Recruitment of a Singaporean Resident

In this article we introduce some details you should pay attention to while recruiting a Singaporean resident.

Singapore Employment Act

All employers are expected to adhere to the Singapore Employment Act, which is the governing legislation in Singapore. The Employment Act is Singapore's main labour law. It provides for the basic terms and working conditions for all types of employees. Types of employee who are exempted from the Act are

  • Seafarer
  • Domestic worker
  • Statutory board employee or civil servant

Employment Contract

The Employment Contract determines the relationship between the employer and employee, including the terms and conditions of employment. It must include certain terms and essential clauses, such as hours of work and job scope.

The Employment Contract should be in writing to minimise any disputes on the agreed terms and conditions of employment, where possible.

Central Provident Fund (CPF)

The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from both the employers and employees. The CPF is a key pillar of Singapore’s social security system, and serves to meet the retirement, housing and healthcare needs of Singaporeans.

CPF contributions are payable for Singapore citizens (SCs) and Singapore permanent residents (SPRs) who are:

  • Working in Singapore under a contract of service
  • Employed under a permanent, part-time or casual basis.

Employers are required to pay both the employer and employee’s share of CPF contributions every month. They are entitled to recover the employee’s share of the contribution from the employee’s wages.

Skill Development Levy (SDL)

All employers must contribute Skill Development Levy (SDL) for all the employees to the Skill Development Fund.

Employers have to contribute the levy for all employees up to the first $4,500 of gross monthly salary at a levy rate of 0.25%, subject to a minimum of $2, whichever is higher. The levy is fixed at $11.25 where the gross monthly salary is more than $4,500.

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