Employer of Record in Singapore

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Singapore if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Singapore below, to avoid any compliance issues.

Employment Contract Requirements

Contracts outlining essential employment terms can take various forms in Singapore and are not required to be in writing to be legally valid. However, it is best practice to provide such contracts to the employee within 14 days of starting work. Basic employment details include:

• Identification of both parties
• Starting date
• Workplace details
• Job description and responsibilities
• Salary details and pay frequency, including overtime, compensation, or bonuses
• Weekly working hours, workdays, and rest days
• Allowances and deductions
• Leave entitlements
• Additional medical benefits
• Probationary period
• Notice periods for termination

Onboarding Process

We can help you get a new employee started in Singapore quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Singapore

Section IV of the Singapore Employment Act specifies that the contractual work hours, excluding break time and overtime, must not surpass 44 hours per week or 8 hours per day.

Overtime in Singapore

The Employment Act in Singapore mandates a minimum overtime rate of 150% of the regular hourly wage for eligible employees working up to 12 hours daily or 72 hours monthly. Overtime must be paid within 14 days after the last day of the salary period.

For employees earning more than 2,600 SGD per month or non-workmen earning more than 4,500 SGD per month, the entitlement to overtime pay under the Employment Act does not apply. For these employees, any overtime pay or compensation is determined by the terms of their employment contract.

Probation Period in Singapore

While not required by law in Singapore, probationary periods are commonly stipulated in the employment contract or collective agreement and typically span a duration of 3-6 months.

Setting up a local legal entity in Singapore can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

In Singapore, employers must manage a combination of payroll elements: compulsory CPF contributions (17% employer, 20% employee for most workers), SDL (0.25%), and Foreign Worker Levies when applicable.

There's no routine salary withholding for income tax, but bonuses and payouts require specific filings. Monthly CPF and levy payments are due by the 14th of the following month (or the next working day if the 14th falls on a Saturday, Sunday, or Public Holiday), with penalties for delays.

Implementing payroll software,such as Playroll,can streamline filings, reduce errors, and ensure compliance across contributions, submissions, and reporting obligations in Singapore.

One of the biggest risks in global hiring is payroll mismanagement. In Singapore, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Singapore:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Singapore’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Singapore, work permits and visas are essential for employers hiring foreign talent across various industries and skill levels. The key permits include the Employment Pass for professionals and executives, the S Pass for mid-level skilled workers, and the Work Permit for semi-skilled laborers in sectors like construction, manufacturing, and services. Entrepreneurs can apply for the EntrePass, while short-term trainees may use the Training Employment Pass. Employers must navigate the Ministry of Manpower's application process, ensure quota compliance, and meet specific eligibility criteria to hire and sponsor foreign employees successfully.

The process involves selecting the appropriate permit, submitting applications through the MOM portal, paying fees, and completing necessary formalities such as medical examinations and fingerprinting. Employers also need to renew permits within the required timeframe to avoid employment interruptions. For newly-arrived Work Permit holders, medical examinations must be completed within 2 weeks of arrival, and if required, workers must complete registration within 1 week after the Work Permit is issued. Understanding Singapore's regulations, including fees and sponsorship responsibilities, is crucial to ensure compliance and streamline the hiring process.

Mandatory Leave Entitlement in Singapore

The annual leave entitlement in Singapore is 7 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Singapore

Singapore recognizes 10 public holidays annually, and these are separate from the minimum paid leave entitlement, serving as additional days off. The national holidays in Singapore are as follows:

Paid Time Off in Singapore

The Employment Act includes provisions for paid leave for employees with a minimum of 3 months of service. In the initial year, they are entitled to 7 days of annual leave, with an additional day for each subsequent year up to a maximum of 14 days after 8 years of service.

Nevertheless, it is common for employers to provide 14-20 days of annual leave after the first year of service.

Maternity Leave In Singapore

Pregnant employees in Singapore, having worked for a minimum of 3 months before their due date and expecting a Singaporean citizen child, are eligible for 16 weeks of paid maternity leave.

This period encompasses up to 8 weeks before the anticipated due date which must be taken consecutively and the remaining 8 weeks following the birth which can be taken flexibly within 12 months from child's birth. Other conditions for paid maternity leave include:

• Birth of non-Singaporean children qualify for 12 weeks of leave
• For the 16 week maternity leave, the employer covers the initial 8 weeks at regular gross salary, and the government reimburses the extra 8 weeks (capped at 10,000 SGD per 4 weeks or a total of 20,000 SGD per child)
• For the 12 week maternity leave, the employer covers the initial 8 weeks at regular gross salary, and the remaining 4 weeks can be paid if agreed upon. The employee is covered under the Employment Act.

Paternity Leave In Singapore

Spouses with three months of service can take four weeks of paid paternity leave within 16 weeks after their child's birth. From April 1, 2025, this four-week paternity leave will be mandatory for eligible fathers. The Government-Paid Paternity Leave (GPPL) funds this, with employees receiving their regular salary, capped at 2,500 SGD per week. Adoptive fathers may also be eligible if they meet the specified criteria.

Sick Leave In Singapore

After six months of service, employees are entitled to paid sick leave, receiving regular gross salary for 14 days annually without hospitalization and 60 days with hospitalization (including 14 days for outpatient care). Notifying the employer within 48 hours and a medical certificate upon return to work are mandatory.

Before six months, the number of paid sick days depends on the length of employment:

• 3 months of service: 5 days per year, 15 days if there is hospitalization
• 4 months of service: 8 days per year, 45 days if there is hospitalization
• 5 months of service: 11 days per year, 60 days if there is hospitalization

Parental Leave In Singapore

Fathers who meet the eligibility criteria can request Shared Parental Leave (SPL), which is a 4-week reduction from their wife’s 16-week maternity leave. The entitlement is as follows:

• Phase 1 (Effective April 1, 2025): Eligible working parents of Singapore Citizen children will receive 6 weeks of SPL, to be shared between both parents.
• Phase 2 (Effective April 1, 2026): The SPL entitlement will increase to 10 weeks, to be shared between both parents.

Eligibility:

• The child must be a Singapore Citizen (or become one within 12 months).
• Fathers must be lawfully married to the child's mother.
• Employees must have worked for at least 3 months before the child’s birth.

Leave Consumption:

• SPL must be used within 12 months of the child’s birth.
• SPL should be taken after Government-Paid Maternity Leave (GPML) or Paternity Leave (GPPL).
• SPL is initially split equally (3 weeks each in Phase 1), but parents can mutually agree to reallocate it.

Notice Requirement:
Employees must notify their employer at least 4 weeks before taking SPL.

Government Reimbursement:
The government will pay for all weeks of SPL, capped at S$2,500 per week.

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Bereavement Leave

While it is not legally mandated, employers in Singapore typically grant their employees 2-3 days of paid leave in the event of the death of an immediate family member.

Marriage Leave

Upon the occasion of an employee's marriage, although not mandatory, it is common practice to provide 1 - 3 days of paid leave for marriage.

Voting Leave

In Singapore, the day designated for voting or polling is observed as a public holiday.

Military Leave

Employees are granted paid reservist leave every year upon receiving the government-issued Notification of National Service Call-Up (SAF 100).

In Singapore, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Singapore actually want and need.

Termination Process in Singapore

Employment can be terminated by either the employer or employee with legal notice, ensuring reasons align with the contract and are non-discriminatory. Full notice terminations result in payment on the last day, while terminations without notice lead to payment within three days, not including Sunday (or any such rest day as determined by the employer) or public holidays. Compliant terminations include:

• Employee's voluntary resignation
• Mutual agreement
• Contract expiration
• Employer's unilateral decision (based on probation, objective reasons, disciplinary dismissal, or unsuitability for job responsibilities)

Notice Period in Singapore

In Singapore, the minimum notice period is initially set at 1 day and can be extended based on the following tenure:

• Less than 26 weeks of service: 1 day notice
• Between 26 weeks and 2 years of service: 1 week notice
• Between 2 years and 5 years of service: 2 weeks notice
• More than 5 years of service: 4 weeks notice

Severance in Singapore

While there is no legal mandate for employers to provide severance payments, employment contracts or collective agreements often indicate "Retrenchment Benefit" payments after completing two years of service. It is customary to offer 2 weeks' to 1 month's salary per year of service upon termination. Employers with at least ten employees are required to notify the Ministry of Manpower of any retrenchment within five working days after affected employees are notified.