By Globalization PartnersMarch 2014
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The Singapore Ministry of Labor recently announced that unemployment in Singapore in 2013 was only 2.9%. Our clients continue to hire in record numbers. To attract and retain key Singapore talent to lead your Asia-Pac sales strategy, a great compensation package will be key. Note the following when negotiating with candidates:
- A thirteenth month or annual bonus is not required, but is the market norm.
- A commission plan may be seen as a viable replacement for a thirteenth month bonus for a sales employee. An annual bonus may be equal to 2-3 month’s salary when the economy is strong.
- Annual vacation leave in Singapore is typically fourteen days for new professional hires, although senior executives may command anywhere from three to four weeks.
- Most executives request supplementary health and life insurance. We offer a group plan to employees on our employee leasing/PEO in Singapore
- One months’ termination notice on behalf of the employer or employee is a generally accepted practice, but this is not fixed.
- CPF (Central Providence Fund) is the main nationally mandated benefit or social security expense. The amount varies a bit, but we recommend budgeting 16% of the employee’s salary (on top of salary) as a benefit cost to be paid into the Central Providence Fund by the employer.
- Generally, we recommend budgeting 20% as benefits cost on top of the gross salary to allocate for the total employer’s cost of benefits in Singapore, including the CPF allocation.
- An offer letter and employment contract in Singapore should always state the salary and any compensation amounts in Singapore dollars rather than a foreign currency.
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