Payroll Outsourcing in Singapore

• Easy salary disbursement to employees
• Manage all time-consuming payroll tasks instantly
• Save valuable resources and scale your company

Your Trusted Payroll Provider In Singapore

Entering a new market as part of international expansion is always a time-consuming and challenging task for companies. You need to have a good understanding of the local tax laws, employment laws and schemes, and cultural inclinations.

A reliable and experienced payroll outsourcing solution like Edge can make the road easier to drive. We have payroll experts well-versed in the business needs of most companies and small businesses. We understand the market sentiment better quite well and remain abreast with the latest local legislation, government schemes, laws, and regulations. We ensure that you always maintain statutory compliance and focus on expanding the core function of your business.

Handing over your payroll processes to payroll outsourcing companies in Singapore can be your key to cost savings during the initial set-up phase. In-house payroll is often the costlier alternative and is not suitable for newer businesses in Singapore. Moreover, our team does not merely process payroll but acts as a functional extension of your core management team.

We acknowledge the plethora of accessory requirements for a business seeking to payroll services.

At Edge, we handle the following in addition to our core payroll functions:

• All paperwork associated with employee onboarding (employment contract, social security registration, etc.)
• Setting up bank accounts for your employees (if required)
• Sending you detailed payroll reports of payroll disbursement according to your payroll cycle
• Looking after payroll taxes, statutory contributions, and legal compliance of your company
• Securely storing your employee data
• Helping HR services of your company assist the employees better (both local and non-residents of Singapore). We offer comprehensive payroll outsourcing services in Singapore as well.
• Facilitating the termination of employment contracts (if needed)
• The quality assurance and immaculate track record associated with our name place us among the top payroll outsourcing companies in Singapore.

What Makes Edge Different?

Several factors make Edge the automatic choice from a long list of Singapore payroll services.

Payroll And Market Expertise

Our payroll specialists understand the local ambiance of Singapore well for new businesses in the market. We have assisted several businesses in the past and continue to maintain a spotless track record. We aim to help you set up your business seamlessly.

Commitment To Data Security

We take the security of your payroll data very seriously. Our end-to-end-encrypted system ensures that no third-party company gains access to sensitive data containing employee details, payroll specifics, etc.).

Our payroll software does not leave any room for payroll errors. Mismanagement and inefficient payroll compliance can be frustrating for employees and employers alike. We always ensure that employees are paid correctly and on time.

Regulatory Compliance

As a trusted outsourcing payroll services provider, we are constantly in touch with Singapore’s tax authorities. This way, we remain aware of any updates in the applicable taxes, helping you stay compliant no matter what. Non-compliance with local regulations should never hinder the international expansion of a business in the presence of a trustworthy payroll outsourcing provider like Edge.

Customized Solutions

We understand that the payroll needs of small businesses are quite different from those of a multinational giant. Therefore, the services rendered by a responsible payroll outsourcing vendor in Singapore should incorporate plans for the strategic growth of both.

At the same time, a company should have the flexibility to upscale or downscale payroll operations according to its recruitment and growth plans. We offer tailored plans that cater to your meticulous needs as a company of any size.

How Do We Run Payroll?

Our payroll outsourcing model is quite simple for businesses to come on board. It involves the following steps:

Step 1: We collect the personal details and employment data of all your employees (their residential status, job designation, work experience, etc.)

Step 2: We set up their social security and open bank accounts (if they don’t have one) to credit their salaries as per the payroll cycle.

Step 3: We calculate their gross pay first. Then, we make the necessary deductions (for insurance, tax compliance, etc.) and affirm their net salary.

Step 4: On the day of disbursement, all employees enrolled in the database receive their salaries in the registered bank accounts.

Step 5: We send payslips containing details of the transaction (date, time, amount, etc.) to the employees.

The same process is repeated on a monthly or bi-weekly basis (according to the instructions of the company). Employees can get in touch with our team via email or our helpline number for any concerns.

Worker Entitlements In Singapore

As a company venturing into the Singaporean market, you will require fresh recruitment of candidates (both residents and non-residents). Thus, it is important to have an idea about the work laws in Singapore to understand the operations better.

Duration Of Payroll Cycle

The standard payroll cycle in Singapore extends from the 25th of a month to the next. Most companies have a monthly disbursement schedule. However, you can also choose a bi-weekly payroll frequency if convenient. The only need is for your payroll outsourcing vendor in Singapore to be regular in the payroll process. This will keep your employees happy.

Minimum Wage Mandate

As of now, the minimum wage requirement for non-residents in Singapore is set at SGD 4,500 per month for all sectors. No specific minimum wage is designated for residents of Singapore.

Work Leave Benefits

If an employee has worked for a month in a company, he is entitled to 7 days of paid annual leave. After working for at least 2 years in the same company, this limit increases to 14 days per year. Also, annual leave cannot be carried forward to the next year unless specified by the employer under special terms.

There are no set guidelines for sick leaves in Singapore. However, workers are entitled to paid sick leave. It depends on the internal policies and regulations of a company. The pay rates might vary as well. A medical certificate is required for an extended period.

Female employees are entitled to 16 weeks of paid leave at the time of pregnancy. This includes 4 weeks before birth and 12 weeks after. They are paid as per their regular salary during this period.

Male employees are entitled to 2 weeks of paternity leave at the time of birth of a child. Apart from this, parents can opt for shared parental leave for up to 16 weeks between them.

Overtime Compensation For Employees

In Singapore, the daily working hours cannot exceed 12. Any work that surpasses the standard workweek duration of 44 hours is considered overtime. Overtime is compensated at the rate of 1.5 times the regular wage for the first two hours and 2 times the wage for every additional hour.

Severance Pay For Employees

Employees who have worked for more than 6 months in a company are entitled to notice pay in case of termination without fault. The amount of severance pay is subject to change depending on the duration of the notice period (7 days to 4 months). Also, additional severance employee benefits can be negotiated in the employment contract or in case of an unfair dismissal from the job.

Termination Of Employment

The contract of employment can be terminated by either the employer or the employee. Both parties should adhere to the criteria stipulated by law and respect the due notice period. The length and pay of the notice period depends on the length of service and reason for termination.

Income Tax Regulations in Singapore

Here’s a quick look at the general income tax laws for businesses and individuals in Singapore:

For Businesses

Corporate Income Tax – When it comes to corporate income tax, Singapore offers a territorial tax system. Companies are charged on income derived from Singapore as well as foreign income remitted to Singapore.

The corporate tax rate is standardized at 17% with few exceptions. Start-ups can enjoy tax exemptions up to S$200,000 for three years of consecutive assessment.

Goods and Services Tax (GST) – It is a consumption tax levied by the government on the consumption of most goods and services in the country. It is charged at 7% with very few exceptions.

Withholding Tax – This applies to certain payments made to non-residents, such as the central provident fund, auto inclusion scheme, dividend amounts, royalties, bonuses, etc. Rates are subject to the nature of payment and tax treaties between Singapore and the country of the employee’s residence.

For Individuals

Tax laws and rates keep on increasing with increasing annual income in Singapore. They follow a progressive model for individual income tax. Residents are charged on the income earned in Singapore and foreign remittance to Singapore. Non-residents are charged solely on the income earned in Singapore.

The income tax slabs are defined as follows: