Social security compliance

When working remotely abroad, your employees may become subject to the social security scheme of the destination country. However, Singapore's CPF (Central Provident Fund) system only applies to Singapore Citizens and Permanent Residents — foreign employees on work passes (Employment Pass, S Pass, Work Permit) are fully exempt from CPF contributions.

Singapore has not entered into any bilateral social security agreements with other countries. This means there is no Certificate of Coverage (CoC) mechanism for Singapore, and no double contribution risk for foreign employees on short-term assignments or workations. Employees generally remain subject solely to their home country's social security regime during their stay.

Tax compliance

Singapore has signed comprehensive Double Taxation Agreements (DTAs) with 98 countries, available here. These treaties generally follow international standards and provide guidelines for various types of income, including employment income.

Despite the broad DTA network, the issue of Permanent Establishment remains a significant compliance concern for employers with employees temporarily working in Singapore, whether for a workation or a business trip. If a travelling employee is deemed to constitute a Permanent Establishment in Singapore, the employer may be required to register locally, allocate profits to a local branch, and file corporate taxes, leading to substantial administrative burdens.

To avoid this scenario, here are some key strategies:

If your employees are travelling for a workation, they should refrain from negotiating or signing sales contracts during the trip. Additionally, they should avoid visiting clients or any office, including the employer's local office in Singapore. Following these guidelines will help mitigate the important compliance risk for the employer related to permanent establishment.

If your employees travel for business, it may be impossible to refrain from the activities above. In this case, please make sure to inform your (tax) compliance department of this matter. Note: Singapore applies a 60-day exemption rule — employment income is exempt from Singapore tax if a non-resident employee works fewer than 60 calendar days per year in Singapore. Every day counts, including arrival and departure days.

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Overriding local employment provisions

Employees travelling to Singapore are expected to comply with some basic local employment provisions that may qualify as overriding, such as working hours, overtime limits, and rest day entitlements under the Employment Act. Singapore does not have a universal minimum wage but applies sector-specific minimums under the Progressive Wage Model. See the recent information on minimum wages in Singapore here.

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When traveling to Singapore for work—whether for a short business trip or an extended workation—it's essential to have comprehensive health insurance coverage to ensure access to medical care.

For business trips, the employer typically arranges the employee's travel health insurance. However, for workations, these responsibilities can be less clear. WorkFlex takes care of travel health insurance for trips worldwide to ensure there are no costly consequences for either the employee or the employer if accidents occur while working abroad.

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For travelers using WorkFlex‍

If you’re traveling with WorkFlex, comprehensive health insurance is automatically included if your employer has activated this feature. For more details, please refer to your trip request on the WorkFlex platform.

For other travelers

Ensure you have travel health insurance with worldwide coverage, whether for a workation or business trip, so that you can receive adequate medical treatment in case of an emergency.

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