Suppose your company is looking to expand into the Singaporean market without going through the costly and complex process of setting up your own legal identity in Singapore. In that case, a PEO may be the best way to outsource your HR needs.
A PEO (Professional Employer Organization) in SIngapore, sometimes called an Employer of Record (EOR), acts as a local partner in a new country to allow you to hire and manage your employees easily.
With a PEO in Singapore, companies can office compliance assurance to employees worldwide in less than 72 hours.
When businesses need support throughout the global expansion process, an Employer of Record (EOR) in Singapore offers cost-effective utility by taking care of employer responsibilities. Hire or transfer employees in markets worldwide in a fraction of the time of traditional methods with INS Global’s innovative employment outsourcing solution.
PEOs can legally employ your staff on your behalf and provide all the HR services you need. You can outsource your payroll and social security contributions, giving you the time to grow your company.
A PEO:
Understanding local laws and regulations is time-consuming and fraught with risks. Partnering with a local PEO allows you to make the most of their expertise in administrative and legal compliance matters.
More than just saving money by avoiding costly fees and fines for making errors, a PEO allows you to consolidate your HR needs into a single monthly payment.
A PEO can not only take charge of legally employing your workers in Singapore for you, but they also offer a range of services such as recruitment, headhunting, contractor management, and payroll outsourcing.
Estimated time for Company Incorporation in a new market: 4-12 months
Estimated time to establish a PEO relationship: 5 days
*Global estimate
Rather than spending months going through the process to incorporate a new legal entity, get to work in a matter of days.
One point of contact allows you to reduce the number of employees you need to manage your HR services in a new country.
INS Global’s PEO manages your employee recruitment or assignment needs in Singapore in 4 simple steps:
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% |
|
|
|
|
|
|
|
Manuel Ramos
TERAO ASIA
Managing Director
While similar, it’s helpful to understand the differences between a PEO and an EOR and what each can do for you:
In Singapore both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements
INS Global is your local partner for global Human Resources services:
Owing to the unique history of Singapore, there are several essential matters to consider when you want to employ someone in the country.
Singapore’s employment model is based on the idea of “tripartism”, meaning the cooperation of the government, the trade unions, and employers to ensure the fairest possible working conditions for people in Singapore.
Written contracts are an important part of employment in Singapore. We suggest taking the time to carefully consider and create a contract that works well for both employer and employee. That being said, all new employees should also be given a written document explaining key employment details within two weeks of being hired, which works in effect as a kind of employment contract. This document must contain all the usual information (including an itemized pay slip) in a standard employment contract. It must state all amounts in Singaporean Dollars (SGD).
Additional conditions exist for hiring foreign employees. The penalties for failing to meet or attempting to avoid these conditions can be very severe.
Note: The Employment Act of Singapore does not cover some jobs, including some high-level titles within companies, regarding working hours and holidays. We advise checking which regulations apply.
Workers must be provided with at least 1 whole rest day per week (except shift workers)
An employer cannot compel an employee to work on a rest day without acceptance. Hours worked on a rest day are calculated depending on several factors.
There are 11 public holidays per year in Singapore owing to the multiple cultural and religious groups that make up society.
More information on these holidays and their dates each year can be found here: https://www.mom.gov.sg/employment-practices/public-holidays
Employees asked to work on a public holiday should receive an extra day’s salary at the basic rate of pay plus their gross holiday pay for their labor.
To qualify for sick leave in Singapore, employees must have worked for their employer for more than 3 months. The employee must then receive certification from a licensed medical practitioner within 48 hours to claim paid sick leave. This does not include paid hospitalization leave.
Typically, employees in Singapore are entitled to a minimum of up to 14 days of paid sick leave per year and 60 days paid hospitalization leave after 6 months of working at a company.
Please note: An employee who takes paid sick leave will also have a reduced amount of time to take as paid hospitalization leave.
Female Singaporean employees who have worked for a company for more than 3 months are entitled to 16 weeks of paid maternity leave. The Singaporean government subsidizes half of the employee’s pay during this time.
Non-Singaporean female employees are entitled to up to 12 weeks of maternity leave.
Male employees in Singapore may be entitled to up to two weeks of paternity leave if they can prove they are currently married to the mother or between conception and birth. The government will partially subsidize this.
Up to 4 weeks of maternity leave may be shared with the father if proof of marriage can be provided.
Singapore’s tax system is attractive for its corporate and personal tax rates.
Individual taxes are paid progressively depending on income above 20,000 SGD. Rising to only 22% on anything above 320,000 SGD, Singapore’s taxes are some of the lowest in the world. Corporate tax is capped at 17%.
As well as being aware of personal and corporate taxes in Singapore, it’s essential to understand CPF (Central Provident Fund) contributions, what they go towards and what you, the employer, are expected to pay.
The CPF is a government-organized social security system that works with the Employment Act to ensure that all Singaporeans have basic insurances, including medical and retirement insurance. Contributions to this fund are shared between the employer and the employee. The exact amounts paid into this fund are dependent on the employee’s age.
Non-Singaporeans are not obliged to make payments but may choose to do so.
Employees are eligible for monthly payouts from their CPF at 65.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
Level 39, Marina Bay
Financial Centre Tower 2,
10 Marina Boulevard
Singapore 018983
