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Singapore Budget 2025: Building a Future-Ready Workforce

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Singapore Budget 2025 : Building a Future-Ready Workforce

Singapore Budget 2025 Building a Future-Ready Workforce galaxy

“Every Singaporean is supported from birth to old age, with more given to those with less. No one is left behind.” said Prime Minister Lawrence Wong, during his Budget Speech 2025, rightfully describing the essence of the budget.

 

Sixty years, a relatively short period for a country (by any means), yet the ‘Little Red Dot’ island that is known as Singapore, was able to mark an impactful presence on the global stage – bolstering it’s strong economy from year to year for over half a century. Underpinned by it’s robust economic policies and deep pool of a skilled workforce, Singapore has in many ways, ticked the critical checkboxes to attract foreign direct investment and high quality skilled workers from across the globe. 

 

Unlike previous years, where the focus leaned heavily on pandemic recovery, digital transformation, and global competitiveness, this year’s Singapore Budget 2025 signals a shift toward long-term workforce resilience and adaptability.

 

Let’s uncover what this budget has in store for employers and employees in Singapore. 

Table Of Content

The Singapore Budget 2025 Highlights:

Supporting Skills Development and Lifelong Learning

The Singapore government acknowledges that mid-career individuals face challenges in an evolving economic landscape, marked by rapid technological advancements and shifting job markets. Therefore, it is apparent that a focus is afforded on skills development and upgrade, especially for workers aged 40 and above. 

 

The government is committed to grant $4,000 to all Singaporeans of this age group, in SkillsFuture credits and a monthly training allowance of up to $3,000 for selected full-time courses. This scheme will be supported for up to 24 months; prioritizing lifelong learning and ensuring that Singapore employees are always equipped to meet the demands of evolving industries.

Increased Support for Part-Time Training and Workers with Lower Incomes

Taking care of the wage gap, Singapore Budget 2025 allocates a $300 monthly allowance to part-time trainees from 2026, ensuring that workers not only have the opportunity to upskill but are also supported financially while they do so. 

 

This will enhance the Workfare Skills Support Scheme and Progressive Wage Credit Scheme to provide additional support for lower-wage workers who are over the age of 30. There will be an increase in co-funding from 30% to 40% in 2025 and from 15% to 20% in 2026. With the additional support, businesses will be more encouraged to invest in skills upgrades for their workforce, regardless of age or wage level.

Workforce Transformation and Employer Support

A more comprehensive set of incentives for employers focused on workforce transformation under the revamped SkillsFuture Enterprise Credit program. This enhanced set of incentives will access businesses (with three or more resident employees) to at least $10,000 in credits, which can be used offset costs associated with employee training and enterprise transformation. 

 

To ensure that businesses are able to manage their workforce programmes efficiently, a new online wallet system has been introduced, allowing companies to track available credits and use status – thus reducing delays in funding.

 

Furthermore, to help companies modernize their workforce to align with new technological advancements, the Workforce Development Grant offers up to 70% funding for job re-design activities. 

Accelerating Inclusivity for Older Workers and Persons with Disabilities

Aging populations are always important concerns for governments worldwide. Therefore, it is equally important for governments to recognise that an inclusive workforce that supports older employees, is  critical for a robust and resilient economy. 

 

In view of this, the Singapore government has announced that the Senior Employment Credit will be extended until the end of 2026. This will continue to provide wage support for older Singaporean workers aged 69 and above – alongside an increase in the CPF contribution rate for workers aged 55-65 in 2026.  

 

By increasing financial support through expanded subsidy rates for adult disability services and the Matched Retirement Savings Scheme, the Budget justifies its title – Onward Together For A Better Tomorrow.

 

The Singapore Government will also continue working with organizations like SG Enable and the Special Needs Trust Company to encourage long-term financial planning for caregivers of persons with disabilities.

Fostering Work-Life Balance and Supporting Families

Singapore Budget 2025 acknowledges the value of work-life balance by including provisions that directly benefit working families. 

 

By introducing Large Families Scheme, where families with three or more children will receive upgraded financial support, will make it easier for parents to remain in the workforce whilst raising a family. The scheme includes a $5,000 increase in the Child Development Account (CDA) First Step Grant and $1,000 in LifeSG credits for each child in the family. 

Embracing Digital Transformation in HR

Technology plays a key role in the workforce development journey. Strategically, the Enterprise Compute Initiative will provide $150 million to support AI adoption. Businesses can engage with cloud service providers and AI experts, to help HR professionals stay ahead of the digital curve. It is anticipated that AI adoption and maturity will better equip Singaporean HR professionals to address challenges, such as talent shortage and employee expectations.

 

With initiatives such as the Digital Economy Council and the Smart Nation Digital Government Group, the Government ensures that businesses align with Singapore’s commitment to being a Smart Nation. 

Financial Support and Tax Incentives for Businesses

Singapore will continue to encourage investment in local enterprises through the $1 billion Private Credit Growth Fund, which will make it easier for expanding businesses to invest in development initiatives for their employees. 

 

A 50% corporate income tax rebate for the Year of Assessment 2025, with a cap of $40,000 is a very encouraging move for businesses who qualify for the rebate. 

Preparing for Future Challenges

Singapore Budget 2025, has forward-looking policies like the Heavy Vehicle Zero Emissions Scheme, which will address external challenges such as climate change, technological disruption and volatile global markets. The scheme will help businesses remain competitive and resilient in the face of new challenges.

 

In line with the Singapore Green Plan 2030, the introduction of the Green Skills Training Programme will provides targeted training to workers in key sectors such as clean energy, electric vehicle technologies and environmental sustainability. The intent for this programme is to boost the green economy and creation of more green jobs for Singaporeans. 

Conclusion: A Budget for the People and the Workforce

Singapore Budget 2025 introduces a refreshed push in Singapore’s journey towards a more inclusive and resilient future. All the initiatives and programmes underscore the government’s commitment to ensuring that every Singaporean worker has the support, opportunities, and resources they need to succeed.

 

With a focus on workforce development and skills upgrade, Singapore Budget 2025 aims to tie Singaporeans of all backgrounds with the country’s vision for continued economic growth and stability. 

 

Prime Minister Lawrence Wong’s words of “Every Individual Action Counts”, demonstrates the level of commitment required by the Government and all Singaporeans, towards establishing a thriving future for generations of Singaporeans to come. 

 

Our Quick Guide on Effective Taxation & Tax Planning Strategies for Businesses in Hong Kong

Derive the Maximum Benefits from Singapore Budget 2025!

Expand into Singapore With Galaxy Payroll Group!  

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FAQ’S

What are the key initiatives in Singapore Budget 2025?
  • The government continues to help Singaporeans cushion higher costs of living with a series of vouchers, rebates and credits schemes. This will be disbursed from May 2025 to January 2026.
  • Workers are encouraged to upskill with the introduction of new measures. Singapore Budget 2025 continues to build on the nationwide emphasis of helping Singaporeans to retrain or reskill.
  • With Singapore Budget 2025, more help has been afforded to working parents who are managing costs associated with raising children in Singapore. 

The Government has expanded the SkillsFuture Enterprise Credit Scheme to help companies fund training programs in high-demand sectors such as AI, data analytics and green technology. There are also sector-specific training programmes to prepare workers for evolving job demands.

The Budget acknowledges the value of work-life balance by including provisions that directly benefit working families. Schemes like the Large Families Scheme and Child Development Account (CDA), will help working parents who are raising families.

Work From Anywhere Policies: How EORs Can Help?

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Work From Anywhere Policies: How EORs Can Help?

Work From Anywhere Policies How EORs Can Help

The COVID pandemic has accelerated work-from-anywhere policies, and it is one of the most significant shifts global markets have witnessed, in recent years.

 

These policies allow employees to work from any location – whether it’s their home, a co-working space, or even another country. This shift has also reshaped traditional work practices and office environments.

 

Employees appreciate the flexibility of working from locations of their choice Work from anywhere (WFA) policies enhance job satisfaction and reduce turnover. It opens up an avenue for companies to hire skilled professionals regardless of geographical location. Companies therefore, are offering more flexible arrangements in order to attract higher quality talent.

 

Companies for instance have been looking at attractive markets in APAC such as Malaysia, Thailand and Vietnam, which offer a skilled and affordable talentpool. Whilst other APAC countries like Singapore, Hong Kong and Japan possess high quality workers in the spheres of  economics, technology and innovation.

 

However, implementing WFA policies is in itself challenging due to cultural diversity and varying manpower regulation across countries. This is where engaging an Employer of Record (EOR) service provider can help ease the complexities of global employment.

 

This article will run you through the advantages of hiring an EOR and how it can help address the challenges of implementing WFA policies.

Table Of Content

Challenges Of Implementing WFA Policies

While the adoption of WFA initiatives offers numerous benefits, the implementation part could pose some challenges. This especially is true for HR personnel who are : 

  1. not familiar or have very limited knowledge in handling international labour laws 
  2. possess little to no experience in managing a remote workforce.

In light of this, businesses might face some hurdles :

  • Non–compliance of varying tax regulations and labour laws. Insufficeint cover of   mandatory benefits, leave entitlements, etc., can result in legal disputes, penalties and irreparable reputational damage.
  • Companies may inadvertently create a “permanent establishment” in a foreign country, leading to corporate tax obligations for both the employer and employee.
  • Payroll processing can be resource-intensive and making local currency payments in some countries can be ‘painful’.
  • Securing appropriate health insurance and other benefits coverage for remote workers can be a complex affair when trying to manage from overseas.
  • In the hiring of Foreign Employees in another country, visa processes may be complexed and difficult. There is also a risk of wrongful application which may lead to an accidental violation of immigration laws.
  • Managing time zone differences.
  • Managing cultural differences and employee engagement.
  • Overcoming communication barriers.

How can EORs help simplify WFA initiatives?

An Employer of Record (EOR) can help simplify the implementation of work-from-anywhere policies by acting as the legal employer of the employees on behalf of the client company. The EOR will handle critical aspects of employment administration while allowing the business to focus on more important tasks. Read our Guide ‘What is an EOR’ to understand how EORs help businesses manage their workforce globally.

 

Although an EOR takes charge of the entire employment process in a specific country, the parties must define the scope of responsibilities to seize the full benefit of the EOR service.

 

EORs assist with :

1. Ensuring Compliance

Employers of Record (EORs) have local expertise in compliance with its country’s employment laws and regulations. It takes charge of employment requirements whilst minimizing risks of fines, penalties and lawsuits.

 

For example, an EOR ensures that the terms of the employment contract such as salary, working hours, benefits, termination, etc. comply with local manpower laws. Likewise, it also takes responsibility for minimum wages, tax and social security, benefits and leaves, health and safety, fair treatment and workers’ rights, etc.

 

2. Simplifying Payroll and Tax Management

The EOR will process salaries in local currencies considering exchange rates and regional pay cycles while managing statutory components like overtime, bonuses and benefits.

 

The EOR also needs to ensure tax compliance across jurisdictions by remitting taxes and social contributions on time. The EOR has to comply with tax treaties to avoid double taxation for employees and exit tax policies.

 

3. Providing Equitable Benefits

The Employer of Record (EOR) has to make sure that their employees across different locations receive fair and comparable compensation and perks despite the varying local regulations from country to country.

 

The EOR has to align salaries and allowances with the cost of living in each country to maintain financial equity among employees. It provides (where required) flexible benefits such as stipends for home office setup or coworking spaces.

 

4. Handling Immigration and Work Permits

The Employers of Record (EOR) also facilitates the application and management of work permits and visas for employees to legally work in a foreign country. It has to handle documentation, application process and compliance with immigration laws.

 

After the visa application is successful, the EOR has to continue to monitor any changes in regulations that could impact the foreign employee’s legal work status.

 

5. Managing Risk

Being the legal employer, an Employer of Record (EOR) absorbs many of the risks associated with international employment. For example:

  • Non-compliance with diverse labor laws can lead to fines and lawsuits.
  • Mismanagement of taxes, social security contributions and payroll, may result in legal penalties.
  • Employing workers in foreign locations could create an ‘unwanted’ taxable corporate presence.
  • Unauthorized work in foreign locations may lead to penalties or employee deportation.
  • Treatment of workers as ‘Contractors’ instead of ‘Employees’ can lead to misclassification risks.

 

6. Streamlining Onboarding and Offboarding

Employer of Record (EORs) make it easier for companies to implement WFA policies by providing country-specific guidance and smooth onboarding and offboarding of employees.

 

It handles everything from drafting employment contracts, payments and access to technology tools for an effective end-to-end process.

 

7. Data Security and Infrastructure

Ensuring compliance of data privacy laws like PDPA in Singapore and PIPL in China, is a very important exercise for all EORs.

 

EORs need to deploy cybersecurity measures such as firewalls, multi-factor authentication and advanced encryption. A centralized data management repository and secure systems for payroll and benefits are all critical components in a full-fledged Employer of Record (EOR).

How are EORs essential for businesses who want to expand their global workforce?

Different economies around the world follow different business and legal practices.  The APAC region in-specific offers a healthy mix of developed and developing nations with vast cultural diversity. Many companies especially see the benefits of utilising EORs in popular APAC destinations. For example :

  • Singapore : where there are strict regulations on employment contracts, CPF contributions and work visas.
  • Japan : With its complex labour laws and social security regime, employing talent in Japan requires careful compliance management.
  • Australia: Employers must adhere to the Fair Work Act, which governs wages, hours and working conditions.
  • Indonesia and Vietnam: Rapidly growing economies with evolving labour laws pose many challenges for foreign companies.

Conclusion

Work-From-Anywhere (WFA) policies represent a transformative approach to the modern workplace, offering unparalleled flexibility and access to global talent. However, successfully carrying out these initiatives require dealing with a variety of legal, tax and administrative challenges. Galaxy Group’s Employer of Record (EOR) services provides a practical and efficient solution for companies who want to embark on WFA initiatives with confidence.

 

Partner with Galaxy Group to unlock the full potential of your WFA policies. Foster innovation and growth in your organization, with the help of an established EOR provider like Galaxy Group. 

Implement Your WFA Initiative with a EOR provider today!

Partner with Galaxy Group, a leading EOR service provider in APAC for 20 years. We will take care of everything, while you focus on core business operations.

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FAQ’S

How can an EOR help simplify WFA policies?

The EOR is a country expert at handling complex tasks such as compliance, local employment regulations, payroll processing, tax remittance, work permits, addressing cultural and communication barriers, etc.

EORs will arrange to get work permits and visas for employees. They have to ensure compliance with immigration laws to enable the employee to work legally in the country.

The EOR typically helps simplify key WFA aspects which pertain to compliance with local laws, tax and risk management, payroll administration and provision of localized benefits.

An EOR minimizes PE risks by acting as the legal employer in the target country, ensuring that the client company is not liable for corporate taxes in the country.

The EOR takes cybersecurity measures, complies with data protection laws and uses secure platforms to protect sensitive employee information.

Employee Engagement in Difficult Times: 6 Key Strategies

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Employee Engagement in Difficult Times: 6 Key Strategies

Employee Engagement in Difficult Times 6 Key Strategies

Businesses face unprecedented challenges when economic uncertainty, geopolitical shifts and global pandemics knock on the door. Entrepreneurs must keep themselves prepared for all uncertainties so that they can keep up with the pace of growth.

 

Furthermore, businesses that have a strong engagement and connection with employees can courageously face challenges and reduce disruptions to business operations.  

 

However, keeping them engaged in difficult times is again a challenge that organizations face due to increased stress and uncertainty, reduced resources, fear of change, emotional disengagement, etc.

 

Therefore, this blog outlines the strategies to boost employee engagement in difficult times and how an Employer of Record (EOR) can play an important role in handling overseas employees in these challenging situations. 

Table Of Content

The Importance of Employee Engagement

The emotional commitment and the level of enthusiasm an employee has towards his work and the company’s goals, is demonstrated in his/her engagement within the organization.

 

An engaged employee goes beyond personal job satisfaction and wants to contribute towards the success of the business. He/She is committed to the aspirations of the organization whilst accomplishing personal achievements.

 

Therefore, an employee’s engagement with his organization directly influences business outcomes and operational efficiency.

 

Improved productivity, higher retention rates, better customer satisfaction and increased innovation whilst reducing operational issues, are some of the benefits a company can harness from engaged employees.

Challenges to Employee Engagement in Difficult Times

1) Economic Uncertainty:

Financial instability leading to salary reduction and layoffs, does have a strong effect on employee morale.

2) Remote Work Fatigue:

While remote work has provided flexibility, it has also affected work-life boundaries, leading to potential disengagement.

3) Cultural Diversity: 

Variation in cultural norms and expectations across countries makes a one-size-fits-all approach ineffective.

4) Mental Health Concerns:  

The World Health Organization (WHO) reports that depression and anxiety disorders cost the global economy US$1 trillion annually in lost productivity. Difficult times make it worse.

Strategies for Boosting Employee Engagement

1) Foster Open Communication and Feedback

Clear and regular communication helps build trust among the employees. Weekly check-ins should be conducted to understand employees’ concerns. Sharing company updates honestly, even when the news is difficult, will help strengthen the employee’s belief in the business.

 

By actively soliciting and acting on employee feedback, the employee feels that their input matters and these are simple exercises that can help with the cause.

2) Prioritise Mental Health and Well-Being

Mental health and well-being is gaining more and more traction over the years. In the past, many employers and employees have overlooked this aspect in lieu of the heavy focus on work accountability.

 

However, the same has become a priority, especially since the pandemic. Therefore, investing in employees’ mental health is no longer optional. Companies can offer Employee Assistance Programs (EAPs) tailored to meet specific employee needs.

 

Conducting counseling sessions, sessions on stress management and mindfulness, providing access to helplines for mental health crises, and establishing boundaries for remote work employees, are some of the simple yet important initiatives employers should consider adopting.

3) Embracing Flexibility and Fairness

Embracing flexibility during difficult times shows understanding and support for the employee’s changing needs. A shift of focus from time spent at work to quality and outcomes delivered is important in enhancing flexibility.

 

Hybrid work models could potentially help employees maintain a better work-life balance. Additionally, providing personalised solutions such as offering wellness sessions to help employees recharge during tough periods.

 

Ensuring equal access to opportunities, equal work distribution, equitable recognition and reward builds trust among the employees, enabling them to go beyond capacities to reach the company’s goals.

4) Cultivating a Positive Work Environment

Cultivating a positive work environment is essential to maintaining employee morale, engagement and productivity. Consider taking the following steps:

 

  • Keeping employees informed about the situation and organizational plans to reduce uncertainty.
  • Encourage feedback and understand employee perspectives through one-on-one meetings and anonymous surveys.
  • Encourage involvement and participation in decision-making to further empower employees.
  • Delegating responsibilities not only builds trust but also allows team members to develop leadership skills.
  • Create a culture of inclusivity by celebrating local festivals and traditions to make employees feel valued and at the same time celebrating the diversity of the company.

5) Prioritising Learning and Development

Foster learning and development activities during difficult times. This could actually be an effective way to keep employees engaged, motivated and prepared for future challenges. Consider the following:

 

  • Providing opportunities for professional growth shows employees that the company is invested in their career and future.
  • Focusing on upskilling and reskilling helps in identifying critical skills employees need to learn in order to adapt to current challenges and future demands. This also prepares the workforce for evolving roles.
  • Create on-the-job learning opportunities to assign challenging projects and roles that allow employees to develop new knowledge and skills.

6) Recognise and Reward Achievements

Employers need to acknowledge hard work and good results. This is a good morale and loyalty booster.

 

Recognition can be monetary such as bonuses and incentives and non-monetary such as additional leave days or public recognition during team meetings.

The Role of the EOR

An Employer of Record takes over the resource intensive work, leaving HR teams to focus on initiatives that can help maintain a positive and engaged workforce:

 

  • by handling the HR and administrative functions efficiently
  • by ensuring compliance
  • seamless onboarding and efficient administration
  • providing access to benefits and health resources
  • facilitating global mobility and technology integration
  • supporting communication and engagement initiatives through surveys and feedback
  • handling workforce adjustments with care
  • supporting the HR team with learning and development initiatives

Measuring Employee Engagement

To ensure the effectiveness of these strategies, measuring engagement is important for actions in the future:

 

  • Employee Net Promoter Score (eNPS): Measures employees’ likelihood to recommend the company as a great workplace.
  • Turnover Rates: High turnover can indicate disengagement.
  • Feedback Response Rates: A high response rate to surveys indicates engagement and trust in the leadership.

Conclusion

Employee engagement is challenging in difficult times. It requires a proactive approach that prioritises transparency, flexibility, well-being and a sense of purpose. By adopting the 6 key strategies mentioned above, companies can work towards building an adaptive workforce.

 

Still seems difficult? Partner with Galaxy Payroll Group to avail the best EOR services in the APAC region.

 

Read our Guide ‘Should You Opt For EOR Services: 5 KeyFactors’ to know why hiring an EOR is advantageous for you.

Your Guide to Employee Engagement During Crisis

Partner with Galaxy Payroll Group for best-of-class EOR service provision in Asia Pacific. We will handle everything while you focus on important initiatives.

 

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FAQ’S

Why is employee engagement important in difficult times?

Employee engagement is important in difficult times because it directly impacts an organization’s ability to face challenges and emerge stronger. It is crucial to retain talent and support long-term success through an engaged workforce.

Prioritise employee mental health and well-being, foster clear communication and employee feedback, delegate decision making and encourage learning and development. These easy steps can help build a positive work environment.

Yes, employees who are strongly engaged with the organization stay committed, collaborate effectively and contribute beyond capacities to achieve organizational goals.

Hire Niche Experts Worldwide with EOR Solutions

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Hire Niche Experts Worldwide with EOR Solutions

Hire Niche Experts Worldwide with EOR Solutions

Recruiting for highly specialised roles has never been more important for businesses looking to thrive in competitive industries.

 

Whether you’re looking for a blockchain developer, robotics engineer or a cloud computing specialist, selecting the best applicant requires more than conventional hiring methods. It calls for accuracy, flexibility and a good amount of sector/market experience. Employer of Record (EOR) service providers can assist organisations in sifting through any complications and expedite the process of locating the needful talent. 

Table Of Content

Why Is Specialised Recruitment So Challenging?

Hiring for specialist roles is not something that should be done lightly. It takes more than simply creating a job posting and hoping the ideal applicant finds it. These specialised positions are intended for people with unique skill sets, expert industry knowledge and an attitude that can blend well with the company’s culture. When combining these factors with industry competitiveness, many difficulties and limitations start to emerge :

  • Limited Talent Pool: The more niche the expertise, the harder it is to find professionals who match your requirements.
  • Global Hiring Obstacles: Sometimes, the perfect candidate resides in another country, introducing logistical and regulatory barriers.
  • Time-Consuming Processes: From sourcing to onboarding, finding the right person can be a lengthy endeavour.
  • Complex Compliance Needs: Different regions bring their own labour laws, tax regulations, and administrative requirements, which can quickly become overwhelming.

How EOR Services Make Specialised Hiring Easier?

An EOR acts as your behind-the-scenes powerhouse, managing the administrative and legal aspects of hiring so that you can focus on finding the best talent. Here’s a closer look at how EORs help simplify the process:

 

1)Expand Your Talent Pool Globally

Companies can access international markets with EORs as they guarantee adherence to regional hiring regulations, allowing businesses to concentrate on selecting the best applicant, whether that candidate is a cybersecurity specialist in Estonia or a data scientist in Singapore.

 

2)Simplify Legal and Compliance Challenges

Every nation has different employment laws, and mistakes may lead to expensive blunders. EORs are knowledgeable about these subtleties and will take care of everything from contract administration to tax compliance, making sure their clients align with the laws of the land.

 

3) Reduce Hiring Time

Specialised roles often need to be filled quickly. By taking care of payroll setup, legal compliance and onboarding logistics, EORs are able to help with speedy onboarding of the chosen candidate. This minimises downtime and keeps projects on track.

 

4) Local Market Expertise

EORs provide priceless information about cultural issues, salary benchmarks and hiring  patterns in certain areas. With this level of support, attractive offers can be crafted offers to appeal to top prospects.

 

5) Streamline Costs

It can be resource-intensive to manage HR and compliance across several regions. EORs help companies save on expenses by centralising these tasks, which enables firms of all sizes to consider global talent acquisition as a feasible alternative.

 

6) Strengthening the Employer Brand

EORs help their customers build a compelling employer brand by offering tailored benefits, flexible work policies and localised perks, that appeal to prospective employees.

 

7) Support Remote and Hybrid Work Models

In today’s flexible work environment, EORs can help in simplifying the management of remote and distributed teams. They ensure compliance and productivity, no matter where your employees are based.

Looking Closer: The Unspoken Advantages of EORs

EORs offer more than just logistical support – they are an integral part of your talent acquisition strategy. Here are a few added advantages:

  1. Easy Onboarding: A smooth onboarding process makes it easier for new hires to settle in and feel comfortable quickly.
  2. Risk Mitigation: Inaccurate classification or non-compliance may result in severe fines. In an EOR engagement, the EOR as the candidate’s employer, will assume these risks.
  3. Staff Upskilling: Many EORs are able to provide access to professional development programs, to keep employees at the forefront of their respective sectors.
  4. Concentrate on What Really Matters: You and your HR team can focus your bandwidth on strategic growth and innovation as top priority action items – by outsourcing time-consuming duties to the EOR.

A Real-World Example : Tech Expansion

Picture a US-based fintech company looking to hire blockchain developers in Asia. Here’s how an EOR can help:

  • They open doors to talent pools in countries like Singapore, Philippines, China and India.
  • All local employment laws and tax requirements are handled seamlessly.
  • The onboarding process is streamlined, so new hires can start work in quick turnaround times.
  • Competitive and culturally appropriate benefits make the roles attractive to top candidates.

What Lies Ahead for Specialised Global Employment ?

As industries like artificial intelligence, renewable energy and biotech continue to advance, the need for highly skilled professionals will only grow. EOR services will in tandem, be increasingly important as they assist companies in employing remote worldwide talent and establishing a global workforce.

Concluding Remarks

Although hiring for specialised positions can be challenging, the benefits outweigh the difficulties. The journey however, may be an easier one. You can access talent from around the world, streamline processes and procedures, when you have a good EOR service provider as your support.

Working with an EOR could be the game-changer you’ve been waiting for, regardless of whether you’re an established business seeking top personnel or a startup looking to expand to newer markets.

 

Read our expert guide on: Payroll Outsourcing: A Cost-Effective Solution For Employers

Expand Your Global Team Today

Learn how EOR solutions can help you hire niche experts worldwide with ease. From compliance to onboarding, we handle the details while you focus on growth.

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FAQ’S

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party service provider that oversees the legal, administrative and compliance facets of managing a workforce. They guarantee efficient payroll processing, onboarding and compliance with local labour regulations.

By handling intricate compliance needs, cutting down on process bottlenecks, and offering localised experience for easier onboarding and retention – EORs help to streamline the process so that specialised roles are seamlessly and efficiently onboarded.

An EOR service is a very financially sensible option for new and small enterprises. With EOR support, the startup does not need to go through the hassle of setting up entities abroad. The EOR also helps reduce operational, legal and administrative expenses – this opens a new pool of talent for new and small businesses. 

Absolutely! EORs are equipped to manage compliance, payroll and HR for remote or hybrid teams across multiple countries, ensuring a seamless experience for both employers and employees.

Hong Kong Maternity Leave Decoded: What Every Employer Must Know!

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Hong Kong Maternity Leave Decoded: What Every Employer Must Know!

EOR services in Hongkong Maternity Leave

Navigating maternity leave policies may be difficult, especially for businesses trying to remain compliant while also supporting their employees. In Hong Kong, maternity leave is a well-defined legal entitlement, and employers must understand these rules in order to establish a friendly work environment and avoid legal ramifications. Here is everything you need to know about Hong Kong’s maternity leave policy.

Table Of Content

1. Eligibility for Maternity Leave

According to the Employment Ordinance (EO), a female employee in Hong Kong is eligible for maternity leave if she meets the following criteria:

  1. She has been on a continuous contract for at least 40 weeks prior to the anticipated date of birth.
  2. She presents her employer with a medical document confirming her pregnancy and projected due date.
  3. She provides her employer advance notice of her desire to take maternity leave.

2. Duration of Maternity Leave

Eligible employees are entitled to 14 weeks of maternity leave. The leave time normally begins four weeks before the planned date of birth and lasts ten weeks after delivery.

  • If the employee delivers birth early or needs extra rest for medical reasons, the leave can be adjusted based on the doctor’s recommendation.
  • Additional leave may be requested, however this is up to the employer’s judgment and consent.

3. Maternity Leave Pay

Maternity leave pay is computed at four-fifths (80%) of the employee’s average daily wage. To be eligible for this payout, employees must have:

  1. Worked under a continuaous contract for at least 40 weeks.
  2. Provided a medical document that indicated the pregnancy.
  3. Provided proper notice of the intended departure period.

Employers can recover the cost of maternity leave pay from the government in certain circumstances, such as participating in the Reimbursement of Maternity Leave Pay Scheme.

4. Notification Requirements

In order to be eligible for maternity leave, workers must:

  1. Give their employer notice at least three months in advance of their due date.
  2. Present a medical certificate from a licensed medical practitioner.

Employers must verify that they received the notice and make the necessary preparations.

5. Protection Against Termination

Pregnant employees are given significant safeguards under Hong Kong’s maternity leave laws. Her employer cannot terminate an employee’s contract because she is pregnant or on maternity leave. If someone is fired during this time without a good reason, there may be legal repercussions and compensation claims.

6. Additional Rights and Considerations

Antenatal Appointments: Employees have the right to take time off for prenatal medical examinations, provided they give advance notice to their employer.

Breastfeeding-Friendly Workplace: Although existing regulations do not require it, employers are encouraged to create a friendly work environment for breastfeeding employees.

Paternity Leave for Partners: Male employees are entitled to five days of paternity leave in addition to the maternity leave framework.

7. Penalties for Non-Compliance

Employers who fail to follow maternity leave requirements may suffer legal consequences, such as fines and compensation claims. This may also impact the company’s reputation and employee morale.

8. How an EOR Can Help

Compliance with maternity leave policies can be difficult for Hong Kong-based businesses, particularly those with a diverse workforce. A reliable Employer of Record (EOR) service helps streamline the process by:

  1. Ensuring full compliance with local employment regulations.
  2. Preparing payroll calculations for maternity leave pay.
  3. Managing documents and employee notifications.
  4. Providing continuing HR support and legal advice.

Conclusion

Understanding and adhering to Hong Kong’s maternity leave legislation is critical for businesses to be compliant and build a healthy work environment. Partnering with an EOR service guarantees that your company is completely prepared to handle these tasks quickly, allowing you to focus on growth while also helping your employees during a key period in their lives.

 

If you need expert advice on handling maternity leave and other HR challenges, contact us today to see how our Hong Kong EOR services may help.

Support Your Employees with Confidence!

Discover how our EOR services can help you navigate maternity leave policies effortlessly. 

Contact us

FAQ’S

Who qualifies for maternity leave in Hong Kong?

A female employee is eligible for maternity leave pay if: She has been employed under a continuous contract by the company for at least 40 weeks immediately before the commencement of scheduled maternity leave.

Maternity leave pay is computed as four-fifths (80%) of the employee’s average daily wage. To be eligible for maternity leave pay, employees must meet certain criteria and produce the relevant documentation, such as a medical certificate and proper notice.

Employers are not allowed to fire employees because they are pregnant or while on maternity leave. Such activities may result in legal sanctions and compensation claims against the employer.

An EOR solution may handle payroll calculations for maternity leave compensation, maintain compliance with Hong Kong’s employment rules, manage documentation and employee notifications, and give HR support, allowing firms to stay compliant while focusing on growth.

How to Hire International Employees: A Comprehensive Guide

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How to Hire International Employees : A Comprehensive Guide

How To Hire International Employees Comprehensive Guide

The fast-moving world economy offers various ways to expand business across borders, and hiring international employees is more than just a trend. Businesses that are looking to expand, innovate and compete on a global scale, especially in Asia–Pacific (APAC) region, see workforce diversity as a strategic move.  

 

International hiring offers immense business opportunities, such as access to diverse skill sets and perspectives and the opportunity to explore new markets.

However, it comes with its challenges, such as adherence to immigration and employment laws, tax regulations, and managing cultural differences.

 

Therefore, this guide outlines the essential steps and considerations for successfully hiring international employees, from understanding legal requirements to creating a smooth onboarding process.

 

After reading the guide, you’ll have a clear roadmap for entering a potential global workforce while ensuring compliance and success in your hiring strategy. 

Table Of Content

7 Steps to Successfully Hire International Employees

1. Define Your Hiring Objectives and Strategy

Before commencing the hiring process, you should determine whether international hiring aligns with your business goals or not. You should consider the following in this respect:

  • Skill Gaps: Identify specific skills that your business requires and the existing or local talent fails to provide.

  • Market Goals: analyse whether international hiring will be able to support your expansion or operational objectives and how?

  • Budget: Allocate budget and resources for recruitment, onboarding, and management of international employees.

A well-defined strategy will ensure alignment with your business goals and maximize the value of your new hires.

2. Identify the Target Region for Hiring

 To make your international hiring journey successful, you must critically choose the target region by considering the following factors:

 

Availability of Skilled Talent: Look for regions with a strong pool of candidates or specialized skills. For example, you will find a pool of talented IT professionals in India or people with specialized engineering skills in Australia

 

Cost of Labor: Compare the cost of salaries and benefits in the potential target regions. 

 

Time Zone Compatibility with the base operational location.

 

Region’s cultural alignment with your Company’s goals.

 

Market dynamics: Identify regions where the existing market supports your expansion plans.Thorough research into the market dynamics of the target region will ensure long-term success.

3. Understanding Labor Laws and Compliance Requirements

Compliance requirements and challenges vary significantly across different countries due to diverse labor laws and tax systems. Therefore, one must conduct thorough research and analysis of the legal framework and compliance requirements in the target region to stay away from fines and penalties for non-compliance.

You must take care of the following:

  • Work Permits and Visas: enquire what kind of work permits or visas your employees require to work in the target region and how to get them.

 

  • Employment Contracts: draft compliant contracts that outline job terms, benefits, and termination policies in accordance with the extant laws of the place of hiring.

 

  • Tax and Payroll Compliance: understand the employer and employee obligations for income tax and social security contributions.

 

  • Labor laws: familiarize yourself with regulations on minimum wage, working hours, employee rights, etc.

4. Choose the Right Hiring Model

Select the right approach for hiring international employees that aligns with your business structure and goals:

Ø  Direct Employment: You can set up a local entity or establish a subsidiary as per the laws, in the target country to comply with labor laws and tax requirements, which will provide you full control over the business expansion unit but involves significant time and cost.

Ø  Employer of Record (EOR): Partner with a singapore EOR service provider, which will reduce the burden of handling compliances, Singapore payroll services, employment contracts, etc., without the hassle of setting up a local entity and help you test new markets and scale quickly.

Read our guide ‘What Is An EOR: A Complete Guide To Simplified International Hiring’ to know how an EOR works and how it can help you streamline your business processes.

Ø  Freelancers or Contractors: Hiring independent contractors can be a cost-effective option for short-term projects or specialized tasks.

5. Develop a Recruitment Strategy

Developing a strong recruitment strategy is essential for finding top international talent. You may follow the following steps:

 

Job Description: Clearly defining roles and responsibilities will get the talent you need. Describe scope of work, skills and qualifications required and performance expectations.

 

Job Portals: Use platforms like LinkedIn, Indeed, or region-specific job boards like Jobstreet and SEEK to source candidates.

 

Work with Recruitment Agencies: You may also collaborate with agencies that specialize in international hiring for your industry.

 

Resume Review: Thoroughly review resumes and portfolios to shortlist candidates that meet qualifications to fit in your business industry. You may use Application tracking System (ATS) to manage applications, scheduling interviews and tracking candidates.

 

Pre-screening: Effectively pre-screen candidates through assessments or work samples to evaluate practical, technical and soft skills.

 

Conduct interviews: Use tools like Zoom or Microsoft Teams to connect with candidates across time zones.

 

Assess Candidates thoroughly: Evaluate candidate’s cultural adaptability, confidence and reference checks. Well Structured interview questions and roles – specific scenarios can help assess problem – solving and decision-making abilities.

 

Offer Competitive Compensation and Benefits: Ensure that the salaries and benefits you offer are market-competitive and comply with local standards. Also offer relocation assistance, including visa sponsorship, housing, and transportation.

6. Onboard and Integrate New Employees

Only an efficient integration into the company’s culture will make the hiring process successful. The employees should feel welcomed and equipped to contribute effectively.

 

Therefore, conduct orientation to welcome the new hires, provide an overview of the company and introduce the team. Provide cultural training if required. Foster employee engagement by sharing company goals and updates regularly, setting up routine of one-on-one meetings, encouraging transparency and celebrating milestones.

 

Cultivate a culture friendly environment by organizing team meetings, combined projects and informal outings.

 

Take care of continuous monitoring and optimizing performance by constructive feedback, addressing challenges, periodic training and development programs and identifying areas of improvement.

7. Establish Cross-Border Payroll and Taxation System

Manage payroll for international employees while ensuring accuracy and compliance. Use a Global Payroll services platform that consolidates payroll processing across multiple countries or partners with an EOR to simplify singapore payroll services, tax filings, and benefits administration. Stay updated on Tax Regulations to avoid penalties and ensure compliance.

Conclusion

The process of international hiring requires careful planning, cultural sensitivity and a thorough understanding of local laws and regulations. By undertaking processes ethically and strategically businesses can overcome geographical barriers and build a long-term successful workforce.   

However, if you find it challenging to devote time and resources in researching and understanding complexities of setting up a new legal entity in a new area or a different country altogether about which you have limited knowledge; you should partner with an Employer of Record and focus on your core business operations.

Read our guide – ‘Should You Opt For EOR services? Here Are 5 Key Factors To Consider’ to understand why you should hire an EOR.

Choose Galaxy – EOR service provider. We are leading HR and business advisory service providers in Asia Pacific. We also offer corporate solutions like incorporation, secretarial & compliance, payroll, accounting, finance and taxation. 

Build Your International Team Today!

Partner with Galaxy for simplified international hiring. 

Contact us

FAQ’S

Do I need to set up a legal entity to hire internationally?

Not always. You can hire an EOR who can employ on your behalf, handle payroll, taxation and compliances without setting up a new local entity.

Get a thorough understanding of local labour and employment laws, work permits, contracts, tax obligations and standards to follow. Keep yourself updated of any changes made in the extant laws.

Access to diverse talent pools and innovation through varied perspectives, expansion in new markets and cost efficiency are some of the benefits of international hiring.

Technology plays a prime role in connecting you with distant people. Various global and region specific online job portals linkedin and Jobstreet can help you reach millions of people from across borders at a single platform. Application Tracking systems enable you to manage applications efficiently. Tools like Zoom and Microsoft Teams help you conduct interviews virtually.