Hiring in Singapore
After registering your company in Singapore, you need to source high-calibre employees who are qualified to work for you in Singapore. Strict guidelines must be followed to ensure you adhere to relevant legal protocols and the Singapore Employment Act for getting work passes in Singapore.
The Employment Act contains the terms and conditions for employment in Singapore as well as an outline of the duties you need to follow as an employer. It applies to all employees across all industries, except for:
- - Managers and executives who have the power to hire, fire, promote or discipline other employees, and those with specialist skills such as lawyers, doctors and accountants
- - Domestic workers
- - Selected government staff
- - Seamen
Employees earning less than S$2,600 qualify for additional protection concerning rest days, annual leave, sick leave, overtime, retirement benefits and more under Part IV of the Employment Act.
As an employer, you need to consider where your employees fall under the Employment Act. You may also need to consider additional labour laws that affect your employees, as well as any restrictions on the number of foreign employees and costs incurred for work pass applications.
Employment Pass and Personalised Employment Pass
The Singapore Employment Pass is designed for managers, executives, specialists and skilled professionals. Entrepreneurs who incorporate company in Singapore may also apply for an EP if they wish to relocate for the management of operations. There is no limit on the number of EPs one business can apply for, but individual candidates must earn at least S$4,500 (effective 1 Sept 2020). The qualifying salaries for EP candidates in their 40s should be around double the minimum qualifying salary for the youngest applicants.
From 1 December 2020 onwards, the minimum qualifying salary for EPs in the Financial Services sector is further raised to $5,000 for new applicants.
The Personalised Employment Pass (PEP) is only issued to candidates at the highest level. Pass holders will enjoy the freedom to switch between jobs and pursue new opportunities, as long as their minimum salary is at least S$144,000 per annum.
Read more about types of work passes in Singapore at InCorp Global.
