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Asia expansion playbook / Singapore
Country guide
Hiring in Singapore
Hire with or without a local entity. CPF, work passes, leave, notice, payroll and tax for 2026, plus what changes in 2027.
- 01You can hire without your own entity.An Employer of Record (EOR) employs your first hires from day one. Many companies start this way.
- 02Employer CPF adds up to 17% on top of salary.For citizens and permanent residents, on wages up to SGD 8,000 a month. Foreign pass holders are exempt.
- 03Foreign hires need an approved work pass first.The pass type depends on salary, qualifications and role.
Singapore at a glance
Three ways to hire in Singapore
Your first hire, step by step
Write the job description
Set out the role, scope, salary range and requirements. It guides your search and your work pass application.
Advertise the role
Post where your candidates look. For Employment Pass roles, post on MyCareersFuture for at least 14 days first, unless the role is exempt.
Screen and interview
Use situational questions that show how candidates solve problems, work in teams and lead.
Offer and work pass
Send a written offer covering title, salary, benefits and start date. For foreign hires, apply for the work pass and wait for approval.
Onboard
Issue Key Employment Terms within 14 days, set up CPF and payroll, and pair your new hire with a buddy for their first weeks.
What it costs to employ someone here
Below the minimum for this work pass.
Where the caps kick in. CPF stops rising at SGD 8,000 of monthly ordinary wages, and the Skills Development Levy tops out at SGD 11.25. Above that, only salary grows.
About SGD 70,335 a year
Estimate on 2026 CPF rates for the age selected. Excludes bonuses, benefits and insurance.
What you're legally on the hook for
Work passes for foreign hires
- Your hire needs an approved pass before they start work.
- Employment Pass: from SGD 5,600 a month, plus a 40-point COMPASS score.
- S Pass: from SGD 3,300 a month, with a quota and a SGD 650 monthly levy.
Employment Pass (EP) is for professionals, managers and executives. The minimum qualifying salary is SGD 5,600 a month (SGD 6,200 in financial services), rising with the candidate's age. Candidates also need at least 40 points under COMPASS, which scores salary, qualifications, workforce diversity and support for local hiring.
S Pass is for mid-skilled staff. The minimum qualifying salary is SGD 3,300 a month (SGD 3,800 in financial services), rising with age. Each S Pass holder carries a SGD 650 monthly levy and counts toward your company's quota.
Coming in 2027: from 1 January 2027, new EP applications need at least SGD 6,000 (SGD 6,600 in financial services), and new S Pass applications need SGD 3,600 (SGD 4,000). Renewals follow from 1 January 2028.
Employing someone without a valid pass can lead to fines of SGD 5,000 to 30,000, up to 12 months in jail, or both.
Leave you must provide
- Annual leave starts at 7 days and grows to 14 with service.
- Sick leave covers 14 outpatient days and up to 60 hospitalization days.
- Eligible parents share up to 30 weeks of government-paid leave.
Ending employment
- Minimum notice is 1 day to 4 weeks, based on service. Contracts can set longer.
- Either side can pay salary in lieu of notice.
- There is no statutory severance formula for ordinary termination.
Retrenchment: employers with 10 or more employees must notify MOM within 5 working days of informing affected staff. Retrenchment benefits are not set by law, but tripartite guidelines recommend 2 weeks to 1 month of salary per year of service for employees with at least 2 years' service.
Foreign employees leaving: file tax clearance (Form IR21) with IRAS at least 1 month before their last day, and cancel their work pass within 1 week of employment ending.
Working hours and overtime
- The standard work week is up to 44 hours.
- Overtime is paid at 1.5 times the hourly basic rate.
- Overtime rules cover workmen earning up to SGD 4,500 and other staff up to SGD 2,600.
Working hours: covered employees work up to 8 hours a day or 44 hours a week, with at least 1 rest day a week.
Overtime: paid at no less than 1.5 times the hourly basic rate, capped at 72 overtime hours a month.
Who is covered: workmen earning a basic monthly salary up to SGD 4,500, and other employees earning up to SGD 2,600. For everyone else, the employment contract sets the terms.
Public holidays: employees who work on a public holiday get an extra day's pay or a day off in lieu.
Contracts and records
- Give Key Employment Terms in writing within 14 days of the start date.
- Issue itemized payslips within 3 working days of paying salary.
- Keep employee records for current staff and for 1 year after someone leaves.
Key Employment Terms (KETs) include job title, start date, working hours, salary and salary period, leave, and notice period. Include probation terms and confidentiality clauses where they apply.
Salary must be paid within 7 days after the end of each salary period.
Personal data: under the Personal Data Protection Act (PDPA), collect and use employee data only for clear purposes, keep it secure, and let employees access and correct it.
Insurance and work injury
- Work injury compensation covers employees regardless of who was at fault.
- Report serious incidents, or more than 3 days of medical leave, to MOM.
- S Pass and Work Permit holders need medical insurance of at least SGD 60,000 a year.
Work Injury Compensation Act (WICA): employees injured at work can claim for medical expenses, lost earnings and permanent incapacity, without needing to prove fault. Employers process claims through their insurer.
Mandatory WICA insurance: required for all employees doing manual work, and for non-manual employees earning SGD 2,600 a month or less.
Reporting: notify MOM of workplace accidents that lead to more than 3 days of medical leave, hospitalization, serious injury or death.
Medical insurance: S Pass and Work Permit holders need coverage of at least SGD 60,000 a year for inpatient care and day surgery.
MediShield Life: citizens and PRs are automatically covered by this national health insurance plan.
What non-compliance costs
How payroll actually runs
Contributions and filing
- CPF is shared: employers pay up to 17%, employees up to 20%.
- Pay CPF and SDL by the 14th of the following month.
- SDL applies to every employee, including pass holders.
CPF rates from 1 January 2026 (citizens, and PRs from their third year, earning above SGD 750 a month):
Wage ceilings: CPF applies to ordinary wages up to SGD 8,000 a month, and total wages up to SGD 102,000 a year.
New PRs contribute at lower, graduated rates for their first 2 years.
From 1 January 2027: employer rates rise by 0.5 percentage points for employees aged above 55 to 65.
Skills Development Levy: 0.25% of monthly wages, minimum SGD 2, maximum SGD 11.25 per employee.
Tax
- Employees file and pay their own income tax each year. There is no monthly withholding.
- Employers report each employee's annual income to IRAS by 1 March.
- File tax clearance before a foreign employee leaves.
Resident tax rates are progressive, from 0% on the first SGD 20,000 of chargeable income to 24% above SGD 1 million.
Non-resident employees pay the higher of a flat 15% or resident rates on employment income.
Annual reporting: employers with 5 or more employees submit income data electronically through the Auto-Inclusion Scheme (AIS) by 1 March.
Tax clearance (IR21): for foreign and PR employees leaving, file at least 1 month before their last day and hold back money owed to them until IRAS confirms.
What to have in place
- Advertise Employment Pass roles first. Post on MyCareersFuture for at least 14 days before you apply, unless your role is exempt.
- Hire on merit. Follow the Tripartite Guidelines on Fair Employment Practices. The Workplace Fairness Act, expected by end-2027, will make this law for employers with 25 or more staff.
- Pay locals the Local Qualifying Salary. Hiring S Pass or Work Permit holders? Local staff need at least SGD 1,800 a month to count toward your quota.
Singapore hiring questions we get asked
Do I need a locally resident director to register a Pte Ltd?
Yes. Every Singapore private limited company needs at least one director who is ordinarily resident in Singapore, such as a citizen, PR or eligible pass holder. Many companies hire through an EOR while they sort this out.
What does CPF cost me for a foreign employee?
Nothing. CPF applies only to citizens and permanent residents. For pass holders, you pay the Skills Development Levy, plus a SGD 650 monthly levy for S Pass holders. If an employee becomes a PR, graduated CPF rates start from their PR date.
Is there a minimum wage in Singapore?
Not nationally. Mandatory wage floors apply in sectors covered by the Progressive Wage Model, including cleaning, security, landscape, retail, food services and waste management. Employers with foreign staff also pay locals at least the Local Qualifying Salary.
Can I move employees from an EOR onto my own entity later?
Yes. Your entity becomes the employer, so you issue new contracts, register for CPF, and apply for new work passes for foreign staff. Agree up front how service length and leave balances carry over.
How long does work pass approval take?
About 10 business days for most Employment Passes. S Pass applications can take around 3 weeks. For EP roles, plan for the 14-day job advertising period before you apply.
Can I hire contractors instead of employees?
Yes, for genuine project work. Contractors invoice you and manage their own tax. If the role looks like employment, with set hours, supervision and ongoing work, they may be treated as employees, with CPF, leave and other entitlements owed.
Talk to us
Plan your first hire in Singapore
30 minutes with someone who has set up teams in Singapore. Bring your headcount and timeline. We only demo the product if you ask.
Sources: MOM · CPF Board · IRAS · ACRA · SkillsFuture Singapore. Rates checked September 2026. General guidance, not legal or tax advice.
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