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 | ||
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Price |
80% Less Expensive |
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Market Entry |
2-5 Days |
6 Months |
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Employee Turnover |
Decrease by 14% |
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Recommendation |
98% of the Current PEO Clients |
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Administrative Fees |
Saves an Average of $450 |
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Costly Payroll and Compliance Fines |
Help Avoid |
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Company Growth Rate |
7 - 9% |
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ROI |
27% |
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Closed During Pandemic |
-58% |
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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.
A proportion of a co-employed worker‘s monthly salary is used to calculate the cost of professional EOR services in Singapore. This cost includes all HR duties necessary to guarantee adherence to all regional employment laws.
A Singapore EOR is a secure, legal, and effective way to manage employer duties in Singapore without having to set up a particular company structure there. This is done by EORs employing legal experts in the target market and providing excellent HR support.
Your team members are fully protected by the law, have access to all Singaporean employee perks, can receive even higher benefit packages, and receive accurate and timely payments each month with an EOR service agreement.
Independent contractors that interact with their clients within a Singaporean EOR framework may enjoy many or all of the same benefits as regular employees while maintaining complete control over their work, just as if they were working through an umbrella organization.
By utilizing their in-depth knowledge of local business resources and benchmarks, extensive professional networks, and persistent dedication to ethical hiring practices, our team of skilled recruitment consultants can locate the best local talent in Singapore for your needs. The integration of these new hires into our EOR framework will thereafter be simpler and more efficient than if hired through traditional means.
Through INS Global, you can obtain comprehensive compliance-assured employment outsourcing support that meets all local, regional, and national requirements from a truly global EOR services provider. As a result, you may confidently hire workers in Singapore wherever you need them because all regional requirements and standards are met through the EOR.
There can be minimum recruiting standards or a cap on the number of employees you can hire at once with some PEO or EOR service providers in Singapore. However, INS Global is aware that you may need to scale up or down swiftly at any time as part of your international expansion strategy. Because of this, working with us gives you the flexibility to hire however many or few personnel you require to pursue your objectives.
Salary, recruiting service fees, signing bonuses, and other direct and indirect expenditures like incentive programs, foreign employee tax, and social insurance should all be factored into the total cost of hiring in Singapore.
Using Singaporean PEO services means you are not required to have an address in the country, sidestepping lengthy incorporation requirements.
However, it’s still a good idea to provide your employees the choice to work in a shared workspace or to give them the freedom to do so whenever and wherever it’s most convenient.
Yes, we guarantee total compliance by connecting persons with the required visa and work permit requirements where local employment regulations, tax regimes, or employee benefits differ for Singaporeans or foreigners.
EOR and PEO solutions are perfect for businesses of all sizes, from SMEs to multinational organizations, to ensure the effective and secure employment of international or local staff. This is due to the fact that they can quickly scale up to meet growing employment demands as you need, and because they can replace more complicated internal HR requirements.
Businesses in a number of industries that either don’t have their own structures in a target country (or desire to avoid cost-scaling issues while focusing on expansion) would benefit greatly from the legal expertise offered by PEO and EOR services.
Two examples of third parties that may be used to directly or indirectly engage independent contractors are staffing companies and umbrella companies.
Most independent contractors in Singapore are either self-employed or have small businesses of their own. According to Singaporean legislation, contractors must be recruited in line with a work agreement rather than an employment contract.
An independent contractor may be asked to submit a CV, portfolio, verified references, and possibly a signed NDA before work begins.
Employers in Singapore organize payroll for their workers, usually on a monthly cycle. Each worker should be given an itemized payslip including all deductions for income tax (IIT), social security contributions (including a worker’s CPF, pension, and potentially a foreign worker’s levy), and employee compensation insurance.
All employers have to be registered with the various employee funds and government departments in order to organize payroll.
Lacking a single, national minimum wage, Singapore instead has several minimum amounts according to the sector. In addition, foreign workers will be subject to specific minimums in order to meet work permit requirements.
When considering transferring or hiring foreign workers in Singapore, it should be noted that the country provides a number of visa options with complex requirements.
Short-term work passes are available for up to 60 days to allow workers to perform limited business duties such as attending meetings or conferences.
Work permits for foreign workers are available to workers from a limited list of countries in a limited number of industries for 1-2 years.
An S-Pass allows mid-level workers earning above a minimum threshold to live and work in Singapore for up to 2 years at a time.
Employment passes allow high-level professionals earning a higher minimum threshold to live and work in Singapore for 2-3 years at a time.
EntrePasses are available to entrepreneurs meeting minimum starting capital requirements to open businesses in Singapore. They are valid for up to a year at a time.
In Singapore, employers are responsible for making additional contributions to each employee’s combined social security funds. These employer contributions equate to 17% of an employee’s typical salary.
Employees in Singapore are entitled to a state pension, paid leave, and a safe working environment.
Additional health insurance is only mandated for specific worker types, including foreign workers. Singaporean citizens get their healthcare through access to the government healthcare scheme.
Employers need an employee’s informed consent to make any changes to their work contract with all changes made through signed amendments.
Local citizens have access to Medisave, the government-run healthcare system. This is not free, but offers care for small user fees.
Companies with foreign employees are obliged to provide additional forms of health insurance that give these workers access to healthcare.
Contract termination notice periods in Singapore depend on the length of service of the employee. Notice periods range from 1 day for short-term or casual contracts, all the way up to 4 weeks for service periods above 5 years.
Severance pay in Singapore is typically 2 weeks to 1 month of standard salary per year of service.
The Ministry of Manpower (MoM) oversees the implementation of the Employment Act (EA) and all other labor-related regulations in Singapore.
Employees in Singapore are eligible for paid leave on the country’s 11 public holidays.
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