Hire and manage employees in Singapore
Table of contents
Key takeaways
Singapore’s Employment Act governs most private-sector employees. The Central Provident Fund (CPF) is mandatory for all Singapore citizens and permanent residents, covering retirement, housing, and healthcare.
The CPF employer contribution rate is 17% for employees aged 55 and under. From January 2026, CPF applies to Ordinary Wages up to SGD 8,000 per month.
Singapore’s retirement age increased to 64 on July 1, 2026, with the re-employment age rising to 69. Both will increase further to 65 and 70 respectively by 2030.
From April 2026, shared parental leave increased from 6 to 10 weeks. Maternity leave is 16 weeks, government-paid, for Singapore citizen children.
Singapore has no national minimum wage for most workers, but the Progressive Wage Model sets sector-specific floors for cleaners, security officers, landscape workers, and other occupations.
Singapore does not have at-will employment. Notice periods are based on length of service: 1 day for under 26 weeks, 1 week for 26 weeks to 2 years, 2 weeks for 2 to 5 years, and 4 weeks for 5 or more years.
Foreign companies can hire Singapore employees without a local entity using an Employer of Record (EOR). An EOR handles CPF submissions, payroll, employment contracts, and full Employment Act compliance on your behalf.
Employer of Record (EOR) vs. entity
If you don’t already have a legal business entity in Singapore, you’ll need to choose between setting one up or hiring Singaporean employees through an EOR.
Legal entity in Singapore: When you set up a local business entity from scratch, there are generally a number of legal requirements involved, like registering with local authorities, opening a local bank account, and consulting with local experts to make sure you stay compliant with Singaporean tax and labor laws.
Singaporean EOR: An EOR is a third-party service that operates on an employer’s behalf. It handles all the legal requirements for hiring full-time employees in another country, from contracts to payroll and benefits.
Classifying Singaporean workers: Employees vs. contractors
One of the first steps to hiring employees in Singapore or any other country is making sure they’re classified correctly. Singaporean courts consider various factors when examining an employment relationship to determine classification:
Contractors | Employees |
|---|---|
More control: Contractors should be able to choose when, where, and how they perform their work | Less control: Employees are more often under the direct supervision of their employer, and may be given work hours or a location to perform their duties. |
Work performed should not be an integral part of the business. | Work can be an integral part of the business. |
Own tools and equipment: Contractors usually provide their own tools, uniforms, etc. | Provided tools and equipment: Usually use company-owned tools, uniforms, etc. |
Paid for work done: Contractors are paid upon completion of their work, after invoicing. | Paid at regular intervals: Employees receive regular paychecks, whether they complete their work or not. |
Duration of work: Contractors work for a specific period of time, often to complete a project. | Duration of work: Employees have indefinite work agreements that only end when they resign or are terminated. |
Exclusivity of services: Contractors can (and often do) work for multiple clients at a time. | Exclusivity of services: Employees typically only have one employer at a time. |
Misclassifying employees as contractors comes with serious risks in Singapore. Employers who do so intentionally could end up paying back taxes and penalties up to SGD 50,000.
Work permits for Singaporean employees
Singapore citizens and permanent residents can work without additional authorization. Foreign workers need to meet strict work visa criteria. The main passes are the Employment Pass (EP, minimum SGD 5,000/month), S Pass (mid-skilled workers, minimum SGD 3,150/month), and Work Permit (lower-skilled workers with sector-specific quotas).
New hire onboarding checklist
Once you’ve confirmed your new employee can legally work in Singapore, you can continue with the onboarding process. Onboarding sets the stage for their entire tenure at your company, so this is your chance to build a foundation and start off on the right foot.
Before their first day
Complete a background check (more on this later).
Send an offer letter (more on this in the next section).
Do the necessary paperwork.
Enroll them in benefits.
Order and configure their devices.
Set up their access to apps and tools they need for their role.
Prepare an employee handbook and any compliance-related training materials.
On day one
Onboard them to payroll to ensure their first paycheck won’t be delayed.
Make sure their workspace is set up and ready to go.
Send them a welcome email and give them an agenda for their first week.
Schedule a 1:1 with their manager.
During their first 90 days
Provide general and role-specific training.
Assign work and help them set goals as they ramp up.
Schedule consistent 30-, 60-, and 90-day check-ins and offer regular feedback.
What to include in an offer letter in Singapore
The offer letter outlines employment terms clearly and helps avoid confusion or legal disputes later. Here’s a list of items to consider including in an offer letter for an employee in Singapore:
Job title, job description, and start date
Name and role of their supervisor
Expected duties and hours of work
Probation period details, if applicable
Compensation and salary period
Brief description of benefits
Termination policies
NDAs and confidentiality agreements in Singapore
NDAs are generally enforceable in Singapore as long as they do not unreasonably restrict trade. They cannot be enforced once the information they cover has been publicly disclosed.
Running background checks on Singaporean employees
Background checks are allowed and common in Singapore. The Personal Data Protection Act (PDPA) requires employers to obtain consent before running any checks. Information collected must be relevant to the stated purpose, and non-consensual checks, discriminatory practices, and misuse of personal data are all illegal.
Common background checks | Less common background checks |
|---|---|
Criminal record check | Credit history check |
Employment verification | - |
Academic qualifications | - |
Reference check | - |
Paying employees in Singapore
CPF contributions are the main payroll obligation for Singapore citizens and PRs. Employers contribute 17% for employees aged 55 and under. From January 2026, CPF applies to Ordinary Wages up to SGD 8,000 per month. It’s important to check for the most accurate and up-to-date CPF rates with the CPF Board, as contribution rates are updated periodically.
Employer costs
Cost to employers | Tax |
|---|---|
Central Provident Fund (CPF) | 17% |
Skills Development Levy (SDL) | 0.25% (capped at SGD 11.25 per year) |
Foreign worker levy (if you hire foreign workers) | Varies depending on worker qualifications and how many foreign workers your organization employs |
Employee costs
Cost to employees | Tax |
|---|---|
Central Provident Fund (CPF) | 37% |
Income tax | 0-24% |
Mandatory employee benefits in Singapore
Singapore’s employment laws require employers to provide employees with certain statutory benefits. These include:
CPF contributions: Mandatory for Singapore citizens and PRs, covering retirement, housing, and healthcare.
Annual leave: 7 days after the first year, increasing by one day per year up to 14 days.
Sick leave: 14 days of outpatient sick leave per year, plus up to 60 days of hospitalization leave.
Maternity leave: 16 weeks of Government-Paid Maternity Leave for Singapore citizen children; 12 weeks for others.
Shared parental leave: Increased to 10 weeks from April 2026.
Overtime pay: At least 1.5x the regular rate, capped at 72 hours of overtime per month.
11 paid public holidays per year.
Managing remote employees’ computers and apps
If it’s your first time hiring in Singapore, it can be tough to manage all your employees’ devices remotely. Rippling can help you instantly set up and secure employees’ accounts from day one. Read about managing remote employee devices overseas in our guide.
Protecting company IP in Singapore
Singapore’s IP protection laws are comprehensive. The country offers trademarks (10-year protection via the Registry of Trademarks), patents (20-year protection via the Registry of Patents), and copyright protection (automatic upon creation) for literary, artistic, and musical works.
Complying with Singaporean labor laws
The Singapore Employment Act is overseen by the Ministry of Manpower (MOM). Key requirements include CPF contributions, statutory leave entitlements, overtime rules, and fair employment practices. The retirement age rose to 64 in July 2026 and will reach 65 by 2030. The Workplace Fairness Act, expected in 2027, will add anti-discrimination protections. Learn more about 13th month pay in Singapore and other compensation considerations.
Terminating employees in Singapore
Singapore does not have at-will employment. Employees are entitled to notice periods based on length of service: less than 26 weeks is 1 day; 26 weeks to 2 years is 1 week; 2 to 5 years is 2 weeks; and 5 or more years is 4 weeks. Probation periods typically last 3 to 6 months.
Length of employment | Notice period |
|---|---|
Less than 26 weeks | One day |
26 weeks to two years | One week |
2-5 years | Two weeks |
More than five years | Four weeks |
Frequently asked questions about hiring in Singapore
What is the CPF and how does it affect employers hiring in Singapore?
The Central Provident Fund (CPF) is Singapore's mandatory social security savings scheme. Employers must contribute to CPF for all Singapore citizens and permanent residents (PRs)—but not Employment Pass or S Pass holders. From January 2026, CPF applies to Ordinary Wages up to SGD 8,000 per month. Employer contribution rates vary by employee age: for employees 55 and under, employers contribute 17% and employees contribute 20%. For employees aged 55–65, both rates increase by 1.5 percentage points starting January 2026. Contributions must be paid monthly via the CPF Board's e-Submit system.
Can a foreign company hire employees in Singapore without a local entity?
Yes. Foreign companies can hire employees in Singapore without setting up a local legal entity by using an Employer of Record (EOR). An EOR like Rippling becomes the legal employer on your behalf, handling CPF contributions, payroll, employment contracts, and compliance with the Employment Act—while you retain full control over day-to-day work. This is typically faster and less costly than establishing a Singapore entity, which involves registering with ACRA (Accounting and Corporate Regulatory Authority) and can take several weeks.
What are the minimum leave entitlements for employees in Singapore?
Under the Singapore Employment Act, employees with at least three months of service are entitled to: paid annual leave starting at 7 days after the first year, increasing by one day per additional year up to a maximum of 14 days; 14 days of paid sick leave per year (60 days with hospitalization); 11 paid public holidays; and 16 weeks of paid government-funded maternity leave for eligible employees. From April 2026, shared parental leave increased from 6 to 10 weeks, allowing fathers to share more of the leave entitlement. Paternity leave stands at 4 weeks for eligible employees.
What work passes are available for foreign employees in Singapore?
Singapore offers several work passes depending on salary and skill level. The Employment Pass (EP) is for professionals earning at least SGD 5,000/month (SGD 5,500 in finance). The S Pass is for mid-skilled workers earning at least SGD 3,150/month, subject to a quota (10% of workforce in most sectors). Work Permits cover lower-skilled foreign workers and are sector-specific with stricter quotas. EntrePass is for foreign entrepreneurs. Employers must apply for passes through the Ministry of Manpower (MOM) before the employee starts work. EP and S Pass holders are exempt from CPF contributions.
What are Singapore's retirement and re-employment age rules?
From July 1, 2026, Singapore's statutory retirement age increases from 63 to 64 years old, and the re-employment age increases from 68 to 69. Employers cannot dismiss employees solely on the grounds of age before they reach the statutory retirement age, and must offer eligible employees re-employment contracts up to the re-employment age. These ages are set to continue rising—to 65 (retirement) and 70 (re-employment) by 2030—as part of Singapore's broader workforce longevity strategy.
How do terminations work in Singapore?
Singapore does not have at-will employment. Employers must follow proper procedures when terminating employees. Employees are entitled to notice based on their length of service: less than 26 weeks = 1 day; 26 weeks to 2 years = 1 week; 2–5 years = 2 weeks; 5+ years = 4 weeks. Employers may pay salary in lieu of notice. Wrongful dismissal claims can be filed with MOM if no valid reason is given. Retrenchment benefits are not legally mandated for employees with fewer than 2 years of service, but the National Wages Council recommends providing them. Employees with 2+ years of service are typically entitled to retrenchment benefits between 2 weeks and 1 month per year of service.
Disclaimer
Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.
Set up new hires in Singapore with everything they need, from country-specific training to apps like Slack.
Pay all of your employees and contractors around the world without waiting on transfers or conversions.
Understanding and complying with Canadian laws is hard work. Rippling does it for you.
Juggling multiple systems for your team? That creates silos and busy work. Rippling does it all—in a single system.