What is Professional Employer Organization (PEO) Service?


What is Singapore PEO Professional Employer Organization Service?

A Singapore PEO professional employer organization company is a legally registered company in Singapore or employer in Singapore that enters into a joint employer relationship with another employer/company/client which may not necessarily be based in Singapore. The client of the Singapore PEO service company typically hires the employee and outsource the human resource management functions to the PEO Company including employment engagement contract according to Singapore’s employment practices. The Singapore PEO company shall be responsible in managing the employment engagement in accordance with Singapore’s Ministry of Manpower practices, rules and regulations throughout the duration of the agreed contract period.

What is Employer of Record (EOR)?

As the words suggest, Employer of Record (EOR) refers to the legal employer on the record, in the case of Singapore, a company legally registered in Singapore for the purpose of employment engagement, complying with local employment regulations, contribution to pension funds namely the Singapore’s Central Provident Fund (CPF), insurance policies, benefit management and Singapore work pass and visa matters if the hired employees requires work authorisation.

What is the difference between PEO and EOR?

PEO refers to the services provided by a professional HR services firm for its clients while EOR refers to the actions and scope of work provided which include processing and paying wages, contributions to pension funds (such as Singapore’s Central Provident Fund) , and other statutory and Singapore’s employment law compliances for the jointly hired employee. 

Why engage PEO / EOR Service ?

  1. Quick start to hiring employees in Singapore without the need or hassle of having to set up a company in Singapore.
  2. Short term project work or business exploration work with no plans to continue with business presence once project has ended.
  3. Local companies that have no management mandate to increase headcount despite operational manpower requirements due to sudden increase in work load or projects.
  4. Due to the changing nature of employment relationship, there is an increasing prevalent of employees engaged through employer of record.
Singapore PEO


complementarity assessment framework


With effect from 1 September 2023, all employers intending to hire foreigners on Employment Pass in Singapore are required to meet the new qualification known

employer of record