Employer of Record Singapore

Our Employer of Record in Singapore service enables clients to hire employees without the need to operate a local legal entity there.

About EOR Singapore

It makes a big difference to develop a new market with your own personnel on the ground. Particularly for functions related to sales & marketing, business development, distributor management, and service & maintenance, our customers are very satisfied using our Singapore Employer of Record Service.

Our customers and their local teams can be free of the distractions of administrative tasks and complex local employment regulations. So you can entirely focus on the development of your core business.

If your local business grows large enough, you can easily transfer the employees to your own subsidiary. It also provides a quick exit strategy if necessary. In addition to Singapore, we offer Employer of Record services in several other countries.

Get in Touch with Us

Stephan Dorn

Managing Partner

What is an Employer of Record in Singapore?

An Employer of Record (EOR) in Singapore is a third-party organization that takes on the legal responsibility of employing individuals on behalf of another company. This arrangement allows businesses to hire employees in Singapore without the need to establish a local entity or navigate the intricate local employment laws. Acting as the legal employer, the EOR handles all employment duties and liabilities, including payroll, taxes, benefits, and compliance with local employment laws. This simplifies the process for companies looking to expand their workforce in Singapore, ensuring they remain compliant with all relevant labor laws and regulations.

Benefits of Using an Employer of Record

Using an Employer of Record in Singapore offers several significant benefits:
Simplified Hiring and Compliance: EORs manage all employment-related tasks, ensuring full compliance with local employment laws and regulations.
Reduced Legal Liabilities and Compliance Risks: By assuming all employment duties and liabilities, EORs minimize the risk of non-compliance for companies.
Access to Global Talent: EORs enable companies to hire employees in Singapore without the need to establish a local entity, providing access to a diverse and skilled global talent pool.
Cost-Effectiveness: EORs help companies save on the costs associated with setting up and maintaining a local entity, making it a more economical option for expanding into new markets.

How Does an Employer of Record Work?

An Employer of Record in Singapore operates by:
Hiring Employees on Behalf of the Company: The EOR assumes the role of the legal employer, managing all employment-related tasks.
Managing Payroll and Benefits: The EOR handles payroll, taxes, and benefits, ensuring compliance with local employment laws and regulations.
Ensuring Compliance with Local Employment Laws: The EOR ensures that all employment-related activities adhere to Singaporean employment laws and regulations.
Providing Statutory Benefits: The EOR provides statutory benefits, such as contributions to the Central Provident Fund (CPF) and the Skills Development Fund (SDF), to employees.
This comprehensive approach allows companies to focus on their core business activities while the EOR manages the complexities of local employment.

Compliance with Local Employment Laws

Compliance with local employment laws is crucial when hiring employees in Singapore. The Employment Act of 1968 is the primary legislation governing employment in Singapore, setting out the minimum terms and conditions of employment, including working hours, leave, and termination. Employers must also comply with other regulations, such as the CPF Act and the Work Injury Compensation Act. Ensuring adherence to these laws is essential to avoid legal issues and maintain a fair and compliant workplace.

Employer of Record Singapore - FMC Group's Approach

We offer:
Quick, flexible, and easy entry into Singapore in compliance with local employment laws
Complete control over business development with your own team
Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
Allowing for easy market exit if necessary
Integrating your employees into our team through motivational events and special meetings

EOR Singapore Management & Reporting Flow

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Hiring an Employee

Employment Contract – indefinite vs. fixed term

In Singapore, typical employment agreements are structured as indefinite-term contracts, wherein the employment relationship remains open-ended and continues until either party chooses to end it. These indefinite-term contracts can encompass both full-time and part-time employment arrangements.

Fixed-term contracts are allowed in Singapore, although they are not commonly utilized. There are no specific legal regulations dictating the duration of such contracts. However, when employing fixed-term contracts lasting less than three months, certain benefits like annual leave and sick leave may be limited. It is advisable, as a best practice, to provide fixed-term contracts with a minimum duration of one year.

Probation Period

Work Week, Overtime & Maximum Working Hours

The Employment Act of 1968, often referred to as the Employment Act, serves as Singapore‘’s primary labor legislation, setting out fundamental employment terms and working conditions for various categories of workers, encompassing part-time, contractual, and temporary employees. It is applicable to both Singaporean citizens and foreign workers within Singapore, ensuring compliance with Singapore employment law.

However, it‘’s worth noting that specific provisions of the Employment Act, like those pertaining to working hours and rest days, are not applicable to employees holding managerial or executive positions. Instead, these provisions are designed for “workmen,” which typically refers to employees engaged in manual labor.

When it comes to working hours in Singapore, employees are expected to work between 40-44 hours per week.

Income Tax

In Singapore, the Central Provident Fund (CPF) serves as the primary national social security scheme. While the specific CPF contribution rate can differ, employers are recommended to allocate 17% of the employee’s salary as an additional expense on top of the regular salary. This 17% represents the employer’s contribution to the CPF fund. It’s important to note that there are no monthly employee, employer, or payroll tax contributions required in Singapore for this purpose.

Typical Benefits

In managing benefits in Singapore, employers should distinguish between mandatory benefits mandated by law and those provided as supplementary offerings.
All employees in Singapore receive basic health insurance through the national system. However, employers have the flexibility to provide additional health benefits. It is a common practice in Singapore for employers to extend supplementary health and life insurance to their employees. Alternatively, some employers opt to grant a small allowance that employees can use to acquire supplemental insurance.
When drafting employee contracts, it’s essential to take into account any extra benefits, such as additional sick leave, maternity leave, vacation leave, or a housing allowance, that the employer intends to provide beyond the mandatory offerings.
When it comes to work bonuses, similar to practices in both China and Hong Kong, Singapore often provides employees with a 13th month bonus, also known as an annual bonus. In the case of sales employees, this bonus may be substituted with commission payments. In periods of economic prosperity in Singapore, an annual bonus can amount to as much as two to three times an employee’s annual salary.

Payroll and Benefits in Singapore

Payroll and benefits in Singapore are governed by the Employment Act and other relevant regulations. Employers are required to pay employees at least once a month, with payments made within seven days after the end of the salary period. Additionally, employers must provide statutory benefits, such as contributions to the Central Provident Fund (CPF) and the Skills Development Fund (SDF). The CPF is a mandatory savings scheme that allows employees to set aside a portion of their salary for retirement, healthcare, and housing. The SDF supports the development of skills and expertise in Singapore, ensuring a well-trained and capable workforce.

Visa for the Employees

Foreign workeremployees in Singapore are obligated to possess the appropriate visas and work permits as mandated by immigration regulations. The most prevalent type of work permit is the Employment Pass, which is applicable to foreign workers who meet the eligibility criteria, including earning a minimum monthly salary of SGD 3,300.

On July 9, 2024, Singapore’s Ministry of Manpower (MOM) issued a clarification stating that Employer of Record (EOR) service providers are not allowed to apply for work passes for foreign employees intended to work for overseas clients. This means that foreign employees cannot be legally employed by overseas clients through an EOR in Singapore.

This clarification does not impact EOR employees who are Singapore citizens or permanent residents.

Time off Policies

Public Holidays
<br
New Year’s Day
Chinese New Year
Hari Raya Puasa
Good Friday
Labour Day
Vesak Day
Hari Raya Haji
National Day
Deepavali
Christmas Day

Annual Leave

Sick Leave

Other Leave Types

Maternity Leave for Mothers:A paid maternity leave is for 16 weeks. During the initial two pregnancies, the employer covers the initial 8 weeks of maternity leave, while the government assumes responsibility for the subsequent 8 weeks. However, for any subsequent pregnancies, the government covers the entire duration of maternity leave.It’s important to note that employees with less than 3 months of service do not qualify for paid maternity leave.
Paternity Leave for Fathers: Paternity leave is provided for a duration of 2 weeks.

Terminating an Employee

In Singapore, employment contracts commonly include a probation period lasting from three to six months. During this probationary period, a shorter notice period is typically agreed upon, although it’s not legally mandated. The typical notice period agreed upon is one month for both the employee and the employer. However, this isn’t a strict rule applicable to all employment arrangements.

In cases where the employment contract doesn’t specify a notice period, standard notice periods come into play. For employees with less than 26 weeks of employment, the notice period is one day. This notice period increases to one week for employees with between 26 weeks and two years of employment and two weeks for those with employment lasting between two and five years. When employment spans more than five years, both parties are required to provide four weeks’ notice.

Our office in Singapore

FMC Group Singapore

160 Robinson Rd
SINGAPORE 068914

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