Employer of Record Guide in 
Singapore

Singapore's dynamic business environment offers incredible opportunities for global expansion, but navigating its unique employment landscape requires local expertise. Our comprehensive guide breaks down everything you need to know about hiring compliantly in this thriving Southeast Asian hub.

Capital City

Singapore

Currency

Singapore dollar ($)

Languages

English, Chinese, Malay, and Tamil

Population size

5,685,807
OVERVIEW

Key stats and facts

Singapore stands out as a premier destination for tech talent, with high-demand skills in AI and cybersecurity driving a robust economy worth $96,312 per capita. Understanding the local market dynamics—from multilingual requirements to competitive compensation structures—is essential for successful hiring.

Major economic hubs

Singapore

Skills in demand

AI Engineer, Cybersecurity Specialist, Data Scientist, Cloud Architect, Software Engineer

Currency

Singapore dollar ($)

Language

English, Chinese, Malay, and Tamil

GDP per Capita

$96,312.38 USD per capita

Standard Tax Rate

15% federal

Your EOR guide in 
Singapore

From Singapore's Progressive Wage Model to CPF contributions and work pass requirements, employment compliance involves navigating multiple regulatory frameworks. This detailed breakdown covers payroll cycles, tax obligations, leave entitlements, and onboarding processes to ensure your hiring strategy aligns with local laws.

Minimum Wage

Singapore does not have a universal minimum wage. Instead, it operates under the Progressive Wage Model (PWM), which sets sector-specific minimum wages for certain industries including cleaning, security, landscape maintenance, and food services.

Progressive Wage Model Rates (SGD/hour):

  • Cleaning: $1,236 - $1,580 per month
  • Security: $1,236 - $1,680 per month
  • Landscape: $1,236 - $1,580 per month
  • Food Services: $1,400 - $2,000 per month

Note: PWM rates are subject to annual adjustments and vary by skill level within each sector.

Payroll Cycle

  • Monthly: Most common payment frequency
  • Bi-weekly: 26 pay periods per year
  • Weekly: Less common but permissible

Note: Salary must be paid within 7 days of the end of the salary period.

Individual Income Tax

Singapore operates a progressive tax system with rates ranging from 0% to 24% for residents.

Annual Income (SGD) Tax Rate
First $20,000 0%
Next $10,000 2%
Next $10,000 3.5%
Next $40,000 7%
Next $40,000 11.5%
Next $40,000 15%
Next $40,000 18%
Next $40,000 19%
Above $280,000 24%

Tax Residency Criteria

Individuals are considered Singapore tax residents if they:

  • Are Singapore citizens or permanent residents ordinarily residing in Singapore
  • Are foreigners who have stayed/worked in Singapore for 183 days or more in the preceding year
  • Are foreigners who have stayed/worked in Singapore for less than 183 days but intend to stay/work for 183 days or more

Employer Payroll Contributions

Employers must contribute to the Central Provident Fund (CPF), Singapore's comprehensive social security system covering retirement, healthcare, and housing.

CPF Contribution Rates (2024):

Age Group Employee Rate Employer Rate Total
35 and below 20% 17% 37%
35-45 20% 17% 37%
45-50 20% 17% 37%
50-55 20% 17% 37%
55-60 13% 13% 26%
60-65 7.5% 9% 16.5%
Above 65 5% 7.5% 12.5%

Note: CPF contributions are capped at the Ordinary Wage Ceiling of $6,000 per month.

Working Hours

The standard working arrangement in Singapore is:

  • 8 hours per day
  • 44 hours per week (6-day work week)
  • 40 hours per week (5-day work week)

Exempt Categories:

  • Managers and executives
  • Confidential positions
  • Workmen earning more than $4,500 per month

Overtime Pay

  • Rate: 1.5× regular hourly rate
  • Threshold: Beyond normal working hours (8 hours/day or 44 hours/week)
  • Maximum: 72 hours of overtime per month
  • Rest Day Work: 2× regular rate for first 8 hours, 1.5× thereafter

Bonus Payments

Annual Wage Supplement (AWS):

  • Commonly known as "13th month pay"
  • Not legally mandated but widely practiced
  • Typically paid in December

Variable Bonuses:

  • Performance bonuses
  • Profit-sharing arrangements
  • Discretionary payments

Full-Time vs. Part-Time

  • Full-time: Typically 35+ hours per week with full benefits
  • Part-time: Fewer than 35 hours per week, pro-rated benefits
  • Contract: Fixed-term arrangements with specific end dates

Annual Leave

Minimum Entitlement:

  • 7 days after 12 months of service
  • Increases to 14 days after 8 years of service
  • Pro-rated for part-year service

Accrual Rules:

  • Must be taken within 12 months of entitlement
  • Maximum carry-over varies by company policy
  • Must be paid out upon termination

Sick Leave

Paid Sick Leave:

  • 14 days per year for outpatient treatment
  • 60 days per year for hospitalisation
  • Medical certificate required for absences over 3 days

Eligibility:

  • Available after 3 months of employment
  • Pro-rated based on length of service

Maternity Leave

Duration: 16 weeks (increased from 12 weeks in 2023)

  • First 8 weeks: Fully paid by employer
  • Remaining 8 weeks: Paid by government

Eligibility:

  • Must be employed for at least 180 days
  • Applies to both citizens and permanent residents

Paternity Leave

Duration: 2 weeks of paid paternity leave

  • Can be taken within 16 weeks of child's birth
  • Fully paid by government

Shared Parental Leave:

  • Up to 4 weeks can be shared between parents
  • Must be taken within first 12 months

Childcare Leave

Annual Entitlement:

  • 6 days per year for each parent
  • Children must be under 7 years old
  • 2 days paid by employer, 4 days unpaid

Other Statutory Leave

Compassionate Leave:

  • Not mandated by law but commonly provided
  • Typically 1-3 days for immediate family bereavement

Marriage Leave:

  • Not legally required
  • Commonly provided as company benefit

Summary

Leave Type Duration Paid? Funding
Annual Leave 7-14 days/year Yes Employer
Sick Leave 14 days outpatient, 60 days hospitalisation Yes Employer
Maternity Leave 16 weeks Yes Employer/Government
Paternity Leave 2 weeks Yes Government
Childcare Leave 6 days/year Partially Employer

Termination Types

Summary Dismissal (With Cause):

  • Immediate termination without notice
  • Serious misconduct required
  • No compensation due

Termination Without Cause:

  • Requires notice or payment in lieu
  • Most common form of termination

Mutual Agreement:

  • Both parties agree to end employment
  • Terms negotiated between parties

Notice Period Requirements

Notice periods depend on length of service:

Length of Service Notice Period
Less than 26 weeks 1 day
26 weeks to 2 years 1 week
2 to 5 years 2 weeks
5 years and above 4 weeks

Payment in Lieu:

  • Employers may pay salary instead of working notice
  • Calculated based on basic salary plus allowances

Retrenchment Benefits

When terminating due to redundancy:

  • 0-2 years service: 2 weeks' salary per year
  • 2-5 years service: 2.5 weeks' salary per year
  • 5+ years service: 3 weeks' salary per year

Note: These are statutory minimums; many employers provide more generous packages.

Final Pay Requirements

Timeline: Within 3 days of termination Components:

  • Outstanding salary
  • Unused annual leave
  • Any other contractual payments

Probationary Periods

  • Standard Duration: 3-6 months
  • Notice Requirements: 1 day's notice during probation
  • Performance Standards: Must be clearly communicated

National Public Holidays (2024)

Holiday Date
New Year's Day January 1
Chinese New Year February 10-11
Good Friday March 29
Hari Raya Puasa April 10
Labour Day May 1
Vesak Day May 22
Hari Raya Haji June 17
National Day August 9
Deepavali October 31
Christmas Day December 25

Note: When public holidays fall on Sunday, the following Monday becomes a public holiday.

Holiday Pay Eligibility

To qualify for public holiday pay, employees must:

  • Have worked at least 3 months
  • Work the day before and after the holiday (unless on approved leave)
  • Be entitled to the day off

Working on Public Holidays

Compensation:

  • Non-shift workers: Extra day's salary plus substitute holiday
  • Shift workers: Extra day's salary (no substitute day required)

Religious Observances

Singapore recognises major religious festivals as public holidays, reflecting its multicultural society:

  • Chinese: Chinese New Year
  • Muslim: Hari Raya Puasa, Hari Raya Haji
  • Hindu: Deepavali
  • Christian: Good Friday, Christmas Day
  • Buddhist: Vesak Day

Required Documents for Employment

Employment Contract:

  • Job title and description
  • Salary and benefits
  • Working hours and location
  • Termination clauses
  • Confidentiality agreements

Government Forms:

  • IR8A: Employee details for tax purposes
  • CPF registration: For social security contributions
  • Work pass documentation: For foreign employees

Identity Verification:

  • NRIC (for citizens/PRs)
  • Passport and work pass (for foreigners)
  • Educational certificates

Work Pass Requirements

Foreign Employee Categories:

  • Employment Pass (EP): Professionals, managers, executives
  • S Pass: Mid-skilled workers
  • Work Permit: Lower-skilled workers in specific sectors

Application Process:

  • Employer must apply before employee arrives
  • Medical examination required
  • Security bond may be required

Language Requirements

  • Official Languages: English, Mandarin, Malay, Tamil
  • Business Language: English is the primary working language
  • Documentation: Employment contracts typically in English

Background Checks

Permitted Checks:

  • Criminal record verification
  • Employment history
  • Educational qualifications
  • Professional certifications

Restrictions:

  • Must be job-relevant
  • Require employee consent
  • Subject to Personal Data Protection Act (PDPA)

Data Protection Compliance

Personal Data Protection Act (PDPA) Requirements:

  • Obtain consent for data collection
  • Notify employees of data usage
  • Implement security measures
  • Appoint Data Protection Officer if required

Onboarding Timeline

Step Timeline
Job offer accepted Day 0
Work pass application (if applicable) Day 1-30
Employment contract signed Day 1-3
CPF registration Day 1-7
Tax registration (IR8A) Day 1-14
Medical examination (if required) Day 1-30
First day of work Day 30-60

What the EOR Handles

Borderless AI manages:

  • Employment contract preparation
  • CPF registration and contributions
  • Tax compliance and IR8A filing
  • Work pass liaison (where applicable)
  • PDPA compliance
  • Local payroll processing

Worker Classification

Employee vs. Contractor Distinction: Singapore uses multiple tests to determine worker classification:

Employee Indicators:

  • Works under employer's control and direction
  • Integrated into business operations
  • Receives regular salary and benefits
  • Uses employer's equipment and facilities

Contractor Indicators:

  • Operates independently
  • Provides own tools and equipment
  • Bears financial risk
  • Can engage substitutes

Note: Misclassification can result in penalties and back-payment of CPF contributions.

Employment Pass Quotas

Dependency Ratio Ceilings (DRC):

  • Limits on foreign worker ratios vary by industry
  • Services: 40% foreign workers maximum
  • Manufacturing: 60% foreign workers maximum
  • Construction: Varies by sub-sector

Collective Agreements

Union Representation:

  • About 25% of workforce is unionised
  • Collective agreements override individual contracts
  • Tripartite approach involving government, employers, unions

Key Sectors:

  • Public service
  • Transportation
  • Healthcare
  • Education

Cultural Considerations

Workplace Harmony:

  • Emphasis on maintaining racial and religious harmony
  • Respectful communication across cultural lines
  • Accommodation for religious practices

Work-Life Balance:

  • Growing emphasis on flexible work arrangements
  • Government initiatives promoting family-friendly policies
  • Mental health awareness increasing

Remote Work Framework

Flexible Work Arrangements:

  • Supported by government initiatives
  • Requires clear policies and agreements
  • Must comply with employment law regardless of location

Cross-Border Considerations:

  • Tax implications for remote work from other countries
  • Work pass requirements still apply
  • Data protection compliance across borders

Technology Requirements:

  • Employer responsibility for necessary equipment
  • Cybersecurity measures for remote access
  • Performance management adaptations

Built-in benefits packages for
Singapore

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:

Medical Insurance

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Dental Insurance

United Healthcare
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Retirement Contribution

United Healthcare
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Life Insurance

United Healthcare
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Vision Insurance

United Healthcare
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