Manage Employment in Singapore Without the Hassle

Despite its small size, Singapore ranks as the third most densely populated country in the world. Known for its cultural diversity and social cohesion, it officially recognises four languages — English, Mandarin, Malay, and Tamil — reflecting its commitment to multiculturalism.

With the rise of digital tools and remote work, recruitment has become more efficient, allowing companies to tap into a global talent pool. Skill-based hiring is gaining importance, as employers seek adaptable candidates who can thrive in a rapidly changing environment.

Probation Period: Probation periods are typically set in the employment contracts and can vary depending on the employer’s policies. Generally, probation lasts around 3 months.

Payroll Cycles: The payroll cycle in Singapore is typically monthly, with wages being paid on the second last working day of each month.

Official Salary Deductions: Common deductions from an employee’s salary include contributions to the Central Provident Fund (CPF), the Skills Development Levy, and the Foreign Workers Levy, where applicable.

Work Hours: The typical workday in Singapore runs from 8:30 am to 6:00 pm.

Casual Leave/Sick Leave: Employees are entitled to 14 days of paid sick leave annually if they have worked for at least six months and hospitalization is not required. If hospitalization is necessary, employees can take up to 60 days of sick leave, which includes 14 days of outpatient care.

• Maternity Leave: Female employees who have worked for at least 3 months before their due date and whose child is a Singaporean citizen are entitled to 16 weeks of paid maternity leave. The leave is split into two periods: up to 8 weeks before the due date (but not less than 28 days prior) and the remainder after childbirth. If the child is not a Singaporean citizen, maternity leave is reduced to 12 weeks. The first eight weeks are paid by the employer, and the government reimburses for the additional weeks for second and third children.
• Paternity Leave: Fathers/partners who have been employed for at least three months are entitled to paid paternity leave within 16 weeks of their child’s birth, funded by the Government-Paid Paternity Leave (GPPL). Adoptive fathers are also eligible, provided they meet the criteria.

[(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.

• Payroll Cycle: In Singapore, the payroll cycle is generally monthly, with wages paid on the second-last working day of each month.
• 13th Month Salary (AWS): Known as the Annual Wage Supplement (AWS), the 13th month salary is an additional payment made annually to employees on top of their regular wages. It is commonly equivalent to one month’s salary.
• Overtime Pay: Employees covered by the Employment Act are entitled to overtime pay, which is calculated at a rate of 1.5 times their basic hourly wage. Overtime work is limited to 12 hours per day and 72 hours per month. Employers must pay overtime wages within 14 days after the end of the salary period.

• Prepare necessary paperwork, such as the employee’s basic contact details, bank information, non-disclosure agreements (NDAs), and other relevant forms.
• Submit the paperwork to the appropriate departments for approval.
• Assign a mentor or direct manager to the new employee to guide them during the onboarding process.
• Collaborate with the mentor or manager to outline the new employee’s role, goals, and the initial projects or tasks they should start with.
• Prepare the employee’s workstation, ensuring it is equipped with essential tools such as a chair, computer, office supplies, and any necessary equipment. You might also want to include company-branded items to help them feel welcomed.
• Create a list of tools and resources the new employee will need to become immediately operational, including Wi-Fi credentials, access to internal systems, staff contact lists, and more.
• Set up the employee’s company email, phone number, and other necessary digital tools, including any social media accounts if required.
• Provide name cards for the employee on the first day, especially if their role requires it.
• Provide required reading materials, such as company handbooks or documents detailing in-house terminology or processes.
• Clearly communicate details regarding their pay, benefits package, salary cycle, vacation policies, and other entitlements.
• Ensure the new employee receives a comprehensive job description outlining their role and specific responsibilities to prepare for their position.

• Set aside time in your schedule to welcome the new employee without distractions.
• Introduce the new hire to their colleagues, particularly in their department. Share the role of the new employee and explain why they were hired to help ease the introduction.
• Conduct an office tour, highlighting key areas such as the kitchen, reception, restrooms, and management offices.
• Assign any training materials or resources the employee will need to complete their orientation and job preparation.
• Clarify your expectations for the employee’s role, covering areas such as the required knowledge and skills, department values, and company processes.
• Walk the new employee through their daily routines, such as the expected work hours, office arrival times, and where to park.
• If you are not the designated mentor or manager, introduce the new employee to them to establish their primary point of contact.
• Consider taking the new employee out for a coffee or lunch to further help them settle into the team and culture.

• Assign the employee their first project, ensuring it is relevant, achievable, and valuable for both them and the organization.
• Review and provide feedback on the completed project to ensure it meets expectations.
• Set clear expectations for the upcoming month, establishing SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals.
• Have the new employee review their HR-related paperwork, ensuring all details are accurate and up-to-date.

• Schedule a meeting to discuss any concerns, address feedback, and review the employee’s progress. This is also an opportunity to discuss broader, long-term goals for both the company and the employee.
• Provide additional personal or professional development materials, including reading or viewing resources, to help the employee grow in their role.

Step 1: Singapore’s Company Registration Requirements

To register a company in Singapore, the following key requirements must be met:

• Shareholders: A minimum of one shareholder is required to register a company in Singapore. Shareholders can be either individuals or corporate entities. Up to 50 shareholders are permitted, and 100% foreign ownership is allowed, meaning all shareholders can be foreign.
• Capital: The minimum capital required to set up a company in Singapore is just one Singapore Dollar (SGD 1). If more capital is needed, it can be deposited into the company’s account, and the company registrar must be notified accordingly.
• Directors: Companies in Singapore must have at least one director who is a Singapore resident (a Singapore citizen, permanent resident, or holder of an Employment Pass or EntrePass). While foreign directors are allowed, corporate directors are not permitted. The company must be led by individuals, not corporations.
• Company Secretary: It is mandatory for Singapore companies to appoint a company secretary who is a resident of Singapore. The company secretary ensures the business complies with all regulatory requirements and ensures that the company files the necessary documents on time.
• Registered Address: A physical address in Singapore is required for company registration. This address will be used for official communications and the storage of company documents. P.O. boxes are not permitted.

Step 2: Decide Corporate Structure and Collect Supporting Documents

• Ownership and Shareholding: Decide who will own the company and the percentage of equity held by each shareholder. If setting up a subsidiary in Singapore, the parent company (either foreign or local) will be the sole shareholder. If it’s a new venture, the founders or partners will make up the shareholders.
• Company Leadership: Identify who will be responsible for leading the company and who will hold the role of the Singapore-resident director. If necessary, consider using a nominee director service to support business operations.
• Startup Capital: While the minimum required capital is SGD 1, most companies are commonly set up with an initial capital of around SGD 100.

Step 3: Obtain Approval for Your Company’s Name

A company name in Singapore must be approved by the Accounting and Corporate Regulatory Authority (ACRA). Ensure the following:

• Uniqueness: The company name must be distinct and not identical or substantially similar to an existing business name.
• Availability: Ensure that the name is available for reservation and not already taken by another individual or entity.
• No Trademark Infringement: The chosen name should not infringe on any existing trademarks or copyrights.
• Appropriateness: The name should be appropriate and non-offensive. It must be suitable for all audiences and must not contain obscene or inappropriate language.

Step 4: Sign Incorporation Documents

Once your company name is approved by ACRA, the following documents must be prepared and signed:

• Company Constitution: This document outlines the regulations governing the company. The standard constitution provided by ACRA is commonly adopted, but it can be modified to suit the company’s needs.
• Consent by Director: Each director must give written consent to act in the role of director for the company.
• Consent by Secretary: The appointed company secretary must also provide consent to serve in the role.
• Declaration by Company’s Controllers: A declaration from the company’s controllers (e.g., shareholders and directors) is required.

Step 5: Incorporate the Company and Open a Bank Account

Once the incorporation documents are signed, the company must be registered with ACRA. The process can typically be completed within an hour through ACRA’s online platform. Upon registration, ACRA will issue the following documents:

• e-Certificate of Incorporation: This is the official confirmation of the company’s registration. It includes the company name, date of incorporation, and Unique Entity Number (UEN). A hard copy of the certificate is not issued by default, as the e-Certificate is considered sufficient for all purposes.
• Business Profile: This document contains essential details about the company, including its primary business activities, registered address, shareholders, directors, and shareholding structure.