Singaporean dollar (SGD)
7.75% to 17.25%
The Republic of Singapore is a sovereign island country and city-state located in maritime Southeast Asia. The country borders the Strait of Malacca to the west, the Singapore Strait to the south, the South China Sea to the east, and the Straits of Johor to the north. The nation’s territory consists of one main island, 63 satellite islands, and islets, as well as one outlying islet. Having the third highest population density in the world, Singapore is a culturally diverse nation that respects the cultures of its ethnic groups by having four official languages: English, Mandarin, Malay, and Tamil.
Three-quarters of the way into 2022, and Singapore’s labor market is still on an upswing. In Q3 alone, total employment – not including migrant domestic workers – increased by 75,600 jobs. This beats Q2’s growth rate of 66,500 new positions.
Recruitment in India is done through job portals which allow postings for more relevant profiles and candidature, head hunting is also used for recruitment. Combined, these two methods make for more achievable and hassle-free end-to-end recruitment.
Recruitment processes, identifying vacancies, job advertisements, screening, shortlisting, etc. are an important part of the hiring process. But interviews make the ultimate decision as they play a very important part in gauging personality.
CV of candidates plays an important role in making a favorable impression. The presentation and organization of the CV speak a lot about an individual and the person’s mindset and attitude. Thus allowing for an early screening for worthy candidates.
The standard parameters of employment in Singapore:
Working Hours – Monday to Friday work week (standard maximum number of 44 working hours in as specified in Part IV of the Employment Act)
Probation Period (Depend on the client’s company)– Probation periods in Singapore are set within the employment contracts/collective agreements set by individual companies. They are generally set at 3 months.
Payroll cycles– The Singaporean payroll cycle is generally done on a monthly basis with wages paid on the second last working day of each month.
Official Deduction from Salary– CPF, Skill Development Levy, and Foreign Workers Levy
Typical work hours in Singapore – 8:30am-6pm
There are 11 public holidays in total. If an employee has a day off on a public holiday, they will be paid for that day. However, if the public holiday falls on their rest day, then the following workday will become a paid holiday instead.
Casual Leave/Sick Leave
After working for six months, employees are entitled to 14 days of paid sick leave per year if hospitalization is not required. If it is necessary, they can have up to 60 days off including 14 days of outpatient care.
Maternity & Paternity Leave
If an employee has been employed for at least 3 months before their due date and the child is a citizen of Singapore, they are entitled to 16 weeks of paid maternity leave which consist of two periods: the woman can take up to 8 weeks before the expected due date but no less than 28 days. The remaining weeks can be taken post birth.
If the child is not a Singaporean citizen, paid maternity leave is reduced to 12 weeks in total. The first eight weeks are paid by the employer while the government reimburses parents for an additional eight weeks with their second and third children.
After working for three months, the father/partner is entitled to 2 weeks of paid paternity leave following the baby’s birth but within 16 weeks after the baby is born. This leave is funded by the Government-Paid Paternity Leave (GPPL). The Government-paid paternity leave is available to adoptive fathers as well should they meet the requirements.
Employees who are covered by the Employment Act and have completed at least three months of service are entitled to paid annual leave that starts at 7 days in their first year. Each year of employment increases this amount by one day up to a maximum of 20 days.
In Singapore, payroll processing includes contributing to social security schemes like the CPF, Skill Development Levy, and Foreign Workers Levy. On the other hand, employers in Singapore don’t have any monthly withholding obligations.
[(Monthly gross rate of pay) / (Total number of working days** in that month)] x Total number of days the employee actually worked in that month.
Important Elements of Salary Structure in Singapore
Employees in Singapore usually receive their pay monthly, and itemized payslips are required to be issued. These include employment details like the date and amount of payment, deductions made, and net monthly salary.
Payroll Cycle – The Singaporean payroll cycle is generally done on a monthly basis with wages paid on the second last working day of each month.
13th Salary– The 13th salary in Singapore known as the Annual Wage Supplement (AWS) is a single annual payment made to employees atop their annual total wage.
Overtime- Employees covered by the Employment Act are paid overtime wages at a rate of 15% of respective basic hourly rate. Maximum of 12 hours a day and 72 hours a month of overtime is permissible. Overtime dues must be paid within 14 days of last salary period.
Before first day
- Prepare paperwork such as basic contact info, bank details, non-disclosure agreements, etc.
- Submit paperwork to relevant departments for approval.
- Assign a mentor or manager to the new staff member
- Discuss with the mentor or manager the employee’s role, goals, and appropriate projects to begin with.
- Prepare the employee’s workstation, with relevant tools, e.g. chair, computer office equipment. You may want to include company brand merchandise to help them feel welcome.
- Create a list of tools they will need to be immediately operational, e.g. Wi-Fi password, staff contact lists, etc.
- Generate company email, phone number, or social media accounts, if required.
- Provide name cards to the employees on the first day especially in a position that requires one.
- Give required reading. Make sure the new employee has all the info and tricks up their sleeve to mesh in well. E.g. their department may have some in-house acronyms that they will need to know.
- Inform the new employee about their pay and benefits package, when they will be paid, vacation time, etc.
Provide a detailed job description, and specific lists of responsibilities to help the new employee prepare.
On the first day of the onboarding process
- Clear your schedule so that when the employee arrives, you have time dedicated to welcoming them.
- Introduce them to their new co-workers in their department. Tell the established staff who they are and why you hired them to help break the ice.
- Tour the new employee around the office, e.g. the kitchen, reception, bathroom, where their managers sit, etc.
- Assign any further training material to the employee.
- Outline your expectations to the new staff member, e.g. knowledge and abilities required to succeed in their roles, department values, and general processes.
- Go over their daily routine, e.g. where to park, when they are expected in the office each morning, etc.
- If you are not the mentor or manager, introduce the new employee to them.
- Take your new employee out for coffee or a lunch to make them feel welcome.
In the first week
- Assign their first project. Make sure it is meaningful and achievable.
- Upon completion, go over that project to approve it.
- Make a plan for next month’s expectations based on S.M.A.R.T. targets, goals, etc.
- Have the employee go over all of their HR related paperwork to ensure its accuracy.
In the first month
- Schedule a meeting to address issues and concerns for both you and the new employee. Talk about broader long-term goals for both the company and the new employee.
- Give any personal or professional development reading/viewing you think they might benefit from.
Step 1: Singapore’s Company Registration Requirements
Requirements for registering a company in Singapore are:
Registering a Singapore company requires at least one shareholder – either an individual or another business. You can have up to 50 shareholders if you desire, and all of them can be foreigners as well! 100% foreign shareholding is accepted in the country.
With just one Singapore Dollar, you can easily set up your own company in Singapore. And if more funds are needed, they can be efficiently deposited and the registrar of companies must also be informed.
Singapore companies can have both Singapore-resident and foreign-resident directors, as long as there is at least one Singapore-resident director. It’s important to note that corporate directors are not allowed; a company must be helmed by an individual person instead.
- Company Secretary
Singapore-based companies are obligated to appoint a company secretary who lives in Singapore. This individual is responsible for making sure the business follows all applicable regulations and files the necessary paperwork.
For a legitimate venture in Singapore, it is necessary to have an actual physical address registered with the company. All relevant documents must be stored at this location and cannot simply be assigned to a PO box.
STEP 2: Decide corporate structure and collect supporting documents
When considering setting up a business in Singapore, the following questions will help you determine what structure is best suited to your organization:
- What will be the owner of this organization and how much equity does every shareholder own? If you are setting up a subsidiary in Singapore, your pre-existing foreign or local company is going to be its sole shareholder. On the other hand, if it’s an entirely new venture, then you and any partners involved would make up the shareholders.
- Who will be responsible for leading the corporation? Who will hold the role of Singapore-resident director? Do you need our nominee director service to support your business objectives?
- What is the startup capital of the company? Generally, most companies are established with an initial share capital of SGD 100.
Before a business can become incorporated in Singapore, it is essential to first meet the stringent identification and background checks of all shareholders and directors. To ensure your company registration process goes smoothly, here are some general guidelines for providing information that abides by these regulations.
STEP 3: Obtain Approval for your Company’s Name
Incorporating a business in Singapore requires name approval, and the process is simple as long as you adhere to certain procedures. Here are some of them:
Singaporean businesses are not permitted to register a company name that is identical or substantially similar to the name of an already existing business.
As only one individual can reserve a name at any given time, ensure that the chosen designation has not already been secured by another person or entity.
- No Trademark Infringement
Ensure that your business name does not breach any existing trademark or copyright held by another party.
- Not obscene
The name chosen must be suitable for all audiences and should not include any offensive or inappropriate language.
STEP 4: Sign Incorporation Documents
After ACRA endorses your company name, the following documents must be carefully crafted and signed before being officially submitted to them:
- Company Constitution
The ACRA-recommended standard Singapore company constitution is easily accessible for adoption.
- Consent by Director
Each director of your company must provide their consent to serve in this capacity.
- Consent by Secretary
The consent of the company secretary to fulfilling the role of the company secretary.
- Declaration by Company’s Controllers
STEP 5: Incorporate the company and open a bank account
Once the incorporation documents are complete and have been signed, its imperative to swiftly register your business with Singapore’s company registrar, Accounting and Corporate Regulatory Authority (ACRA). The process of registering a company in Singapore is simple; it can often be done within an hour through our online platform.
ACRA will issue the following official documents:
- e-Certificate of Incorporation
This certified digital document confirms the official registration of a business in Singapore. It displays (see sample) the name, date of incorporation and Unique Identification Number (UEN) of the company. Receiving a hard copy certificate is not mandatory as ACRA does not issue them by default; an e-Certificate is sufficient for all purposes in Singapore.
- Business Profile
This document unveils the corporate composition of the business. It provides key details such as a company’s primary industry, documented address, shareholders and directors information, along with its shareholding structure – all wrapped up in one file.
As soon as you register, all your official documents will be ready and accessible on our digital platform. With the registration of your Singapore company done and dusted, you can start trading under its name straight away.
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