How to Hire Employees in Singapore
Struggling to navigate Singapore's complex hiring landscape? Uncertain about legal requirements and cultural nuances? Our comprehensive guide provides expert insights and strategies to streamline your hiring process, ensuring you attract top talent effortlessly.
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- The guide covers Singapore's Employment Act obligations, CPF contribution rates, Key Employment Terms requirements, and statutory leave entitlements for employers.
- It compares three hiring paths local entity, Employer of Record, and contractor across setup time, cost, and compliance burden.
- Work pass categories including the Employment Pass, S Pass, Work Permit, and EntrePass are detailed alongside COMPASS scoring and Fair Consideration Framework advertising rules.
- Termination notice periods, retrenchment benefit norms, offboarding steps, and tax clearance requirements for foreign employees are outlined for employers managing exits.
Hiring in Singapore requires compliance with the Employment Act, CPF contributions, and Ministry of Manpower (MOM) work pass rules. Each step carries legal weight.
The Fair Consideration Framework requires employers to advertise most roles on MyCareersFuture for at least 14 days before hiring a foreign candidate. The COMPASS points system then scores Employment Pass applications, adding further lead time to foreign hires.
This guide covers employment contracts, CPF obligations, work pass categories, statutory leave, and tax filing requirements for employers in Singapore.
Gloroots operates as a Global Employer of Record in Singapore. Where you see Gloroots referenced, it reflects our direct service offering, not a generic third-party recommendation. You can review our pricing and approach before making any decision.
Job Market and Hiring Trends in Singapore
Demand for AI, cybersecurity, and fintech roles in Singapore grew sharply through 2024 and into 2025, with AI job postings growing three times faster than equivalent postings in the United States, according to MOM and Skuad data.
37% of employers in Singapore report difficulty filling IT and data roles, reflecting a shortage of qualified local tech talent that has persisted across consecutive hiring cycles.
AI job postings in Singapore are growing 3x faster than in the US. (Source: Skuad, 2024)
19% of new hires leave within six months of joining, raising effective cost-per-hire for employers. (Source: ManpowerGroup Singapore, 2024)
The average hiring timeline runs to 41 days, before accounting for EP advertising requirements. (Source: MOM)
Qualified local tech talent remains in short supply across data engineering, machine learning, and security operations roles. (Source: ManpowerGroup Singapore, 2024)
EP quota constraints and the FCF 14-day advertising window add pre-hire lead time that employers must plan for. (Source: MOM)
These conditions mean that hiring plans in Singapore need to account for both regulatory timelines and competitive talent dynamics. Building in buffer time for EP applications and FCF advertising reduces the risk of delayed start dates.
Your Options for Hiring in Singapore: Entity vs. EOR vs. Contractor
Companies hiring in Singapore have three practical paths: set up a local entity, engage independent contractors, or use a Global Employer of Record (EOR). Each carries different cost, time, and compliance implications.
Registering a Private Limited Company through ACRA costs $236 (SGD 300) or more and typically takes one to two weeks. You then carry ongoing corporate governance obligations.
Engaging contractors offers flexibility for project-based work. However, the Ministry of Manpower (MOM) can reclassify contractors as employees if the working arrangement reflects an employment relationship, which creates retroactive CPF and penalty exposure.
Path | Setup Time | Cost | Compliance Burden | Best For |
|---|---|---|---|---|
Entity | 1–2 weeks | $236 (SGD 300)+ registration fee plus ongoing costs | High: corporate filings, payroll, CPF | Long-term, large-scale operations |
EOR | Days | No registration fee; monthly per-employee fee | Managed by EOR provider | Fast, compliant market entry without a local entity |
Contractor | Immediate | Minimal | Low initially; misclassification risk | Short-term, clearly independent engagements |
An EOR is the fastest compliant route for companies that want to employ workers in Singapore without forming a local entity. The EOR holds the employment contracts, runs payroll, and manages CPF contributions on your behalf. To understand the model in detail, see how does EOR work. When selecting a provider, reviewing the best employer of record options helps you assess fit for your compliance and governance requirements.
Employees vs. Contractors in Singapore
Misclassifying a worker in Singapore carries real financial risk. MOM can reclassify contractors as employees, triggering CPF arrears and penalties for every month the arrangement was in place.
Singapore does not use a single statutory test. MOM applies an economic reality test that weighs four factors: the degree of control the company exercises, how integrated the worker is into the business, which party bears financial risk, and whether the arrangement is exclusive. No single factor is decisive; MOM looks at the overall picture.
Dimension | Employee | Contractor |
|---|---|---|
Control | Employer directs work hours, methods, and location | Worker controls how and when work is done |
Benefits and CPF | Employer contributes to CPF; statutory benefits apply | No CPF obligation; no statutory benefits |
Taxation | Employer files IR8A; employee pays income tax | Contractor files own taxes; withholding tax may apply for non-residents |
Contractual agreement | Employment contract under the Employment Act | Service agreement; not covered by the Employment Act |
Exclusivity | Typically works only for the employer | Free to work for multiple clients |
CPF contributions are not required for contractors, which makes misclassification financially significant. If MOM determines a contractor is actually an employee, the company owes backdated CPF contributions at the full employer rate. Companies expanding across the region, including those who also hire employees in India, should apply consistent classification standards across every market to reduce cross-border compliance exposure.
Cost to Hire an Employee in Singapore
Total employment cost in Singapore includes gross salary plus mandatory contributions: CPF, the Skills Development Levy (SDL), and foreign worker levies where applicable.
Employers contribute 17% of wages to CPF for employees under 55, subject to an Ordinary Wage ceiling of $6,297 (SGD 8,000) per month from January 2026. The SDL is set at 0.25% of gross wages, capped at $9 (SGD 11.25) per year. Employers sponsoring Employment Pass or S Pass holders also pay a foreign worker levy of $276 (SGD 350) to $354 (SGD 450) per month.
Contribution | Employer Rate | Employee Rate | Notes |
|---|---|---|---|
CPF (under 55) | 17% | 20% | Ordinary Wage ceiling: $6,297 (SGD 8,000)/month from Jan 2026 |
CPF (55 to 60) | 15% | 16% | Age-banded rates apply |
CPF (60 to 65) | 11.5% | 10.5% | Age-banded rates apply |
Skills Development Levy | 0.25% | Nil | Capped at $9 (SGD 11.25)/year |
Foreign Worker Levy | $276–$354 (SGD 350 to 450/month) | Nil | EP and S Pass holders only |
Setting up a local entity adds registration fees of $236 (SGD 300) or more, plus ongoing compliance costs. Using an employer of record cost model gives more predictable per-head pricing without those fixed overheads.
Compliance Risks While Hiring in Singapore
Non-compliance with Ministry of Manpower (MOM) rules can result in fines, work pass curtailment, or criminal prosecution. The risks below are specific and carry concrete consequences.
Worker misclassification: Treating an employee as an independent contractor triggers CPF arrears plus a penalty of 1.5 times the unpaid amount under the CPF Act.
Fair Consideration Framework (FCF) violations: Employers who fail to advertise roles on MyCareersFuture or show discriminatory hiring patterns face work pass privilege curtailment and financial penalties from MOM.
Incorrect Key Employment Terms (KETs): Failing to issue accurate written KETs to eligible employees is a breach of the Employment Act and can result in MOM enforcement action.
CPF under-contribution: Underpaying CPF contributions triggers enforcement by the CPF Board, including recovery of arrears and additional penalties.
Wrongful dismissal: Employees can file claims at the Employment Claims Tribunal. Awards can include reinstatement or compensation in lieu.
PDPA breach during background checks: Collecting personal data without consent violates the Personal Data Protection Act. Fines can reach $787,154 (SGD 1 million) for serious breaches.
Each of these risks is manageable with documented processes, accurate payroll records, and contracts that reflect actual working arrangements.
Key Labor Laws in Singapore
Employment contracts
Key Employment Terms (KETs) must be issued in writing within 14 days of employment start for employees covered under the Employment Act who are employed for 14 days or more. Written contracts are strongly recommended for all workers, regardless of coverage, to reduce the risk of disputes.
Working hours and overtime
The standard workweek is capped at 44 hours under Part IV of the Employment Act. Overtime is paid at 1.5 times the regular hourly rate. Employees may not work more than 12 hours per day or accumulate more than 72 hours of overtime per month.
Minimum wage
Singapore has no universal minimum wage. The Progressive Wage Model sets mandatory minimums in specific sectors: cleaning, security, landscaping, food services, and retail. The Workfare Income Supplement supports low-wage Singaporean workers aged 35 and above who earn below $1,968 (SGD 2,500) per month, providing cash and CPF top-ups to improve financial stability.
Leave entitlements
Statutory leave entitlements are covered in the Employment Benefits section below. Annual leave starts at a minimum of seven days and scales up to 14 days based on length of service.
Probationary periods and retirement age
Probationary periods are optional and typically run three to six months. Notice during probation is usually one week or may not be required at all. The statutory retirement age is 64, effective July 1, 2026, with re-employment obligations extending to age 69. Both thresholds are scheduled to rise to 65 and 70 respectively by 2030.
What to Include in an Employment Contract or Offer Letter in Singapore
KETs must be issued within 14 days of the employment start date for employees covered under the Employment Act who are employed for 14 days or more. A written contract protects both parties and reduces the likelihood of disputes later.
Every employment contract or offer letter in Singapore should include the following:
Job title and duties
Start date and reporting line
Salary, pay period, and payment method
Working hours and overtime terms
Probation period and conditions
Annual leave, sick leave, and public holiday entitlements
Notice period and termination conditions
Confidentiality, NDA, and IP assignment clauses, plus governing law (Singapore)
Any role-specific Ministry of Manpower requirements, such as work pass type
KETs apply specifically to employees covered under the Employment Act who are employed for 14 days or more. For roles outside that scope, a written contract remains the clearest way to document agreed terms.
Payroll and Taxes in Singapore
Payroll in Singapore runs monthly in SGD. Employers must pay salaries within seven days after the salary period ends.
Foreign employers without a Singapore entity must use an Employer of Record or a registered local entity to run payroll and meet CPF and Skills Development Levy (SDL) obligations. Gloroots EOR services cover both requirements under a single employment operating layer.
Income tax in Singapore is self-assessed. Employees file annually, and employers must submit IR8A forms to the Inland Revenue Authority of Singapore (IRAS) by 1 March each year.
Singapore income tax rates (YA2024 onwards)
Chargeable income (SGD) | Tax rate |
|---|---|
Up to $15,743 (SGD 20,000) | 0% |
$15,744 (SGD 20,001) to $23,615 (SGD 30,000) | 2% |
$23,615 (SGD 30,001) to $31,486 (SGD 40,000) | 3.5% |
$31,487 (SGD 40,001) to $62,972 (SGD 80,000) | 7% |
$62,973 (SGD 80,001) to $94,458 (SGD 120,000) | 11.5% |
$94,459 (SGD 120,001) to $125,945 (SGD 160,000) | 15% |
$125,945 (SGD 160,001) to $157,431 (SGD 200,000) | 18% |
$157,432 (SGD 200,001) to $188,917 (SGD 240,000) | 19% |
$188,918 (SGD 240,001) to $220,403 (SGD 280,000) | 19.5% |
$220,404 (SGD 280,001) to $251,889 (SGD 320,000) | 20% |
$251,890 (SGD 320,001) to $393,577 (SGD 500,000) | 22% |
$393,578 (SGD 500,001) to $787,154 (SGD 1,000,000) | 23% |
Above $787,154 (SGD 1,000,000) | 24% |
Employer and employee contributions
Contribution | Employer rate | Employee rate | Notes |
|---|---|---|---|
CPF (age 55 and below) | 17% | 20% | Ordinary Wage ceiling: $6,297 (SGD 8,000)/month from January 2026 |
CPF (age 55 to 60) | 15% | 16% | Age-banded rates apply |
CPF (age 60 to 65) | 11.5% | 10.5% | Age-banded rates apply |
CPF (above 65) | 9% | 7.5% | Age-banded rates apply |
Skills Development Levy (SDL) | 0.25% (min $2 (SGD 2)) | None | Applies to all employees |
Foreign Worker Levy | Varies by sector and quota | None | Applies to Work Permit and S Pass holders |
Employment Benefits in Singapore
Statutory benefits in Singapore are set by the Employment Act and the Child Development Co-Savings Act. Employers commonly supplement these with private medical insurance and an Annual Wage Supplement (AWS).
Paid time off and public holidays
The Employment Act mandates at least seven days of annual leave. Employees earn one additional day per year of service, up to a maximum of 14 days. Many employers offer 14 to 20 days in practice.
Singapore recognises eleven public holidays each year. If a public holiday falls on an employee's scheduled rest day, the next working day is granted as a substitute day off.
Sick leave
Employees must notify their employer within 48 hours of absence and provide a medical certificate from a registered healthcare professional. Entitlements are tiered by length of service:
Less than 3 months: 5 outpatient days, 15 days with hospitalisation
3 to 4 months: 8 outpatient days, 45 days with hospitalisation
4 to 5 months: 11 outpatient days, 45 days with hospitalisation
6 months or more: 14 outpatient days, 60 days with hospitalisation
Maternity, paternity, and family leave
Eligible employees receive 16 weeks of paid maternity leave for Singapore citizen children. For non-citizen children, the entitlement is 12 weeks. Government reimbursement applies from the third child onwards, up to $15,743 (SGD 20,000).
Paternity leave is four weeks for eligible employees whose child is a Singapore citizen, effective from recent legislative updates. Shared parental leave increases to 10 weeks from April 2026, to be shared between both parents.
Parents of children under 12 with at least three months of service are entitled to two to six days of childcare leave per year, with partial reimbursement from the Ministry of Social and Family Development. Employees called up for National Service are entitled to up to 40 days of NS leave per year, with wage reimbursement available from MINDEF.
Public health insurance
Singapore's healthcare financing model uses three schemes. MediShield Life covers all citizens and permanent residents against large medical bills for life. MediSave allows individuals to set aside mandatory savings from earnings for healthcare costs. MediFund provides financial assistance to those who cannot meet medical expenses despite MediShield Life and MediSave.
Annual Wage Supplement
The AWS, commonly called the 13th-month payment, is not legally required. It is, however, standard practice across many sectors and relevant when benchmarking total compensation packages for Singapore-based hires.
Work Permits and Visas in Singapore
Singapore requires employer-sponsored work passes for all foreign employees. The main pass types are the Employment Pass (EP), S Pass, Work Permit, and EntrePass.
The sponsoring employer must be a registered Singapore entity or an Employer of Record. Before submitting EP or S Pass applications, employers must advertise the role on MyCareersFuture (FCF) for 28 days. Exemptions apply when the company has fewer than 10 employees, the monthly salary is $17,711 (SGD 22,500) or above, the role lasts one month or less, or the hire is an intra-corporate transferee.
Visa Type | Purpose | Minimum Salary / Criteria | Validity |
|---|---|---|---|
Employment Pass (EP) | Professionals and managers | $4,408 (SGD 5,600) general; $4,880 (SGD 6,200) financial services; COMPASS 40-point threshold | Up to 2 years (first issue) |
S Pass | Mid-skilled workers | $2,480 (SGD 3,150); 10% quota cap on workforce | Up to 2 years |
Work Permit | Semi-skilled workers in approved sectors | Sector-specific quotas apply | Up to 2 years |
EntrePass | Foreign entrepreneurs starting a business | Registered or incorporated company required | 1 year, renewable |
The COMPASS framework applies to EP applications. It scores candidates across six criteria, and applicants must reach 40 points to qualify.
Onboarding New Hires in Singapore
Onboarding in Singapore involves compliance steps that must be completed before and on the first day of employment.
Before Day One
Conduct a background check with written consent under the Personal Data Protection Act (PDPA).
Issue the offer letter and Key Employment Terms (KETs) within 14 days of the start date.
Complete benefits enrollment and apply for a work pass if the hire is a foreign national.
Set up device and system access and distribute the employee handbook.
Day One
Enroll the employee in payroll and register CPF contributions.
Complete workspace setup and conduct a manager one-on-one briefing.
Confirm bank details for salary payment.
First Week
Deliver role-specific compliance training.
Brief the employee on Employment Act rights.
Confirm probation terms in writing.
First 90 Days
Run 30, 60, and 90-day check-ins to track progress.
Build a skills development plan with the employee.
Enroll the employee in Skills Development Levy (SDL)-funded training where applicable.
NDAs, Confidentiality and IP Protection in Singapore
NDAs and confidentiality clauses are enforceable in Singapore under contract law, provided they do not unreasonably restrict trade.
Non-compete clauses must be reasonable in scope, geography, and duration. No statutory severance pay is required for non-competes. Under common law, IP created during employment is automatically assigned to the employer unless the contract states otherwise.
Trademarks are registered via the Registry of Trademarks and are valid for 10 years, renewable.
Patents are filed through the Intellectual Property Office of Singapore (IPOS) and last 20 years.
Copyright arises automatically on creation. No registration is required.
NDAs become unenforceable once the protected information enters the public domain.
Termination and Offboarding in Singapore
Termination in Singapore requires notice based on length of service, or payment in lieu of notice. Wrongful dismissal claims are handled by the Employment Claims Tribunal.
Final salary must be paid on the last working day. For employees with two or more years of service, the retrenchment benefit norm is two weeks to one month of salary per year of service.
Length of Service | Notice Period |
|---|---|
Less than 26 weeks | 1 day |
26 weeks to 2 years | 1 week |
2 to 5 years | 2 weeks |
5 or more years | 4 weeks |
When offboarding an employee, complete the following steps:
Revoke system access and collect all company assets.
Issue a Certificate of Employment if the employee requests one.
Submit the IR21 tax clearance form to IRAS for any foreign employee leaving Singapore.
Cancel the work pass within one week of the employee's last working day for foreign employees.
Business Culture in Singapore
Hierarchy and titles: Seniority is respected. Address senior stakeholders by their formal title until they invite a more casual approach.
Communication style: Direct but polite. Avoid public criticism or confrontation, which can damage working relationships quickly.
Decision-making: Consensus-driven. Decisions may take longer to reach, but implementation tends to follow quickly once agreement is in place.
Punctuality: Meetings start on time. Arriving late signals disrespect and can affect how colleagues and clients perceive your reliability.
Relationship-building: Trust is built through professional reliability, not social bonding alone. Consistent follow-through matters more than informal rapport.
Multicultural workforce: English is the business language. Awareness of Chinese, Malay, and Indian cultural norms supports team cohesion across Singapore's diverse workforce.
Work-life balance: Long working hours remain common in finance and technology. Flexible work arrangements have become increasingly expected since 2020.
Top Sectors to Hire From in Singapore
Singapore concentrates talent across a small number of high-output sectors. Two stand out for international employers building teams in the region.
Biotech and life sciences
Singapore is Asia's leading biomedical hub. The One-North Biopolis cluster anchors research and manufacturing operations for global pharmaceutical and medtech companies. Fixed asset investments in the sector exceeded $3,542,191,436 (SGD 4.5 billion) in 2023, according to the Singapore Economic Development Board.
In-demand roles include clinical research associates and bioprocess engineers. Employers hiring in this sector typically require candidates with GCP certification and familiarity with Singapore's Health Sciences Authority regulatory framework.
Fintech
Singapore ranked third globally in the Global Financial Centres Index 2024 fintech hub rankings. The Monetary Authority of Singapore actively supports fintech growth through licensing frameworks and regulatory sandboxes, which draws talent from across the region.
In-demand roles include blockchain developers and compliance analysts. Companies hire employees in Philippines and other APAC markets to complement Singapore-based fintech teams, particularly for operations and support functions that benefit from regional coverage.
Top Cities to Hire From in Singapore
Singapore is a city-state, so there are no separate cities to hire from. Talent is distributed across distinct districts and planning areas, each with its own professional concentration.
The Central Business District is the primary source for finance professionals, lawyers, and compliance officers. One-North, built around research institutions and tech campuses, produces data scientists, bioprocess engineers, and UX designers.
Jurong East supports manufacturing and logistics operations, making it a reliable source for mechanical engineers and supply chain managers. Changi, anchored by the airport and its surrounding industrial zone, is where logistics coordinators and aviation technicians are concentrated. Woodlands, positioned at the Malaysia border crossing, is home to operations managers and cross-border trade specialists who work across both markets.
Hire Compliantly in Singapore with Gloroots
Gloroots acts as the legal employer in Singapore, managing CPF contributions, SDL filings, MOM work pass support, and full Employment Act compliance on your behalf.
This model works best when you need to enter Singapore without a local entity or when compliance certainty matters from day one.
No local entity or ACRA registration required to employ staff.
Employees are onboarded in days, not weeks.
CPF, SDL, and payroll are managed locally by Gloroots.
Predictable per-employee monthly pricing with no hidden costs.
Dedicated compliance and HR support team assigned to your account.
Gloroots suits companies hiring between 1 and 50 employees in Singapore before committing to entity setup. For larger, permanent operations, entity setup may offer a lower long-term cost per head. You can also hire employees in Australia through the same platform if you are expanding across the region.
Frequently Asked Questions About Hiring in Singapore
Do I need a written employment contract in Singapore?
Singapore law does not mandate written contracts, but the Ministry of Manpower requires employers to issue written Key Employment Terms (KETs) within 14 days of a new hire's start date. KETs must cover job scope, salary, working hours, and leave entitlements. A signed contract protects both parties and reduces dispute risk.
What are the Part IV salary thresholds under the Employment Act?
Part IV protections apply to workmen earning up to $3,542 (SGD 4,500) per month and to other employees earning up to $2,047 (SGD 2,600) per month. Workers above these thresholds are not covered by Part IV provisions on overtime, rest days, and shift allowances, though core protections still apply to all employees.
Can a foreign company hire employees in Singapore without a local entity?
Yes. A foreign company can employ Singapore-based staff through a Global Employer of Record (EOR). Direct hiring without a registered Singapore entity is not compliant because CPF contributions and MOM obligations require a locally registered employer. An EOR provides entity-free employment and handles all statutory filings on your behalf.
What work pass options exist for hiring foreign employees?
Singapore offers four main passes for foreign workers:
Employment Pass (EP): Minimum $4,408 (SGD 5,600) per month; applicants must score at least 40 points under the COMPASS framework.
S Pass: Minimum $2,480 (SGD 3,150) per month; subject to a 10% quota of total workforce.
Work Permit: Sector-specific; applies to construction, manufacturing, and domestic work.
EntrePass: For eligible entrepreneurs starting a business in Singapore.
Most EP and S Pass applications require the role to be advertised on the Fair Consideration Framework (FCF) job portal for 28 days before submission.
What are the notice period and termination rules in Singapore?
Notice periods depend on length of service: one day for under 26 weeks, one week for 26 weeks to two years, two weeks for two to five years, and four weeks for five or more years. Wrongful dismissal claims are filed with the Employment Claims Tribunal. For employees with at least two years of service, the retrenchment benefit norm is two weeks to one month of salary per year of service.
What payroll and tax obligations apply when hiring in Singapore?
Employers must pay salaries monthly, within seven days after the salary period ends. Employer CPF contributions are 17% for employees under 55. The Skills Development Levy (SDL) is 0.25% of gross wages, capped at $9 (SGD 11.25) per month. Employers must submit IR8A forms to IRAS by 1 March each year. Singapore's top personal income tax rate is 24%.
How does Gloroots support hiring in Singapore?
Gloroots runs employment in Singapore through its Global Employer of Record service. This covers payroll execution, CPF and SDL filings, KETs issuance, and benefits administration under a single employment operating layer. Teams get centralized governance and workforce visibility without setting up a local entity.
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