The evolution of technology has revolutionized the way we work, and in the wake of global lockdowns, companies are increasingly adopting remote work to enhance efficiency and reduce costs. This article delves into the essentials of hiring remote employees in Singapore, covering the hiring process, legal requirements, and other pertinent details.

1. Why Choose Remote Talent from Singapore?

Singapore stands out as a prime choice for remote employment due to its high English proficiency, with a score of 66.82 on the English Proficiency Index. Moreover, the country boasts a well-educated workforce, with 58% having tertiary education, making it an attractive option for employers seeking skilled and proficient professionals.

2. Where to Find Remote Talent in Singapore?

While hiring from specific regions is generally unnecessary due to Singapore's compact size, targeting graduates from renowned universities such as the National University of Singapore and Nanyang Technological University can be advantageous. Job portals like Indeed, Neuvoo, and recruitment agencies like Adecco and GMP Group are popular avenues for finding talent.

3. Average Salary of a Singapore Remote Employee (as of January 2021)

Note: Figures are approximate.

4. Income Tax Computation in Singapore

Singapore follows a progressive income tax model, and additional information can be found on the official website.

5. Working Hours in Singapore

Singapore's labor laws dictate that regular working hours should not exceed 44 hours per week or 9 hours per day (for a five-day work week). Overtime pay is calculated at 150% of the hourly basic pay, and employees are entitled to one full rest day per week.

6. Mandatory Benefits for Singapore Employees

7. Other Benefits and Allowances

While not mandated, non-taxable allowances like business stipends, internet allowances, and bonuses are common. Other non-taxable benefits include catering, gifts up to $200 (exclusive of GST), and contractual or discretionary bonuses.

8. Regulations on Working During Holidays

Singapore has 11 public holidays, and if worked, employees are entitled to extra pay. If a public holiday falls on a non-working day, employees receive a day's salary or an extra day off.

9. How to Hire a Remote Employee in Singapore?

For businesses registered in other countries, hiring through a Professional Employer Organization (PEO) is recommended. PEO platforms simplify the hiring process, ensuring compliance with local laws and timely payment.

10. Probation Periods in Singapore

While not mandatory, it's common to establish a probation period of 3-6 months. Entitlements like annual leave become applicable after three months of service.

11. Payment of Singaporean Remote Employees

Singapore follows a monthly payment cycle, usually within 7 days of the salary period's end. PEO platforms can assist with seamless payroll management and compliance with local regulations.

12. Currency for Payment

Salaries are typically paid in Singapore Dollars (SGD), though PEO platforms can facilitate payments in the employee's local currency, reducing conversion rate fluctuations.

13. Termination of Singaporean Remote Employees

Termination follows guidelines set by the Employment Act. Notice periods, severance payments, and final salary payments are determined by factors such as length of service.

In conclusion, understanding the intricacies of hiring remote employees in Singapore is vital for businesses seeking to tap into the country's skilled workforce and business-friendly environment. Leveraging PEO platforms can streamline the process, ensuring legal compliance and smooth operations.