The Right Way to Use an Employer of Record in Singapore

Navigating the employment landscape in Singapore, with its favourable business environment, minimal taxes, and a proficient and diverse workforce, is a sought-after prospect for companies aiming to expand in the Asia Pacific region. As the world’s most competitive economy, Singapore excels in both the human development index and economic indicators such as GDP per capita. However, the process of hiring employees in Singapore entails a substantial investment of time and resources. From addressing the intricacies of establishing a local entity to ensuring compliance with regulations, the venture can prove to be both costly and time-consuming.

Enter the Employer of Record (EOR), a facilitator that streamlines the process of hiring, paying, and managing workers in Singapore. By aiding in compliance with local employment regulations and overseeing administrative tasks like payroll outsourcing, benefits, and taxes, an EOR presents a viable solution.

Below, we delve into the advantages and expenses associated with utilising an EOR and outlining the steps involved in employing this service to build your workforce in Singapore. Discover how using an Employer of Record in Singapore can spare you the need to register a local entity, acquire employment permits, and open a local bank account, setting the stage for hiring your ideal team in Singapore.

  •  Evaluate the advantages and disadvantages of every potential partner that may work for your business.

Each EOR presents unique offerings in terms of service quality, features, and pricing. The initial step involves outlining the necessary services and scrutinising each potential EOR to ascertain the one that aligns best with your requirements. Essentially, these attributes should encompass all the essentials for hiring workers in Singapore, encompassing:

  1. Ongoing compliance services aimed at ensuring adherence to evolving regulations,
  2. HR and administrative support functionalities, such as benefits management and tax withholding,
  3. Enhanced safeguards for data protection and intellectual property,
  4. Efficient payroll management to guarantee timely payment for employees.

Try Out Links’ EOR Cost Calculator Now and Get an Estimate Cost on the Employee You Want to Hire!

  • Dedicate sufficient time to choose the optimal EOR service provider.

Ensure that the selected EOR possesses its own entity in Singapore, rather than depending on external providers for certain services. Partner-dependent providers may raise concerns regarding data security, customer service, or costs, as direct engagement with them is absent.

  • Review the feedback, testimonials, and coverage of your selected providers.

Take the time to explore reviews on the company’s website, client testimonials, and third-party review platforms. This process provides valuable insights into the operations of the EOR and sheds light on its treatment of employees, helping you make a more informed decision.

  •  Confirm that the EOR prioritises an exceptional employee experience.

A top-tier employer of record should assist in issuing contracts to employees, handling employment documentation, and processing payroll consistently each month. Essentially, they represent your brand’s image to your employees. Ensure they possess the capabilities to deliver an outstanding employee experience by:

  1. Timely salary payments,
  2. Prompt resolution of employee inquiries,
  3. Seamless onboarding for new hires,
  4. Clear explanations regarding any deductions from employees’ net pay for taxes.
  • Collaborate with your EOR partner to establish a fair and balanced compensation package.

Compensation for remote positions can significantly differ based on various factors including market rates and the local cost of living. An employer of record should be ready to assist you in determining an appropriate rate for the roles you are hiring for in Singapore, considering specific labour laws, market rates, the role of the applicant, their experience, skill level, and the local cost of living.

  • Ensure your EOR partner prioritises intellectual property protection and maintains robust data security measures for your business.

An employer of record should adhere to stringent data protection standards to prevent unauthorised access to your data. Likewise, safeguarding your intellectual property is crucial for maintaining your company’s market position. Your chosen EOR should guarantee that any patents and inventions developed using your resources are appropriately transferred to your company.

What advantages does utilising an EOR offer in Singapore?

An EOR serves as your local representative and facilitates various functions such as:

  • Establishing a local entity that enables you to recruit in Singapore.
  • Defining employment terms and conditions, encompassing salaries, leave entitlements, termination clauses, etc.
  • Overseeing payroll and benefits administration to ensure timely remuneration for employees.
  • Ensuring proper classification of employees and contractors in accordance with prevailing labour laws.
  • Managing the termination process to adhere to legal requirements and avoid penalties.
  • Handling tax obligations and levies on your behalf.

Still not sure? Don’t hesitate to reach out to Links for further information about our services and discover how we can assist you in meeting your HR requirements. With 25 years of HR experience in Asia, Links International provides thorough in-country EOR services, guaranteeing a smooth process to onboard individuals anywhere within just 48 hours! Expand your international workforce with Links Asia’s specialised secondment and sourcing solutions.

For more details on the A-Z of Hiring in Singapore including minimum wages, what to remember when hiring new employees, termination of employment, and more, take a read through our Guide to Hiring in Singapore.

PEO/EOR Calculation