Singapore

Currency Singapore Dollar
Payroll Frequency Monthly/ paid by the 5th of the following month
Capital Singapore
Date Format dd/mm/yyyy
VAT 7% standard rate

Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Singapore. TopSource provides Employer of Record services to global companies establishing a presence in Singapore that do not wish to be burdened with the complications of Singapore employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Singapore, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.

Services we offer

Payroll Processing
• Payroll bureau solutions for your Singapore entity
EOR
• Employment solutions/leasing • Providing documents associated with employment
• Employee on-boarding process and documentation • Monthly salary calculation
• Salary disbursement to employee’s account • Pay slip generation (If applicable)
• Employee statutory benefits administration and deduction
Supplementary services
• Foreign exchange and money transfer services for payment of employees and 3rd parties

Company formation in Singapore
We can help with company registration, company incorporation along with all the necessary documentation in Singapore. We can also assist foreign companies to smoothly setup a company anywhere in Singapore.

Statutory Compliances
We offer high-quality corporate statutory compliance services in Singapore. Our services meet highest standards and meet all your compliance requirements.

  • Minimum Wage

    Singapore does not have a minimum wage policy, however, there are a few exceptions (i.e. cleaners, food and beverage servers).

  • Taxes
    Employer
    Up to 17% – CPF (Pension) Up to 0.25% – Skills Development Levy (SDL)
    Employee
    0.00% – Up to 20,000 2.00% – 20,000 – 30, 000
    3.50% – 30,000 – 40,000 7.00% – 40,000 – 80,000
    11.50% – 80,000 – 120,000 15.00% – 120,000 – 160,000
    17.00% – 160,000 – 200,000 18.00% – 200,000 – 320,000
    20.00% – Over 320,000
About Employment in Singapore

Working Hours

Fulltime employment is considered 44 hours weekly, and 8 hours daily. It is compulsory to give an employee a break at least every six hours.
From April 1 2019, work done during public holidays is paid as an extra day salary regardless of the number of hours worked.

Vacation Days

According to the Employment Act, employees are entitled to minimum 7 days of annual leave after working in the company for three consecutive months. Afterwards one additional day is added per each year. Common practice: The employee is entitled to 14 to 20 days of annual leave.

Sick Days

Workers are entitled to leave as follows: > 0 -3 months of employment: 5 days/15 if hospitalized < 4 months of employment: 8 days/30 hospitalized < 5 months of employment: 11 days/ 45 hospitalized < 6 months: 14 days/60 hospitalized * From April 19 2019, with new employment act amendments, workers are no longer required to provide certification from either a medical practitioner or governmental doctor, any Singapore register doctor is accepted.

Maternity Leave

If the child is a Singapore citizen, the parents are legally marries, and the mother has been employed for over 3 years, she will be entitled to 16 weeks of paid government leave. From April 1 2019, all employers are covered to receive 8 week paid leave and 4 additional unpaid weeks for the first and second child. For the third child 12 weeks are provided.

Paternity Leave

Working fathers employed for more than 3 months are entitled to government paid paternity leave of two weeks.

Parental Leave

Parents are entitled to 2 days paid childcare leave yearly for children under four. Additional parental leave is available to parents of a Singaporean citizen.

Pension/The Employment Act

The employer contributes from 16% with monthly salary ceiling of $960. The employee contributes 20% with monthly salary ceiling of $1,200. *Contributions aren’t made for foreign employers on either a work permit or employment pass.

Singapore’s main labour law covering local and foreign employees working under a contract of service with an employer.

Social Security

16% for Singaporean nationals and Singapore permanent residents (with a limit of 960 SGD/ month). The Skills Development Levy (SDL) is payable is at 0.25% of the monthly remuneration for each employee, with the minimum payable of $2 (for an employee earning less than $800 a month) and a maximum of $11.25 (for an employee earning more than $4,500 a month). 20% for Singaporean nationals and Singapore permanent residents (with a limit of 960 SGD/ month).

Termination/ Severance

Employers are legally required to provide written notice or payment in lieu. Employers have the responsibility of holding an expatriate employee his due monies; prorated salary, bonus, unused vacation days, approved expenses for that month and an air ticket unless employee agrees otherwise in writing. Following, one month prior to termination date, the employer is required to file the IR21 Tax form. If Employees’ taxes are borne by their employer, the employer makes the payment to the revenue board on behalf of the employee. In the case where the employee wishes to bear the tax expenses himself, employer is entitled to deduct the tax amount from the employee’s salary and pay the tax expenses on his behalf before releasing his final salary. The employer now bears the responsibility of cancelling the employment pass granted to the employee one week prior to employment termination. In lieu, a short-term visit pass will be generated if the worker is still in Singapore. A copy of the cancellation acknowledgement needs to be provided to the employee to ensure a smooth departure. Failure of following the regulations set by the ministry of Manpower will result in either a late filing fee, law suit, or exposing your employee to the risk of an outstanding tax payment.
The severance payment includes all the salaries and benefits due at the last day of employment. If the employee has been employed for at least 3 years they are entitled to receive “retrenchment benefits”. The amount is decided by the employee and employer at the time of hiring.
To learn more, contact us now.

Contact Sales

0203 6915303
contactus@topsource.co.uk

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