Guide to hiring employees in Singapore

Minimum wage in Singapore

Singapore’s Ministry of Manpower does not prescribe a minimum wage for all workers in Singapore.

Employee Benefits in Singapore

Employers in Singapore are required by the Employment Act to provide their employees with statutory benefits including social security, leave entitlements, and termination and severance pay.

However, in today’s highly competitive employment market, companies that want to attract, hire, and retain employees must be able to provide supplementary employee benefits and perks that go beyond the basics.

The list below contains a selection of value-added benefits that can pad up your benefits package and help you to attract discerning employees:

• On-site wellness initiatives
• Mental health days
• Educational support
• Employee assistance programs
• Flexible spending dollars
• Volunteering days
• Home working allowance

Types of leave available in Singapore

Annual Leave

Employees who have worked for their employees for a minimum of three months are eligible for paid annual leave. Annual leave entitlement in Singapore is dependent on the number of years of service an employee has performed within a company and begins. However, it is common for most companies to provide employees with 14 to 20 days annual leave within their first year of service.

Sick Leave

Employees in Singapore get 14 days of paid sick leave in a year upon completion of six months of work. If hospitalisation is required, they are entitled to 60 days of leave per year, including 14 days of outpatient care.

Before they complete 6 months of service, the number of paid sick leave days they receive will be based on their length of employment at the time.

• Up to three months – five days per year, 15 days if hospitalisation is necessary
• Four months – eight days per year, 45 days in the event of hospitalisation
• Five months – 11 days per year, 45 days- in the event of hospitalisation
• Six months + – 14 days per year, 60 days in the event of hospitalisation

Adoption Leave

Eligible adoptive mothers are entitled to 12 weeks of paid adoption leave to care for their adopted infants under the following criteria:

The adopted child is below the age of 12 months at the point of the formal intent to adopt. The “formal intent to adopt” happens:

• One of the adoptive parents must be a Singapore citizen.
• The child must become a Singapore citizen within 6 months of the adoption.

If the child is a foreigner:

• One of the adoptive parents must be a Singapore citizen.
• The child must become a Singapore citizen within 6 months of the adoption.
  

The employee has worked for the company or has been self-employed for a continuous period of at least 3 months immediately before the formal intent to adopt.

The adoption order must be passed within 1 year from the formal intent to adopt.

Childcare Leave

According to the Employment Act, working parents of Singapore citizen children are entitled to six days of paid childcare leave per year. Parents of non-citizens are entitled to two days of childcare leave.

Employees are entitled to Government-Paid Childcare Leave (GPCL) if they meet the following requirements:

• The child is below 7 years old
• The child is a Singapore citizen
• The employee has provided three months of continuous service to their company
• If self-employed, they have been engaged for at least three continuous months of work and have lost income during the childcare leave period

Maternity Leave

Expectant mothers who have been employed by the company for more than three months prior to giving birth are eligible for 16 weeks for pregnancy leave. During this period, companies are not allowed to terminate the employment contract. Maternity leave is reduced to 12 weeks if the child is not a Singapore citizen.

For the first two children, the first eight weeks of compensation is covered by the employee and the balance will be reimbursed by the government. However, from the third child, all 16 weeks of maternity leave is reimbursed by the government.

Paternity Leave

Working fathers are entitled to two weeks’ worth of Government-Paid Paternity Leave (GPPL) in Singapore. The criteria are as follows:

• The child is a Singapore citizen
• The employee has been lawfully married to the child’s mother between conception and birth
• The employee has served their company for a continuous period of at least three months before the birth of the child
• If self-employed, they have been engaged in work for a continuous period of at least three months before the birth of the child, and have lost income during the paternity leave period

Shared parental leave

As a working father, an employee can apply to share up to four weeks of their spouse’s 16 weeks of Government-Paid Maternity Leave, subject to their spouse’s agreement.

Unpaid infant care leave

All working parents in Singapore are eligible for six days of unpaid infant care leave per year provided they meet the following requirements:

• The child is a Singapore citizen
• The child is less than two years of age
• They have provided their current employer with three months of continuous service

Attracting Singaporean talent

Today’s candidate-centric market requires companies to find innovative ways to attract candidates who want to work for them. Finding the right person to fill an open position is no simple task and hiring managers face a difficult challenge. Excellent benefits and culture are essential for attracting and retaining talented employees in Singapore, but here are some additional things that companies can do to improve their chances of success.

Leadership

Make sure that your managers at every level within your organisation are the best fit for their position. Poor leadership can drive away employees fast. Excellent leadership comes from years of experience and practice, which is why leadership training is essential to securing managers and department heads capable of engaging, inspiring and retaining employees.

Flexible working hours

According to a study conducted by Singapore's Institute of Policy Studies (IPS), 41 to 52% of employees believe that flexible work arrangements should be part of the new norm. Researchers also found that employees who had the ability to choose between different types of work arrangements reported better psychological well-being than those who did not.

For companies that are doing the opposite by forcing employees back to the workplace against their will, workstyle consultant Hardeep Matharu warns that the consequences of this can be dire. "There are very real risks of not just losing top talent, but also reducing their ability to attract talent,'' he says.

Learning & development (L&D)

Professionals in Singapore value the potential for career growth and learning opportunities. It's especially important because employees with the opportunity for training can continue contributing to their companies as the business evolves over time. Learning and development (L&D) investment can help businesses attract potential new employees and foster loyalty among their existing ones.

When marketing jobs and positions, companies should make sure they're communicating these opportunities for professional growth and development.

Diversity, Equity & Inclusion (DEI)

Over the past few years, public awareness of DEI has increased, and an increasing number of employees are considering DEI a significant priority when evaluating potential employers. A survey by the Singapore National Employers Federation (SNEF) and Kincentric found that 71% of employers recognised the positive impact of DEI on company culture and 55% recognised its impact on employee engagement.

A diverse and inclusive workforce is able to increase productivity and create a culture of innovation that can positively impact a business's bottom line.

Termination of employment in Singapore

In Singapore, the notice period is subject to the length of employment.

• Employees who have served less than 26 weeks must provide one days’ notice
• Employees who have served between 26 weeks to two years must provide one weeks’ notice
• Employees who have served between two years to less than five years must provide two weeks’ notice
• Employees who have served five years or more must provide four weeks’ notice

For employees who are still on probation, either the employee or employer can terminate the employment by providing five days’ notice.

Probation periods in Singapore is often based on whatever is agreed on in the contract or between the company and employee but typically lasts for three months.