Once you recruit the perfect candidate, a well-crafted compensation and benefits plan can help seal the deal. Singapore’s compensation and benefits laws impact all workers, and you can also offer additional benefits that are not required but are common practice.
Singapore Compensation Laws
Singapore doesn’t have a minimum wage law. Therefore, compensation is at your discretion, but it is best practice to put the terms of the employee’s compensation in a written employment contract. Always make sure you list the salary in Singapore dollars rather than US currency.
Annual bonuses are also not required but are a market norm. Sales employees may get a commission plan instead of a yearly bonus, but other employees typically receive a bonus of two or three months’ salary during a strong economy.
Compensation laws under Singapore’s Employment Act also specify how much employees should make while working overtime. For managers and other workers making over 2,600 SGD per month, you must write out overtime compensation in the employment contract. Employees that make less than 2,600 SGD per month get paid one and a half times the basic hourly rate for overtime.
What Benefits Are Guaranteed in Singapore?
Understanding what is guaranteed to your employees and what you can provide as a supplement is an essential part of Singapore benefit management.
All employees receive basic insurance through the national system, but you can choose to provide additional health benefits. It’s common practice in Singapore to provide supplementary health and life insurance or a small allowance meant for supplemental insurance.
You can lump additional benefits into the employment contract, such as sick leave, time off, maternity leave, housing allowance, childcare benefits, and more.
Singapore Benefit Management
You can either manage your employees’ benefits yourself or look into Singapore benefit outsourcing:
- If you choose to manage benefits alone, you’ll need to find additional insurance options for your workers and ensure your continued compliance with Singapore employment laws.
- A global PEO such as Globalization Partners takes care of everything from hiring employees to finding additional health benefits that ensure you are exceeding Singapore’s employment laws.
Benefits and Compensation Restrictions in Singapore
Singapore compensation laws stipulate that employees must be paid at least once a month and also within seven days of the end of the period. Whenever an employee earns overtime pay, you must pay them within 14 days of the stipulated salary period.
The Singapore Employment Act outlines work and overtime hours, paid and public holidays, sick leave, and paid maternity leave benefits. Before hiring an employee or drafting an employment contract, make sure you feel well-versed on the Singapore Employment Act and understand the area’s different employment laws.
Instead of navigating the process on your own, try Globalization Partners’ Singapore benefit outsourcing. We can make sure your employees get great benefits that keep them happy at your company for years. Contact us today to learn more about our services.