your staff.

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Hiring employees without the need to set up a legal entity in countries will help save a lot of time, sometimes up to 85%. In addition, you will not have to worry about establishing a foreign entity and all the maintenance costs that come with it.

Employee Onboarding
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Onsite HR & Legal Team
Our team comprises experts who offer local legal guidance through employee onboarding, benefits distribution, HR compliance, contract renewals, termination, and more.
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