How to Hire Employees in Singapore

With four official languages – English, Malay, Mandarin Chinese, and Tamil – Singapore sits at the intersection of countries with a dynamic multicultural population. Now, that is not only beneficial for business; it is exceptionally advantageous.

Singapore offers access to a highly skilled, English-speaking workforce in one of Asia’s most business-friendly hubs. But whether you’re bringing on one remote employee or building a regional team to establish operations in Singapore, it’s essential to comply with the city-state’s robust labor laws, immigration rules, and tax policies, and immigration rules.

Companies can hire employees in Singapore using one of three main approaches:

Incorporating an Entity

Setting up a local entity is serious business, and mostly reserved for corporate behemoths looking to dominate a new territory. It involves incorporating a Private Limited Company through the Accounting and Corporate Regulatory Authority (ACRA). 

With an established local entity, companies can directly hire from and build long-term business operations with the Singaporean population. It is time and capital-intensive. 

Working with an Employer of Record (EOR)

For businesses newly entering the Singaporean market or seeking to expand efficiently, an EOR, such as Remote People, offers the quickest, most adaptable, and safest method for hiring employees.

EORs enable the legal employment of staff in Singapore without the need to establish a local entity. As the legal employer, they manage all employment-related tasks while you maintain complete control over your company’s daily operations.

They represent an ideal balance between the costly setup of a local entity and the risks associated with hiring independent contractors.

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Hiring Independent Contractors

The kind of flexibility hiring independent contractors allows comes at a significant cost. 

Singapore law clearly distinguishes between contractors and employees, and even an inadvertent misclassification can lead to retrospective statutory contributions, tax issues, and penalties as severe as imprisonment.

Hire in Singapore

Asia’s premier business hub with CPF contributions, SDL levies, Employment Act coverage, and MOM regulatory compliance.

We handle employment contracts, payroll, social contributions, and full Singaporean compliance.

No local entity needed. Your team can start in days.

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Using an Employer of Record in Singapore

Hiring through an EOR is the most efficient, compliant, and risk-averse way to grow your team in Singapore, especially if you don’t yet have a legal entity in the country.

Their services eliminate the need for local company registration to hire in Singapore. It’s probably easiest to think of them as an outsourced HR department that helps you manage:

How Much Does It Cost to Work With an Employer of Record in Singapore?

The cost of engaging an EOR in Singapore varies widely, as there’s no universal fee structure. Several aspects may affect pricing:

  • Number of Employees: Many EORs bill per employee; more employees often mean higher costs.
  • Services Required: If you only need core HR help—payroll and benefits, for instance—your costs may be lower than if you also want performance management or recruitment.
  • Industry: EORs with specialization in certain sectors (e.g., healthcare or tech) may charge extra for that expertise.
  • Additional Services: Beyond basic packages, optional add-ons like training or career development can raise your monthly fees.

Pricing Structures for an EOR in Singapore

In addition to these variables, different EORs may employ different pricing models:

Pricing ModelDescription
Fixed Retainer-Based ModelYou pay a set fee every month, ideal if your headcount and service needs are relatively stable.
Percentage-Based ModelYou’re billed a percentage of your monthly payroll—commonly in the 2–4% range. If your payroll is modest, this can be a budget-friendly choice.
Per-Employee ModelSome EORs have a flat-rate charge per employee, covering most services under that single fee.

2025 Update: Is There a Ban on EOR in Singapore?

If you’ve been following employment law updates in Singapore, you might have heard rumors, or even bold headlines, suggesting that EOR services are banned in 2025. But the truth? It’s a little more nuanced than that.

Singapore hasn’t outlawed Employer of Record (EOR) models altogether. Instead, the Ministry of Manpower (MOM) has become increasingly strict about how EOR providers operate and whether those arrangements truly comply with local labor laws. The government is cracking down on structures that resemble labor outsourcing or disguised employment, especially if they bypass standard employer responsibilities like fair hiring practices, CPF contributions, or proper benefits.

That doesn’t mean EOR is off the table. In fact, it can still be a compliant and strategic hiring model, but it has to be done the right way.

At Remote People, we work closely with trusted providers who understand the latest regulations and know how to structure EOR solutions legally in Singapore. If you’re unsure how to proceed or worried about compliance, we strongly recommend reaching out before you make a move. The right partner can help you stay agile and on the right side of the law.

How an Employer of Record Helps You Hire in Singapore

Hiring in Singapore involves navigating complex local employment laws. An EOR simplifies this by acting as the legal employer, eliminating the need for a local entity, ensuring compliance, reducing costs, and improving productivity, allowing businesses to focus on core activities.

Employment and Labor Laws in Singapore

Singapore boasts a business-friendly and well-regulated legal framework for employment and labor. The Employment Act 1968, enforced by the Ministry of Manpower (MOM), is central to compliant hiring, overseeing all employment relationships.

This Act applies to both local and foreign employees with monthly earnings up to SGD 4,500 (white-collar) or SGD 2,600 (blue-collar).

Employment Contract Requirements

As mandated by the MOM, every employee must receive a written employment contract, and it must include 18 Key Employment Terms (KETs). Some of them include:

  1. Full name of employer
  2. Full name of employee
  3. Job title, main duties, and responsibilities
  4. Start date of employment
  5. Duration of employment
  6. Salary period
  7. Type of leave
  8. Notice period

Read all 18 here.

Onboarding Process

Singapore’s employee hiring and onboarding require compliant documentation, identity verification, and government scheme registration. We can streamline this process, potentially completing it in a short 2–5 business days. 

This process might take longer for foreign employees who require an employment pass – they must register their biometrics at an Employment Pass Services Centre(EPSC) after arrival. This might take another week or two.

Working Hours

Singaporean work hours are nuanced, with different limits applying to different classes of workers. These details are covered under Part IV of the Employment Act.

For common work arrangements, here are your contractual work hours:

If You WorkContractual Hours of Work
5 days or less a weekUp to 9 hours per day or 44 hours a week
More than 5 days a weekUp to 8 hours per day or 44 hours a week

For other work arrangements, your contractual hours of work are as follows:

If You WorkContractual Hours of Work
Less than 44 hours every alternate weekUp to 48 hours a week, but capped at 88 hours in any continuous 2-week period
Shifts of up to 12 hours a dayUp to an average of 44 hours over a continuous 3-week period

It is important to note that Part IV of the Employment Act does not cover managers and executives. Senior employees not covered under the act will have their working hours stipulated in their employment contracts.

Overtime

Overtime work is all work beyond the normal hours of work.

While employers are mandated to pay employees for overtime work, not all employees are entitled to such payments. Employees can only claim overtime if they are:

  • Non-workmen earning a monthly basic salary of SGD 2,600 or less.
  • Workmen (employees whose work involves manual labor) earning a monthly basic salary of SGD 4,500 or less.

Overtime hours begin counting if an employee meeting the criteria works more than 44 hours in a week or 8 hours in a day.

For overtime work, employers must pay 1.5x hourly rate, and not later than 14 days after the last salary period. 

Probation Periods

A probation period is not required by law, but is generally arbitrarily set anywhere between 3-6 months.

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Payroll and Employment Taxes in Singapore

With only 729 square kilometers of land area, Singapore’s 2023 GDP of $501.43 Bn is indeed impressive. Experts have estimated this value to rise to $527.3 Bn by the end of 2025. Remarkable feats like these are partly due to the efficiency and tight regulation of their payroll system. 

The IRAS and CPF run a pretty tight ship, outlining clear requirements on salary payments, mandatory contributions, and tax deductions.

Fiscal Year

Singapore’s fiscal year aligns with the calendar year, from January 1st to December 31st. 

Payroll Cycles

Singaporean employees are typically paid monthly on the last working day. Employers are legally required to provide all employees with an itemized payslip, either printed or sent electronically, that details the breakdown of their earnings from gross to net income.

Employers are also required to submit employee earnings annually to IRAS by 1 March of the following year via:

  • Form IR8A for income earnings
  • Appendix 8A for details of benefits in kind.
  • Appendix 8B for details of benefits derived from employee stock options or share ownership.

Minimum Wage

As opposed to a blanket minimum wage, Singapore operates what is described as a market-driven remuneration model primarily determined by market forces of demand and supply. It is called the Progressive Wage Model (PWM). The PWM ensures minimum pay standards in certain low-wage sectors like cleaning and waste management. 

Finally, there’s what’s called the Local Qualifying Salary (LQS). It ensures that local employees in companies with foreign workers earn at least SGD 1,600 monthly, helping to prevent a situation where locals are underpaid while foreigners are prioritized in compensation. This requirement for hiring foreign workers aims to protect the interests of the local workforce.

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Bonus Payments

Singaporean law does not mandate bonuses, which are typically discretionary or defined in employment contracts or collective agreements. However, 13th-month bonuses are common in the public sector.

Employer Tax Contributions

SchemeContributionDetails
CPF17% of gross salaryFor citizens and PRs only
Skills Development Levy (SDL)0.25% of salary (minimum of SGD 2, and maximum of SGD 11.25)Used to fund workforce upskilling
Foreign Worker Levy (FWL)Varies by industry and headcountApplies to Work Permit & S Pass holders

Employee Payroll Contributions

DeductionRate/Condition
CPF20% of monthly salary (only for SG Citizens & PRs)
OthersUnion fees, loan repayments, etc. (if contractually agreed)

Individual Income Tax Contributions

Singapore’s payroll deductions for both employees and employers do not include individual income tax contributions. This is because Singapore does not utilize an employer-withheld tax system. Instead, individuals are responsible for directly paying their income taxes to the IRAS.

According to the IRAS, only tax residents pay individual tax. Tax residents are persons who fall under one of the following categories:

  • Singaporean citizens or Singapore permanent residents.
  • Foreigners who have stayed or worked in Singapore for:
    • At least 183 days in the previous calendar year.
    • A continuous period of 3 consecutive years, even if their stay in the first and/or third year was less than 183 days.
  • Foreigners who have worked in Singapore for a continuous period spanning two calendar years, and their total period of stay is at least 183 days.

Like many Asian countries, Singapore also practices progressive taxation on individual income, ranging from 0-24%. 

Chargeable Income BracketTax Rate (%)Total Tax Payable (SGD)
First $20,000
Next $10,000		0
2		0
200
First $30,000
Next $10,000		–
3.5		200
350
First $40,000
Next $40,000		–
7		550
2,800
First $80,000
Next $40,000		–
11.5		3,350
4,600
First $120,000
Next $40,000		–
15		7,950
6,000
First $160,000
Next $40,000		–
18		13,950
7,200
First $200,000
Next $40,000		–
19		21,150
7,600
First $240,000
Next $40,000		–
19.5		28,750
7,800
First $280,000
Next $40,000		–
20		36,550
8,000
First $320,000
Next $180,000		–
22		44,550
39,600
First $500,000
Next $500,000		–
23		84,150
115,000
First $1,000,000
Over $1,000,000		–
24		199,150
–

Progressive taxes can be quite difficult to calculate – use our payroll calculator here.

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Pension System

Singapore utilizes the Central Provident Fund (CPF), a mandatory, government-administered savings scheme for citizens and permanent residents, instead of a separate public pension.

Here’s a breakdown of the total contributions to the CPF: 

Age GroupEmployer RateEmployee RateTotal CPF Contribution
Up to 55 years17%20%37%
55–60 years14.5%15%29.5%
60–65 years11%9.5%20.5%
Above 65 years9%7%16%

Upon reaching the retirement age (currently 63), CPF members receive monthly payouts through CPF LIFE, a government annuity scheme.

How an Employer of Record Helps You Run Payroll in Singapore

Singapore payroll requires strict compliance with MOM, IRAS, and CPF Board regulations to avoid penalties and maintain employee relations. EORs handle all payroll responsibilities, ensuring accurate regulatory compliance and government submissions.

Key ways an EOR Supports Payroll in Singapore:

  • Monthly Salary Processing: Accurate gross-to-net calculations.
  • Timely Salary Disbursement: Direct transfers to employee accounts.
  • MOM-Compliant Payslips: Generation and distribution of detailed payslips.
  • CPF Contributions: Calculation and submission of employer and employee contributions.
  • Levy Submissions: Filing of SDL and, where applicable, FWL.
  • End-of-Year Tax Filing: Submission of Form IR8A, Appendix 8A, and IR21 (for tax clearance).
  • Compliance: Management of leave entitlements, overtime pay, and bonus calculations.

Work Permits and Visas in Singapore

To hire foreign talent in Singapore, companies must comply with MOM’s work pass rules based on salary, role, and nationality. There are many work permits and visas in Singapore. The most common ones are outlined below:

Pass Type Target Group Key Criteria
Employment Pass (EP) Professionals, executives, managers Minimum salary of SGD 5,000/month
S Pass Mid-level skilled staff Minimum salary of SGD 3,650/month
Work Permit Low-skilled workers in approved sectors Sector-specific quotas and levies apply
Dependant’s Pass Spouses and children of EP/S Pass holders Based on the main pass holder’s validity

Read more about the different types of work permits available, including eligibility requirements, application processes, and which permit best fits your employment needs, here.

Time Off and Leave in Singapore

Singapore values work-life balance, as reflected in its Employment Act’s leave entitlements and work flexibility. While most leaves are mandatory, some depend on employment contracts. Using an EOR ensures accurate leave management and allows companies to offer competitive local benefits.

Mandatory Leave Entitlement

Singapore’s fiscal year aligns with the calendar year, from January 1st to December 31st. 

Employees covered under the Employment Act are entitled to a paid annual leave, whose length increases with duration of service:

Year of ServiceDays of Leave
1st7
2nd8
3rd9
4th10
5th11
6th12
7th13
8th and thereafter14

Employers in competitive sectors like finance and tech may offer more than the standard days of annual leave (typically 15-21 days).

Public Holidays

Employees are entitled to 11 paid public holidays each year – 5 compulsory and 6 elective:

  • New Year’s Day (January 1)
  • Chinese New Year – two days (date varies)
  • Hari Raya Puasa (date varies)
  • Good Friday (date varies)
  • Labor Day (May 1)
  • Vesak Day (date varies)
  • Hari Raya Haji (date varies)
  • National Day (August 9)
  • Deepavali (date varies)
  • Christmas Day (December 25)

Sick Leave

In Singapore, after 3 months of employment, staff are entitled to 14 days of annual outpatient sick leave and up to 60 days of annual hospitalization leave.

Maternity Leave

In Singapore, female employees with at least 3 months of service are entitled to paid maternity leave: 16 weeks for citizens (government-funded) and at least 12 weeks for non-citizens (employer-funded).

Paternity Leave

Singaporean fathers receive 2 weeks of paid paternity leave, funded by the employer with government reimbursement, to be used within 12 months of the child’s birth.

National Service Leave

Singaporean male citizens and second-generation PRs, typically aged 18-40 (up to 50 for officers), must serve National Service (NS) and reservist training (ICT) under the Enlistment Act. 

Employers are legally required to grant leave for full-time NS and annual reservist duties without penalising employees’ compensation. The Ministry of Defence(MINDEF) reimburses employers for the employee’s absence during NS duties.

Using an Employer of Record to Administer Benefits in Singapore

In Singapore, comprehensive employee benefits, including mandated and supplementary perks, are crucial for compliance and attracting/retaining top talent. Remote People emphasizes boosting employee satisfaction and attraction to enhance team productivity. Happy employees make a productive team.

Terminations and Severance in Singapore

Termination

All termination processes must be handled per the Employment Act standards and avoid disputes or claims for unfair dismissal. Just causes for termination include:
  • Misconduct
  • Poor performance
  • Redundancy or restructuring
  • Mutual agreement
Using an EOR ensures smooth, compliant, and respectful offboarding, protecting both the company and employee.

Notice Periods

The Employment Act provides the following minimums based on length of service:

Duration of EmploymentLength of Notice Period
Less than 26 weeks1 day
26 weeks – 2 years1 week
2 – 5 years2 weeks
5 years or more4 weeks

Severance Pay

There are no statutory requirements for severance pay in Singapore. However, it is customary to offer retrenchment benefits to employees with 2+ years of service. These amounts are largely dependent on the employer’s discretion but typically range from 2 weeks to 1 month’s salary per year of service.

Why Hire in Singapore with an EOR

There are very clear reasons why Singaporeans make great employees. There is also an equal number of reasons to hire them with an EOR, including:

  • Strong and stable economy: Singapore is a stable democracy with good relations with its neighbors, including membership in the Association of Southeast Asian Nations (ASEAN). For a small country, it also has an incredibly strong economy and does business with countries around the world.
  • Language skills and compatibility: Most Singaporeans have valuable skills in several languages that include Chinese, Malay, and Tamil. English is also the language of business in the country, and this can make hiring in Singapore a lot more convenient than in other countries. 
  • Educated and skilled workers: Singapore is known to have one of the highest-achieving education systems in the world, and it’s common for workers to hold tertiary certifications. Their skills in multiple industries can also make Singaporeans highly sought after.
  • Low risk: When you hire workers through an EOR, the service provider helps you by maintaining compliance with all Singaporean laws. This greatly reduces the risk of fines and other penalties that you might face if you choose to hire employees or contractors directly.

How to Choose an EOR in Singapore

When selecting the right service provider to partner with, focus on the following criteria:

Services

Most EORs provide the same basic services of managing hiring, payroll, and benefits administration in Singapore. However, if you need more help with things like recruitment and optional benefits administration, you’ll need to work to find a partner that can offer everything you require.

Price

Set your hiring budget and then look for an EOR with fees that you can afford. Many don’t reveal their fees online, so you may need to request several quotes to find the right partner for your pocketbook.

Reputation

Reviews and ratings on trusted websites can reveal how well an EOR actually performs. Also, look for providers that have specific experience working in Singapore so they’ll have a much better ability to manage your employees compliantly.

Hire Employees With the Best Singapore EOR

Remote People

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At Remote People, we deliver full-service EOR support in Singapore, combining recruitment assistance with end-to-end employment compliance. From sourcing local talent to managing CPF contributions, tax withholding, and Skills Development Fund levies, we make hiring smooth and compliant. We also handle visa processing and work pass applications for expatriates, helping you onboard both local and international employees with confidence.

Deel

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Deel offers automated EOR services in Singapore, ideal for companies that value speed, scalability, and a self-service model. Its platform handles everything from contract generation and CPF setup to payroll processing—often completing onboarding within days. Deel’s consistent global interface simplifies HR operations across countries, while its employee app enhances the user experience by allowing workers to access payslips, manage leave, and update personal details from anywhere.

Papaya Global

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Papaya Global offers EOR services in Singapore with a focus on advanced reporting and cost transparency. Its platform combines payroll with expense management, giving employers a clear view of total compensation and simplifying administration. The system automates CPF contributions, tax calculations, and wage ceiling tracking, while also supporting work pass applications. Papaya is well-suited for companies that value data-driven workforce planning alongside compliance.

Expand into Singapore Easily with Remote People’s Employer of Record in Singapore

Remote People offers professional Employer of Record (EOR) services to help your business hire and operate compliantly in Singapore. If you’re looking for a trusted and cost-effective solution to manage employment, payroll, and local compliance, contact Remote People today and let us support your expansion into the Singapore market.