Effortless Hiring in Singapore

Employment Contracts

The Employment Act mandates that employment contracts include essential details such as:

• Job scope.
• Salary.
• Working hours.
• Leave entitlements.
• Termination conditions. Contracts must be provided in writing to ensure clarity and mutual agreement.

Fair Consideration Framework (FCF)

• Employers are required to adhere to fair hiring practices under the FCF, ensuring that Singaporeans are considered fairly for job opportunities. This includes:
• Advertising job vacancies on the national Jobs Bank before considering foreign candidates.
• Avoiding discrimination based on non-job-related characteristics such as age, sex, nationality, or race.

Payroll Frequency

• Employees must be paid at least once a month, with payment made within seven days after the end of the salary period. Salaries include basic wage and any additional payments such as allowances, bonuses, and overtime pay.

Overtime

• For non-workmen earning up to SGD 2,600 monthly and workmen earning up to SGD 4,500 monthly, overtime is compensated at a minimum of 1.5 times the hourly basic rate.
• The maximum overtime allowed is 72 hours per month.

Central Provident Fund (CPF)

• This is a mandatory social security savings scheme funded by contributions from employers and employees. It aims to meet the retirement, housing, and healthcare needs of Singaporeans and Permanent Residents.

Income Tax

• Singapore employs a progressive income tax system with rates ranging from 0% to 22%, depending on income levels. The headline individual income tax rate will increase to 24% from 2024 onward.

Tax Residency

• Individuals are considered tax residents if they reside or work in Singapore for at least 183 days in a calendar year. Tax residents enjoy personal reliefs and rebates that help lower their taxable income.

Types of Leave in Singapore

1. Annual Leave

• Employees are entitled to a minimum of 7 days of paid annual leave for the first year of service, increasing by one day each subsequent year up to a maximum of 14 days.

2. Sick Leave

• Employees are entitled to up to 14 days of paid outpatient sick leave and up to 60 days of paid hospitalization leave per year, provided they have served the employer for at least three months and have obtained a medical certificate.

3. Maternity Leave

• Eligible female employees are entitled to 16 weeks of paid maternity leave, subject to certain conditions such as the child's citizenship and the number of children.

4. Paternity Leave

• Eligible fathers are entitled to 2 weeks of paid paternity leave, provided they meet specific criteria.

5. Childcare Leave

• Parents of Singaporean children are entitled to 6 days of paid childcare leave per year if the child is below 7 years old.

6. Public Holidays

• Employees are entitled to 11 paid public holidays each year. If an employee is required to work on a public holiday, they must be compensated with an extra day's salary or a day off in lieu.

Medical Benefits

• Employers are required to bear the costs of medical consultation fees for employees who have worked for at least three months and are entitled to paid sick leave.

Work Injury Compensation

• The Work Injury Compensation Act allows employees to claim for work-related injuries or diseases without having to file a lawsuit under common law.

Notice Period

The notice period for termination depends on the length of service:

• Less than 26 weeks: 1 day.
• Between 26 weeks and less than 2 years: 1 week.
• Between 2 years and less than 5 years: 2 weeks.
• 5 years and above: 4 weeks.

Severance Pay

• While not mandated by law, it is common practice to provide retrenchment benefits, especially for employees with at least two years of service. The amount is typically negotiated between the employer and employee.

Unfair Dismissal

• Employees who feel they have been unfairly dismissed can file a claim with the Ministry of Manpower or the Employment Claims Tribunals.