Singapore may be a small country, but its bustling economy makes it a land of opportunity for local and international talents. It’s no secret that many businesses here hire skilled people from all across the globe.
If you’ve just completed your company’s registration in Singapore and are interested in hiring foreign employees too, here's a guide to help you learn the basics of the hiring process.
What Do Foreigners Need to Work in Singapore?
All foreign employees must have a valid work pass or visa before they can legally work here. The type of pass needed depends on their qualifications. For instance:
Foreign executives, managers, and professionals earning at least 5,000 SGD a month must apply for an Employment Pass. Moreover, they need to pass the Complementary Assessment Framework or COMPASS.
The S Pass is for skilled workers who don’t hold managerial positions but have the technical skills needed for the job. They should earn 3,150 SGD or higher a month to qualify.
There are also other work permits for foreigners in industries such as construction and manufacturing. Migrant domestic workers have different permit requirements as well.
Key Steps in the Foreign Hiring Process
You must first post a job advertisement on the MyCareersFuture website to provide equal opportunities to Singaporean applicants. Exemptions to this rule include businesses with less than ten workers and positions with salaries of 20,000 or higher. All applicants must be assessed fairly.
After the job listing has been open for at least 28 days, you can submit the appropriate work pass applications with the Ministry of Manpower.
The MOM will review the applications and check if your company and the foreigner meet all their eligibility criteria. If they approve, you will receive an in-principle approval letter or IPA. The IPA will only be valid for a limited time, so you have to bring the foreigner to Singapore within the given period. You may apply for an extension of up to a month if needed, though this is only available once.
Mind the Foreigner Quota and Levy
Singapore has implemented a quota system to ensure that your workforce is not fully made up of foreign employees. For example, companies in the construction and processing industries can hire seven foreigners for every local. Since it depends on the industry you’re in, you should consult the MOM first on your business’s quota.
Furthermore, you should also consider the migrant worker levy, which is required for employers with S pass and migrant worker permit holders. The amount you must pay each month is based on your sector and the number of foreign workers you hire.
Can New Companies Hire Foreigners Right Away?
Businesses that just recently finished the company incorporation process can start hiring foreigners once the government has calculated their foreign worker quota.
If you haven’t made any salary declarations and Central Provident Fund contributions for your local employees yet, the quota will depend on your declaration and contribution for the first month.
After your initial hiring period, the foreign quota will depend on the declarations and contributions for the last three months.
Should You Get Help From a Business Service Provider?
If you find the hiring process too time-consuming to deal with yourself, you could work with a business consultancy to streamline the work for you. They aren’t just useful for helping you with your company’s registration in Singapore. These experts can also assist with the various responsibilities involved in employing foreign talent, such as meeting the MOM’s application requirements and setting up payroll.
Foreign Talent Can Help Your Business Reach New Heights
Foreign employees can bring many benefits to your company. They could fill in the gaps that you might find lacking in the local talent pool. But do keep all the government requirements in mind before you post that job ad.
If you’re unsure of what to do, feel free to consult a corporate expert you trust. Their guidance can help you find the right people to make your company succeed in Singapore.