Employer of Record in Singapore

Work Permits and Visas in Singapore

Non-Singaporean employees hired through an employer of record in Singapore require work passes to legally work in the country. The work pass system follows the Ministry of Manpower (MOM) framework and involves salary minimums, qualification requirements, and quota systems depending on the pass type.

Processing times vary by pass type, though MOM aims to process most applications within 5-10 working days. Understanding pass categories, eligibility requirements, and salary minimums is important for international hires.

Work Permit Requirements

Who Needs a Work Pass

All non-Singaporean citizens and non-permanent residents need a work pass before starting work in Singapore. The pass ties the employee to a specific employer and position, and changing employers requires a new application. Foreign permanent residents are exempt from work pass requirements.

Eligibility and Required Documents

Employers need the employee’s educational qualifications (certified or official copies), passport, job offer letter showing position and salary, and employment contract. The employee must pass security and background clearances. Medical examination results may be required depending on the pass type. All documents must be original, certified, or officially translated into English.

Processing Time and Validity

Employment Pass and S Pass applications typically process within 5-10 working days. Work Permits may take 2-4 weeks. Once granted, passes are valid for 1-2 years depending on the type, after which renewal applications must be filed at least 3 months before expiration.

Renewal Process

Renew work passes by submitting the same basic documents plus updated medical examinations and employment verification. Start renewal at least 3 months before expiration to avoid gaps in eligibility. If an employee changes employers, the new employer must file a new application.

Common Pass Types

• Employment Pass (EP): Professional, manager, or executive roles earning SGD 5,600/month (general) or SGD 6,200/month (financial services) minimum.
• S Pass: Skilled workers earning SGD 3,150/month (general) or SGD 3,650/month (financial services) minimum; subject to quota.
• Work Permit (WP): Unskilled or semi-skilled workers; includes R1 (higher-skilled) and R2 (basic-skilled) categories with sector-specific requirements.
• Tech.Pass: Tech workers and engineers; 2-year validity with 1 renewal option; no minimum salary requirement; allows simultaneous startup work.
• ONE Pass: Premium pass for high-earners (SGD 30,000/month minimum); 5-year validity with renewable terms; flexible sector switching.
• Personalised Employment Pass (PEP): Employer-independent pass allowing job mobility; designed for senior managers and executives.
• EntrePass: For foreign founders and entrepreneurs; no salary requirement; focuses on innovation and business establishment.

How an EOR Handles Work Passes

An EOR manages the entire work pass application process, compiling documentation and coordinating with the Ministry of Manpower. They track application status and ensure salary requirements are met for each pass type. If denied, the EOR advises on alternatives or reapplication strategies. They proactively start renewal processes before expiration to prevent gaps in work eligibility.

The EOR manages salary increments to ensure they don’t inadvertently create pass eligibility issues, and updates payroll and compliance records to reflect pass status and any quotas affecting staffing decisions.

Payroll, Taxes, and Social Security in Singapore

When you hire through an EOR in Singapore, they take care of payroll, applicable CPF contributions, and the Skills Development Levy. Salaries must be paid at least once a month, within seven days of the end of the salary period.

Employer Contributions

Employers must pay CPF contributions for eligible Singapore citizens and permanent resident employees. The amount of the contribution depends on the employee’s age, salary, and permanent resident status.

For employees aged 55 and below, the employer rate is 17%. This decreases to 16% for those over 55 to 60, and to 12.5% for those over 60 to 65.

These are the current 2026 rates for employees earning more than SGD 750 a month, with permanent residents generally paying these rates from their third year onwards.

From January 2026, CPF contributions on ordinary wages apply to the first SGD 8,000 of monthly pay.

On top of CPF, employers pay the Skills Development Levy for both local and foreign employees. This comes to 0.25% of monthly wages, with a minimum of SGD 2 and a maximum of SGD 11.25 per employee.

CPF payments are due at the end of the month. Employers face enforcement action if payment is still outstanding after the 14th of the following month, or the next working day if that falls on a weekend or public holiday.

Here you can see the overview of contributions:

Employee Contributions

Employees contribute to CPF at rates matching their age band. For employees aged 55 and below, the employee contribution is 20% of ordinary wages, paired with the 17% employer contribution for a total of 37%. This is deducted directly from the employee’s salary each month. Income tax is calculated separately on chargeable income after CPF deductions.

Income Tax

Singapore’s income tax system uses progressive annual brackets that apply to YA 2026 (Year of Assessment 2026). Tax is calculated on chargeable income (after CPF deductions) using rates ranging from 0% on the first SGD 20,000 to a top rate of 24% on income exceeding SGD 1,000,000. A Personal Income Tax Rebate of 60% applies, capped at SGD 200, and is automatically applied by IRAS.

Tax calculations work as follows: for an employee earning SGD 60,000 chargeable income annually, the tax owed is 0% on the first SGD 20,000 (SGD 0), 2% on the next SGD 10,000 (SGD 200), and 3.5% on the remaining SGD 30,000 (SGD 1,050), for a total tax of SGD 1,250. After the 60% Personal Income Tax Rebate (capped SGD 200), the net tax becomes SGD 1,050.

Payroll Cycle

Payroll in Singapore is processed on a monthly basis, with salaries typically paid on the last working day of each month or as specified in the employment contract. Payments are made by bank transfer to the employee’s designated account in Singapore Dollars (SGD). An EOR manages all payroll processing, ensuring accurate CPF calculations, tax withholding, and timely payments.

The payslip provided to each employee must itemize gross salary, CPF contributions (employer and employee), income tax withheld, any allowances or deductions, and net pay. Employers retain payroll records for at least 3 years to support tax audits and CPF verification. If an employee leaves mid-month, final pay including any accrued leave must be processed within 7 days of departure.

13th Month Salary and Bonus Pay

Singapore does not mandate a 13th month salary by law. However, the Annual Wage Supplement (AWS) or year-end bonus is customary practice, with approximately 86% of Singapore firms offering AWS or equivalent variable pay. When included in an employment contract or company policy, the AWS becomes a binding obligation subject to the same CPF contribution limits and income tax treatment as regular salary.

The AWS is typically paid once annually, usually in December, and is calculated as a percentage of salary or a fixed amount as specified in the contract. The AWS counts toward the annual CPF contribution ceiling of SGD 102,000 and the maximum annual CPF contribution of SGD 37,740. If employment ends before the AWS is paid, the accrued amount must be included in the final paycheck.

Cost of Hiring Through an EOR in Singapore

EOR Service Fees

Employer of record service fees in Singapore typically range from SGD 500 to SGD 1,200 per employee per month (approximately USD 370-890), depending on the provider’s service level and the complexity of payroll administration. These fees cover CPF administration, tax compliance, payroll processing, benefits administration, and regulatory filings, eliminating the need for a local HR department. The exact fee structure varies by provider but is generally charged as a flat monthly cost rather than a percentage of salary.

Total Employment Cost Breakdown

The total cost of hiring through an EOR includes the gross salary, mandatory CPF contributions, Skills Development Levy, and the EOR service fee. Understanding this breakdown helps organizations budget accurately for remote hiring in Singapore.