Multinational Cooperation companies are the sharks of the business industry worldwide. One of their biggest advantages is that they effectively tap into the labour or human capital around the globe. Many MNC companies offer employees the right kind of prospects, career growth and compensations to facilitate a healthy progressive work routine. Similarly, the MNC companies in Singapore also demonstrate such employee benefits culture that entails expatriate compensation packages. Considering the profitable business landscape that Singapore depicts, several government and private agencies encourage MNC’s to start their headquarters or branches in Singapore.
While most multinational cooperation companies have regular job benefits or advantages, there are a few key lucrative perks for employees who travel for an overseas project to or from Singapore.
There are different types of benefits that employees are entitled to when they travel for the MNC due to an overseas project.
Most of these benefits are covered in the Expatriate Compensation Package.
There are 2 government agencies that help employees receive the employee and expatriate benefits from MNC companies when they are sent overseas for a project.
- Fair Employment Act Singapore
- Foreign Employment Act Singapore
Types of Benefits a MNC company must provide to its employees when they are sent on an overseas project.
1. Expatriate Compensation Package
An expatriate compensation package is the basic level of compensation offered by MNC companies.
Although there are different levels in this package as well, the basic outline of an expatriate compensation package is cash salary, benefits, and tax.
Every MNC offers different types of expatriate compensation packages.
Some may offer these packages at the beginning of the appointment, or at the start of travelling for an overseas project.
However, it is safe to say that no two MNC companies are alike and offer various expatriate compensation packages.
As mentioned above, the 3 main aspects of an expatriate compensation package is basic cash salary, benefits, and tax.
Depending on how the employee is recruited and if he or she is appointed directly overseas for a project this expatriate compensation package can take effect.
The expatriate compensation package can be offered to an employee from an overseas or international MNC asking them to relocate to work.
Some employees work at their local MNC branch and are later asked to travel overseas for a new project.
Following which they are offered this expatriate compensation package as an incentive to travel for the company.
Despite the nature of the expatriate compensation package, let’s look at the 3 aspects of the package:
2. Basic Cash Salary
This category refers to the basic cash salary an employee is paid to do the job.
Salaries are often determined by the level or responsibilities of the job, capability and qualification of the candidate as well as the level of their previous work experience.
Also, salaries are also pitched according to the hierarchy of the MNC Company.
Moreover, if the MNC Company is looking for the employee to travel for an overseas project then the salary will also depend on the economic conditions and job level in the host country.
The term ‘benefits’, refers to the other added benefits that the employee is given apart from the basic salary.
Be it for local or international work, MNC companies are applauded for providing benefits to their employees.
These benefits depend on which position the employee is positioned at within the hierarchy and level of management.
Therefore, the term benefits can include something as basic as insured health care to in house meals and even stretch to providing housing and transportation facilities.
4. Relocation and Housing Benefits
Several MNC companies provide employees who have been recruited to travel overseas for a project with relocation and housing benefits.
In a nutshell, everything from moving to and settling down in the host country will be looked after.
The MNC Company will pay for or cover the expenses for all the travelling, finding temporary accommodation and finding a home in the host country.
However there are a also companies that only cover housing and accommodation costs.
Settling into a new country can be challenging, especially if you have travelled with a family.
Therefore the MNC Company provides an agency or assistance within the host country to help the new employee settle down.
5. Education Benefits
Many reputed MNC companies also provide educational benefits to their employees to further their academic graph or complete post graduate education.
MNC are known for helping employees grow in their career and providing growth opportunities.
Hence, depending on the expatriate compensation package the MNC will offer educational benefits to their employees.
Other MNC firms also cover educational expenses for the family and children of certain executive expatriates or employees.
Several executive expatriates or employees who travel with family relocate from one place to another because the companies cover educational expenses as incentives.
6. Health Insurance Coverage
This type of employee benefit is a basic yet important aspect.
It is a more common benefit that most employees get to use when they join a reputed MNC corporation.
Most MNC companies provide health insurance and coverage across varying degrees of the management hierarchy.
The MNC will arrange for host country health care and insurance partners to assist the employee with obtaining quality health care and coverage.
Mostly, the health insurance is incredibly helpful in the face of sudden accidents and third party liabilities.
7. Automobile and Transport Benefits
Locally as well as internationally, MNC companies provide organized transportation for employees travelling to and from work.
However, when employees travel overseas for an international project, transportation costs are either covered by the company or a vehicle and fuel is provided for.
Depending on the host country and its infrastructure, the company will provide the necessary transportation benefits.
8. Tax as expatriate compensation packages
More than other benefits in an expatriate compensation package, tax equalization or assistance is truly welcomed by employees who travel overseas for projects through a MNC.
Employees both local and expatriate, have to pay taxes.
However, depending on the taxation systems and regulations expatriates are required to pay a certain amount of tax.
Hence, tax benefits are a great incentive for expatriates as the company assists them in managing taxes.
Certain MNC companies provide expatriate compensation packages that offer tax equalization opportunities.
Acts that help an MNC company provide expatriate compensation packages to employees when they are sent on overseas project
- Fair Employment Act Singapore
The fair employment act Singapore is a guideline based regulation that maintains fair and progressive employment practices.
Its foundation lies in the Tripartite Guidelines on Fair Employment Practices.
The Tripartite Guidelines on Fair Employment Practices provides MNC’s in Singapore with a cohesive framework of recruiting and developing employees fairly and progressively.
Employers are asked to comply with rules that are set to help employees gain the maximum out of their work experience.
From hiring to maintaining good work ethics and giving employees chances to grow in their career, these guidelines assure employees that their interests are put first.
The Fair Employment Act in Singapore considers that employers provide their employees with the right benefits and compensations.
One of the main areas that the fair employment act in Singapore helps employees is by making sure the employer recruitment procedure is fair and based on merit.
Singapore is a melting pot of all cultures, races and religions.
Hence, the fair employment act Singapore, paves way for a fair and just employment selection and recruitment without any bias or racism.
Next, the fair employment act Singapore emphasizes that employees be treated fairly and ethically in their workplace.
Every employee must be given equal opportunity to learn and grow the MNC companies.
- Foreign Employment Act Singapore
The foreign employment act Singapore, is similar to the fair employment act in Singapore only the focus is on foreign employees in Singapore.
Hence, the foreign employment act Singapore is put into place to maintain the wellbeing of foreign workers in MNC companies based in Singapore.
It highlights that employers in Singapore who hire foreign employees must adhere to rules of the foreign employment act.
These rules show that employers must acquire the right foreign work passes for the employees.
Also, there must be a clear written employment contract between the employer and foreign employee.
The foreign employment act in Singapore emphasizes the importance of a work contract to make sure the foreign employee’s rights and benefits are protected.
Foreign employment act in Singapore coordinates with relevant agencies such as government ministries, insurance agencies, housing and logistics to help settle the foreign employees.
This foreign employment act Singapore helps the newly deployed foreign employ to navigate through the rules and regulations of working in Singapore.
Conclusion on Expatriate compensation packages
As a conclusion, it can be said that there are various Expatriate compensation packages with benefits that an MNC company gives an employee when they travel overseas for a project.
These benefits cover a range of facilities that help make working in the host country less cumbersome.
However, in Singapore there are specific government agencies that prioritize the employee’s wellbeing and protect their rights to these employee benefits offered by the MNC companies when they travel overseas for a project.
This further emphasizes the wholesome and progressive employee benefits that Singapore offers workers from the world over.
Singapore encourages MNC companies and international employees to work in the city and also offers the right security and benefits every employee requires.