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Compliantly hire and expand your business in Singapore
When it comes to employing and managing employees in Singapore, there are specific procedures and regulations that must be followed.
Singapore is an island country and city-state in maritime Southeast Asia. It is located about north of the equator, off the southern tip of the Malay Peninsula. The country’s territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It has the second highest population density of any country in the world, although there are numerous green and recreational spaces as a result of urban planning. With a multicultural population and multi-racialism enshrined in the constitution which continues to shape national policies in education, housing, and politics.
Singapore
Capital
$87,884
GDP per Capita
$497.347 billion
Total GDP
5,917,600
Total Population
0.939
Human Development Index
UTC +8
Time Zone
English, Malay, Mandarin, Tamil
Official Languages
Singapore Dollar
Currency
734.3 km2 (283.5 mi2)
Land Area
Here's what you need to know
Overall, employing and managing employees in Singapore requires attention to specific regulations and requirements. Working with a local expert in employment and payroll can help ensure that you’re meeting all the legal requirements and providing a positive employment experience for your staff.
Employment contracts are not mandatory in Singapore, but highly recommended. They should clearly outline:
Job title and duties
Salary and benefits
Working hours and overtime pay
Leave entitlements (annual leave, sick leave, etc.)
Termination terms (notice period, severance pay)
Confidentiality clauses (if applicable)
Minimum Wage
Singapore does not have a mandated minimum wage. Salaries are determined by negotiation between employer and employee based on skills and experience.
Payroll Terms
Salaries must be paid at least once a month, within 7 days of the salary period's end. Overtime pay needs to be paid within 14 days. Employers must issue itemized payslips to all employees.
Taxes
There is no payroll tax withheld from employees' salaries in Singapore. Employers are responsible for making contributions to the Central Provident Fund (CPF), a social security scheme. Employer contribution rates are 17% (capped at a certain amount), while employees contribute 20% of their monthly wages (also capped).
Income Tax
Employees are responsible for filing their own annual income tax return directly with the Inland Revenue Authority of Singapore (IRAS).
Portugal has a standardized leave policy mandated by the Labour Code:
Annual Leave
At least 6 working days per year, increasing with service duration.
Sick Leave
Up to 60 days of paid medical leave per year, subject to doctor's certification.
Hospitalization Leave
Up to 6 days of paid leave for hospitalization.
Maternity Leave
Up to 16 weeks of paid leave for female employees.
Paternity Leave
Up to 2 weeks of paid leave for male employees.
Childcare Leave
Up to 6 days of unpaid leave per year for parents with young children.
Probationary Period
There's no mandatory probationary period in Singapore. However, employment contracts often include a probationary period, typically lasting between 3 and 6 months. During this time, termination can be easier for both employer and employee.
Termination of Employment
Termination of employment should follow the terms outlined in the contract or the Employment Act. Notice periods are typically one month for the first year and increase with service duration. Severance pay may be required depending on the reason for termination and length of service.
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