Employer of Record in Singapore

An Employer of Record in Singapore legally employs your workers, runs CPF payroll, and holds all statutory obligations under the Employment Act. Foreign companies use an EOR to employ Singapore-based staff without registering a local entity first.

One practical constraint applies to overseas companies with no Singapore presence. Under MOM rules updated in July 2024, an EOR can only employ Singapore citizens and permanent residents on behalf of such companies. Hiring foreign nationals requires a Singapore-registered client entity to sponsor the relevant work pass. This limits the EOR model for overseas-only companies to resident hires.

Key facts before you read further:

• Employer CPF contribution: up to 17% of employee wages
• Minimum Employment Pass salary: SGD 5,600 per month (2025)
• Statutory notice period: up to 4 weeks depending on contract terms
• MOM July 2024 restriction: EOR work pass sponsorship requires a Singapore-based client entity
• EOR onboarding takes days; direct entity setup takes 1 to 3 weeks via ACRA

This page covers the legal definition of an EOR, a comparison of hiring paths, a step-by-step hiring workflow, and key employment law obligations. Each section is self-contained so you can read in order or jump to the topic you need.

Gloroots is an Employer of Record provider. This guide presents all available hiring paths in Singapore so you can choose the right structure for your situation.

What Is an Employer of Record in Singapore?

An Employer of Record signs the employment contract, holds full statutory obligations, and bears all employer liability under Singapore's Employment Act on behalf of a client company. The client company has no direct employment liability exposure in Singapore.

An EOR is distinct from a staffing agency. A staffing agency places workers but does not hold statutory obligations. An EOR holds them entirely, covering CPF contributions, SDL, statutory leave, and MOM compliance. The client retains full direction over the employee's work. For a deeper explanation of the mechanism, see how does EOR work.

Your Hiring Options in Singapore: EOR vs. Entity vs. PEO vs. Contractor

Companies hiring in Singapore can choose from five paths: an EOR, a direct Pte Ltd entity, a PEO arrangement, an independent contractor engagement, or a representative office. Each path carries different compliance ownership and cost structures. Gloroots EOR services cover the entity-free employment path described below.

A representative office is worth naming as a distinct option. It permits limited business development activity and can employ local staff under Enterprise Singapore's scheme, but it cannot engage in direct commercial transactions. It sits between an EOR arrangement and a full Pte Ltd incorporation for foreign companies testing the Singapore market.

A direct Pte Ltd entity suits long-term, large-scale operations. An EOR suits fast market entry, pilot teams, or niche hires. A PEO co-employs workers but requires the client to hold an ACRA-registered entity. An independent contractor engagement is immediate but carries misclassification risk.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	Days	EOR owns all employer obligations	Per-employee monthly fee	Fast entry, pilot teams, niche hires
Pte Ltd entity	1 to 3 weeks	Client owns all obligations	Incorporation, director, and ongoing compliance costs	Long-term, large-scale Singapore operations
Representative office	Weeks	Client owns obligations; no commercial activity permitted	Registration and ongoing admin costs	Limited market testing, no direct revenue activity
PEO	Requires existing ACRA entity	Shared; client remains legal employer	Per-employee fee plus client entity costs	Companies with an existing Singapore entity seeking HR support
Contractor	Immediate	Client bears misclassification risk	Project or hourly rate	Short-term, clearly independent project work

How to Hire in Singapore Through an EOR: Step by Step

The workflow below covers six phases: from choosing your hiring structure through to offboarding. Each step identifies who owns the action and what compliance obligation it addresses.

Steps 1 and 2 focus on decisions and provider selection. Steps 3 through 5 cover contract issuance, payroll setup, and ongoing employment management. Step 6 addresses offboarding in line with Singapore's statutory notice and final pay requirements.

For overseas companies with no Singapore presence, the EOR can only employ Singapore citizens and permanent residents. Hiring foreign nationals requires a Singapore-registered client entity to sponsor the relevant work pass. Confirm this constraint before selecting a structure.

Following this sequence reduces the risk of MOM non-compliance, CPF filing errors, and contract disputes. The steps apply whether you are hiring a Singapore citizen, a permanent resident, or a foreign professional on an Employment Pass.

Step 1: Decide Between EOR, Entity, PEO, or Contractor

Assess your headcount target, hiring timeline, and long-term Singapore strategy before committing to a structure. A representative office is an additional path for foreign companies with limited-activity requirements. Use the comparison table above to match each path to your situation.

Step 2: Vet and Select an EOR Provider

Confirm the EOR holds its own Singapore entity rather than operating through a partner network. For overseas-company-only arrangements, verify the EOR employs only Singapore citizens and permanent residents on your behalf. Review CPF Board and MOM compliance records and PDPA data-handling practices before signing.

Step 3: Issue a KETs-Compliant Employment Contract

The EOR drafts a written contract covering role, salary, working hours, leave entitlements, notice period, and termination clauses. KETs must be issued within 14 days of the start date for contracts of 14 days or more.

Step 4: Register for CPF and Statutory Obligations

Before the first payroll run, the EOR registers the employee with the CPF Board, SDL, and IRAS AIS. For foreign nationals, the EOR applies for the relevant work pass. The EOR must obtain PDPA-compliant background check consent before running any pre-employment checks.

Step 5: Run Compliant Monthly Payroll

The EOR processes salary within 7 days after the salary period ends and remits CPF contributions by the 14th of the following month. Itemized payslips are issued within 3 working days of payment.

Step 6: Manage Offboarding and Exit

The EOR pays the final salary on the last working day and files IR21 tax clearance for departing foreign employees at least one month before their last day. Final CPF contributions are remitted, and an employment certificate is issued on request.

How to Choose the Right EOR in Singapore

Selecting an EOR in Singapore requires evaluating legal accountability, payroll accuracy, and compliance governance across the full employment lifecycle. The criteria below apply to any provider.

Use them to assess whether an EOR can deliver local execution with centralized governance before you commit to a contract. For a broader comparison of providers, see our guide on the best employer of record options available today.

Compliance track record: MOM July 2024 EOR work pass restriction

Request evidence of on-time CPF remittance history, COMPASS EP application success rates, and IRAS AIS filing accuracy. Verify the EOR's documented policy for the MOM July 2024 restriction requiring that EOR work pass arrangements involve overseas companies only. Late CPF contributions carry a 1.5% monthly interest penalty.

PDPA compliance and background check consent

Verify the EOR has a documented PDPA-compliant background check consent workflow before any pre-employment checks are run. Confirm the EOR holds a designated Data Protection Officer and maintains secure employee data storage.

Support model and pricing transparency

Confirm whether the EOR assigns a dedicated Singapore-based HR contact or routes queries through a shared global queue. Request an all-in fee quote covering CPF administration, SDL, FWL where applicable, payslip issuance, and year-end IR8A filing.

Local Legal Knowledge and Own Entity

Confirm the EOR operates through its own ACRA-registered Singapore entity. A direct entity means the EOR holds legal employer liability and is accountable to MOM, not a third-party partner acting on its behalf.

CPF, MOM, and IRAS Compliance Track Record

Request evidence of on-time CPF remittance history, COMPASS EP application success rates, and IRAS AIS filing accuracy. Ask specifically how the EOR handled MOM's July 2024 work pass restrictions for overseas-company arrangements. Late CPF contributions carry a 1.5% monthly interest penalty.

Support Model and Response Time

Confirm whether the EOR assigns a dedicated Singapore-based HR contact or routes queries through a shared global queue. MOM inquiries and work pass issues require fast local response times. A named account owner reduces resolution delays on time-sensitive filings.

Pricing Transparency

Request an all-in fee quote covering CPF administration, SDL, FWL where applicable, payslip issuance, and year-end IR8A filing. A headline per-employee fee alone is not sufficient for accurate cost planning.

Data Security and PDPA Compliance

Verify the EOR has a documented PDPA-compliant data handling process, including a background check consent workflow, before sharing any candidate data. Confirm secure storage practices and a designated Data Protection Officer are in place.

Payroll System Integration

Confirm the EOR's payroll platform integrates with your HRIS or finance tools and can produce Singapore-format itemized payslips and IR8A reports on demand. Integration gaps create reconciliation delays at year-end.

Workforce and Talent Pool in Singapore

Singapore's workforce totals approximately 3.7 million residents and foreign workers combined. The median age is 42.7 years, with around 33% of workers under 35. English is the primary working language.

The country produces a strong STEM graduate pipeline through NUS and NTU. Key hiring activity concentrates in the Central Business District, One-North, Jurong Innovation District, and Changi, which is an emerging hub for logistics and aerospace talent.

Finance, ICT, biotech, healthcare, and logistics are the dominant industries. The median gross monthly income reached SGD 5,775 in 2025, including employer CPF contributions. Work culture combines meritocracy and professionalism with a multicultural environment.

Primary job portals for talent sourcing in Singapore include JobStreet, JobsDB, MyCareersFuture, LinkedIn, and Foundit (formerly Monster Singapore). Each platform serves different candidate segments, from fresh graduates on MyCareersFuture to senior professionals on LinkedIn.

Indicator	Details
Workforce size	~3.7 million (resident and foreign workforce combined)
Median age	42.7 years
English proficiency	Primary working language
Top talent hubs	CBD, One-North, Jurong Innovation District, Changi
Key industries	Finance, ICT, Biotech, Healthcare, Logistics
Primary job portals	JobStreet, JobsDB, MyCareersFuture, LinkedIn, Foundit

Companies hiring across the region may also find value in reviewing the employer of record Hong Kong page for a direct regional comparison.

Employment Law Essentials in Singapore

Singapore's Employment Act sets the baseline for contracts, working hours, wages, rest days, and workplace injury coverage. The sections below cover each obligation in the order most relevant to employers setting up payroll for the first time.

Employment Contracts

Key Employment Terms (KETs) must be issued within 14 days of the employment start date for contracts lasting 14 days or more. Contracts must state the employee's full name, salary, working hours, leave entitlements, and notice period. Electronic signatures are accepted. Gloroots provides KETs-compliant, localized contracts for every Singapore hire.

Working Hours and Overtime

The Employment Act caps working hours at 44 per week. Non-PMEs earning SGD 2,600 per month or less receive overtime pay at 1.5 times the hourly basic rate, capped at 72 overtime hours per month.

Minimum Wage

Singapore has no universal minimum wage. The Progressive Wage Model sets sector-specific wage floors in cleaning, security, landscaping, retail, and food services. The Workplace Fairness Act 2025 prohibits discrimination based on age, race, religion, gender, disability, and mental health conditions.

Rest Day Entitlement

Employees covered by Part IV of the Employment Act are entitled to at least one rest day per week. Rest days are unpaid unless the employer requires the employee to work on that day.

Background Checks

Permitted checks in Singapore include credit reports via Credit Bureau Singapore (CBS), employment history verification, and education verification. CBS is the sole licensed credit bureau, regulated under the Credit Bureau Act 2016. Employers must obtain candidate consent under the Personal Data Protection Act before conducting any check.

Leave and Statutory Benefits in Singapore

Singapore's Employment Act sets minimum leave entitlements for all employees covered under the Act. Statutory benefits extend beyond leave to include CPF contributions, SDL, and work injury compensation.

The table below summarises all statutory leave types, including childcare leave added under the Child Development Co-Savings Act.

Leave type	Entitlement	Pay rate	Key conditions
Annual leave	7 to 14 days	Full pay	Increases 1 day per year of service
Sick leave	14 days outpatient	Full pay	Minimum 6 months service
Hospitalization leave	60 days	Full pay	Minimum 6 months service
Maternity leave	16 weeks	Government and employer funded	Singapore citizen child
Paternity leave	4 weeks (from Apr 2025)	Government-paid, capped SGD 2,500/week	Singapore citizen child
Shared Parental Leave	6 weeks (Apr 2025), 10 weeks (Apr 2026)	Government-paid, capped SGD 2,500/week	Singapore citizen child
Childcare leave	6 days/year (child under 7); 2 days/year (child aged 7 to 12)	Full pay	Singapore citizen child; statutory under Child Development Co-Savings Act
Public holidays	11 days	Full pay or substitute day	Substitute day or additional pay if worked

Beyond statutory minimums, many Singapore employers offer supplementary benefits to attract and retain talent. Common additions include private health insurance, performance bonuses, additional annual leave beyond the statutory floor, stock options, relocation packages, per diems for business travel, flexible working arrangements, and career development support such as SkillsFuture-aligned training subsidies.

These supplementary benefits are not legally required but are standard practice in competitive sectors such as finance, ICT, and biotech. An EOR can administer both statutory and supplementary benefits within a single employment structure.

Annual Leave

Employees receive a minimum of 7 days per year, increasing by one day per year of service up to 14 days. Many employers offer 18 to 21 days.

Sick Leave

Employees with at least 6 months of service receive 14 days of paid outpatient sick leave and 60 days of paid hospitalization leave per year. A medical certificate from a company-approved doctor is required.

Maternity and Paternity Leave

Maternity leave is 16 weeks for Singapore citizen children, funded by both the government and the employer. From April 1, 2025, paternity leave increased to 4 weeks, government-paid and capped at SGD 2,500 per week. Shared Parental Leave is 6 weeks from April 1, 2025, expanding to 10 weeks from April 1, 2026, for Singapore citizen children.

Childcare Leave

Parents of Singapore citizen children under 7 receive 6 days of paid childcare leave per year. Parents of children aged 7 to 12 receive 2 days per year. Both entitlements are statutory under the Child Development Co-Savings Act.

Public Holidays

Singapore observes 11 paid public holidays per year. Employees required to work on a public holiday must receive a substitute day off or additional pay.

Non-Mandatory Benefits

Common supplementary benefits in Singapore include private health insurance, performance bonuses, additional annual leave, stock options, flexible working arrangements, and career development support. None are legally required, but most are expected at professional-level roles.

Payroll, Tax and Statutory Contributions in Singapore

Singapore operates a progressive personal income tax system administered by IRAS. Rates run from 0% on the first SGD 20,000 of chargeable income up to 24% on income above SGD 1,000,000. The 23% band applies to income between SGD 320,001 and SGD 1,000,000.

Chargeable Income (SGD)	Tax Rate
0 to 20,000	0%
20,001 to 30,000	2%
30,001 to 40,000	3.5%
40,001 to 80,000	7%
80,001 to 120,000	11.5%
120,001 to 160,000	15%
160,001 to 200,000	18%
200,001 to 240,000	19%
240,001 to 280,000	19.5%
280,001 to 320,000	20%
320,001 to 1,000,000	23%
Above 1,000,000	24%

Corporate income tax is a flat 17% on chargeable income for both local and foreign companies. Form C-S or Form C is due by 30 November each year.

GST is charged at 9% on most goods and services. Exports are zero-rated. Certain financial services are exempt. IRAS administers GST registration and filing.

The Workfare Income Supplement (WIS) is a government scheme for resident workers earning below SGD 2,500 per month. Employers of lower-wage resident workers should account for WIS eligibility when structuring payroll and benefits.

Work Visas and Permits in Singapore

Singapore's Ministry of Manpower (MOM) administers work passes under the Employment of Foreign Manpower Act (EFMA). The main pass types are the Employment Pass (EP), S Pass, and Work Permit, each with distinct salary thresholds and quota rules.

For overseas companies with no Singapore presence, an EOR can legally employ only Singapore citizens and permanent residents. Foreign nationals requiring work passes cannot be engaged through an EOR in this scenario.

MOM issued a policy clarification in July 2024 stating that EOR arrangements for work pass holders may breach EFMA. That clarification has not been backed by explicit statutory amendments to EFMA. No known prosecutions have occurred as of July 2025. The statutory basis of the offence MOM references remains unspecified, and legal scholars argue the plain reading of EFMA section 5(1) may not support MOM's position.

EFMA section 20 creates personal liability for company officers where offences are committed with their consent or neglect. Foreign client companies may also be liable as abettors. Companies considering EOR arrangements for work pass holders should obtain independent Singapore legal advice before proceeding. For a comparable APAC market with its own visa and permit framework, see employer of record Australia.

Equity and ESOP Consulting in Singapore

Equity compensation is a standard component of total remuneration for senior hires in Singapore. Stock options, restricted stock units, and employee share purchase plans are all used by multinational employers operating in the market.

Employment Pass holders earning above SGD 22,500 per month are particularly likely to negotiate equity as part of their total compensation package. At this salary level, candidates typically have multiple competing offers, and equity terms can be a deciding factor.

Clear contract drafting on equity treatment is critical for EP-level hires. Contracts should specify vesting schedules, the treatment of unvested awards on termination, and any clawback provisions. Ambiguity in these terms creates disputes at offboarding. Gloroots supports equity contract review as part of Employment Lifecycle Management for Singapore hires.

Misclassification Risk in Singapore

Misclassification occurs when a worker engaged as an independent contractor is found to be an employee under Singapore law. MOM and IRAS both have authority to review the underlying employment relationship, and findings can trigger back-payment of CPF contributions, SDL, and statutory leave entitlements.

The key factors MOM considers include control over work methods, economic dependence on a single client, integration into the client's operations, and whether the worker bears genuine business risk. No single factor is determinative. MOM assesses the full picture of the working relationship.

Misclassification risk is heightened for foreign nationals on work passes. MOM may review the underlying employment relationship as part of a pass renewal or audit. A finding that the worker is an employee rather than a contractor can affect pass validity and trigger EFMA compliance issues for both the EOR and the client company.

To reduce misclassification exposure, companies should ensure contractor agreements reflect genuine independence, avoid directing day-to-day work, and review engagement structures before pass renewal dates. Gloroots supports employment structure reviews as part of Compliance and Employment Governance for Singapore operations.

Hiring, Onboarding, Termination and Offboarding in Singapore

The steps below cover the full employment lifecycle in Singapore, from pre-hire checks through to final offboarding. Each step identifies the compliance obligation it addresses and who owns the action under an EOR arrangement.

Before day one

• Confirm the hire's citizenship or residency status to determine CPF obligations and work pass requirements.
• Issue a KETs-compliant employment contract within 14 days of the start date for contracts of 14 days or more.
• Obtain PDPA-compliant background check consent if pre-employment checks are being run before the employee's first day.
• Register the employee with the CPF Board (citizens and permanent residents), SDL, and IRAS AIS.
• Apply for the relevant work pass (EP or S Pass) for foreign nationals before the start date.

First week

• Issue itemized payslips within 3 working days of the first salary payment.
• Enroll S Pass holders in mandatory medical insurance with a minimum coverage of SGD 60,000 per year.
• Confirm working hours, leave entitlements, and reporting lines in writing.
• Complete any mandatory workplace safety inductions required under the Workplace Safety and Health Act.

Ongoing employment

• Process salary within 7 days after the salary period ends each month.
• Remit CPF contributions by the 14th of the following month.
• Track annual leave, sick leave, and statutory entitlements in line with the Employment Act.
• File IR8A for each employee by 1 March each year under IRAS AIS.

Termination and offboarding

• Observe the statutory or contractual notice period, whichever is longer.
• Pay the final salary on the last working day.
• File IR21 tax clearance for departing foreign employees at least one month before their last day.
• Remit final CPF contributions and issue an employment certificate on request.
• Cancel the work pass within 7 days of the employee's last day for EP and S Pass holders.

Gloroots manages each of these steps under Employment Lifecycle Management, with a dedicated Singapore-based contact for MOM and CPF queries throughout the engagement.

Onboarding

• Before day one: Obtain PDPA-compliant written consent from the candidate before running any pre-employment background checks. Document consent records and store them securely.
• Day one: Issue a KETs-compliant employment contract within 14 days of the start date. Confirm the employee's CPF status, citizenship, or PR classification before the first payroll run.
• First week: Enroll S Pass holders in mandatory medical insurance with a minimum coverage of SGD 60,000 per year. Register the employee with the CPF Board, SDL, and IRAS AIS as applicable.
• First month: Process the first payroll run within 7 days after the salary period ends. Remit CPF contributions by the 14th of the following month and issue itemized payslips within 3 working days of payment.

Termination

Singapore's Employment Act requires notice periods of up to 4 weeks depending on contract terms. The EOR pays the final salary on the last working day and files IR21 tax clearance for departing foreign employees at least one month before their last day.

Offboarding

• Final payroll: Pay the final salary on the last working day. Remit any outstanding CPF contributions and confirm all statutory deductions are complete before closing the payroll record.
• Tax clearance: File IR21 with IRAS at least one month before the foreign employee's last day. Withhold any outstanding tax amounts from the final salary until IRAS issues a clearance directive.
• Documentation and exit: Issue an employment certificate on request. Cancel or transfer the employee's work pass with MOM within the required timeframe and retain payroll records for 7 years.

What's New: Recent Regulatory Changes in Singapore

Two regulatory developments from 2024 affect how companies structure EOR arrangements and calculate payroll tax for senior hires in Singapore.

• MOM EOR work pass clarification (July 2024): MOM confirmed that EORs cannot sponsor work passes for foreign nationals working solely for overseas companies with no Singapore presence. The legal basis under the Employment of Foreign Manpower Act remains subject to ongoing scholarly debate as of July 2025. Companies using an EOR to employ foreign workers must ensure the arrangement reflects a genuine Singapore employment relationship.
• IRAS income tax bracket extension (YA 2024 onwards): IRAS introduced two new personal income tax brackets. Income between SGD 320,001 and SGD 1,000,000 is taxed at 23%. Income above SGD 1,000,000 is taxed at 24%. Both brackets apply from Year of Assessment 2024 onwards and are directly relevant for Employment Pass-level hires whose total chargeable income falls within these ranges.

Both changes require EOR providers to update their compliance and payroll processes. Gloroots applies the current IRAS brackets in its payroll engine and monitors MOM guidance on work pass sponsorship eligibility.

Costs and Financial Planning for Hiring in Singapore

Total employer cost in Singapore typically runs 20 to 25% above gross salary for citizen and permanent resident employees, before accounting for the EOR service fee. The primary driver is the employer CPF contribution, which reaches up to 17% of wages for employees aged 55 and below.

Additional statutory costs include the Skills Development Levy at 0.25% of gross wages (minimum SGD 2 per month), and the Foreign Worker Levy where applicable for S Pass holders. These costs vary by employee age, citizenship status, and pass type.

For EP-level hires, the new IRAS income tax brackets at 23% and 24% affect net take-home calculations for high earners. Payroll planning for senior hires should account for these brackets from YA 2024 onwards.

For a detailed breakdown of how EOR fees and statutory costs combine across markets, see our guide on employer of record cost. Gloroots provides country-specific pricing with full visibility into statutory contributions before you commit to a hire.

Common Challenges and How Gloroots Solves Them in Singapore

The table below covers compliance challenges specific to Singapore that are not addressed in earlier sections of this guide.

Challenge	How Gloroots addresses it
Childcare leave tracking	Gloroots tracks statutory childcare leave entitlements under the Child Development Co-Savings Act for citizen children under 7 and for children aged 7 to 12, applying the correct entitlement per parent per year.
Income tax bracket accuracy for EP-level hires	Gloroots payroll engine applies the current IRAS brackets, including the 23% tier for income between SGD 320,001 and SGD 1,000,000 and the 24% tier for income above SGD 1,000,000, effective from YA 2024.
Background check PDPA consent workflow	Gloroots manages candidate consent documentation before any pre-employment checks are conducted, maintaining records in line with PDPA requirements and MOM data handling standards.

Why Gloroots Is a Strong EOR Partner in Singapore

Gloroots operates through its own ACRA-registered Singapore entity, which means it holds direct legal employer liability under the Employment Act rather than delegating it to a local partner.

Its payroll engine applies current IRAS tax brackets, including the 23% and 24% tiers introduced for higher-income earners. This matters for Employment Pass-level hires where accurate tax withholding affects both the employee's net pay and the company's IRAS AIS filings.

Gloroots also tracks childcare leave entitlements under the Child Development Co-Savings Act, covering both paid and unpaid leave days per parent per year. Leave balances are recorded centrally, reducing the risk of missed statutory entitlements during payroll runs.

• Own ACRA-registered Singapore entity with direct MOM accountability
• IRAS tax bracket accuracy including 23% and 24% tiers for EP-level hires
• Childcare leave tracking under the Child Development Co-Savings Act
• Dedicated account ownership with local HR support

Conclusion

Singapore's EOR market has a specific legal boundary that many providers do not document clearly. MOM's July 2024 clarification restricts overseas companies with no Singapore presence to employing only citizens and permanent residents through an EOR. Foreign nationals requiring work passes can only be engaged via EOR when the client holds a Singapore-based entity.

Before signing with any provider, confirm two things: its documented approach to the MOM July 2024 restriction, and its IRAS tax bracket accuracy across all salary bands. Both affect legal compliance from day one. Companies expanding across the region should also review the employer of record India page for a comparable APAC hiring reference.

Frequently Asked Questions About Employer of Record in Singapore

What is an Employer of Record in Singapore?

An Employer of Record is the legal employer on record under Singapore's Employment Act. It signs the employment contract, runs CPF payroll, administers statutory leave, and holds all employer obligations. The client company directs the employee's work but carries no direct employment liability.

Is an EOR the same as a PEO in Singapore?

No. A PEO co-employs workers alongside the client, which must hold an ACRA-registered entity. An EOR is the sole legal employer, so the client needs no local entity. The distinction matters because PEO arrangements do not remove the client's employer liability in Singapore.

How does CPF contribution work under an EOR arrangement?

The EOR registers the employee with the CPF Board and remits both employer and employee contributions by the 14th of the following month. Employer contributions reach up to 17% of wages. Late remittance carries a 1.5% monthly interest penalty, which the EOR bears as the legal employer.

Can an EOR in Singapore hire foreign nationals?

For overseas companies with no Singapore presence, an EOR can legally employ only Singapore citizens and permanent residents under MOM's July 2024 clarification. Foreign nationals requiring work passes can only be engaged through an EOR when the client holds a Singapore-based entity. Confirm your specific arrangement with the EOR before proceeding.

What do EOR services in Singapore typically cost?

EOR fees in Singapore are usually charged as a per-employee monthly fee. The all-in cost should cover CPF administration, SDL, payslip issuance, IR8A filing, and statutory leave tracking. Request an itemized quote rather than a headline rate to avoid unexpected charges. For a broader breakdown, see employer of record cost.

What is the difference between an Employment Pass and an S Pass?

An Employment Pass targets professionals earning at least SGD 5,600 per month in 2025 and is assessed under the COMPASS framework. An S Pass targets mid-skilled workers with a lower salary threshold and is subject to sector-specific quota limits. The EOR applies for the relevant pass based on the candidate's role and salary.

Do employees hired through an EOR receive the same statutory benefits as direct hires?

Yes. The EOR must provide all statutory entitlements under the Employment Act, including annual leave, sick leave, maternity and paternity leave, and public holiday pay. Employees also receive CPF contributions if they are citizens or permanent residents. Statutory entitlements are not reduced by the EOR structure.

What background checks are permitted in Singapore?

Employers may conduct credit checks through Credit Bureau Singapore (CBS), employment history verification, and education verification. CBS is the sole licensed credit bureau under the Credit Bureau Act 2016. Candidate consent under the Personal Data Protection Act (PDPA) is required before any check is conducted. The EOR typically manages the consent process as part of onboarding.