Singapore is one of the world’s leading business hubs, known for its strategic location, pro-business policies, and highly skilled workforce. Positioned at the heart of Southeast Asia, it serves as a gateway for companies looking to expand across Asia-Pacific. Its efficient legal system, strong financial sector, and world-class infrastructure make it a top destination for global headquarters and innovation centers.

Singapore consistently ranks high in ease of doing business and competitiveness indexes, thanks to low corporate taxes, transparent regulations, and a robust intellectual property regime. The city-state attracts top global talent, especially in finance, technology, life sciences, and logistics.

However, hiring in Singapore comes with its own set of challenges. Employers must navigate complex employment laws, manage foreign worker quotas, and comply with the Employment Act and Ministry of Manpower (MOM) regulations. Setting up a local entity can take weeks and involves regulatory filings, licenses, and local compliance expertise.

Many companies overcome these hurdles by partnering with an Employer of Record (EOR). With Gloroots as an EOR in Singapore, businesses can hire employees quickly, manage payroll, and ensure global compliance — without the time and cost of setting up a subsidiary.

What are the key facts about Singapore’s economy and workforce?

Singapore is a high-income, open economy, often ranked among the world’s most competitive. Its GDP per capita exceeds USD 90,000, and it is home to leading multinational corporations, startups, and global financial institutions.

Key strengths include:

• Finance: Singapore is Asia’s top financial hub, hosting global banks, fintech startups, and asset managers.
• Technology & Innovation: With strong government investment through agencies like Enterprise Singapore and EDB (Economic Development Board), Singapore attracts top talent in AI, software, and digital transformation.
• Biotech & Healthcare: Global pharmaceutical companies and research institutions like A*STAR drive innovation in life sciences.
• Logistics & Trade: Singapore’s port is one of the busiest worldwide, and its advanced logistics sector makes it a hub for global supply chains.

Singapore’s workforce is multilingual, highly educated, and globally oriented. Universities such as the National University of Singapore (NUS) and Nanyang Technological University (NTU) rank among the world’s top institutions, producing graduates in engineering, business, and life sciences.

At the same time, employers must account for Singapore’s tight labor market, rising wage costs, and strict rules on hiring foreign professionals. The Ministry of Manpower enforces quotas and minimum salary thresholds for employment passes, making compliance critical.

With Gloroots EOR, companies can tap into Singapore’s talent market quickly and compliantly, bypassing complex entity setup and focusing on business growth.

Contact us to explore compliant hiring in Singapore.

What is the work culture and talent pool like in Singapore?

Singapore’s workforce is shaped by its multicultural environment, global outlook, and strong government investment in education and innovation. The work culture combines Asian values of respect and discipline with a Western emphasis on meritocracy and performance.

Work Culture Traits

• Professionalism & Meritocracy: Employees are rewarded based on skills and performance rather than seniority.
• Efficiency & Punctuality: Meetings and deadlines are taken seriously, reflecting Singapore’s reputation for business discipline.
• Hierarchical but Inclusive: While organizational hierarchies exist, open communication and collaboration are encouraged, especially in multinational settings.
• Work-Life Balance: Increasingly valued, with government initiatives promoting flexible work and mental health support.

Talent Strengths

Singapore’s white-collar workforce is particularly strong in:

• Finance & Banking: A global hub for investment banking, asset management, fintech.
• Technology: Skilled professionals in software engineering, AI, cybersecurity, and data analytics.
• Healthcare & Biotech: Global pharmaceutical companies and research hubs attract top scientists and clinicians.
• Logistics & Trade: A strong base of supply chain, shipping, and trade experts.
• Corporate Services: A mature ecosystem in law, consulting, and professional services.

Hiring Hubs

• Central Business District (CBD): Finance, corporate HQs, legal services.
• One-North & Jurong Innovation District: Technology, R&D, and life sciences.
• Changi Area: Aviation, logistics, and global trade.

Q: What is the process of setting up an entity in Singapore?

Singapore is known for its ease of doing business, but setting up a legal entity still requires careful planning, documentation, and compliance with the Accounting and Corporate Regulatory Authority (ACRA). The most common structure for foreign companies is a Private Limited Company (Pte Ltd).

Steps to Set Up an Entity in Singapore

1. Choose Business Structure
   • Options include a Private Limited Company (Pte Ltd), branch office, or representative office.
   • Pte Ltd is the most common for foreign businesses due to liability protection and tax efficiency.
2. Appoint Directors & Shareholders
   • At least one local director (Singapore citizen, Permanent Resident, or Employment Pass holder) is required.
   • Minimum of one and maximum of 50 shareholders.
3. Register with ACRA
   • Reserve a company name and file incorporation documents.
   • Submit details of directors, shareholders, and registered office address.
4. Paid-Up Capital
   • Minimum SGD 1 (~USD 0.70), though higher capital is recommended for credibility.
5. Corporate Bank Account
   • Open an account with a local or international bank in Singapore.
6. Tax Registration
   • Register with the Inland Revenue Authority of Singapore (IRAS) for corporate tax, GST (if applicable), and annual reporting.
7. Employment & Compliance
   • Apply for Employment Passes if hiring foreign workers.
   • Ensure compliance with the Employment Act and Ministry of Manpower (MOM) regulations.

Timeline

Entity setup can take anywhere from 1–3 weeks, depending on approvals and banking timelines.

For businesses aiming for quick market entry or hiring a few employees, entity setup can delay expansion. Partnering with Gloroots EOR allows you to hire immediately without establishing a local company.

Entity Setup vs. EOR in Singapore

Q: What are the main benefits of using Gloroots as an Employer of Record in Singapore vs. setting up your own entity?

While establishing a Private Limited Company (Pte Ltd) in Singapore provides long-term presence and full control, it also comes with regulatory complexity, foreign worker restrictions, and ongoing compliance costs. For businesses seeking fast, compliant hiring, working with an Employer of Record (EOR) like Gloroots provides significant strategic advantages.

Benefits of Using Gloroots EOR in Singapore

• Rapid Hiring: Onboard employees in days instead of weeks or months.
• Compliance with MOM & Employment Act: Gloroots ensures every contract and payroll run meets local employment laws.
• Simplified Immigration: Gloroots supports Employment Pass (EP), S Pass, and Dependant Pass applications, easing the hiring of foreign professionals.
• No Capital Investment: Avoid incorporation, office lease, and director appointment requirements.
• Streamlined Payroll & Benefits: Manage salaries, CPF contributions, and benefits through Gloroots’ payroll management platform.
• Flexibility to Scale: Ideal for testing the market or hiring niche specialists before committing to a full entity.
• Risk Mitigation: Reduce exposure to penalties for misclassification, tax errors, or non-compliance with foreign worker quotas.

Direct Entity vs. Gloroots EOR in Singapore

Q: What are the key employment laws in Singapore that employers should know?

Employment in Singapore is governed primarily by the Employment Act, Central Provident Fund (CPF) Act, and regulations enforced by the Ministry of Manpower (MOM). Employers must comply with these laws to avoid penalties and disputes.

Core Employment Law Provisions in Singapore

• Employment Contracts
  • All employees must receive written employment contracts (also called Key Employment Terms).
  • Contracts must specify salary, working hours, benefits, and termination clauses.
• Working Hours
  • For employees covered under the Employment Act (mostly rank-and-file and some middle-level staff):
    • Maximum 44 hours per week.
    • Maximum 12 hours per day, including overtime.
  • Professionals, managers, and executives (PMEs) earning above SGD 4,500/month are not subject to working hour limits.
• Overtime
  • Applies to non-PMEs earning ≤ SGD 2,600/month.
  • Overtime pay is 1.5x the hourly basic rate.
  • Max 72 hours of overtime per month unless exempted.
• Minimum Wage
  • Singapore does not have a universal minimum wage.
  • However, the Progressive Wage Model (PWM) sets minimum wages in specific sectors (e.g., cleaning, security, landscaping, retail, and food services).
• Maternity Leave
  • Eligible working mothers get 16 weeks of paid leave if the child is a Singapore citizen.
  • Funded partly by the government and partly by the employer.
• Paternity Leave
  • Eligible working fathers get 2 weeks of government-paid leave.
• Annual Leave
  • Minimum 7 days per year, increasing with service (1 additional day for each year, capped at 14 days).
• Sick Leave
  • Employees are entitled to 14 days of paid outpatient leave and 60 days of paid hospitalization leave, provided they have at least 6 months of service.
• Central Provident Fund (CPF)
  • Mandatory for Singapore citizens and permanent residents.
  • Employer contribution rates range from 7.5% to 17%, depending on employee age and wages.

Employment Laws: Direct Entity vs. Gloroots EOR in Singapore

Q: What visas and work passes are required for working in Singapore?

Singapore has a highly structured immigration system, overseen by the Ministry of Manpower (MOM). While local hiring is encouraged through quotas and incentives, Singapore also welcomes foreign talent, especially in sectors like finance, technology, and life sciences.

Key Work Passes in Singapore

1. Employment Pass (EP)
   • For professionals, managers, and executives (PMEs).
   • Minimum qualifying salary: SGD 5,000/month (higher for older and financial sector employees).
   • Valid for 1–2 years, renewable.
   • Employers must pass the Complementarity Assessment Framework (COMPASS), which evaluates salary, qualifications, diversity, and firm attributes.
2. S Pass
   • For mid-skilled foreign workers (technicians, specialists).
   • Minimum qualifying salary: SGD 3,150/month (higher for older workers and financial services sector).
   • Subject to quota: employers can only hire a limited percentage of S Pass holders relative to their local workforce.
   • Monthly levy applies.
3. Work Permit
   • For foreign workers in sectors like construction, manufacturing, marine, process, or services.
   • Highly regulated with industry-specific quotas and levies.
4. Dependant’s Pass (DP)
   • For legally married spouses and children of EP/S Pass holders.
   • DP holders can apply for a Letter of Consent (LOC) to work in Singapore.
5. EntrePass
   • For foreign entrepreneurs who want to start and operate a business in Singapore.
   • Targeted at innovative startups in sectors like tech, biotech, and sustainability.
6. Personalised Employment Pass (PEP)
   • A flexible pass for high-earning professionals (≥ SGD 22,500/month).
   • Not tied to an employer, valid for up to 3 years.

Employer Responsibilities

• Employers must apply for work passes on behalf of employees.
• Employers are responsible for ensuring compliance with quotas, levies, and fair employment guidelines.
• Pass renewals must be tracked, or the employee risks losing work authorization.

How Gloroots Helps with Visas in Singapore

Managing work passes in Singapore can be complex due to quotas, COMPASS scoring, and salary thresholds. Gloroots simplifies this process by:

• Assessing Eligibility: Advising on whether an employee qualifies for EP, S Pass, or other permits.
• Application Management: Preparing and submitting applications to MOM, ensuring documentation is correct.
• Quota Compliance: Ensuring foreign hires fall within industry quota limits.
• Renewal Tracking: Monitoring pass expiry and handling renewals proactively.
• Dependant Pass & Family Support: Assisting with DP and LOC applications for employee family members.
• Risk Mitigation: Reducing the risk of rejections, fines, or non-compliance with MOM regulations.

With Gloroots as your Employer of Record in Singapore, you can expand your workforce without worrying about immigration roadblocks.

Q: What are the risks of misclassification in Singapore?

Singapore distinguishes clearly between employees and independent contractors. Misclassification happens when a company engages a worker as a contractor but treats them like an employee (e.g., fixed hours, control over work methods, provision of tools).

The Ministry of Manpower (MOM) and Singapore courts use a “control and integration test” to assess employment status.

Criteria for Classification

• Control – Employees are under the supervision of the employer; contractors control their own work.
• Economic Dependence – Employees rely on one employer; contractors usually serve multiple clients.
• Provision of Tools & Resources – Employees use company equipment; contractors provide their own.
• Work Integration – Employees are part of the organizational structure; contractors operate independently.
• Payment Terms – Employees receive fixed salaries; contractors are paid per project or deliverable.

Penalties for Misclassification

• Back Payment of CPF Contributions – Employers may be liable for missed contributions (up to 17% of salary).
• Employee Benefits Liability – Misclassified contractors may claim benefits such as annual leave, sick leave, and termination rights.
• Fines & Legal Sanctions – MOM can impose fines and restrict future work pass applications.
• Reputational Damage – Non-compliance may affect government approvals and corporate reputation.

Why Misclassification is Riskier in Singapore

• Singapore’s CPF system makes compliance critical. Failure to contribute is a serious breach.
• Employment pass applications could be scrutinized more heavily if a company is flagged for violations.
• Courts may order retroactive payments and compensation to workers.

Gloroots helps businesses avoid these risks by offering compliant employment contracts through its Employer of Record platform, ensuring workers are correctly classified.

Misclassification Risks: Direct Entity vs. Gloroots EOR in Singapore

Q: How does an EOR help you run payroll in Singapore?

Payroll in Singapore is tightly regulated by the Ministry of Manpower (MOM), the Inland Revenue Authority of Singapore (IRAS), and the Central Provident Fund (CPF) Board. Employers must calculate salaries accurately, deduct taxes, and make timely contributions to CPF and other statutory funds.

Payroll Compliance Requirements in Singapore

• Pay Frequency
  • Employees must be paid at least once a month within 7 days after the end of the salary period.
• Tax Withholding (IRAS)
  • Employers must deduct income tax at source for non-resident employees.
  • For Singapore tax residents, income tax is generally filed annually by employees, but employers must issue IR8A forms and participate in the Auto-Inclusion Scheme (AIS).
• CPF Contributions
  • Mandatory for Singapore citizens and permanent residents.
  • Employer contribution rates: up to 17% (depending on employee’s age and wage band).
  • Employee contribution rates: up to 20%.
  • Not applicable for foreign employees on Employment Pass or S Pass.
• Other Statutory Funds
  • Skills Development Levy (SDL): 0.25% of salary, capped at SGD 11.25/month.
  • Foreign Worker Levy (FWL): Applies to S Pass and Work Permit holders, amount varies by sector and quotas.
• Leave & Holiday Pay
  • Employers must manage entitlements for annual leave, maternity/paternity leave, and sick leave per the Employment Act.
• Year-End Reporting
  • Employers must submit annual income details (IR8A/IR21) to IRAS.
  • Clearance must be filed for foreign employees leaving Singapore.

How Gloroots Simplifies Payroll in Singapore

• Automated Payroll Processing: Salaries, CPF, SDL, and tax deductions handled accurately and on time.
• Compliance with MOM & IRAS: Gloroots ensures correct reporting under AIS and IR8A requirements.
• Multi-Currency Payments: Pay employees in SGD or other currencies through a unified global payroll platform.
• Employee Benefits Integration: Gloroots administers statutory and additional benefits.
• Foreign Worker Management: Handles levies, quotas, and reporting for S Pass and Work Permit holders.

Payroll Compliance: Direct Entity vs. Gloroots EOR in Singapore

Q: How does tax compliance work in Singapore?

Singapore is well-known for its simple and competitive tax regime, making it attractive to foreign employers. Employers must ensure proper payroll deductions, CPF contributions, and reporting to the Inland Revenue Authority of Singapore (IRAS).

Income Tax in Singapore (2025)

• Residents (Singapore citizens, permanent residents, and foreigners who stay ≥183 days/year) are taxed on a progressive scale:

• Non-Residents are taxed at 15% or resident rates (whichever is higher) on employment income.

CPF Contributions (2025)

CPF is mandatory for Singapore citizens and permanent residents but not required for foreigners on Employment Pass or S Pass.

• Employer Contributions: Up to 17% of monthly salary.
• Employee Contributions: Up to 20% of monthly salary.
• Contributions vary by age group (rates taper for employees above 55).

Other Employer Obligations

• Skills Development Levy (SDL): 0.25% of monthly salary, capped at SGD 11.25.
• Foreign Worker Levy (FWL): Monthly levy applies for S Pass and Work Permit holders, dependent on sector and dependency ratio.
• IR8A & AIS Reporting: Employers must file annual income details for all employees.

Tax Compliance: Direct Entity vs. Gloroots EOR in Singapore

Q: What benefits and entitlements do employees in Singapore receive?

Singapore offers a structured benefits framework designed to balance employer obligations with employee well-being. While the Employment Act sets out minimum statutory benefits, employers — especially multinationals — often provide additional perks to remain competitive in a tight talent market.

Statutory Benefits in Singapore

• Central Provident Fund (CPF)
  • Mandatory for Singapore citizens and permanent residents.
  • Employers contribute up to 17%, and employees contribute up to 20%, depending on age and wage band.
  • Contributions cover retirement, healthcare, and housing.
• Annual Leave
  • Minimum 7 days of paid leave per year, increasing by 1 day for each additional year of service (up to 14 days).
  • Many employers offer 18–21 days to attract top talent.
• Public Holidays
  • Employees are entitled to 11 paid public holidays each year.
• Sick Leave & Hospitalization Leave
  • Employees (with ≥6 months’ service) are entitled to:
    • 14 days of paid outpatient sick leave per year.
    • 60 days of paid hospitalization leave, inclusive of the 14 outpatient days.
• Maternity Leave
  • 16 weeks of maternity leave for mothers of Singapore citizen children.
  • Funded partly by the employer and partly by the government.
• Paternity Leave
  • 2 weeks of paid paternity leave for fathers of Singapore citizen children.
• Childcare Leave
  • 6 days of childcare leave per year (for employees with children under 7).
  • 2 days of extended childcare leave for children aged 7–12.
• Healthcare
  • No universal employer-provided healthcare requirement, since citizens/PRs are covered under the public system (MediShield Life, MediSave).
  • Many employers provide private health insurance as a supplementary benefit.

Non-Statutory (Market-Driven) Benefits

• Performance bonuses.
• Flexible work arrangements.
• Professional development allowances.
• Wellness stipends and mental health programs.
• Stock options/equity for senior professionals.

Gloroots helps employers design benefit packages that are compliant with MOM regulations and competitive for Singapore’s talent market, ensuring employees feel supported while employers remain cost-efficient.

Employee Benefits: Direct Entity vs. Gloroots EOR in Singapore

Q: What’s involved in hiring and onboarding employees in Singapore?

Hiring in Singapore requires careful compliance with the Employment Act, Central Provident Fund (CPF) regulations, and Ministry of Manpower (MOM) guidelines. Employers must ensure proper documentation, work pass approvals (for foreigners), and benefits administration before employees can legally begin work.

Steps in Hiring & Onboarding in Singapore

1. Job Posting & Recruitment
   • Popular platforms include MyCareersFuture, JobStreet, LinkedIn, and industry-specific boards.
   • Employers must follow the Fair Consideration Framework (FCF), ensuring Singaporeans are fairly considered before hiring foreigners on Employment Passes.
2. Employment Contracts
   • Written contracts are mandatory and must include Key Employment Terms (KETs) such as salary, working hours, probation period, and benefits.
   • Contracts must align with the Employment Act and any sectoral regulations.
3. Work Pass Applications (for foreign employees)
   • Employers must apply for the relevant pass (EP, S Pass, Work Permit).
   • Employers must stay within quotas and pay levies where applicable.
4. CPF Registration & Contributions
   • For Singapore citizens and permanent residents, employers must register with CPF and contribute monthly.
5. Onboarding & Orientation
   • Mandatory workplace safety induction for certain industries.
   • Employees must receive information on leave entitlements, CPF contributions, and benefits.
   • Many companies also provide cultural onboarding to integrate employees into Singapore’s diverse workforce.
6. Probation Period
   • Typically ranges from 3 to 6 months, though not mandated by law.
   • During probation, contracts must still comply with notice requirements and MOM rules.

Challenges for Foreign Employers

• Managing work pass approvals under MOM’s strict guidelines.
• Drafting compliant contracts that reflect CPF, leave, and statutory benefits.
• Coordinating payroll setup and CPF registrations.
• Adhering to Fair Consideration and quota requirements.

Partnering with Gloroots EOR removes these hurdles by managing contracts, work passes, payroll, and benefits administration — enabling companies to focus on hiring the best talent.

Hiring & Onboarding: Direct Entity vs. Gloroots EOR in Singapore

Q: How do you successfully manage a workforce in Singapore?

Managing employees in Singapore requires balancing compliance with strict labor laws and adapting to the country’s multicultural, merit-driven work environment. Employers who succeed here align their management practices with local values of professionalism, fairness, and efficiency.

Best Practices for Workforce Management in Singapore

1. Respect for Meritocracy & Performance
   • Singapore places strong emphasis on merit-based career progression.
   • Employees expect transparent performance reviews, structured career paths, and skill development opportunities.
2. Compliance with Labor Regulations
   • Employers must comply with the Employment Act, CPF rules, and MOM guidelines.
   • Payroll, tax filings, and benefits administration must be precise to avoid fines.
3. Diversity & Inclusion
   • Singapore’s workforce is multicultural, with employees from different ethnic, linguistic, and professional backgrounds.
   • Employers who foster inclusive workplaces attract and retain top talent.
4. Union & Employee Relations
   • Certain industries (e.g., transport, healthcare, services) have union representation.
   • Employers must respect collective agreements where applicable and maintain constructive relations.
5. Work-Life Balance
   • While Singapore is known for long working hours, government initiatives encourage employers to provide flexible work arrangements and wellness programs.
6. Learning & Development
   • The government supports continuous learning through programs like SkillsFuture.
   • Employers offering professional training gain a competitive edge in retaining staff.

How Gloroots Supports Workforce Management

Gloroots helps businesses manage their Singapore workforce by:

• Handling payroll, CPF, and tax filings to ensure compliance.
• Administering benefits in line with local standards.
• Supporting immigration and work pass renewals for foreign hires.
• Providing guidance on probation, termination, and offboarding in line with MOM rules.
• Offering cultural onboarding support to help employees integrate smoothly.

With Gloroots as your EOR in Singapore, you gain the confidence to manage employees compliantly while focusing on business growth.

Q: What are the key steps and requirements in terminating employees in Singapore?

Termination in Singapore must comply with the Employment Act and any contractual terms. Employers must ensure valid notice, final payments, and compliance with CPF and MOM requirements. Failure to do so can result in disputes or penalties.

Termination Process in Singapore

1. Grounds for Termination
   • Employees can be terminated for redundancy, poor performance, misconduct, or mutual agreement.
   • Termination must not be discriminatory or unfair under MOM guidelines.
2. Notice Period
   • Notice requirements are based on the employment contract.
   • If not stated, statutory minimum notice applies:
     • Less than 26 weeks of service → 1 day
     • 26 weeks – 2 years → 1 week
     • 2–5 years → 2 weeks
     • More than 5 years → 4 weeks
3. Severance Pay
   • Not mandatory by law.
   • Required if stipulated in employment contracts or collective agreements.
   • Common in redundancy exercises as an industry practice.
4. Probationary Employees
   • Typically subject to shorter notice (e.g., 1 week).
   • Termination must still follow proper procedures.
5. Special Protections
   • Employees on maternity leave or covered by collective agreements may have additional protections.
   • Wrongful dismissal claims can be lodged with MOM.

What is the Offboarding Process in Singapore?

1. Final Salary Settlement
   • Must be paid on the last working day.
   • Includes outstanding wages, overtime, unused leave, and CPF contributions.
2. Tax Clearance (IR21)
   • Required for foreign employees leaving Singapore.
   • Employer must file with IRAS at least 1 month before last day of work.
3. CPF & Benefits Closure
   • Final CPF contributions must be made for citizens/PRs.
   • Medical and insurance benefits must be updated or terminated.
4. Company Assets
   • Return of devices, access cards, and other assets must be tracked.
5. Employment Certificate
   • Employers must issue a certificate of employment upon request.

Termination & Offboarding: Direct Entity vs. Gloroots EOR in Singapore

Q: What costs and financial planning do you need with an Employer of Record in Singapore?

Hiring in Singapore involves more than just salaries. Employers must budget for CPF contributions, levies, and compliance administration. For foreign employers, hidden costs can quickly add up, especially when managing CPF, SDL, and work pass levies.

With Gloroots EOR, you pay a transparent service fee plus employee compensation. Gloroots manages payroll, contributions, and reporting, giving you cost predictability and compliance assurance.

Typical Employer Costs in Singapore

• Gross Salary: Competitive across finance, technology, and biotech sectors.
• Employer CPF Contributions: Up to 17% of wages (for citizens/PRs).
• Skills Development Levy (SDL): 0.25% of salary, capped at SGD 11.25/month.
• Foreign Worker Levy (FWL): Applies to S Pass and Work Permit holders; amount varies by sector and dependency ratio.
• Annual Leave & Holiday Pay: Statutory leave and 11 paid public holidays.
• Severance (if applicable): Only required under collective agreements or contracts.
• Insurance & Benefits: Many employers provide supplemental healthcare or wellness benefits.
• Entity Setup (Direct Entity only): Incorporation fees, local director costs, accounting, and audit fees.

Benefits of Using Gloroots EOR

• No upfront incorporation costs — hire without setting up a company.
• Cost predictability — salary + EOR fee.
• Compliance assurance — no risk of missed CPF, SDL, or MOM filings.
• Faster ROI — employees onboarded in days, not weeks.
• Scalable hiring — cost-effective for pilot projects and rapid market entry.

Direct Entity vs. Gloroots EOR: Cost & Financial Planning in Singapore

Q: What challenges might you face, and how do you solve them using EOR in Singapore?

Singapore is one of the world’s easiest places to do business, but hiring and workforce management come with challenges, especially for foreign employers. From strict work pass rules to compliance-heavy payroll systems, companies must navigate a highly regulated labor market.

Key Hiring Challenges in Singapore

1. Foreign Worker Quotas & Work Pass Rules
   • Employers must comply with MOM’s Fair Consideration Framework (FCF) and pass COMPASS assessments for Employment Passes.
   • S Pass and Work Permit hires are subject to quotas and monthly levies.
2. CPF & Statutory Contributions
   • Employers hiring citizens or PRs must calculate and remit CPF contributions monthly, alongside SDL and other levies.
3. Complex Compliance Landscape
   • Multiple agencies (MOM, IRAS, CPF Board) require timely filings.
   • Mistakes in CPF or tax reporting can lead to fines and work pass restrictions.
4. Competitive Talent Market
   • Singapore’s workforce is highly skilled, but also highly competitive. Employers must offer attractive benefits, training, and career development to retain staff.
5. Entity Setup & Administrative Burden
   • Incorporation requires local directors, corporate secretaries, and ongoing accounting/audits.
   • This can delay market entry and increase overhead costs.

How Gloroots EOR Solves These Challenges

• Visa & Immigration Support: Gloroots manages Employment Pass, S Pass, and Dependant Pass applications, ensuring MOM compliance.
• Automated Payroll & CPF Filing: No missed deadlines — Gloroots manages CPF, SDL, and levies accurately.
• Compliance Guarantee: Contracts, benefits, and terminations structured per Singapore’s Employment Act.
• Competitive Benefits Packages: Access to global employee benefits tailored for Singapore’s workforce.
• Faster Hiring: Employees onboarded in days without waiting for entity setup.
• Reduced Risk: Minimized exposure to fines, back payments, or pass rejections.

Hiring Challenges: Direct Entity vs. Gloroots EOR in Singapore

Conclusion

Singapore offers one of the most dynamic and globally connected workforces in the world. From finance and fintech to technology, biotech, and logistics, it serves as a hub for innovation and regional expansion across Asia-Pacific. However, the country’s strict work pass rules, CPF contributions, and MOM compliance requirements can be challenging for foreign employers.

With Gloroots as your Employer of Record (EOR) in Singapore, you can:

• Onboard employees in days without entity setup.
• Stay compliant with CPF, SDL, and MOM requirements.
• Offer competitive employee benefits aligned with Singapore’s talent market.
• Manage payroll and tax filings seamlessly through Gloroots’ global payroll platform.
• Focus on scaling your business while we handle compliance.

Gloroots makes expanding into Singapore fast, compliant, and cost-effective, giving you confidence in building high-performing teams.

Contact us to hire in Singapore compliantly with Gloroots.

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