Singapore, an island country and Southeast Asian city-state, is known for its impressive skyline, cultural diversity, and attractions like Marina Bay Sands and the Botanic Gardens.
The bustling metropolis blends modernity with tradition and features a rich culinary scene and thriving arts culture.
For employers seeking international talent for remote work arrangements, Singapore presents an excellent opportunity due to its highly educated workforce and innovative business environment.
Key Takeaways:
- Singapore comes in at second place globally on the English Proficiency Index and ranks first in Asia.
- Thanks to its emphasis on STEM education, Singapore is home to a highly skilled workforce.
- Hiring remote talent from Singapore is cost-effective compared to many developed countries.
Advantages of Hiring in Singapore
Singapore ranks first in the APAC region and second globally on the English Proficiency Index. This is mainly due to the nation's bilingual policy mandating that students learn English alongside their mother tongue.
Additionally, Singapore emphasizes STEM education, resulting in a skilled workforce ready for roles in technology and engineering.
Sourcing remote talent is comparatively cost-effective in Singapore due to government tax incentives and subsidies, including low corporate taxes.
Here are some quick facts about Singapore:
- Languages: English, Malay, Mandarin, Tamil
- Currency: Singapore Dollar (SGD)
- Capital City: Singapore (city-state)
- Population: 6.05 Million
- Cost of Living Rank: 3rd
Building a Technological Hub in Singapore
The Singaporean government is investing approximately SGD 3.3 billion in FY24 to upgrade its ICT infrastructure and equip technical experts with the latest cybersecurity and digital transformation technologies.
AWS has announced an approximately USD 8.87 billion investment over the next five years to expand its cloud infrastructure in Singapore. This commitment reinforces Singapore's position as a leading hub for digital innovation in the ASEAN region.
Some common remote job titles in Singapore include:
- Software Engineer
- Digital Marketing Copywriter
- Account Executive
- Product Manager
- Customer Support Specialist
- Virtual Assistants
Employment Laws: Hiring Compliantly in Singapore
Employment Contracts
There are two primary employment contract types in Singapore: permanent and fixed-term.
- Permanent contracts are utilized for ongoing employment and have no set end date.
- Fixed-term contracts last for a set period and are often used for a specific project or to cover an employee's leave.
Working Hours & Pay
Work days in Singapore are limited to eight hours a day and no more than 44 hours a week.
While there is no statutory minimum wage in Singapore, it's common for employees to receive a 13th-month payment, known as the Annual Wage Supplement (AWS).
Probation Periods
Singapore has no mandatory probation period, but when used, it usually lasts three to six months. During this time, either party can terminate employment with shorter notice periods.
Employer Taxes
Employers contribute 17% of employee monthly wages to the Central Provident Fund (CPF). Additionally, employers must pay a compulsory Skills Development Levy (SDL) of 0.25%.
In addition, employers hiring foreign workers are required to pay the Foreign Worker Levy (FWL), a monthly fee that varies by skill level and sector.
Termination Process & Severance Pay
There are several options regarding employment termination in Singapore. Employers or employees can follow the notice period outlined in the employment contract, provide salary in lieu of notice, or mutually agree to waive the notice period.
If there's no specified notice period in the employment agreement, the required notice depends on the length of service:
- Less than 26 weeks: 1 day
- 26 weeks - 2 years: 1 week
- 2 - 5 years: 2 weeks
- 5+ years: 4 weeks
Severance pay, known as retrenchment in Singapore, is not mandatory. However, it may apply to employees with at least two years of service.
Retrenchment benefits usually range from two weeks' pay to one month's salary per year of service. A goodwill payment may be provided for those with less than two years of service.
Paid Leave Laws in Singapore
Vacation and Holiday
In Singapore, employees are granted paid annual leave after three months of employment. The allowance starts at seven days for the first year of continuous service. It then increases by one day for each subsequent year and can go up to a maximum of 14 days after eight years of service.
Employees also receive several paid public holidays, including:
- New Year's Day
- Chinese New Year
- Good Friday
- Labor Day
- Hari Raya Puasa
- Deepavali
Sick Leave
Singaporean employees are entitled to up to 14 days of paid outpatient sick leave and 60 days of paid hospitalization leave, depending on their length of service.
Maternity Leave
In Singapore, eligible working mothers are entitled to 16 weeks of Government-Paid Maternity Leave (GPML) if they meet specific criteria, including having a Singapore citizen child. Mothers qualify for 12 weeks of leave for the birth of a non-Singaporean child.
Paternity Leave
Eligible working fathers in Singapore are entitled to two weeks of Government-Paid Paternity Leave (GPPL), which will increase to four weeks on April 1, 2025.
To be eligible for GPPL, fathers need:
- To have worked for their employer for at least three months
- Been lawfully married to the child's mother between conception and birth
The child also needs to be a Singapore citizen.
Why Digital Nomads Love Singapore
Remote workers are drawn to Singapore for several reasons. First, the city-state boasts a highly developed infrastructure with fast and reliable internet, making it ideal for remote work.
The efficient public transportation system allows easy navigation, and the presence of a strong expat and digital nomad community provides networking opportunities and social connections, making it easy for newcomers to settle in.
While Singapore does not have a specific digital nomad visa, visitors from most countries can stay in Singapore for between 30-90 days without a visa.
How to Pay Remote Workers in Singapore
Several options are available to pay remote workers in Singapore, including bank wire transfers, PayPal, Wise, cryptocurrency, and digital wallets like GrabPay and Apple Pay.
However, before setting up a payment method, it's essential to take the risks into account, such as:
- Non-compliance with Singapore's payroll regulations, including CPF contributions and tax obligations.
- Overpayment or underpayment caused by fluctuating currency rates.
- Employee misclassification risks leading to a breach in compliance.
One way to simplify the payroll process and mitigate risks is by partnering with an Employer of Record (EOR), which can handle all human resource duties for your remote employees in Singapore, including payroll compliance.
Hire in Singapore with RemoFirst
Hiring top remote talent in Singapore can be complex, but RemoFirst makes it straightforward and hassle-free.
With expertise in 180+ countries, including Singapore, RemoFirst handles every aspect of hiring and onboarding, ensuring an efficient and smooth experience.
We take care of payroll, benefits (including healthcare), and compliance with local labor laws for full-time and part-time employees and contractors.
Ready to simplify your hiring process in Singapore and expand your global workforce? Book a demo with RemoFirst today!
