Engage In Singapore

About Singapore

Capital City

Singapore

Population

As of March 2024, the estimated population of Singapore is 6,014,723 people.

Currency

The currency in Singapore is the Singapore dollar (SGD). The currency symbol is S$.

Exchange Rate Calculator

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Overview

Singapore, a vibrant and diverse city-state located in Southeast Asia, is a sunny tropical island off the southern tip of the Malay Peninsula. With a population of approximately five million people, Singapore is home to four major communities: Chinese, Malay, Indian, and Eurasian. Since gaining independence on August 9, 1965, Singapore has transformed into a thriving metropolis known for its world-class infrastructure, dynamic business environment, and rich cultural heritage. The city-state’s strategic position at the southern extremity of the Malay Peninsula has made it the largest port in Southeast Asia and one of the busiest in the world. Singapore’s prosperity is primarily attributed to its dominance over the Strait of Malacca, a crucial maritime route connecting the Indian Ocean and the South China Sea. With its fully integrated transport network, ease of living, and efficient governance system, Singapore has garnered international accolades, affirming its status as a vibrant and world-class destination. Whether it’s the fusion of different cultures, the pursuit of cutting-edge innovation, or the facilitation of business opportunities, Singapore has established itself as the place where worlds meet.

Employment Relationship

Permanent Employment

Singapore's labor law defines permanent employment as regular and continual employment lasting more than 14 days. Permanent employment is generally reserved for employees directly engaged in work on behalf of a company or organization. Permanent employment contracts must include certain essential terms, such as work hours and notice period.

Fixed-Term or Specific-Purpose Contracts

An employment agreement can be in writing, verbal, expressed, or implied. It can also take the form of a letter of appointment/employment or an apprenticeship agreement. However, the Ministry of Manpower recommends that contracts be in writing to minimize disputes on the agreed terms and conditions. Singapore's Ministry of Manpower requires all employers to issue key employment terms (KETs) in writing to employees with contracts lasting longer than 14 days. Examples of KETs that must be issued to employees include the following: Full name of employer Full name of the employee Job title, main duties, and responsibilities Start date of employment Duration of employment (if the employee is on a fixed-term contract) Daily working hours (This is a non-exhaustive list.) The enforceability of restraint of trade clauses, also known as non-competition clauses, is subject to adjudication by the courts and depends on the facts of the case. Such clauses are enforceable only if there are legitimate business interests to protect and if they are reasonable in terms of scope, geographical area, and duration. Employees who believe they have been subject to unreasonable employment clauses may seek assistance from their unions, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), or the Ministry of Manpower. 

Temporary Employment Contratcs

The Employment Act of Singapore does not provide specific regulations for temporary employees. The Act's provisions cover all employees, whether temporary, contract, tenured, or daily-rated. There are no legal provisions regarding the length of time or the situations in which temporary employment contracts can be used.

Probationary Period

The Employment Act of Singapore does not contain provisions that regulate the length of probationary periods for employees. Probationary periods are governed by the terms of the employment contract or collective bargaining agreement. However, the existence and length of a probationary period, as well as the notice policy of the employer, are considered key employment terms that must be given to the employee in writing no more than 14 days after the start of employment.  Either employer or employee can terminate the employment at the end of the probation period by giving notice or paying compensation in lieu of. 

Working Hours

Generally, an employee's service contract shall not require them to work more than 6 consecutive hours without a break, more than 8 hours a day, or more than 44 hours in one week. Some exceptions to this general rule are listed in the paragraphs below. An employee engaged in work that must be carried on continuously can be required to work for 8 consecutive hours. However, the workday must include a period or periods of not less than 45 minutes in total, during which the employee shall have the opportunity to have a meal. Also, if there are fewer than 8 hours of work on 1 or more days of the week, the limit of 8 hours in 1 day may be exceeded during the remaining days of the week. Still, no employee shall be required to work more than 9 hours a day or more than 44 hours per week.

Holidays / PTO

Statutory Holidays

2026

  • January 1 - New Year's Day
  • February 17 - Chinese New Year's Day
  • February 18 - Second Day of Chinese New Year
  • March 21 - Hari Raya Puasa
  • April 3 - Good Friday
  • May 1 - Labour Day
  • May 27 - Hari Raya Haji
  • May 31 - Vesak Day
  • June 1 - Day off for Vesak Day
  • August 9 - National Day
  • August 10 - National Day Observed
  • November 8 - Diwali/Deepavali
  • November 9 - Day off for Diwali/Deepavali
  • December 25 - Christmas Day

2027

  • January 1 - New Year's Day
  • February 6 - Chinese New Year's Day
  • February 7 - Second Day of Chinese New Year
  • February 8 - Day off for Chinese New Year's Day
  • March 10 - Hari Raya Puasa
  • March 26 - Good Friday
  • May 1 - Labour Day
  • May 17 - Hari Raya Haji
  • May 20 - Vesak Day
  • August 9 - National Day
  • October 28 - Diwali/Deepavali
  • December 25 - Christmas Day

Paid Annual Leave

According to Singapore's Employment Act, employees are entitled to paid annual leave if they have worked for at least 3 months with the employer. The Employment Act does not detail any other procedure for requesting annual leave beyond seeking the employer's approval before taking it. The length of the annual leave depends on an employee's years of service, starting from the first day of work with the employer. Eligibility for leave is as follows: 7 days the 1st year of service 8 days the 2nd year of service 9 days the 3rd year of service 10 days the 4th year of service 11 days the 5th year of service 12 days the 6th year of service 13 days the 7th year of service 14 days the 8th year and thereafter

Sick Leave

According to Singapore's Employment Act, an employee is entitled to paid sick leave if: The employee has worked at least 3 months for the employer The employee has informed or tried to notify the employer within 48 hours of their absence The sick leave has been certified by the company's doctor, a company-approved doctor, or a government doctor (doctors from approved public medical institutions are included) The length of sick leave is calculated based on an employee's length of service. An employee whose service is longer than 6 months can take up to 14 days for outpatient non-hospitalization leave and 60 days for hospitalization leave, including the 14 days of outpatient sick leave. Sick leave is prorated for employees with less than 6 months of service.

Maternity Leave

Under the Employment Act, every female employee is entitled to 16 weeks of paid maternity leave starting 4 weeks before the expected delivery and 12 weeks after delivery. The employer must pay the first 8 weeks at the employee's gross pay rate, while the government will pay the last 8 weeks. Multiple births (twins or triplets) are treated as a single delivery, and therefore, the employee is not entitled to double maternity benefits. To be eligible for these benefits, the following criteria must be met: The child is a Singaporean citizen The employee is lawfully married to her child's father The employee worked for her employer or was self-employed for at least three continuous months before her child's birth Beginning April 1, 2026, working parents can share up to 10 weeks of paid parental leave. An employee can take maternity leave either at once or over 12 months. Before taking leave, the employee should reach an agreement with the employer on how her maternity leave is to be split. The employee must take the first 8 weeks in one block and can take the last 8 weeks flexibly. Employees are also eligible for adoption leave if they adopt a child under 12 months of age.

Paternity Leave

According to the Ministry of Manpower in Singapore, effective April 1, 2025, parents are entitled to 30 weeks of paid leave in total. Of the 30 weeks, a working father is entitled to 4 weeks of paternity leave for all births if he meets the following requirements: The child is a Singaporean citizen The employee is or had been married to the child's mother between conception and birth. Such conditions are not applicable to adoptive fathers who intend to adopt on or after January 1, 2017 The employee worked for his employer or was self-employed for at least 3 continuous months before the child's birth The government pays the compensation for paternity leave, with wage reimbursement capped at SGD 2,500 (Singapore dollars) per week. The leave can be taken as a continuous block within 16 weeks after the birth of the child or flexibly (by mutual agreement). Employees must provide their employers with 4 weeks' notice before taking the leave in a continuous block, unless otherwise agreed.  Employers are prohibited from dismissing an employee while the employee is on Government-Paid Paternity Leave or Adoption Leave. Beginning April 1, 2026, working parents can share up to 10 weeks of paid parental leave.

Termination of Employment

Notice Period

Singapore's labor law requires a contracting party to give written notice to the other party to terminate the employment contract. This notice can be in the form of a termination or resignation letter. The length of notice must be the date indicated in the contract, or the length agreed to in the verbal agreement if no written contract exists. All employees, including those on a fixed-term contract, can resign anytime if they serve the required notice stated in their contract or make payment in lieu of notice. If no notice period has been agreed to in the contract, the notice should be based on the employee's length of service as follows: Less than 26 weeks: 1 day Between 26 weeks and 2 years: 1 week Between 2 years and 5 years: 2 weeks 5 years and above: 4 weeks Both parties can also agree to waive the notice period by mutual consent. Such a waiver should be concluded in writing.

Severance Benefits

Singapore’s Employment Act does not require employers to pay severance. However, an employer must give all eligible employees notice or payment in lieu of notice and pay all unused annual leave on the last day of work. The Ministry of Manpower requires employers to compensate their employees in case of retrenchment. The amount of retrenchment benefit depends on what is provided for in the employment contract or collective agreement (for unionized companies). If there is no provision, it must be negotiated between the employees (or their union) and the employer. The prevailing norm is to pay a retrenchment benefit of 2 weeks to 1 month of salary per year of service, depending on the company’s financial position and industry.

Social Security

Pension

In Singapore, the retirement age is 63. Effective July 1, 2026, the retirement age will increase to 64 years for those born on or after July 1, 1963. By 2030, the retirement age will increase to 65. Singapore’s Central Provident Fund (CPF) is a mandatory social security savings scheme funded by employers and employees. Employees can meet their retirement, housing, and healthcare needs by contributing to the Central Provident Fund. The funding goes into 3 accounts: Ordinary Account for retirement and housing needs Special Account for retirement needs (or Retirement Account, as applicable) MediSave Account for healthcare needs Employees may withdraw from the CPF savings at the age of 55, and once they reach 65, they will receive monthly payouts from the CPF savings. Singapore provides the government-funded Silver Support Scheme to support eligible low-income elderly individuals. People are not required to apply for Silver support; they will be assessed automatically for eligibility. The payout ranges from SGD 430 to SGD 1,080 per quarter.

Dependents/Survivors Benefit

The Central Provident Fund of Singapore offers benefits to the named nominees of a deceased employee. Employee's savings in the Ordinary, Special, MediSave, and Retirement accounts are paid to the nominees as a lump sum. Under the Work Injury Compensation Act of Singapore, the family or dependents of an employee can claim a lump sum when a work injury causes the employee's death. The amount is calculated based on employee's average monthly earnings and age multiplying factor.  The lump-sum varies from SGD 76,000 to SGD 225,000 from January 1, 2020. This benefit is provided by the employer.

Invalidity Benefit

The Central Provident Fund of Singapore offers a severe disability insurance scheme named ElderShield. It provides a monthly cash payout of up to 72 months to people with severe disabilities. No registration or assessment is needed; CPF members with a MediSave Account will automatically enroll in the program when they reach 40 years of age. The monthly cash payout for severe disability is SGD 400 (Singapore dollars) for a maximum of 72 months. Employees can also use MediSave savings to pay for personal or immediate family hospitalization, day surgery, and certain outpatient expenses.  Employees who suffer a temporary or permanent disability due to a work accident or occupational disease are entitled to compensation under the Work Injury Compensation Act. For temporary disability, a daily allowance is paid for up to 1 year. For permanent disability, lump-sum compensation is paid equal to the employee's average monthly earnings multiplied by the age factor and the degree of disability. Effective January 1, 2025, platform workers are entitled to benefits under WICA for work injuries sustained while performing tasks for delivery and ride-hail platform operators. Platform workers are also entitled to make a claim under WICA for occupational diseases contracted during the course of work.

Taxation of Compensation and Benefits

Personal Income Tax

According to the law of Singapore, the following individuals are subject to personal income tax in the country: Citizens of Singapore or persons with permanent resident status if they reside in Singapore Foreigners who work in the country: For at least 183 days in a calendar year; or For at least 183 days for a continuous period over two years (applies to persons who have entered Singapore from January 1, 2007, but excludes company directors, public entertainers, or professionals); or For three consecutive years Foreign nationals’ tax obligation depends on their tax residency status. They are tax residents if they have a valid work pass for at least 1 year.  The tax year runs from January 1 through December 31. Resident tax rates range from 2% to 24%. A non-resident individual is generally subject to tax at flat rates, depending on the type of income. For employment income, tax is charged at a flat rate of 15% or at the resident rates, whichever is higher. Other income of a non-resident individual is generally taxed at 22% unless specifically exempt or subject to a reduced rate (such as through a tax treaty).

Immigration

Types of Visas

A Singapore entry visa is not an immigration pass. It is a pre-entry permission for the holder of a valid visa to travel to and seek entry into Singapore. The Immigration & Checkpoints Authority officers will determine the grant of an immigration pass at the entry point. Entry permit categories are as follows:

  • Visas for professionals
  • Visas for skilled and semi-skilled workers
  • Visas for trainees and students
  • Visas for family members
  • Exemptions and passes for employment during a visit

Work Permit

Singapore issues the following categories of work permits: Professionals:  Employment Pass (EP): For foreign professionals, managers, and executives (candidates need to earn at least SGD 5,600 (Singapore dollars) per month and have acceptable qualifications) EntrePass - for eligible foreign entrepreneurs who want to start a business in Singapore Personalized Employment Pass: for high-earning existing employment pass holders or overseas foreign professionals (more flexible than the Employment Pass) Overseas Networks & Expertise Pass: for top talent in business, arts and culture, sports, as well as academia and research Beginning January 1, 2027, the EP salary requirement for new applications will rise to SGD 6,000. Skilled and semi-skilled workers:  S-pass - for mid-level skilled staff who earn at least SGD 3,300 a month and meet the assessment criteria. Work permit - for semi-skilled foreign workers in the construction, manufacturing, marine shipyard, process, or services sector Work permit for domestic worker - for migrant domestic workers Work permit for confinement nanny - for Malaysian confinement nannies to work in Singapore for up to 16 weeks starting from the birth of the employer's child Work permit for performing artists - for foreign performers working in public entertainment outlets such as bars, hotels and nightclubs Effective January 1, 2027, the S-Pass salary requirement for new applications is SGD 3,600. Trainees and students: Training Employment Pass: for foreign professionals undergoing technical training earning at least SGD 3,000 a month Work Holiday Pass: for students 18 to 25 years old who want to work in Singapore for 6 months Work Holiday Pass (Work and Holiday Visa Program): for Australian and New Zealander students and graduates aged 18 to 30 who want to work and holiday in Singapore for 12 months Training Work Permit: or semi-skilled foreign trainees or students undergoing practical training (up to 6 months) Singapore also offers family member visas as well as exemptions to certain visitors in the country for brief work.

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Employer Of Record Service In Singapore

 

Expansion into Singapore offers companies unlimited opportunities with its strategic position, strong economy, and highly developed labor force. However, hiring employees in Singapore can be challenging with the intricate labor laws, tax schemes, and cultural differences. All this is made easy by Engage Anywhere through our Singaporean Employer of Record (EOR) solution, where firms can hire Singaporean employees without having a local presence.

Here at Engage Anywhere, we manage compliance, payroll, and administrative tasks for you so your business can do business in Singapore confidently without getting bogged down by legal matters. With our EOR services in Singapore, you’re able to scale and explore while we handle complex legalities and HR challenges.

Guide to Hiring Employees in Singapore

Singapore is a pro-business nation with transparent regulations and business-friendly policies. But hiring employees in Singapore involves strict compliance with labor laws, tax regulations, and employment rules. Our EOR Singapore solutions enable companies to hire and manage staff without worrying about local compliance requirements.

Hiring Employees in Singapore: Steps

  • Understand Employment Laws: Singapore’s employment laws outline regulations regarding wages, working hours, benefits, and termination policies.
  • Draft Employment Contracts: Clearly define job roles, salaries, benefits, and termination clauses according to local labor laws.
  • Register with Authorities: Businesses must comply with Singapore’s Ministry of Manpower (MOM) regulations.
  • Onboarding Process: Provide structured training and integration processes for new employees.
  • Ensure Compliance: Stay updated with evolving Singaporean labor laws and regulations.

Reasons To Use an Employer of Record (EOR) in Singapore?

With our EOR services in Singapore, businesses can efficiently expand into Singapore without the need for a legal entity. Here’s how Engage Anywhere adds value:

  • Regulatory Compliance: Singapore’s labor laws are dynamic. We ensure that your hiring process complies with employment, tax, and payroll regulations.
  • Faster Market Entry: Setting up a subsidiary can take time. Our EOR service providers in Singapore help businesses hire quickly and legally.
  • Cost Savings: Eliminate the need for costly entity formation and administrative overheads.
  • Local Expertise: Our team has deep knowledge of Singaporean employment laws, ensuring a smooth hiring experience.
  • Risk Mitigation: We help businesses stay compliant and avoid penalties for labor law violations.
  • Focus on Growth: By outsourcing HR and payroll management, you can focus on business operations.
  • Flexibility: Test the Singapore market before committing to a long-term expansion.

Legal Aspects of Employing in Singapore

Engage Anywhere ensures full compliance with Singapore’s legal framework by handling all key employment areas through our Singapore Employer of Record services.

Onboarding and Agreements in Singapore

Employment contracts in Singapore must comply with Singapore’s Employment Act and should include:

  • Job Role: Clearly defined duties and responsibilities.
  • Salary and Benefits: Monthly pay structure, bonuses, and statutory benefits.
  • Working Hours: Standard hours, overtime policies, and flexibility.
  • Termination Process: Notice period, severance pay, and employee rights.

Our EOR solutions in Singapore ensure every contract is fully compliant with Singapore’s employment laws.

Taxes in Singapore

Employers in Singapore must adhere to tax and statutory deductions, including:

  • Income Tax: Employers must withhold taxes from employees’ salaries.
  • Central Provident Fund (CPF): Mandatory employer and employee contributions for Singaporean citizens and permanent residents.
  • Skill Development Levy (SDL): A government levy to support employee training.

With Engage Anywhere, all payroll tax management is streamlined through our Singapore payroll services and Singapore payroll service expertise.

Compliance in Singapore

Businesses must comply with employment laws, workplace safety regulations, and anti-discrimination policies. Regular audits ensure compliance with Singaporean labor standards. Through our Singapore EOR, companies stay compliant at every step.

Work Permits & Visa Requirements in Singapore

For foreign employees, Singapore has strict work permit requirements, including:

  • Employment Pass (EP): For foreign professionals, managers, and executives earning above a minimum salary threshold.
  • S Pass: For mid-skilled employees meeting salary and qualification criteria.
  • Work Permit: For semi-skilled workers in specific industries like construction and manufacturing.

Payroll in Singapore

Payroll processing in Singapore involves:

  • Accurate salary calculations, including CPF and tax deductions.
  • Timely payments and compliance with statutory contributions.
  • Submission of payroll reports to the Inland Revenue Authority of Singapore (IRAS).

Engage Anywhere provides payroll outsourcing services in Singapore and payroll services in Singapore that ensure accuracy, timeliness, and complete compliance. We are one of the trusted payroll outsourcing companies in Singapore, offering a seamless payroll experience.

Employee Rights in Singapore

Singaporean employees are entitled to:

  • Minimum Wage: There is no official minimum wage, but industries may have sector-specific regulations.
  • Right to Fair Treatment: Protection under the Employment Act and labor laws.
  • Workplace Safety: Compliance with the Workplace Safety and Health Act.

Salary Expectations in Singapore

Salaries vary based on industry and experience. To attract top talent, companies should:

  • Meet industry benchmarks.
  • Offer competitive benefits.
  • Ensure compliance with wage policies.

Engage Anywhere helps businesses align compensation strategies with local regulations through Singapore employer of record support.

Leave Policies in Singapore

Singapore’s leave entitlements include:

  • Annual Leave: Minimum of 7-14 days, based on years of service.
  • Sick Leave: Employees receive paid sick leave with medical certification.
  • Maternity and Paternity Leave: Government-mandated paid leave for parents.
  • Public Holidays: 11 statutory holidays observed annually.

With our EOR services in Singapore, your company remains compliant with all local leave policies.

Background Checks in Singapore

Many employers conduct background checks, including:

  • Verification of educational and professional qualifications.
  • Criminal record checks (if applicable).
  • Reference checks from previous employers.

Termination and Offboarding in Singapore

Termination must comply with Singapore’s labor laws, considering:

  • Notice Period: Defined in the employment contract.
  • Severance Pay: Required in cases of retrenchment.
  • Exit Interviews: Help businesses gather feedback for improvement.

Cultural Considerations in Singapore

Successfully managing a workforce in Singapore requires:

  • Respect for Multiculturalism: Singapore has a diverse workforce with various cultural backgrounds.
  • Work-Life Balance: A growing priority among professionals.
  • Business Etiquette: Professionalism and hierarchy are valued in the workplace.

Employment Benefits in Singapore

To attract and retain talent, businesses should offer:

  • Retirement Benefits: CPF contributions for citizens and PRs.
  • Health Insurance: Many employers provide private medical coverage.
  • Flexible Work Arrangements: Increasingly popular in Singapore’s job market.
  • Career Development: Training and growth opportunities.

Engage Anywhere, a trusted name among EOR service providers in Singapore, ensures you provide competitive benefits for employee satisfaction.

Start Hiring in Singapore with Engage Anywhere

Hiring staff in Singapore is a business strategy for companies seeking to expand in Southeast Asia. But the process of complying with employment law, regulation, and payroll is complicated. Engage Anywhere offers complete EOR services in Singapore that take care of employment, HR, and payroll outsourcing.

Our Singaporean payroll outsourcing and payroll services ensure seamless operations with risk-free expansion. With Engage Anywhere as your Singaporean employer of record, you can focus on business growth while we handle legal, HR, and payroll responsibilities.

Start hiring in Singapore today and unlock new business opportunities with Engage Anywhere, your reliable partner for EOR Singapore and payroll outsourcing Singapore solutions.

FAQs

What is an Employer of Record (EOR)?

An EOR is a service provider that manages employment tasks like payroll, compliance, and HR administration for companies expanding into a new country.

Do I need a legal entity to hire employees in Singapore?

No, with Engage Anywhere’s EOR services, you can hire employees without setting up a local entity.

What are the tax obligations for employers in Singapore?

Employers must comply with Singapore’s tax laws, including CPF contributions, SDL, and income tax deductions.

Can an EOR help with hiring foreign employees in Singapore?

Yes, our EOR services handle work permit applications and immigration compliance, ensuring a smooth hiring process.

Start hiring in Singapore today and unlock new business opportunities with Engage Anywhere!

I'm ready to hire in Singapore