PEO in Singapore – Find Your Gateway to Asia | INS Global

PEO in Singapore

Hire Globally, Pay Locally, Expand Effortlessly

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), sometimes called an EOR (Employer of Record), acts as a local partner in a new country to allow you to hire and manage your employees easily. 

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. 

INS Global is your local partner for global Human Resources services. With over 15 years in 80+ countries, speak with a consultant today to see how INS Global can support your company’s global hiring needs. 

Forming a legal entity in a foreign country can be a hassle and means lengthy delays at a crucial time in your company’s development. Partnering with a local PEO allows you access to a new market without company incorporation’s complexity and costly drawbacks. 

Why choose a PEO in Singapore over Company Incorporation?

A PEO:  

  • Makes the most of local support and resources
  • Reduces cost 
  • Reduces setup time 
  • Cuts through problematic bureaucratic hurdles

PEO in Singapore - Summary

What are the advantages of using a Professional Employer Organization?

Be Confident of Legal Compliance

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. 

Save Time, Save Money

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.

Reduce Unnecessary Tasks

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.  

Quicker Market Entry

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. 

Streamlined Company Structure

One point of contact allows you to reduce the number of employees you need to manage your HR services in a new country. 

How can you make the most of a PEO in Singapore?

INS Global’s PEO manages your employee recruitment or assignment needs in China in 4 simple steps:

  1. We meet with you to understand your requirements and formulate a service agreement that best fulfills your individual needs 
  2. We legally hire your employees in Singapore, taking responsibility for organizing administrative and legal obligations  
  3. Our local staff takes care of all the HR services you need while you focus on making the most of your entry into the Singaporean market.
testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How are a PEO and an EOR different?

While similar, it’s helpful to understand the differences between a PEO and an EOR and what each can do for you: 

  • A PEO provides specific HR services for their employees on behalf of other companies. 
  • These services may include: labor law compliance, tax and benefit management, and payroll
  • As well as providing HR services, an EOR also legally hires and regulates all aspects of employment for a worker
  • In addition to the services provided by a PEO, an EOR is responsible for all liabilities involved in recruiting and employing employees. 
  • In both cases, the contract is made on behalf of the original employer

In Singapore both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

What’s The Difference Between PEO And EOR?

INS Global is your local partner for global Human Resources services:

  • Payment calculation and processing
  • Arranging payslips
  • Tax calculation and management
  • Withholding social security contributions
  • Regulatory Compliance Assurance

Labor Law in Singapore

Employment Contracts in Singapore

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

Working Hours in Singapore

  • A workweek in Singapore consists of no more than 44 hours of work per week, or 9 hours per day (a worker must not exceed 12 hours in a day) 
  • Breaks per day must be no less than 45 minutes.  
  • Part-time is considered to be less than 35 hours per week. 
  • With prior acceptance, overtime salary is generally calculated as 1.5x standard rate. Overtime must not exceed 72 hours per month.  

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. 

Holidays and work in Singapore

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.

Sick Leave in Singapore

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.

Maternity/Paternity Leave in Singapore

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.  

Tax Law in Singapore

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. 

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FAQs

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.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

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.