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Country Profile

Working in Singapore

  Karen Grace Pascual,  Jun 30, 2004

Work Culture
Most companies in Singapore work on a five-and-a-half day work week. That includes the half day an employee has to render in Saturdays. The standard legal work in a week is 44 hours long. Employees are entitled to a minimum of seven days of vacation leave for the first year of service, with most enjoying two to three weeks of leave and paid sick leave..

Personal income tax rates in Singapore are among the lowest in the world. Tax in this country ranges from 2% to 28%.Foreigners working in Singapore on either a Work Permit or an Employment Pass will be taxed, with a few exceptions. A foreigner is regarded as a tax resident if he has lived in Singapore for at least 183 days in one calendar year or has been in Singapore for three consecutive years.

Like Filipinos, Singaporeans work hard to keep up with a very competitive environment in the industry they are in. As with everything, hard work bears fruits as employees are handsomely rewarded for the services rendered. This includes, vacation leaves, bonuses, health and dental insurance which are year end standard employee benefits most companies offer. Most employers give their workers a bonus during the Chinese New Year. Other perks could include car and housing loans and incentive travel overseas.

Present your business cards to everyone present at a meeting, especially if you have an impressive title. Print them in English on one side and Chinese on the other, preferably in gold ink.

Prior to a meeting, it is customary to engage in social banter. During conversation, be enthusiastic, but try not to interrupt. Politeness is a very important attribute in strengthening any kind of relationship in Singapore. Speak in low, modest tones and avoid standing with arms akimbo, which indicates aggression to many Singaporeans. Avoid gestures of any kind, as many may be considered offensive.

Employment

Payment of Salaries
An employer may fix periods for payment of salaries, but the salary period should not be more than one month. The payment of salary shall be made on a working day and during working hours at the place of work or at any other place agreed between the employer and the employee.

Deductions
Deductions will be made only for the following reasons
  • Deductions for absence from work;
  • Deductions for damage to or loss of goods entrusted to an employee for custody;
  • Meals requested by the employee;
  • Accommodations;
  • Advances and loans;
  • Income taxes;
  • Contributions to the Central Provident Fund and other provident funds; and
  • Other deductions approved by the Labour Ministry

    Working hours
    An employee is entitled to one rest day be it Sunday or any day of the week determined by the employer. A total of 8 hours will be rendered everyday or 44 hours in one week.
    Overtime rate must be not less than one and a half times his hourly rate.
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