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.
Build your business in Singapore, with help from Horizons
Reliable Delivery
We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
An Established Presence
Our Singapore subsidiary will act as employer of record, offering you a presence in Singapore for legal local employment.
Flexible Solutions
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Singapore.
Up-To-Date Compliance
We’ll ensure you stay fully compliant at all times with the laws laid out in Singapore’s employment laws.
A Single Point of Contact
Our centralized service gives you a single point of contact, simplifying the entire Singapore employment process.
Proven Global Expertise
Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.
Singapore payroll tax rates & laws
What withholdings and taxes are required in Singapore?
Singapore’s complex payroll 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.
Speak to an expert today.
All-in-one solution for Singapore payroll outsourcing and expansion
Horizons’ Singapore payroll outsourcing services help your business to quickly and compliantly begin trading in Singapore. You can use your own subsidiary, or hire through us, using our Singapore PEO & Employer of Record.
We will handle the local regulations and administration for you, helping your business to commence its Singapore operations in as little as 48 hours, with the potential to save you up to 82% in expansion costs.
Horizons can also manage your company’s payroll, benefits, and expenses in Singapore, as well as general HR duties, as well as employment and tax compliance. And as the only global PEO with an in-house recruitment team, Horizons can also source, hire, and onboard your new Singapore workforce and set the stage for your successful expansion.
