What Is an Employer of Record in Singapore? How Does It Work and Why You Need It
Employer of Record in Singapore is a solution that allows businesses to hire and manage employees without setting up a local entity. Whether you’re a local startup or expanding your business into Singapore, managing human resource responsibilities and staying compliant with employment regulations can quickly become overwhelming.
With an Employer of Record in Singapore, businesses can focus on growth while a third-party provider handles payroll administration, statutory contributions, tax reporting, employment contracts, onboarding, offboarding, and compliance with local regulations.
At People Profilers, our Employer of Record service, also known as Payroll Parking, helps businesses simplify workforce management while remaining compliant with Singapore’s labour laws.
What Is an Employer of Record in Singapore?
An employer of record, or EOR, is a third-party organisation that legally employs your workforce on your behalf while you retain control over their day-to-day work, responsibilities, and performance.
With an Employer of Record in Singapore, all employment-related responsibilities are handled by the EOR, including compliance with the Employment Act and other applicable regulations.
As your EOR provider, we manage:
- Payroll processing
- Personal income tax reporting with IRAS
- CPF contributions
- Skills Development Levy (SDL)
- Foreign Worker Levy (FWL), where applicable
- Self-Help Group (SHG) contributions such as CDAC, SINDA, MBMF and Eurasian Fund, which are mandatory employee deductions based on ethnicity and must be accurately withheld and remitted by employers as part of Singapore payroll compliance
- Work pass applications with the Ministry of Manpower (MOM)
- Employment contracts and onboarding/offboarding
- HR advisory and compliance support
This allows you to operate in Singapore without having to build a full internal HR department or set up a local employing entity immediately.
How Does an Employer of Record in Singapore Work?
Unlike a staffing agency, an Employer of Record in Singapore functions as a full employment and HR infrastructure provider rather than simply supplying temporary manpower.
While staffing agencies generally focus on sourcing workers for short-term absences, special projects, or temporary roles, an EOR takes on the legal employer responsibilities attached to your workforce. This includes hiring employees under a compliant structure, issuing employment contracts, applying for work passes where needed, administering payroll, managing statutory deductions and contributions, and ensuring compliance with local employment requirements.
The process usually begins with an agreement between your business and the EOR provider. This agreement sets out the scope of services, responsibilities, fees, and compliance obligations for both parties.
Once the agreement is in place, the employee is employed under the EOR’s entity in Singapore. The EOR collects the necessary personal and statutory information, prepares compliant employment documentation, and ensures the employee is properly onboarded in accordance with Singapore regulations.
After onboarding, the Employer of Record in Singapore assumes responsibility for payroll administration. This includes salary computation, payslip issuance, leave-related payments where applicable, statutory deductions, and timely submissions to the relevant authorities.
This includes obligations such as:
- CPF contributions
- Skills Development Levy (SDL)
- Foreign Worker Levy (FWL), where relevant
- Self-Help Group (SHG) deductions
- Personal income tax reporting and submissions with IRAS
- Compliance with work injury compensation requirements
Even though the EOR is the legal employer on record, your company still directs the employee’s daily work, reporting structure, and business responsibilities. This separation allows businesses to maintain operational control while outsourcing employment administration to experienced specialists.
Why Do Businesses Use an Employer of Record in Singapore?
Many companies use an Employer of Record in Singapore because it reduces the complexity of hiring and workforce administration. This is especially useful for overseas businesses entering the market, regional organisations expanding into Singapore, or companies that need to hire quickly without first setting up a local entity.
An Employer of Record in Singapore also helps reduce compliance risk. Employers must stay on top of payroll processing, tax reporting, CPF contributions, SHG deductions, work passes, and employment regulations. Missing deadlines or applying the wrong treatment can lead to penalties, unnecessary disputes, and administrative complications.
By working with an experienced EOR provider, businesses can ensure payroll accuracy, improve compliance consistency, and reduce the burden on internal teams. Employees also benefit from proper onboarding, timely salary payments, compliant deductions, and better support on payroll and HR matters.
What Are the Benefits of Using an Employer of Record in Singapore?
Compliance Support
An Employer of Record in Singapore helps businesses stay compliant with labour laws, tax requirements, statutory deductions, and work pass obligations without needing extensive in-house expertise.
Faster Hiring and Market Entry
Companies can hire employees in Singapore more quickly without waiting to establish a local employing entity.
Lower Administrative Burden
Payroll, statutory deductions, tax reporting, employment documentation, and HR administration are managed by specialists, allowing your team to focus on core business activities.
Cost Efficiency
Outsourcing to an EOR can reduce the cost of building and maintaining an internal HR and payroll team, especially during market entry or early-stage expansion.
Better Employee Experience
Employees benefit from accurate payroll processing, proper statutory submissions, organised HR administration, and access to payroll tools and support.
What Makes People Profilers’ Employer of Record Service Different?
At People Profilers, our Employer of Record service goes beyond basic HR outsourcing. Our Payroll Parking solution allows businesses to park employees under our entity in compliance with Singapore regulations while maintaining operational control over their workforce.
We handle:
- CPF, SDL, FWL, SHG, and IRAS submissions
- Payroll processing and payslip management
- Work pass administration
- Work injury compensation compliance
- Healthcare insurance and benefits administration
- Employment contracts, onboarding, and offboarding
Our cloud-based payroll system also allows employees to retrieve payslips, apply for leave, and submit claims and timesheets more conveniently.
If your company is looking for a practical and compliant way to hire and manage staff, an Employer of Record in Singapore may be the right solution for you.
Ready to Get Started with an Employer of Record in Singapore?
Keep accurate employee records, ensure successful CPF, SDL, FWL, SHG contributions, personal income tax compliance, and work injury compensation administration with support from an experienced HR partner.
Learn more about our Employer of Record and Payroll Parking services and see how People Profilers can support your business in Singapore.
To speak with our team, contact us here.
