Employer of Record in Singapore (EOR in Singapore)
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- Capital City
- Singapore City
- Languages
- English, Malay, Mandarin, Tamil
- Currency
- Singapore Dollar (SGD)
- Population Size
- Approximately 5.92 million
- Employer Taxes
- 17%
- Employee Costs
- 37.25%
- Payroll Frequency
- Monthly
Hire Globally, Pay Locally, Expand Effortlessly
We act as your Employer of Record in Singapore. This country has a strategic position in Asia and its thriving economy make it an attractive market for international companies. However, the complexities of Singaporean labor laws and tax systems can be daunting for businesses new to the region. An Employer of Record (EOR) can streamline this process by acting as a local partner, ensuring compliance with all regulations and facilitating a smooth market entry.
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Choosing Between an Employer of Record and Company Incorporation in Singapore
While setting up a subsidiary in Singapore is an option, using an Employer of Record provides several advantages:
- SpeedThe process of setting up in Singapore is faster with an Employer of Record like INS Global, enabling you to begin operations and hire staff much sooner. Company incorporation can take several months, whereas an Employer of Record can have your team operational within weeks or even days.
- Compliance – Both Employer of Records and subsidiaries must adhere to Singaporean tax laws and labor regulations. Employer of Records bring specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
- Cost – For smaller teams or temporary needs, Employer of Record services can be more cost-effective than establishing a subsidiary, as they help you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, EORs provide efficient integration into multi-country payroll systems.
- Control – While incorporation offers complete control over HR, finances, and operations, Employer of Records provide similar control over your workforce while reducing administrative responsibilities and liability.
PEO/EOR Vs Company Incorporation
The Advantage in Figures
| PEO/EOR | Company Incorporation | |
|---|---|---|
| Price | 80% Less Expensive | |
| Market Entry | 2-5 Days | 6 Months |
| Employee Turnover | Decrease by 14% | |
| Recommendation | 98% of the Current PEO Clients | |
| Administrative Fees | Saves an Average of $450 | |
| Costly Payroll and Compliance Fines | Help Avoid | |
| Company Growth Rate | 7 – 9% | |
| ROI | 27% | |
| Closed During Pandemic | -58% | |
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The Advantages of a Singaporean Employer of Record On Your Business
Efficient Setup
An Employer of Record streamlines the complexities of entering the Singaporean market by managing complex tax systems and labor laws, ensuring compliance from the start.
Consistent Compliance Management
Navigating Singapore’s regulatory laws can be demanding, but Employer of Records have the expertise to ensure your business complies with local tax laws, labor regulations, and social security contributions.
Minimized Risk and Liability
As your legal employer in Singapore, an Employer of Record mitigates the risks that come with employment regulations, ensuring full compliance.
Cost Planning and Management
Employer of Record services are typically more cost-effective than setting up a local subsidiary, especially for smaller teams or temporary projects, helping you avoid initial incorporation costs and ongoing administrative burdens.
The Ability to Focus on Core Business Objectives
By outsourcing HR tasks such as recruitment, payroll processing, and tax management to your Employer of Record, you can concentrate on your core business activities.
How an Employer of Record in Singapore Kick Starts Global Expansion in 3 Steps
1
Comprehensive Planning & Needs Assessment
Collaborating with an Employer of Record in Singapore, such as INS Global, commences with a thorough assessment of your business objectives. This involves determining the required number of employees, their specific roles, and your desired timeline for market entry. The Employer of Record subsequently customizes its services to perfectly align with your unique business needs, ensuring a smooth and efficient transition into the Singaporean market.
2
Streamlined Setup, Recruitment & Onboarding
Whether you are forming a new team in Singapore or transferring existing staff, an Employer of Record handles all necessary legal processes. This includes managing visas, work permits, payroll, and contract management, ensuring full compliance with Singaporean labor laws. Acting as your legal employer in Singapore, the Employer of Record saves you the time and expense of setting up a local entity.
3
Ongoing Management & Compliance Assurance
Once your employees are operational in Singapore, an Employer of Record manages ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The Employer of Record acts as the HR liaison between you and your Singaporean team, handling administrative tasks and addressing employee concerns, allowing you to focus on business growth.
5 Essential Factors for Selecting the Best Employer of Record in Singapore
Choosing the right Employer of Record in Singapore is crucial for successful market entry. Consider these 5 key factors:
- Experience and Track Record – Look for an Employer of Record in Singapore with a proven track record and a strong industry reputation, such as INS Global. Client testimonials and industry awards can indicate reliability.
- Comprehensive Service Offerings – Ensure the Employer of Record in Singapore offers all necessary services or can customize their offerings to meet your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating Singapore’s tax and labor regulations.
- Scalability – Choose an Employer of Record in Singapore that can scale its services as your business grows. They should be able to manage an increasing workforce and evolving business needs.
- Clear Communication and Transparency – Opt for an Employer of Record in Singapore known for clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to vital information.
- Transparent Cost Structure – Compare the pricing models of various Employer of Record providers in Singapore. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your Employer of Record in Singapore.
INS GUIDES
Check Our Labor Law Guide
Singapore Labor Law Overview
Employment Contracts
Contracts must be in English and outline employment terms including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record in Singapore ensures your contracts comply with local labor laws.
Probation periods in Singapore typically last up to 3 months. An Employer of Record can help set up probation periods that comply with local laws while allowing you to assess new employees.
Standard work hours in Singapore are usually 44 hours per week with limits on overtime. Employer of Record services assist in tracking work hours and ensuring compliance with overtime regulations.
Types Of Leave
Employees in Singapore are entitled to various types of paid leave including public holidays, annual leave, sick leave, and maternity leave. An Employer of Record manages leave requests and ensures proper compensation according to Singaporean labor laws.
Health Insurance and Social Security
Both employers and employees contribute to health insurance and social security schemes. Your Employer of Record handles these contributions as part of the payroll process.
Severance Pay
Severance pay is required in certain situations such as termination without cause. An Employer of Record guides you through severance pay practices and calculations to ensure compliance with local laws.
Navigating these complexities in-house can be challenging and time-consuming. Partnering with an Employer of Record in Singapore ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.
Employers in Australia are expected to organize tax and payroll for their employees and register them for the national “Pay As You Go” tax structure, withholding a portion of their employees’ earned income to go towards this scheme.
Current tax rates are based on brackets and vary between 19-45% for income above AUD 18,200.
There is also a national 2% levy on earned income to fund the National Health Scheme
Employers are expected to give an amount equivalent to 10% of their employees’ earned income towards the national pension scheme.
As of January 2022, all earnings in Victoria, Australia, will also be subject to an additional  . Similar surcharges may follow in other states and territories, so it is suggested that employers stay aware of any changes to tax laws.
Corporate tax is currently at 30% for income above AUD 50 million.
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Discover More Solutions in Singapore
Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.
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