Singapore is considered the most open economy in the world by the World Economic Forum. As it stands, Singapore has low tax rates and currently sits atop the second highest GDP per capita based on purchasing power parity in the world. The country focuses on exporting electronics, chemicals, and services. Small and medium-sized businesses are the main foundations of Singapore’s economy.

Major Economic Hubs:

Singapore City

Skills in Demand:

Information And Communications Technology Professionals, Marketing And Design, Construction, Finance, Healthcare, Retail And Tourism

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Resident Tax Information

The government taxes all residents, non-residents and temporary visitors on their income accruing or derived from Singapore. Worldwide assets are taxable only if you're a citizen of this country through your partnership with it.

Singapore's progressive income taxes reach up to 22% with the current maximum rate being 24%. However, individuals are entitled for personal exempt allowances when paying their tax bill.

Resident income taxes for the assessment years 2022, 2023, and 2024 are below –

The residents of Fiji are taxed on their worldwide income, but they may be eligible for foreign tax credits if the money was earned in certain countries.

The income taxes for residents of Fiji are below —

Social Security

The contribution that both employers and employees pay toward social security is a mandatory requirement in Fiji.                                          

The rate of contributions are as below —

Singapore’s social security system has 3 aspects:

• Retirement
• Healthcare
• Social welfare

Social security benefits in Singapore cover –

• Employer liability (cash sickness and maternity benefits)
• Provident fund (MediSave, medical benefits): Old Age, Disability, and  Survivors
• Social insurance (MediShield Life, medical benefits): Citizens and  permanent residents of Singapore

The social security contributions by employer and employee include –

Contributions by permanent residents include –

Statutory Benefits

Statutory benefits in Singapore include –

The Central Provident Fund (CPF) is a mandatory retirement savings plan that every Singaporean citizen and permanent resident must contribute to. Employers cannot avoid enrollment for their employees, so they too must ensure auto-enrollment with the CPF.

• Annual leave
• Maternity/paternity pay
• Sick leave
• Childcare leaves
  

Fringe Benefits

Commonly provided fringe benefits by employers in Singapore include –

• Educational support
• Employee assistance program
• Voluntary benefits
• Additional paid leave
• Flexible spending dollars
• Wellness benefits
• Gym memberships
• Mobile phone allowance
• Season parking
• Study benefits
• Taxi  reimbursements

Exempt Benefits

Exempt benefits include –

• Corporate gifts
• Benefits relating to employee's health such as
• Hospitalization
• Outpatient treatment
• Dental  
• Benefits that relate to upskilling the employee such as
• Training fees
• Examination fees
• Scholarship awards
• Subsidies for course fees

Long-term Incentives

Long-term incentives are benefits provided by employers to employees that involve a time horizon of more than 12 months.

Commonly provided long-term incentives in Singapore include –

Life assurance

Long-term life assurance policies in Singapore are a highly sought after benefit for many people.

The premiums that are paid vary depending upon the

• Employee's age

• Occupation,

• and Location

The cost of life assurance ideally varies between 0.1% to 0.5% of the sum assured.

Medical insurance

The cost of medical insurance varies on

• Census data,

• and Benefit design

Work injury compensation

The Singaporean government requires that employers provide their employees with a monthly salary lesser than $2,600. However it is not mandatory if the employee's annual earnings reach this amount per month; many people in Singapore take advantage of this benefit as they do not want any legal responsibility for accidents or illnesses occurring on-the job.

Dental insurance

In Singapore, dental benefits are not mandatory but many multinational companies provide them as an incentive to retain talent. Many small-to medium size businesses also offer this benefit which means that there's a good chance you'll be covered if your company does too.

Stock options

The most sought-after long term incentives in Singapore are employee stock ownership plans. Employers offer 2% to 15%, with an ideal range being 8%. Options provide valuable benefits and can be tax free if they're exercised within 3 years of grant.

Termination Process

Termination of an employment contract in Singapore may happen in the following circumstances:

• Employee resignation
• Employer dismisses an employee due to misconduct
• Expiration of the contract or project

A notice must be given by either of the parties when deciding to terminate a contract. It must follow the terms and conditions set out in the contract of service.

Notice Period

The notice period for Singaporean employees will be up to 30 days.

Severance Pay

In practice, the severance pay in Singapore is equated to Responsible Retrenchment which the employees who served at least 2 years in the company are entitled to. The retrenchment benefit is usually paid for two weeks to one month of salary per year of service depending on the financial standing of the company.