Can I Work Overseas On A Local Singapore Contract?

Photo by Jamie Davies on Unsplash

So many things have happened in the past year that we never saw coming. No one predicted we’d lose the ability to travel. Or go to the office. Or stay out till midnight. Or celebrate occasions and holidays with all our friends and family.

In the recruitment industry, no one predicted we’d be getting so many requests to hire people overseas on a local Singapore contract. Singapore’s low income tax rate is usually enough of an incentive to have people clambering for a chance to work here. The promise of an easy way of life, especially for families, and proximity to tourism hotspots like Thailand, Bali and Japan, add to the allure. 

But now that travel has become so restricted and remote work is the norm, requests for Singapore staff to work offshore – forfeiting the tax benefits – are increasing. Many employees making these requests hope they will be able to transfer to Singapore when travel restrictions are lifted. But it’s possible these requests will continue after borders open, especially now that the uncertain times are making people feel more wary of uprooting their lives for a job.

The first question the Accela Talent team gets is, “is it possible to hire someone overseas on a Singapore contract?” And the easy answer is: yes!

From the HR side, it’s the same process – draw up a contract and agree on the terms, then go through the virtual onboarding process. 

But a lot more responsibility falls on the employee’s side. It's up to the employee to look into their tax and retirement fund obligations in their country of residence. They also need to set up their own payment structure.

For example, in Australia, the employer makes tax and superannuation contributions on the employee’s behalf. When someone is based in Australia but employed out of Singapore, they will have to make their own tax and superannuation payments.  

The employee also needs to work with the HR department to arrange to have their Singapore salary transferred into their bank account in their country of residence. There are usually some extra fees for an international transfer, which the employer may or may not pass on to the employee, and the funds may take a few extra days to process. 

The idea of employing overseas staff to fill Singapore-based roles is new – if it wasn’t for COVID it might never have become a “thing”. So while HR departments and governments are trying to figure out what it means long-term, the short-term answer is that, yes, it is possible!

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If you’d like some help figuring it out how to best navigate your hiring needs, please don’t hesitate to get in touch: [email protected].