All businesses are expected to have fair, open, performance-oriented and non-discriminatory employment practices. Any company found guilty of having nationality-based HR practices or other discriminatory human resources practices will be audited by MOM and its work pass privileges will be restricted. Hiring employees in Singapore requires the right work passports. Hawksford is a gateway to Singapore for businesses and individuals, helping foreign entrepreneurs and businesses navigate Singapore`s immigration regulations when they need the service for themselves, their families or employees. We are fully licensed by the Ministry of Manpower (MOM) in Singapore and provide tailor-made advice to all our clients. Get Hawksford`s support to work and live in Singapore. Work permits (WPs) are issued to basic workers in an approved home country or territory, which depends on the industry in which the employee is to be employed. S Pass is a higher level than WP and is awarded to qualified intermediate level foreigners (e.B. technicians). PEs are awarded to foreign expatriates who are employed as executives, managers and professionals for the first two years and can then be extended for three years at a time. After following these notes, the next step is to understand the types of work visas available in Singapore. There are usually 3 categories of work visas issued to foreigners. A quota limits the number of S Pass employees a company can hire – limited to 15% of the total workforce for companies in the service sector and 20% in all other sectors.

Employers must pay a foreign employee tax for all S-Pass employees, which begins on the day the S-Pass is issued. There are penalties for non-payment of the fee to the MOM, which are the responsibility of the employer. The service sector dependency quota (CRD) cap, which refers to the maximum allowable ratio of foreign workers to the overall workforce, will be revised: under the Fair Consideration Framework, companies may be required to advertise job offers on the Job Bank website before offering a job to a particular candidate and/or applying for an EP for the shortlisted candidate. The job must be open to Singaporeans and the advertisement must be advertised for 14 days before the position is open to foreigners. A company may be exempted from the Employment Bank`s obligation to advertise in certain situations. Do you want to start your business in Singapore or do you need help getting work visas? Contact us for a free consultation! Below you will find at a glance the details of the different work passports you need to apply for, depending on the category of foreign talent you want to hire. TMF Singapore can help your company manage all aspects of hiring foreign employees in Singapore. Our team of experts has local knowledge in human resources, payroll, accounting and taxation, corporate secretarial and regulatory to help you simplify operations and maintain your company`s compliance. Contact us.

The amount of FWL payable for each employee is determined by the sector to which the employer/company belongs and the qualifications and skills of the employees. The quota reduction will begin in two phases: 2021 and 2023. The government hopes that this initiative will reduce local companies` dependence on cheap foreign labour. All foreigners will need a work visa issued by the Singapore Ministry of Labour (MOM) before working for an employer in Singapore. These work visas can be a work permit, an S Pass or an Employment Pass (EP). The eligible local wage, i.e. the minimum wage that a local employee must earn to be included in a company`s quota for hiring foreign workers, will increase from S$1,300 (US$917) to S$1,400 (US$988). This is to prevent Singaporean companies from hiring locals with so-called ”symbolic wages” to get the quota of foreign workers.

A Singapore-based company has a quota system when it comes to hiring employees as foreign workers or S-Pass holders. You need to hire a certain number of Singapore residents in the company before a work passport can be applied for from a foreigner. The rate varies from one sector to another. These reductions affect the number of foreign employees a company can hire. The new regulations are part of the fair consideration framework introduced by MOM to provide fair employment to citizens while limiting, but not limiting, the number of foreign workers in Singapore. This is designed for mid-level foreign professionals and requires applicants to earn at least S$2,300 per month (will be increased to S$2,400 in 2020) and meet the assessment criteria, which include holding a degree. The S Pass is open to all nationalities. A local employer or authorized third party may apply for an S Pass.

Singapore companies are required to pay a Foreign Worker Tax (FWL) for their work permit and S passport holders. This levy was introduced by the Singapore government to regulate the number of foreign workers in the country. There are certain requirements when hiring foreigners in Singapore: A foreign employee must be able to obtain a valid work permit and visa. Companies in Singapore that want to hire foreign employees need to understand the plethora of rules for work permits and passports. Each employee must have a valid work pass (commonly known as a work visa), but there are different options and processes that companies must follow depending on individual circumstances. After starting a business in Singapore, hiring employees is an important step that requires serious and important decisions. The hiring process involves certain legal protocols that employers and employees must follow. Most workers today are very familiar with Singapore`s Employment Act and have a clear idea of their rights and the protection afforded to them by various laws. As an employer, it`s just as important to be aware of the do`s and don`ts when hiring employees. When hiring foreigners, you should also pay attention to the quota for this.

The Singapore government has introduced the dependency ratio (CBP) cap to encourage businesses to hire locals. The Democratic Republic of the Congo limits the number of foreigners in an enterprise and is calculated to determine the maximum allowable proportion of foreign workers that an enterprise may employ. A PE is a work visa for foreign professionals and executives who earn at least S$3,600 per month with acceptable qualifications. Older or more experienced candidates need higher salaries to qualify. A local employer or authorized third party may apply for an applicant`s passport application, but a foreign employer that does not have a registered office in Singapore must ask a Singapore-registered company to act as a local sponsor and apply manually on behalf of the foreign employer. If you are not sure how many foreign talents you are allowed to employ, you can easily calculate it on the Ministry of Labour website. After starting a business in Singapore, you need to hire local and foreign employees to work for your company. Although hiring residents (Singapore citizens and permanent residents) is easy, you will need to apply for work visas – Employment Pass (EP), S Passport or Work Permit if you intend to hire foreigners in Singapore.

Employees are the heart of your business. After starting your business in Singapore, the next step is to start your recruitment process and hire the right talent. There are certain requirements if you decide to hire foreign talent in Singapore. The government has warned employers to fairly consider local candidates before selecting foreign candidates. Otherwise, the company may be prohibited from hiring or renewing work permits for foreign workers. DP is available for spouses and children of eligible EP or S-Pass holders. The PE holder must earn a fixed minimum monthly wage of S$6,000. The validity of the pass is linked to the main pass. A DP holder is allowed to work in Singapore if he or she finds a job subject to the application of a consent form by the employing company. In addition, from 2021, the government will provide wage compensation to companies that hire Singaporeans aged 55 and over.

As of April 1, 2020, the government has increased its support for companies that can hire employees aged 40 and over by covering 20% of their monthly salary for six months, capped at S$6,000 ($4,235). This guide highlights the above points, including key labour laws, hiring guidelines for local and foreign employees, and common recruitment practices in Singapore. The guide is primarily aimed at new businesses in Singapore that are considering hiring staff for the first time. The guide is provided for general information purposes only and is not intended to replace the advice of a professional. Most companies in Singapore hire foreign talent to supplement their local workforce. The reasons for this trend are manifold: an ageing population, declining birth rates, unprecedented economic growth and, above all, the unavailability of suitable local talent for certain sectors of employment. IT, commercial, financial and R&D companies are seeing a shortage of highly skilled local talent and are therefore resorting to hiring foreign workers. Similarly, some occupations such as construction work and domestic help are not preferred by locals, leaving no choice but to hire foreign workers.

Given the country`s history of attracting and hiring foreign skilled workers, the Singapore government has liberalized immigration policy and made reasonable arrangements. Under the Employment Act, a foreigner must have a valid work visa to work in Singapore. .