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Employing people in Singapore

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cedric
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Employing people in Singapore

Postby cedric » Mon, 31 Mar 2008 5:54 am

Hi all!

I'm documenting myself on the process of incorporating in Singapore, I think I'll be ok for registering the company and applying for an entrepass (-applying-.. then I keep my fingers crossed for approval ;) ).

The business I have in mind is in the IT sector and I will need to hire some people.

What are the administrative tasks needed to hire someone (local) ?
What are the taxes/contributions the employer has to pay ?
For say a salary of S$4000 gross, how much nett for the employee ?

and the bonus question : :lol:
What is the average salary in Singapore for a junior web developer ?

THanks!

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Strong Eagle
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Postby Strong Eagle » Mon, 31 Mar 2008 1:11 pm

If you are hiring below a certain monthly pay rate ($1,800, I think) then there are quite a few regulations in place that you must follow. Go to the MOM website for information.

Above the minimum, almost all contractual terms between employer and employee will be contained in an employment contract. You will need a contract that covers holidays, vacations, sick days, insurance (if any), bonuses, termination, confidentiality and intellectual property, etc etc etc.

You will need to pay employer CPF (varies with age of employee) but is generally 34.5 percent of the employees wages up to a maximum of about $1500 for a younger employee. You will also need to withhold 20 percent of the employees wages up to a maximum of $900 for a younger employee.

For a $4,000 salary for someone aged thirty you would pay employer CPF of 34.5% or $1380 and collect $800 from the employee paycheck for a net of $3200. See

http://mycpf.cpf.gov.sg/NR/rdonlyres/9F ... AnnexB.pdf

for details. It gets fairly complex.

You would also want to withhold income tax estimates from the paycheck, somewhere around 8 percent for $4000 per month.

If you exceed 1 million per year in revenues you must also collect GST and pay it quarterly to the govt.

For your last question: Junior web developer, maybe $2000 per month. Would depend on

a) Knowledge of web page programming, especially interactive and the latest techniques.
b) Speed of work - someone fast produces more billable product and is worth more
c) Someone who has an artisitic sense and/or a feel for client needs. There are too many techs who can write pages but cannot deal with the human factor.

And now for my question: Can you do webdav (web services) development? Can you extend that into integrating into MS Office products?

cedric
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Postby cedric » Mon, 31 Mar 2008 3:56 pm

Thank you very much for your thorough answer Strong Eagle!

After reading the table you linked to and some of the CPF website, things looks much clearer to me now. Especially after reading this "Employer's handbook" page :
http://mycpf.cpf.gov.sg/CPF/Templates/S ... =Guest#N3a
(what a nice url haha :p )

So there is only CPF contribution (SDL included from October onwards) to take into account ?


And now for my question: Can you do webdav (web services) development? Can you extend that into integrating into MS Office products?

Yeah sure for the former, depends on what you want exactly for the latter :) (feel free to PM me)


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