Payroll and HR in Singapore

Local Information

Local Time (LIVE):6:22 AM
Local Currency:$1 = S$1.37
Business Language(s):English
Tax Year Dates:1st January – 31st December

 

Singapore is known as one of the world’s thriving business centres; home to the headquarters of more than 37,000 international companies. It has a reputation for transparency and ease when it comes to doing business, and is situated in an ideal location for international clientele – with 50% of the world’s population being accessible within an six hour flight.

Considering these benefits, it’s no wonder that so many companies are choosing Singapore as the location for their next business expansion plans. If you are among those doing so, you’ll need to consider the implications with regards to HR and payroll. Ensuring that your company is compliant with Singaporean legislation is vital, and so navigating your way around local law is a must. Fortunately, the experts at FMP Global can help with this.

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Employer Must-Dos

In Singapore the following must be submitted annually, adhering to strict deadlines:

  • Corporate Tax Return
  • Income Tax Returns
  • Annual Returns (to supply up-to-date company details)

Payroll in Singapore

Personal taxes

Income tax in Singapore is actually among the lowest in the world, at between 0% and 22% depending on salary. The latter amount is based on salaries of S$320,000+ ($231,392 USD). It is worth knowing that only the income earned in Singapore is taxable – anything earned abroad is generally not taxable.

Any salary used for relevant employment expenses, charitable donations, and relief funding such as course fees are exempt income tax.

The annual tax filing date for individuals is April 15th. This is only required for those on an income of S$22,000+ ($15,908 USD) – as any wage below this is not taxable. Foreign employees staying/working in Singapore for 61 days or more are liable to pay income tax in some form.

Singapore’s permanent residents make pension contributions from their salary to a Central Provident Fund. This applies to those aged 55 and below.

Corporate taxes

Corporate income tax has been set at 17% since 2010. Some start-up companies may qualify for tax exemption in the first three years of existence.

Companies must pay a Foreign Worker Levy for employees who are not permanent residents in Singapore. The amount payable depends on the type of company, and the ratio of foreign to residential workers.

From 2020, companies may be liable to pay a Carbon Tax depending on their greenhouse gas emissions.

HR in Singapore

What are the regular working hours in Singapore?

The most common working hours in Singapore are 9am to 5pm, Monday to Friday.

Vacation, maternity and sickness

Legislation detailed in the Singapore Employment Act relates to any staff who have been in employment for three months plus.

Pregnant women may qualify for 16 weeks of paid maternity leave. After this, women are entitled to up to six days of childcare leave each year, until the child is seven years old.

Employees have an entitlement to sick leave depending on their length of time at the company. After three months of employment they are entitled to five days, after four months it’s eight days, after five months it’s 11 days, and then from six months onwards they are entitled to 14 days.

Annual leave is a minimum of seven days in the first year of employment, increasing one day for each additional year of employment. In spite of this, most companies generally give around 14 days per year.

Termination

In the instance of the termination of employment, there is no lawful notice period required however this must be stipulated in the employee contract. Any accrued holiday days can be used within the notice period.

Learn More About International Payroll

To find out more about international payroll, download our comprehensive guide to get answers to common questions. We cover everything from minimum wages to tax variations.

Download Our Guide

FMP’s Singapore Payroll and HR Solutions

If you’re expanding your business to Singapore and need guidance about payroll and HR in the Central Business District (CBD), get in touch with the experts here at FMP Global. Our friendly and knowledgeable team are ready to help with everything from complying with Singapore’s tax laws to drawing up employee handbooks. Our services include;

  • Payroll processing
  • Multi-currency payroll
  • Employment contracts
  • Email payslip services
  • Payroll auditing
  • Handling confidential payroll
  • Pension administration
  • Benefits administration
  • Year End Income Tax
  • Annual leave management
  • Sickness records
  • Translation services
  • Co-ordination with HR department
  • Assistance with implementing procedures
  • Regulatory compliance

Guarantee Compliance with FMP’s Singapore Payroll and HR Services

Be confident in your expansion plans for Singapore by getting in touch with the experts. With our guidance you can make sure your payroll and HR management is problem-free.

Start your International Expansion Today