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Contract Job in Singapore

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

thesti
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Contract Job in Singapore

Postby thesti » Sat, 03 Jan 2015 4:20 pm

Hi,

I want to ask about a contract job in Singapore, because sometimes we are offered with contract job instead of a permanent job in Singapore.
- will a contract worker get the same benefit as the permanent worker? Such as the health insurance, retirement saving, etc..
- how about the taxes? Will the contract worker have to handle their own tax payment? If yes, how to calculate the tax in Singapore as contract worker?


Thank you.

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Strong Eagle
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Re: Contract Job in Singapore

Postby Strong Eagle » Sat, 03 Jan 2015 11:12 pm

While each and every contract is negotiated individually, most contractors do not receive any kind of benefits from the company employing them. This is true for even high end individuals such as project managers and solutions architects.

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Re: Contract Job in Singapore

Postby Strong Eagle » Sun, 04 Jan 2015 9:16 am

I assume you are a Singapore citizen or PR?

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Re: Contract Job in Singapore

Postby thesti » Sun, 04 Jan 2015 9:11 pm

Hi,

thank you for the reply.
actually I'm not a Singaporean. I was offered a contract job, so I'd like to know about the taxes in order for me to calculate my expected salary.

So, how about the taxes? Does a contractor pay the same taxes as a permanent employee?


Thanks

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Re: Contract Job in Singapore

Postby Strong Eagle » Mon, 05 Jan 2015 3:17 am

thesti wrote:Hi,

thank you for the reply.
actually I'm not a Singaporean. I was offered a contract job, so I'd like to know about the taxes in order for me to calculate my expected salary.

So, how about the taxes? Does a contractor pay the same taxes as a permanent employee?


Thanks
First of all, if you are not a Singaporean or PR, then you cannot directly work as a contractor for any company in Singapore because you need a work permit to do so. Your choices are:

a) You will work for the company as a contractor (ie - specific duration, compensation, etc) but you are actually an employee and the company will get you a work permit (hopefully). The company will be required to file an IR8A for you when you quit and will have to withhold your final month's salary until they know you have paid your income tax.

b) You must be working for a company that will contract you out. That company will get your work permit, and that company must do the same as in a)... file an IR8A for you, and withhold last month's salary until they know you have paid your taxes. Generally, under this arrangement, the company you work for bills you at a higher rate than you will get paid since they get a cut of your salary.

A contractor is taxed the same as anyone else... if here 183 days or more, you get the resident tax rate. If less than 183 days, you pay non-resident rates. Go to the IRAS website to check the rates. You will not pay CPF as a non Singaporean or PR.

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Re: Contract Job in Singapore

Postby sundaymorningstaple » Mon, 05 Jan 2015 1:27 pm

I'm not sure, SE but I think maybe you might be confusing the OP's term in the initial post "Contract Employee" with the term "Contractor" in your sense of the word. Almost all EP holders, at least at the lower levels are "contract" employees in as much as their term of employment begins and end with the Employment Pass start and expiry dates. It's possible that that is what the OP is referring to. I may be wrong as well but though I'd interject that so maybe the OP can clarify.

OP, if this is what you are trying to ask, then yes, normally then conditions and benefits are the same or similar and yes, provided the minimum employment duration is met, they would be taxed at the same rates as a citizen/PR here. However, there would be not any provision for "retirement benefits" from the employer or government. Although some (not all) employers will pay them an allowance equal to the employers contributions to CPF if negotiated. Anything you ultimately get will depend on your negotiation skills and your pain threshhold.

sms

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Re: Contract Job in Singapore

Postby sundaymorningstaple » Mon, 05 Jan 2015 1:30 pm

sundaymorningstaple wrote:I'm not sure, SE but possibly the OP's term in the initial post "Contract Employee" doesn't mean the term "Contractor" or "Contract Staff" in your sense of the word. Almost all EP holders, at least at the lower levels are "contract" employees in as much as their term of employment begins and end with the Employment Pass start and expiry dates. It's possible that that is what the OP is referring to. I may be wrong as well but though I'd interject that so maybe the OP can clarify.

OP, if this is what you are trying to ask, then yes, normally then conditions and benefits are the same or similar and yes, provided the minimum employment duration is met, they would be taxed at the same rates as a citizen/PR here. However, there would be not any provision for "retirement benefits" from the employer or government. Although some (not all) employers will pay them an allowance equal to the employers contributions to CPF if negotiated. Anything you ultimately get will depend on your negotiation skills and your pain threshhold. Otherwise what SE says is true.

sms

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Re: Contract Job in Singapore

Postby the lynx » Mon, 05 Jan 2015 1:33 pm

sundaymorningstaple wrote:I'm not sure, SE but I think maybe you might be confusing the OP's term in the initial post "Contract Employee" with the term "Contractor" in your sense of the word. Almost all EP holders, at least at the lower levels are "contract" employees in as much as their term of employment begins and end with the Employment Pass start and expiry dates. It's possible that that is what the OP is referring to. I may be wrong as well but though I'd interject that so maybe the OP can clarify.

OP, if this is what you are trying to ask, then yes, normally then conditions and benefits are the same or similar and yes, provided the minimum employment duration is met, they would be taxed at the same rates as a citizen/PR here. However, there would be not any provision for "retirement benefits" from the employer or government. Although some (not all) employers will pay them an allowance equal to the employers contributions to CPF if negotiated. Anything you ultimately get will depend on your negotiation skills and your pain threshhold.

sms


To add, the CPF equivalent for non-citizens and PRs is called SRS and it can be taxed should you leave Singapore and choose to withdraw.

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Re: Contract Job in Singapore

Postby Strong Eagle » Mon, 05 Jan 2015 11:06 pm

sundaymorningstaple wrote:I'm not sure, SE but I think maybe you might be confusing the OP's term in the initial post "Contract Employee" with the term "Contractor" in your sense of the word. Almost all EP holders, at least at the lower levels are "contract" employees in as much as their term of employment begins and end with the Employment Pass start and expiry dates. It's possible that that is what the OP is referring to. I may be wrong as well but though I'd interject that so maybe the OP can clarify.

OP, if this is what you are trying to ask, then yes, normally then conditions and benefits are the same or similar and yes, provided the minimum employment duration is met, they would be taxed at the same rates as a citizen/PR here. However, there would be not any provision for "retirement benefits" from the employer or government. Although some (not all) employers will pay them an allowance equal to the employers contributions to CPF if negotiated. Anything you ultimately get will depend on your negotiation skills and your pain threshhold.

sms


Yes, I get that, SMS. In Singapore, since virtually everyone works under an employment contract, the only difference between a contractor and contract employee is the duration... the contractor for a specified period of time, the contract employee on a continuous, at will basis.

I just wanted to make sure that the OP is clear that some company has to sponsor his work permit. And if it is the company he will work for directly, MOM has informed me that he is a contract employee, even if he has a finite duration contract.

If I have been misinformed, I'd like to know your understanding. Cheers.

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Re: Contract Job in Singapore

Postby x9200 » Wed, 07 Jan 2015 11:35 am

I don't think there is any solid link between the "permanent" nature of the contract and the benefits. More-over, if any, I think it is just the other way around to what was said earlier - the permanent type of the contract often offers less benefits as they are or may be considered more "local" (as opposite to the expat type).
Anyway, in my organization practicaly all contract are for a term and of course people get benefits, like housing or for kids education.

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Re: Contract Job in Singapore

Postby Aragorn2000 » Wed, 07 Jan 2015 2:04 pm

the lynx wrote:
sundaymorningstaple wrote:I'm not sure, SE but I think maybe you might be confusing the OP's term in the initial post "Contract Employee" with the term "Contractor" in your sense of the word. Almost all EP holders, at least at the lower levels are "contract" employees in as much as their term of employment begins and end with the Employment Pass start and expiry dates. It's possible that that is what the OP is referring to. I may be wrong as well but though I'd interject that so maybe the OP can clarify.

OP, if this is what you are trying to ask, then yes, normally then conditions and benefits are the same or similar and yes, provided the minimum employment duration is met, they would be taxed at the same rates as a citizen/PR here. However, there would be not any provision for "retirement benefits" from the employer or government. Although some (not all) employers will pay them an allowance equal to the employers contributions to CPF if negotiated. Anything you ultimately get will depend on your negotiation skills and your pain threshhold.

sms


To add, the CPF equivalent for non-citizens and PRs is called SRS and it can be taxed should you leave Singapore and choose to withdraw.


I thought for PRs, it's still CPF?

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Re: Contract Job in Singapore

Postby the lynx » Wed, 07 Jan 2015 2:16 pm

Aragorn2000 wrote:
the lynx wrote:
sundaymorningstaple wrote:I'm not sure, SE but I think maybe you might be confusing the OP's term in the initial post "Contract Employee" with the term "Contractor" in your sense of the word. Almost all EP holders, at least at the lower levels are "contract" employees in as much as their term of employment begins and end with the Employment Pass start and expiry dates. It's possible that that is what the OP is referring to. I may be wrong as well but though I'd interject that so maybe the OP can clarify.

OP, if this is what you are trying to ask, then yes, normally then conditions and benefits are the same or similar and yes, provided the minimum employment duration is met, they would be taxed at the same rates as a citizen/PR here. However, there would be not any provision for "retirement benefits" from the employer or government. Although some (not all) employers will pay them an allowance equal to the employers contributions to CPF if negotiated. Anything you ultimately get will depend on your negotiation skills and your pain threshhold.

sms


To add, the CPF equivalent for non-citizens and PRs is called SRS and it can be taxed should you leave Singapore and choose to withdraw.


I thought for PRs, it's still CPF?


Ah my typo. I meant to say non-PRs as well...


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