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.
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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.
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.
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):
Note: PWM rates are subject to annual adjustments and vary by skill level within each sector.
Note: Salary must be paid within 7 days of the end of the salary period.
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% |
Individuals are considered Singapore tax residents if they:
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.
The standard working arrangement in Singapore is:
Exempt Categories:
Annual Wage Supplement (AWS):
Variable Bonuses:
Minimum Entitlement:
Accrual Rules:
Paid Sick Leave:
Eligibility:
Duration: 16 weeks (increased from 12 weeks in 2023)
Eligibility:
Duration: 2 weeks of paid paternity leave
Shared Parental Leave:
Annual Entitlement:
Compassionate Leave:
Marriage Leave:
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 |
Summary Dismissal (With Cause):
Termination Without Cause:
Mutual Agreement:
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:
When terminating due to redundancy:
Note: These are statutory minimums; many employers provide more generous packages.
Timeline: Within 3 days of termination Components:
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.
To qualify for public holiday pay, employees must:
Compensation:
Singapore recognises major religious festivals as public holidays, reflecting its multicultural society:
Employment Contract:
Government Forms:
Identity Verification:
Foreign Employee Categories:
Application Process:
Permitted Checks:
Restrictions:
Personal Data Protection Act (PDPA) Requirements:
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 |
Borderless AI manages:
Employee vs. Contractor Distinction: Singapore uses multiple tests to determine worker classification:
Employee Indicators:
Contractor Indicators:
Note: Misclassification can result in penalties and back-payment of CPF contributions.
Dependency Ratio Ceilings (DRC):
Union Representation:
Key Sectors:
Workplace Harmony:
Work-Life Balance:
Flexible Work Arrangements:
Cross-Border Considerations:
Technology Requirements:
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
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