Employer of Record (EOR) in Singapore
Employer of Record (EOR) in Singapore enables businesses to hire employees quickly without setting up a legal entity. Singapore has a workforce of around 3.7 million people, highly skilled in finance, technology, logistics, life sciences, and professional services. With its strategic location in Asia and business-friendly regulations, Singapore is a preferred hub for multinational companies. However, local compliance with employment laws, payroll, work permits, and contributions to the Central Provident Fund (CPF) can be complex. EOR services help businesses manage hiring, payroll, and compliance efficiently while staying aligned with Singapore’s labor regulations.
About Singapore
Singapore is a global financial and innovation hub, known for its pro-business environment, political stability, and highly skilled workforce. Located at the crossroads of major Asian trade routes, it serves as a gateway for businesses expanding into Asia-Pacific markets.
The country has a reputation for transparent governance, low corruption, and strong intellectual property protection. Singapore ranks among the top countries in ease of doing business and digital readiness. English is widely spoken, and the workforce is multilingual, reflecting the country’s multicultural population.
Industries such as finance, technology, pharmaceuticals, biotechnology, logistics, and advanced manufacturing thrive in Singapore due to strong government support and investment in innovation. For global companies, Singapore provides a stable environment with access to world-class infrastructure and a competitive workforce.
Employment Terms and Regulations
Types of Contracts
- Permanent employment contracts
- Fixed-term contracts
- Part-time and temporary contracts
Working Hours
- Standard: 44 hours per week
- Overtime capped at 72 hours per month (with exceptions)
Minimum Wage
- No statutory minimum wage, except for certain roles (e.g., cleaners, security officers) covered under Progressive Wage Model
Probation Period
- Commonly 3–6 months, based on employer policy
Taxation and Contributions
- Employers must contribute to Central Provident Fund (CPF) for Singapore citizens and permanent residents.
- No CPF contributions required for foreign employees.
- Corporate tax rate: 17% (flat).
Types of Leave
Annual Leave:
7–14 days, based on service length
Maternity Leave:
16 weeks
Paternity Leave:
2 weeks
Sick Leave:
14 days outpatient, 60 days hospitalization leave
Employee Benefits
- CPF contributions (for locals/PRs)
- Medical coverage (often provided by employers)
- Paid annual leave
- Family leave entitlements
Termination Process
- Notice periods typically 1–3 months, depending on the contract
- Termination requires notice or payment in lieu of notice
- Employers must ensure compliance with Employment Act provisions
Employer Taxes
- CPF Contribution (Employer): 17% of wages (for Singapore citizens and PRs, capped at wage ceilings)
- No social security contributions for foreign workers
- Skills Development Levy (SDL): 0.25% of monthly wages, minimum SGD 2, maximum SGD 11.25
Total Employer Taxes:
Around 17%–18% of gross salary for local hires; much lower for foreign hires (only SDL applies).
EMPLOYER TAXES
17%–18% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
