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Establishing and maintaining a Singapore payroll
Singapore is a booming global trade hub, and the country is renowned for its openness to foreign businesses. Singapore’s strong economy, highly educated and multicultural populace, and convenient location in Asia make it an attractive destination for foreign organizations looking to expand their operations.
One important element of this kind of foreign expansion is hiring locally, and this means setting up a Singapore payroll. Establishing a payroll in Singapore involves navigating a complex set of unique and frequently changing employment laws, which can be a lengthy and difficult process.
At Horizons, we specialize in providing Singapore payroll outsourcing support services, offering organizations a way to hand over the time-consuming process of setting up a payroll. We offer flexible service packages for organizations that already have a registered entity in Singapore, as well as those that do not.
Why choose the Horizons payroll solution?
If you have an entity
If you have already established an entity for your organization in Singapore, we can offer outsourced payroll support to help you establish and manage your Singapore payroll. Additionally, we can provide full HR, contract, and legal compliance support so you don’t have to handle any of the complex administration.
This service is the perfect solution for any organization that already has an entity in Singapore but requires help with navigating the complexities of Singaporean employment.
If you don’t have an entity
If you haven’t yet registered an entity in Singapore, we provide comprehensive payroll outsourcing using our Singapore PEO to be your employer of record. Our experts will also take care of HR, contracts, and legal compliance.
This low-risk method of employing in Singapore is a great way to flexibly expand your business into this lucrative marketplace with minimal hassle.
Hire borderless talent with Horizons
Singapore payroll guide
What withholdings and taxes are required in Singapore?
Singapore’s complex tax and withholdings systems can be hard to understand. The country follows a progressive tax model, with higher earners paying a larger percentage of their income in taxes.
The income tax rate ranges from 0% up to 22% (for those earning over S$320,000/year) for residents, and employers must submit a wage report annually.
The flat rate of corporate tax is set at 17%, although some exemptions may be possible, for example in the case of certain startup companies.
Currency: Singapore Dollar
| CPF (Pension) | 7.5% – 17% |
| Skills Development Levy | Up to 0.25% |
| Total Employer Cost | 17.25% |
| CPF (Pension) | 20.00% |
| Total Employee Cost | 20.00% |
| Up to 20,000 | 0 |
| 20,000-30,000 | 2% |
| 30,000-40,000 | 3.5% |
| 40,000-80,000 | 7% |
| 80,000-120,000 | 11.5% |
| 120,000-160,000 | 15% |
| 160,000-200,000 | 18% |
| 200,000-240,000 | 19% |
| 240,000-280,000 | 19.5% |
| 280,000-320,000 | 20% |
| Over 320,000 | 22% |
Entitlements and terminations
When hiring staff in Singapore, you must provide a formal contract of employment including the various terms and entitlements of employment, such as sick leave, paid vacations, number of weekly hours, and maternity. It is crucial to have a legally compliant contract in place, so always consult an expert.
Regarding termination, the amount of mandatory notice depends on the employee’s time in the role and ranges from one day to four weeks.
How to establish Singapore payroll outsourcing
A key part of hiring and creating a payroll in Singapore is registering an official entity within the country. Additionally, you may need to send a representative to Singapore for the hiring process. The procedures are lengthy, complicated, and potentially very resource-intensive, so outsourcing the entire process can be an excellent way to improve efficiency.
At Horizons, our experts can set up and manage your payroll and all its administration so you don’t have to. We can also provide use of our Singapore subsidiary to act as your employer or record, so you can start hiring and expanding in Singapore even if you don’t have an established entity in the country.
Manage payroll in Singapore
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.
