Wage portage in Singapore
Discover the growing economy of Singapore, with a GDP reaching 644 billion US dollars in 2022, marking a significant 13% year-on-year increase. Foreign direct investments also experienced a notable surge, reaching 68.2 billion US dollars in 2022, representing a 26% increase compared to the previous year. These figures attest to Singapore’s continued appeal for developing businesses in the region.
On this page, we will explain how we simplify the wage portage process for you in Singapore, guiding you throughout this journey. Our goal is to provide you peace of mind by taking care of the administrative aspects of your business, allowing it to thrive in the heart of this dynamic Southeast Asian zone.
What is the wage portage service in Singapore?
Wage portage services can be a valuable option for businesses looking to expand into new markets or access specialized skills without having to establish a local legal entity. They can also be a way to reduce human resources costs and improve compliance. Salveo, acting as a distinguished Employer of Record (EOR) organization, manages legal and regulatory compliance aspects related to immigration, employment, and payroll.
Wage portage in Singapore: What benefits for you?
By collaborating with wage portage services, you can quickly and cost-effectively establish a local presence in Singapore, without the hassles of setting up and managing a legal entity. This simplified approach eliminates the long and complex process of creating a local structure, which can take up to six months, allowing you to test and assess the market potential for your project.
With these services, you can focus on the core operations of your business while we handle all administrative and regulatory tasks. This ensures that you are fully compliant with local labor laws and regulations, freeing up your time and resources for strategic initiatives.
Moreover, a local presence through wage portage enhances your credibility and strengthens relationships with clients.
Wage portage: What is our added value?
As an Employer of Record, Salveo specializes in providing a comprehensive range of services to assist businesses of all sizes in managing their HR functions in Singapore.
As part of the ADIT Group, Salveo offers expertise in:
- Drafting employment contracts in compliance with Singaporean labor laws
- Facilitating work and residence permits for foreign employees
- Streamlining payroll processes and issuing pay slips
- Administering social security and income tax
- Managing paid time off
- Processing reimbursements for professional expenses
- Overseeing end-of-contract procedures (non-renewal or dismissal)
- Liaison service with client companies on all labor law and employment contract matters
In addition to its core services, Salveo provides optional offerings, including recruitment, office spaces in its business centers, and international mobility management services (apartment search, school placement, car rental, etc.). Our services are designed to help businesses reduce human resources costs, improve HR compliance, free up time and valuable resources for core business activities, and attract and retain top talent.
Whether you are considering development in Singapore or exploring HR outsourcing to an Employer of Record, it is recommended to contact us to discuss your project.
The key points for hiring an employee in Singapore
Types of employment contracts in Singapore
Employers in Singapore are recommended to craft a comprehensive, written contract describing crucial employment details. This document should explicitly cover the job description, employee duties, and the associated compensation and benefits.
Singapore offers two main types of employment contracts:
Types of contract | Probation period | Termination notice period |
Open-ended contract | 3 months | – During the trial period: 2 weeks – After the trial period: 30 days
|
Fixed-term contract |
Please note that all expats shall be employed on a fixed-term contract. When an expat employee is terminated, the company must buy them a 1-way plane ticket to their home country.
Types of employment contracts in Singapore
Employers in Singapore are recommended to craft a comprehensive, written contract describing crucial employment details. This document should explicitly cover the job description, employee duties, and the associated compensation and benefits.
Singapore offers two main types of employment contracts:
Types of contract | Probation period | Termination notice period |
Open-ended contract | 3 months | – During the trial period: 2 weeks – After the trial period: 30 days
|
Fixed-term contract |
Please note that all expats shall be employed on a fixed-term contract. When an expat employee is terminated, the company must buy them a 1-way plane ticket to their home country.
Working hours and overtime
Commonly, the standard practice for working hours ranges from 40 to 44 hours per week, typically spread across five days. Employers and employees typically establish the working hours before the commencement of the contract.
Overtime work encompasses all tasks carried out beyond the regular hours of work, excluding breaks. It cannot exceed 72 hours per month. An employee is eligible for overtime payment if they meet the following criteria:
- A non-workman earning up to S$2,600.
- A workman earning up to S$4,500.
The minimum overtime rates are as follows:
Working Days | Overtime compensation |
Overtime work on daily working days | 150% of the usual salary rate |
Overtime on weekends | 200% of the usual salary rate |
Overtime on holidays | 300% of the usual salary rate |
Annual paid leave
Employees who have been working for more than 3 months are entitled to paid annual leave. The minimum annual leave is 7 days for the first year, and an additional day is granted for each subsequent year of service. However, this accrual is capped at 14 days.
National Holidays
Singapore observes a variety of national public holidays each year. The following table indicates Singaporean national holidays and their dates for 2024.
Holiday | Date |
New Year’s Day | 1st January |
Lunar New Year’s Day* | From 10th to 11th January |
Good Friday | 29th March |
Hari Raya Puasa (Tentative Date) | 9th April |
Labour Day | 1st May |
Vesak Day | 23rd May |
Hari Raya Haji (Tentative Date) | 16th June |
National Day | 9th August |
Diwali/Deepavali | 1st November |
*According to the lunar calendar
Minimum wage
Singapore does not have a legally mandated minimum wage. Instead, the government relies on a Progressive Wage Model (PWM) to ensure that workers are paid fairly. The PWM is a sector-specific wage model that sets minimum wages for workers based on their skills and experience.
The PWM currently covers the following sectors:
- Cleaning
- Security
- Landscape maintenance
- Retail
- Food services
The minimum wages for these sectors are as follows:
Sectors | Minimum Hourly wage (SGD/hour) |
Cleaning | 5.50 |
Security | 7.50 |
Landscape maintenance | 7.50 |
Retail | 5.50 |
Food services | 5.50 |
Cleaning | 5.50 |
Employees in sectors not covered by the Progressive Wage Model (PWM) are not guaranteed a minimum wage. Nevertheless, they are safeguarded by the Employment Act, which establishes essential terms and conditions of employment, including provisions for paid sick leave and annual leave.
Employment contract Termination
Termination of the employment contract requires a written termination notice or resignation letter. A termination letter is mandatory, and even with a provided termination letter, the employee remains considered employed until the termination date. Upon termination, employees either encash or clear their annual leave. However, if termination is due to misconduct, any unused leave is forfeited.
In Singapore, there is no legally mandated minimum severance pay. However, most employers will pay severance pay with a range of two weeks to one month’s salary per year of service to employees who have been with the company for at least two years.
For employers with at least 10 employees, it’s mandatory to notify the Ministry of Manpower of retrenchments, regardless of the number of employees affected. This notification must be submitted within 5 working days after the affected employee has been informed of the retrenchment.
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