1. Work Visas for Foreign Employees
Thinking of hiring in Singapore?
Buckle up! This isn’t just about shaking hands and signing contracts. Singapore has strict regulations to keep its job market balanced. If you’re bringing in talent from overseas, you’ll need to navigate the work visa maze. Let’s break it down.
a. Employment Pass (EP) – For the High-Flyers
- If you’re hiring professionals, executives, or managers, they need to earn at least SGD 5,000 per month (more if they have more years under their belt). Only those with recognized qualifications and relevant experience get the green light. Plus, employers must prove they’ve tried hiring locals first—so no shortcuts!
b. S Pass – The Middle Ground
- For mid-skilled workers, this pass requires a minimum salary of SGD 3,150 per month. Quotas apply—15% of your workforce for service industries, and 20% for others and there’s a levy involved. Nothing’s free, right?
c. Work Permit (WP) – The Hands-on Crew
- If your business is in construction, manufacturing, or services, this is the permit for semi-skilled workers. No minimum salary, but levies and industry-specific restrictions keep things in check.
Work permits come with expiry dates—better renew them on time!
d. Other Work Visas – Because One Size Doesn’t Fit All
- Personalized Employment Pass (PEP): VIP access for high earners with career flexibility.
- EntrePass: For the go-getters starting a business in Singapore.
- Dependant Pass & Long-Term Visit Pass: Because families matter too!
2. Salary Expectations and Regulations
No universal minimum wage here, but you still need to play fair. Let’s talk money!
a. Market Rates – Know the Numbers
- Research is your best friend—know what’s fair for your industry.
- Negotiation is key. Experience and skills affect the paycheck.
b. Progressive Wage Model (PWM) – Lifting Wages the Smart Way
- Low-wage sectors like cleaning, security, and retail follow this structured wage model.
- It’s designed to ensure fair wages AND career progression. Win-win!
c. Payroll Compliance – No Slacking Allowed
- Pay salaries at least once a month. No excuses.
- Provide itemized payslips (because transparency is key!)
- Overtime pay? Yes, if the Employment Act says so.
3. CPF Contributions and Other Benefits
Here’s where things get serious—social security! If you’re hiring locals or Permanent Residents, the CPF (Central Provident Fund) is non-negotiable.
a. CPF Contribution Rates – What’s the Damage?
- Contributions are split: employees chip in 20%, and employers add 17% (for those under 55).
- Rates decrease as employees age, adjusting for retirement needs.
b. Other Statutory Contributions – Because There’s More
- Skills Development Levy (SDL): Funds workforce training. Think of it as investing in the future.
- Foreign Worker Levy (FWL): A must if you’re hiring Work Permit or S Pass holders.
- Self-Help Group (SHG) Funds: Optional but encouraged—supports community programs.
c. Employee Benefits – Keeping Your Team Happy
- Annual Leave: 14-20 days, depending on seniority. Work-life balance matters!
- Medical Leave: Paid sick leave is a thing, as long as they get a medical certificate.
- Bonuses: Not legally required, but who doesn’t love a good incentive?
Hiring in Singapore isn’t just about picking the best talent, it’s about playing by the rules. Stay compliant with work visa regulations, pay fair salaries, and contribute to CPF properly. Do it right, and you’ll build a happy, motivated workforce while keeping the government off your back. Sounds like a plan?
Lettaga 