Employer of Record (EOR) in
Singapore
Ready to hire in Singapore?
Hiring in Singapore opens the door to great talent, but only if you get compliance right. Learn the essentials of employment law, payroll taxes, termination rules, and more, and see how an Employer of Record (EOR) in Singapore can help you hire quickly without the legal risk.
Language(s)
Currency
Capital
Singapore
Population
6.0 M
Public holidays
11
VAT
9%
Employment contract types in Singapore
Choosing the right employment contract in Singapore affects everything from probation periods to termination rights. Learn which contract types are available, when each one applies, and how an Employer of Record (EOR) in Singapore can make sure every agreement meets local requirements.
DEFAULT
Indefinite contract
The default and most common employment arrangement in Singapore is an open-ended (permanent/indefinite) contract with no fixed end date. Employees under a contract of service are covered by the Employment Act (Singapore's principal labour law), with certain provisions — such as hours of work, overtime, and rest days under Part IV — applying only to 'workmen' earning up to specified salary thresholds and other non-workmen employees up to a separate threshold. Indefinite contracts are terminable by either party with statutory or contractual notice (or payment in lieu), provided the dismissal is not itself wrongful.
REGULATED USE
Fixed-term contract
Fixed-term contracts for a defined period or project are legal and commonly used in Singapore. There is no statutory cap on the length of a fixed-term contract or on the number of renewals. Under MOM/Tripartite Alliance for Fair Employment Practices (TAFEP) guidelines, employees on contracts of 3 months or less may be excluded from certain continuous-service-based entitlements (e.g., paid annual and sick leave) unless the contract is likely to be extended beyond 3 months in total; employers are encouraged to provide fixed-term staff with benefits comparable to permanent employees on a pro-rated basis. Repeated back-to-back renewals functioning as continuous employment can also trigger continuous-service-based entitlements.
Employment basics in Singapore
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Singapore to stay compliant from day one.
Under Part IV of the Employment Act (applicable to covered workmen and lower-wage employees), ordinary hours of work may not exceed 8 hours a day or 44 hours a week under a standard 5.5-day (or 5-day, up to 9 hours/day) work week. Where daily hours are unequal, total weekly hours may not exceed 48, and total hours may not exceed 88 in any continuous 2-week period. Overtime is capped at 72 hours per month and must be paid at a minimum of 1.5x the employee's hourly basic rate of pay. Employees outside Part IV coverage (e.g., managers/executives above the relevant salary threshold) are instead governed by their employment contract.
PROBATION PERIOD
3-6 months
The Employment Act does not prescribe a statutory minimum or maximum probation period — the length is entirely a matter of contract. In practice, 3 months is common for junior/general roles, extending to 6 months for more senior, specialized, or managerial roles. Notice during probation, unless separately specified in the contract, defaults to the standard statutory notice table based on length of service (as short as 1 day for under 26 weeks of service), so most employers explicitly set a short probation-specific notice period (commonly 1 day to 2 weeks) in the contract.
13TH / 14TH SALARY
Not Required
Singapore's Employment Act does not require a 13th or 14th month salary. However, payment of an Annual Wage Supplement (AWS) — commonly called a 'thirteenth month' bonus — is a widespread market practice, often recommended by the National Wages Council and written into employment contracts or collective agreements. Where an AWS is promised contractually, it becomes a legally enforceable contractual (not statutory) entitlement. Typical market practice is one month's basic salary, sometimes pro-rated by service period and/or linked to individual or company performance.
JOB TITLE REGULATIONS
Regulated
Singapore does not generally regulate or restrict job titles for local hires. For foreign employees, however, the job title stated on an Employment Pass (EP), S Pass, or Work Permit application must accurately reflect the employee's actual role, seniority, and duties, since MOM reviews job titles and descriptions as part of work-pass eligibility, salary-benchmarking (Complementarity Assessment Framework for EPs), and Fair Consideration Framework assessments. Misrepresenting a job title on a work-pass application can result in rejection or revocation.
Taxes & employment costs in Singapore
The true cost of hiring in Singapore goes well beyond salary. Learn how payroll taxes, employer social security contributions, and mandatory benefits add up.
For foreign employees (Employment Pass, S Pass, and Work Permit holders — RemoFirst's primary EOR use case), employers are NOT required to make CPF contributions at all. Mandatory employer costs are limited to: (1) the Skills Development Levy (SDL) at 0.25% of monthly wages (minimum SGD 2, maximum SGD 11.25 per employee per month), and (2) Work Injury Compensation Act (WICA) insurance, compulsory for all employees regardless of nationality, typically estimated at around 1-1.25% of payroll depending on insurer and industry risk classification — together approximately 1.5% of gross wages. For Singapore Citizens and Permanent Residents, employers must separately pay CPF contributions of up to 17% of wages (aged 55 and below), tapering to 7.5% for employees above age 70, bringing their effective total employer contribution to roughly 17.25%-18.5% of wages on top of SDL and WICA.
Foreign employees on a work pass (Employment Pass, S Pass, Work Permit) make NO mandatory social-security-style contributions in Singapore — there is no CPF, unemployment insurance, or other statutory payroll deduction of this kind for non-citizens/non-PRs (aside from standard progressive income tax withheld/filed by the employee, which is a tax rather than a social contribution). Singapore Citizens and Permanent Residents, by contrast, must contribute up to 20% of wages to CPF (aged 55 and below), tapering to 5% for those above age 70; PRs in their first two years of residency contribute at reduced graduated rates (approx. 5% in Year 1, 15% in Year 2 of wages) unless they elect to contribute at full rates from the start.
This information is provided for general guidance only and does not constitute legal, tax, or financial advice. Tax rates, CPF/social security contribution rates, wage ceilings, and statutory thresholds in Singapore are set and periodically revised by the Inland Revenue Authority of Singapore (IRAS), the CPF Board, and the Ministry of Manpower (MOM). Employers and employees should consult a qualified local tax advisor or legal counsel, or verify current rates directly with the relevant government agency, before making payroll, tax, or compliance decisions.
Employer of Record cost calculator
Found talent in another location outside your home base? Know the potential cost using RemoFirst before you commit. Use our calculator to get instant, country-specific employee cost estimates in 185+ countries.
*This calculator provides reliable estimates based on up-to-date local data. While it's not a final EOR quote, it gives you a strong benchmark for planning.
Calculate your EOR costsLeave entitlements in Singapore
Here’s what you need to know about leave entitlements in Singapore, including annual leave, public holidays, sick leave, parental leave, and more. Many companies choose to work with an Employer of Record in Singapore to stay compliant from day one.
Type
Duration
Pay During Leave
Sick leave (days 1-3)
100% (no reduced-pay tier)
100%, up to statutory entitlement (scales with tenure)
None statutory beyond entitlement (up to 60 days hospitalization incl. 14 outpatient)
6 days per parent per year (for children under 7 years old), split between employer-paid and government-reimbursed portions; an additional 2 days per year of Extended Childcare Leave is available for children aged 7 to 12 (unpaid by government, employer-funded, subject to conditions).
Government-Paid Childcare Leave
Not mandated under the Employment Act; commonly offered as a contractual/company-policy benefit, typically 2-5 days depending on the employer.
Compassionate/Bereavement Leave
As required by MINDEF for reservist (NSmen) In-Camp Training call-ups, typically up to around 40 days; employers can claim make-up pay from MINDEF to offset the employee's absence.
National Service (Reservist/In-Camp Training) Leave
12 weeks for adoptive mothers of a Singapore Citizen child under 12 months of age at the start of adoption formalities, subject to eligibility criteria broadly similar to maternity leave.
Government-Paid Adoption Leave
When hiring in Singapore, employers must provide statutory benefits required my local laws. An Employer of Record in Singapore can help you stay compliant and offer a competitive package.
Statutory Benefits
In addition to statutory leave, employees are entitled to the following statutory benefits:
Singapore's social security scheme is the Central Provident Fund (CPF), which is mandatory only for Singapore Citizens and Permanent Residents (PRs). Foreign employees on an Employment Pass, S Pass, or Work Permit are not enrolled in CPF and make no CPF contributions at all.
- Citizens/PRs aged 55 and below: Employer 17% + Employee 20% = 37% of wages
- Above 55 to 60: Employer 16% + Employee 18% = 34%
- Above 60 to 65: Employer 12.5% + Employee 12.5% = 25%
- Above 65 to 70: Employer 9% + Employee 7.5% = 16.5%
- Above 70: Employer 7.5% + Employee 5% = 12.5%
- New PRs contribute at reduced graduated rates in their first two years of residency before moving to full Citizen/PR rates in Year 3
- CPF contributions apply to Ordinary Wages up to a monthly ceiling of SGD 8,000 and to Additional Wages (e.g., bonuses) up to an annual ceiling of SGD 102,000
All employees regardless of nationality are also subject to the Skills Development Levy (SDL), paid entirely by the employer at 0.25% of monthly wages (minimum SGD 2, maximum SGD 11.25 per employee per month).
WORKPLACE INJURY PROTECTION
Work injury protection is governed by the Work Injury Compensation Act (WICA), which is mandatory for all manual labourers (regardless of salary) and non-manual employees earning up to SGD 2,600 per month, including foreign employees. Employers must maintain WICA insurance through an approved insurer; premiums are not a fixed statutory percentage but are commonly estimated at around 1-1.25% of payroll, varying by insurer and industry risk classification.
- Compensation for death: between SGD 76,000 and SGD 225,000, depending on the employee's age and average monthly earnings
- Compensation for total permanent incapacity: between SGD 97,000 and SGD 289,000
- Medical expenses: capped at SGD 45,000, or 1 year from the date of the accident, whichever comes first
- Medical leave wages: paid for the period of certified medical leave or light duty, up to 1 year from the date of the accident
Singapore has no statutory severance or retrenchment benefit requirement under the Employment Act. Retrenchment benefit is instead governed by the individual employment contract, any applicable collective agreement, or — in their absence — prevailing industry norms set out in the Tripartite Advisory on Managing Excess Manpower.
- Market norm: approximately 2 weeks to 1 month of salary per year of service
- Typically applies to employees with at least 2 years of continuous service; shorter-tenured employees generally have no retrenchment benefit entitlement unless the contract says otherwise
- Retrenchment must still be accompanied by the standard statutory or contractual notice period (or payment in lieu)
- Employers retrenching 5 or more employees within any 6-month period must notify MOM within 5 working days of the retrenchment notice(s) being given
A 13th-month payment (commonly called the Annual Wage Supplement, or AWS) is not a statutory requirement under Singapore's Employment Act.
- AWS is a widespread market practice, frequently recommended by the National Wages Council and written into individual employment contracts or collective agreements
- Where promised contractually, AWS becomes a legally enforceable contractual entitlement, even though employers are under no legal obligation to offer it in the first place
- Typical market practice is one month's basic salary, sometimes pro-rated by length of service during the calendar year and/or linked to individual or company performance
Termination & notice in Singapore
Ending an employment relationship in Singapore requires careful planning to avoid disputes and unexpected costs. Learn the rules for notice periods, valid grounds for dismissal, and more.
Unfair dismissal
Dismissal without just cause or excuse is prohibited and can be challenged as wrongful dismissal under the Employment Act. Recognized grounds include discriminatory termination (on the basis of age, gender, race, religion, disability, pregnancy, nationality, or family responsibilities), dismissal designed to avoid paying due benefits, dismissal in retaliation for exercising statutory rights, and dismissal based on unsubstantiated misconduct or poor-performance allegations, where the employer bears the burden of proving the stated ground. Claims are first filed with the Tripartite Alliance for Dispute Management (TADM) for mandatory mediation, then escalated to the Employment Claims Tribunal (ECT) if unresolved, with monetary claims generally capped at SGD 20,000 (SGD 30,000 with union assistance). Remedies include reinstatement or compensation. Claims must generally be filed within 1 month of dismissal (2 months for employees dismissed shortly after childbirth).
Objective / fair dismissal
A dismissal is considered fair ('just cause or excuse') when based on objective, substantiated grounds such as: poor performance (following documented warnings and a reasonable improvement opportunity); misconduct (following a fair due-inquiry process in which the employee is given the opportunity to be heard); genuine redundancy/retrenchment due to restructuring, applied non-discriminatorily using objective selection criteria; or the natural expiry of a fixed-term contract. The employer bears the burden of proving that the stated ground for dismissal was genuine and substantiated; dismissals based on false, discriminatory, or retaliatory reasons are treated as wrongful even if a legitimate-sounding reason is cited.
During probation
Notice per contract — no separate statutory probation notice period. If the contract is silent, the standard tenure-based notice table applies, defaulting to as little as 1 day for under 26 weeks of service.
After probation
Once probation ends and the employee is confirmed, termination requires the contractual notice period or, if unspecified, the statutory minimum under the Employment Act based on total length of service (1 day under 26 weeks; 1 week for 26 weeks to under 2 years; 2 weeks for 2 to under 5 years; 4 weeks for 5+ years). Either party may terminate with notice (or payment in lieu of notice) without needing to state a reason, provided the dismissal is not itself wrongful. Summary dismissal without notice is permitted only for the employee's wilful breach of a fundamental contract term, and only after a fair due-inquiry process.
The notice period rules summarized here reflect the Employment Act's default/minimum requirements. Actual notice obligations are governed primarily by the individual employment contract, which may lawfully specify longer (but not shorter) notice than the statutory minimum. This information is provided for general guidance only and should not be relied upon as legal advice; employers should confirm specific obligations with local legal counsel based on the employee's actual contract, seniority, and circumstances.
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Learn moreRelated compliance info about Singapore
Staying compliant in Singapore is an ongoing responsibility, not a one-time task. Learn the key requirements around work permits, employee data protection, record-keeping, worker classification, and see how an Employer of Record in Singapore can take on that responsibility so you can focus on growing your team.
Content last reviewed Nov 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.
