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How to Simplify MOM Compliance with EOR Services

If you are running a business in Singapore, staying current with the MOM compliance guidelines is imperative. 

With the frequency of Department of Labour audits and the constant evolution of labor laws, it is important to stay on top of worker classifications to prevent costly fines and penalties.

Let us walk through the recent MOM regulation changes and explore how Procloz’s Employer of Record services comply with the latest updates to avoid penalties and keep everything running smoothly.

MOM Compliance Evolution

Recent MOM regulations continue to evolve, including work pass salary thresholds, adjustments to CPF contributions, and reporting requirements. Employers now must adapt to these changes.

The significant changes include:-

  • Work Pass Salary Thresholds: 

Increased salary thresholds for various work passes will impact hiring practices and salary decisions moving forward.

  • CPF Contributions Changes: 

The changes to CPF rates will require you to recalculate contributions for your employees.

  • Reporting Requirement Changes: 

More detailed reports from employers on their employee compensation (including overtime and leave) are now mandatory.

Payroll Compliance Standards

Handling payroll in-house, especially regarding compliance with the latest MOM regulations governing payroll outsourcing services Singapore, can be difficult.

Outsourcing payroll can simplify processes and ultimately enable companies to work on their core functions while also remaining compliant.

3 Functions to stay focused on:

  1. Contribution Calculations: 

Keep up to date with new rates for your CPF contributions.

  1. Overtime Compliance: 

Make sure your overtime calculations are compliant with MOM’s rules.

  1. Leave Entitlements: 

Monitor leave days closely to avoid breaches in compliance.

Want to understand payroll compliance better? Explore more in Navigating Payroll Compliance: A Guide for Singapore Startups to learn how to get your payroll system in top shape for compliance and efficiency.

Integration of Work Passes

It is important for companies in Singapore to manage work passes and ensure compliance with salary thresholds. 

  • Salary Threshold Management: 

Make sure that employee salaries are always at the required thresholds to ensure work pass renewals. 

  • Renewal Management: 

Track work pass expiry dates to ensure work passes are renewed in a timely manner. 

  • Compliance Records: 

Keep records up to date and ensure that you have compliance records when needed. 

With Procloz’s EOR services we process work passes to make sure that your business remains compliant and at a minimized risk. 

Thinking of global expansion? Make sure your strategy includes all the right steps! Learn more in Avoid Mistakes with a Smart Global Expansion Strategy to guide your business towards successful international growth.

Preventing Violations Framework

Misclassification can have steep penalties and back pay liabilities that can add up rapidly. 

Even the potential for violations of MOM compliance carries the following risk:

  • Financial Impact: 

Penalties for non-compliance, plus back pay can be costly.

  • Audit Stress: 

More audits lead to disruptions to operations.

Procloz protects against these types of risks by providing proper payroll processing and correct worker classifications, taking your business out of the violations space.

Documentation Quality Standards

Documentation is extremely important when it comes to compliance with MOM. 

Be sure to note the following:-

  • Employee Information: 

Maintain organized records of work passes, salaries, and contracts

  • Payroll details: 

Always provide a paper trail for payroll data – this includes overtime and leave.

  • Proof of compliance: 

Documentation proving compliance at audit time

Procloz’s EOR services offer a safe, one-stop-shop for process documentation, making it sure you are compliant and audit-ready

The Advantage of Technology Compliance

Technology is your friend when it comes to staying compliant. 

3 main advantages you can get with procloz:-

  • Real-Time Updates: 

Technology can provide real-time information on any regulatory updates.

  • Integrated Reporting: 

With automated payroll reporting, compliance comes automatically. By automatic we mean no manual steps for your team.

  • Local Experts:

You will receive expert insights to navigate MOM’s evolving guidelines and to ensure you’re never behind on compliance.

Need to stay updated on employment regulations? Stay ahead of the game with Fair Work Act Updates: New Compliance Requirements to understand the latest changes and how they could impact your business.

Why Use Procloz?

Satisfying MOM compliance intricacies for Singapore and the world is challenging but Procloz makes it easy! 

With Procloz EOR services, you can rely on:-

  • Germaine Classification – We carefully classify your workers in accordance with MOM compliance guidelines.
  • Audit Readiness – We help prepare you for audits, including complete documentation and expertise.
  • Global Reach – Procloz manages worker classification for your international expansion while complying with local laws.

Contact Procloz today to help gain compliance and mitigated risk globally to ensure worker classification issues do not let your business to sink.

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