Employer of Record in Singapore
Skuad’s Singapore Employer of Record (EOR) solutions assist in the smooth expansion of your business in Singapore. A favorable business environment for overseas investors, low tax rates, and an immensely skilled workforce make Singapore an apt choice for expanding your scale and reach. It comes as no surprise that it is one of the favorite destinations of entrepreneurs aiming to expand globally. Skuad as your EOR in Singapore adds to the charm as you would not require to set up a separate legal entity to do business in Singapore.
Hiring employees in another country can be time-consuming and arduous as it requires knowledge of the local laws and regulations. Skuad makes this task easier by offering customized solutions for your human resources needs. As a reputed and trusted EOR solutions company in Singapore, Skuad takes the responsibility of handling the on-boarding, taxes, and payroll of employees in Singapore in strict compliance with the local laws and regulations.
Singapore at a Glance
Population: 5.7 million people (2019 estimate)
Languages: English, Malay, Mandarin, and Tamil
National language: Malay
GDP: $600 billion (2021 estimate)
Currency: Singapore Dollar
Employment in Singapore
Singapore has a business-friendly environment, which makes it a lucrative destination to expand your business. Organizations planning to grow their business in Singapore must have in-depth knowledge about Singapore labor laws. A clear understanding of Singapore’s employment laws enables you to comply with the regulations and employ workers with ease.
There has been a drastic increase in the demand for knowledge workers in recent years. The other prominent sector is banking and finance.
The main tenets of Singapore’s Employment Act, 1968 are given in the following table.
The complex nature of employment laws and guidelines makes the services of professional EORs in Singapore indispensable. Skuad helps organizations manage a remote team in Singapore through its advanced global HR platform. Book a demo to learn more.
Contractors vs. Full-time Employees
Organizations can opt to hire full-time employees or contractors according to their business needs. An employment contract in Singapore states the terms of the relationship between an employer and an employee. It is essential to have an employment agreement in Singapore as it specifies the rights and obligations of the employer and employee. The main points of distinction between a full-time employee and an independent contractor are as follows.
- A full-time employee is paid monthly. A contractor is a temporary employee and is paid for their services in a lump sum or commission.
- Employers can exert complete control over full-time employees and direct them to work according to their business needs. However, an independent contractor uses their discretion to work independently.
- An organization must contribute to the Singapore central provident fund (SCPF) for its full-time employees. The employer and the employees contribute to the SCPF monthly. An independent contractor is not entitled to this benefit.
- An employee’s entire income is taxable, and personal expenses cannot be deducted from the income for tax computation. However, an independent contractor would deduct their business expenses from their income and compute the tax liability.
- Full-time employees are entitled to receive all the benefits covered under the Employment Act. Contractors are not entitled to receive employee benefits.
Organizations should hire full-time employees for regular duties that are necessary for the long term. Contractors or freelancers should be hired for specific services that are required in the short term. Skuad helps organizations to find the right blend of full-time and contract-based employees, keeping in mind the diverse organizational requirements. Skuad ensures that your company complies with the Employment Contract Law, Singapore, and follows labor practices. Partner with Skuad to learn more and increase the scale and reach of your business.
Hiring in Singapore
Hiring in Singapore can be daunting for a firm that does not have a legal entity there. To hire employees in Singapore, one must be well aware of the employment regulations of Singapore. The popular route is to go through hiring platforms in Singapore such as Jobstreet, Gumtree, Beam,CareerBuilder, and Freelance Zone, which have skilled and adept talent willing to work for your organization. These platforms are advantageous as they help to find the right candidates and save you time and money. However, on the other hand, it entails having to screen several applications to find the right one.
Skuad simplifies the process of hiring in Singapore. After understanding the desired qualifications, responsibilities, duration of service, and salaries of the employees, Skuad drafts an agreement of employment that complies with the local laws. Thereafter, the new employee is registered for payroll. Skuad manages the payroll and prepares payslips every month.
A dedicated Account manager is appointed to each client and is responsible for tracking all the details and the payslips of the employees. Skuad assists with performance evaluation of employees and termination whenever required. Book a demo to learn more.
Probation & Termination
The probation period of employees in Singapore varies from three to six months in different organizations. An employee is treated as a permanent employee of an organization upon completing the probation period.
Termination of employment in Singapore should be done with utmost care because it entails huge risks for employers. Taking the assistance of an established EOR solutions company in Singapore, such as Skuad, helps prevent any future litigation. Skuad offers complete guidance and support in the matters of probation and the termination of an employee.
Skuad has a client-centric approach and delivers end-to-end EOR solutions to its diverse clients. The integration of different economies has increased the opportunities to expand your business globally. An EOR service organization plays a vital role in helping you to expand your business operations.
Employer of Record Service Terms in Singapore
Types of Visas in Singapore
Foreign workers must mandatorily possess proper visas as per the immigration laws of Singapore. Skuad helps you arrange Singapore work visas and permits for your employees. The major types of work visas are as follows.
As an eminent EOR in Singapore, Skuad offers a hassle-free mechanism and takes the responsibility to arrange visas and sponsor them in Singapore in compliance with Singapore work visa requirements. Talk to us to find out more.
As an EOR, Skuad sponsors the work permits required by the employees in Singapore. Skuad arranges Singapore work permits for foreigners and without a job offer. It takes around seven to 14 days to process the work permits. Skuad’s local entity applies for the work permit and receives an in-principle approval (IPA) letter for the employee. The employee can enter Singapore with this letter. Skuad applies for a pass for the employee. The employee registers their fingerprints and a photograph with the Employment Pass Service Centre (EPSC) to receive their pass. The pass is valid for one year and can be renewed.
Payroll & Taxes in Singapore
Business organizations aiming to explore the potential of Singapore to grow their business must follow the payroll and taxation rules of Singapore. Partnering with an EOR solutions company in Singapore and outsourcing the payroll mechanism is a convenient and cost-effective method to follow the tax legislation on employees in Singapore.
The tax structure of Singapore is as follows:
Skuad has the required expertise to manage your payroll in Singapore and comply with the tax guidelines. By acting as your Singapore employer, it handles the payroll and related taxes. Book a demo to learn more.
Incorporation: How to Set Up a Subsidiary in Singapore
Singapore is a favorite business destination for all budding entrepreneurs because of its business friendliness. Business in Singapore can be very profitable as it offers tremendous opportunities for growth and expansion. You can start your business in Singapore by the following three methods.
- Representative office
- Branch office
- Subsidiary company
To establish a subsidiary company in Singapore, you must follow the following process.
- Register your company’s name.
- File the Memorandum of Association, Articles of Association, Statutory Declaration Form 6, Identity Certificate, Notice of Registered Office, and Consent to Act as a Director.
- Appoint representatives such as Director, Agents, and Company Secretary.
- Get a company seal.
- Open a bank account.
- Provide for Employee Insurance via the CPF.
Skuad provides a holistic solution for incorporating a holding company in Singapore. Skuad is a one-stop destination to meet all HR requirements of a business as it handles the entire paperwork and formalities on your behalf. You can free up time and resources to explore the business opportunities in Singapore and magnify the scale of your business. Talk to us to resolve your doubts.
Professional Employer Organization (PEO)
A professional employer organization (PEO) renders similar services offered by EOR solutions company. The key difference is that a PEO acts as a co-employer of your remote team and manages all human resources activities while you remain the legal employer, whereas an EOR besides handling all human resources operations becomes the legal employer of your employees and the liability of employees lies with them.
Skuad offers EOR solutions. You may opt for a PEO or an EOR depending on the level of involvement you prefer in human resources operations. Book a demo for comprehensive support and guidance.
Conclusion: What Gives Skuad’s Singapore Solutions an Edge?
Skuad has carved a niche in the EOR solutions industry for itself with its highly professional and successful services. Skuad has the required expertise and experience to assist you in amplifying the scale of your business in Singapore. Learn more about Skuad’s synchronized approach to give an impetus to your business and widen its horizons.
Talk to us for enhanced support regarding HR management in Singapore with our holistic EOR solutions.