Employment contracts must be in writing and clearly outline essential terms such as salary, working hours, job responsibilities, and leave entitlements. This ensures both parties have a clear understanding of their obligations.Contracts also need to specify the probationary period, if any, which can range from 3 to 6 months.
Employer of Record (EOR) Singapore
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Singapore is handled efficiently and in full compliance with local regulations.
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The most affordable solution on the market, saving you time and money.
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We draft contracts compliant with Singaporean labor law.
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in Singapore
An Employer of Record (EOR) is a third-party organization that manages all legal and administrative responsibilities of employing staff on behalf of another company. This includes payroll, tax compliance, employment contracts, benefits administration, and adherence to local labor laws. An EOR allows businesses to hire employees in new countries without establishing a local entity, enabling faster and compliant global expansion.
An EOR in Singapore simplifies compliance with strict labor laws, Central Provident Fund (CPF) contributions, and tax requirements. Businesses can expand without establishing a legal entity, as EOR providers handle payroll, benefits administration, and employee contracts.
A written contract should be prepared and signed before the employee starts working to establish clear expectations and avoid disputes regarding employment terms.
Salaries should be expressed in Singapore Dollars (SGD) and must detail the annual or monthly compensation, including any bonuses or commissions to ensure transparency and avoid misunderstandings.
Common clauses include non-compete agreements, confidentiality agreements, and provisions for termination and probationary periods. These clauses must comply with the Employment Act and be clearly defined in the contract to protect both parties’ interests. The non-compete clause, for instance, should specify the duration and geographical scope to be enforceable.
in Singapore
1. What are the key steps in employee onboarding in Singapore?
Key steps include obtaining a valid work pass (if applicable), registering for a tax identification number, and assisting the employee in setting up a local bank account. These steps are essential for legal employment and smooth payroll processing. Additionally, introducing the new hire to company culture and policies is crucial for a successful onboarding experience.
2. When should employees complete pre-hire medical checks in Singapore?
Pre-hire medical checks are generally not mandatory unless specified by the employer for certain roles, particularly in healthcare or safety-sensitive positions. However, health assessments may be required for specific industries to ensure the employee’s fitness for the role.
3. What documents are required for onboarding employee in Singapore?
Employees must provide a valid work pass, tax identification number, and signed employment contract. Other documentation may include identification documents, educational certificates, and prior employment records. Ensuring all documentation is in order helps facilitate a smooth onboarding process.
4. Why businesses in Singapore need EOR services?
5. How does EOR in Singapore different from other countries?
in Singapore
Salaries in Singapore are typically paid on a monthly basis, and employers must comply with the Employment Act, which mandates timely payment to employees. Clear communication regarding salaries is essential to maintain trust. Employers should also provide pay slips that detail deductions for taxes and CPF contributions.
Employers must ensure compliance with local tax regulations and may provide allowances for home office expenses. Remote employees should receive the same payroll benefits as in-office employees to ensure equality. Regular communication about payroll policies and changes is crucial to keep remote workers informed.
Singapore does not have a formal minimum wage policy; however, it implements a Progressive Wage Model (PWM) for specific sectors, such as cleaning and security, to ensure fair pay. This model sets a minimum wage based on skills and productivity, encouraging workers to upgrade their skills.
in Singapore
1. What are the income tax rates in Singapore?
Singapore uses a progressive tax system, with rates ranging from 0% to 22% for residents based on their income levels. The tax system is designed to be fair and encourages individuals to contribute to the economy.
2. How does the tax system apply to non-residents in Singapore?
Non-residents are typically taxed at a flat rate of 15% or the resident rate, whichever is higher, on their Singapore-sourced income. This ensures that both residents and non-residents contribute fairly to the country’s revenue.
3. When should tax returns be submitted in Singapore?
Employees must file annual tax returns by April 15 for the preceding assessment year. Employers are responsible for ensuring timely tax withholdings are reported to the authorities. It’s essential for employees to keep accurate records of their income and any deductions.
4. What CPF contributions are required in Singapore?
Employers and employees contribute to the CPF, which supports social security benefits such as retirement and healthcare. Contribution rates vary based on salary and age, with higher rates for younger employees. Understanding these contributions is important for both employers and employees.
in Singapore
Employees are entitled to a minimum of 7 days of paid annual leave after 1 year of service, with additional leave accruing based on the length of service. Many companies offer more generous leave policies to attract talent.
Employees can use their leave once it is accrued, typically after their first year of employment. Employers may set policies regarding the carryover of unused leave, encouraging employees to take their leave to maintain work-life balance.
Eligible employees receive 16 weeks of paid maternity leave and 2 weeks of paid paternity leave, reflecting the country’s commitment to family support. These policies encourage a healthy work-life balance and support family growth.
Singapore observes 11 public holidays annually. Employers must grant these holidays, and work performed on public holidays is compensated at a premium rate, usually 1.5 times the regular pay. This respects the cultural values of the workforce and promotes employee well-being.
in Singapore
1. What benefits are mandatory in Singapore?
Employers must provide CPF contributions and statutory benefits such as paid maternity and paternity leave, ensuring necessary support for employees. Compliance with these regulations is vital for maintaining good employer-employee relations.
2. How is the CPF structured in Singapore?
CPF contributions are divided into three accounts: Ordinary Account, Special Account, and Medisave Account, each serving different purposes for retirement, healthcare, and housing. Understanding the CPF structure helps employees plan for their financial future.
3. When should meal allowances be provided in Singapore?
While not mandatory, many employers offer meal allowances or benefits to enhance employee satisfaction. These can be cash allowances or subsidized meals, depending on company policies.
4. What additional benefits are common in Singapore?
Companies often provide health insurance, performance bonuses, and flexible working arrangements. These benefits enhance employee engagement and retention, contributing to a positive work environment.
TERMINATIONS
in Singapore
The notice period varies based on the employee’s length of service, typically ranging from 1 day to 4 weeks, as specified in the employment contract.
Employees may be terminated without notice for gross misconduct, failure to fulfill job responsibilities, or breaches of contract.
Severance payments are not mandatory in Singapore but may be provided based on contractual agreements or company policy. Employers are encouraged to offer fair severance to support transitioning employees.
Comparison Table: Global EOR & PEO Providers – Italy
| Feature | Globaine PEO | Deel | Papaya Global | Oyster | Velocity Global |
|---|---|---|---|---|---|
| Employer of Record (EOR) | Available in 120+ countries | Available in 150+ countries | Available in 140+ countries | Available in 180+ countries | Available in 150+ countries |
| Pricing (Setup Fees & Monthly Fees) | No Setup Fees, $199/person/month | Not Applicable, $599/person/month | $770 Setup Fees, $700/person/month | Not Applicable, $599/person/month | $4800 Setup Fees, $1500/person/month |
| Compliance | Strict adherence to Italian regulations with local experts available | Not Sure | Not Sure | Not Sure | Not Sure |
| Onboarding | Same-day onboarding | 2 days, on average | 1-2 days | 1-2 days | 1-2 days |
| Payroll Cycles in a Month | Regular Pay Cycle + Off Cycle | Regular Pay Cycle Only | Regular Pay Cycle Only | Regular Pay Cycle Only | Regular Pay Cycle Only |
| Expenses Support | 24-hour expenses reimbursement | With Regular Payroll Cycle | With Regular Payroll Cycle | With Regular Payroll Cycle | With Regular Payroll Cycle |
| Benefits | Benefits Package tailored to Italy | Not Sure | Not Sure | Not Sure | Not Sure |
| Customer Support | 24/7 support, including access to Italian legal and benefits experts | 24/7 live chat support, email/help desk, FAQs/forum | 24/7 live chat support, email/help desk, FAQs/forum | 24/7 live chat support, email/help desk, FAQs/forum | 24/7 live chat support, email/help desk, FAQs/forum |
FAQs
1. What is EOR in Singapore?
An Employer of Record (EOR) in Singapore allows companies to hire employees without establishing a local entity. The EOR manages payroll, tax compliance, CPF contributions, and benefits, ensuring compliance with Singaporean labor laws and regulations.
2. How long does it take to hire employees through Globaine's EOR in Singapore?
The hiring process can be completed in as little as 12 hours, allowing businesses to quickly onboard talent and respond to market demands.
3. What types of contracts are available for employees in Singapore?
Employees can be offered various contract types, including full-time, part-time, and temporary contracts. These contracts are tailored to meet specific job roles and requirements while ensuring compliance with labor laws.
4. Are there any restrictions on dismissing employees in Singapore?
Yes, dismissals must comply with the Employment Act and may require notice periods or valid reasons for termination. Employers must follow proper procedures to avoid potential legal issues.
6. How does Employer of Record work in Singapore?
An EOR in Singapore acts as the legal employer, managing payroll, benefits, and compliance with labor laws. The EOR ensures adherence to CPF contributions and tax regulations, enabling businesses to hire employees efficiently and maintain compliance with Singapore’s strict labor standards.
