Capital City
Singapore
Currency
Singapore Dollar
(
$
)
Timezone
GMT +8
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
17.25% - 32.25%
Languages
English
Tamil
Malay
Mandarin
Capital City
Singapore
Currency
Singapore Dollar
(
$
)
Timezone
GMT +8
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
17.25% - 32.25%
Languages
English
Tamil
Malay
Mandarin
Hiring in Singapore for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.
Companies can hire employees in Singapore in the following three ways:
Singapore ranks second globally for tech company expansion, following its impressive ease-of-doing-business rating by the World Bank in 2020, just behind New Zealand.
Positioned within a six-hour radius of Southeast Asian nations, Singapore serves as an efficient hub for accessing the rapidly growing consumer market in the region.
Singapore's strong economic position - marked by high government revenue, consistent surplus, and zero foreign debt - solidifies its standing as the world's most stable economy and a key global exporter.
The prevalence of English in Singapore results in a highly proficient population, surpassing language proficiency levels in most Asian markets, making the workforce particularly attractive to foreign clients.
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.
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:
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.
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.
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.
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.
1 January - 31 December is the 12-month accounting period that businesses in Singapore use for financial and tax reporting purposes.
The payroll cycle in Singapore is usually monthly, with employees being paid within 7 days after the end of salary period.
Singapore does not have a universal national minimum wage. Instead, the country employs the Progressive Wage Model (PWM), which sets minimum wage standards for specific sectors and occupations.
In Singapore, although not mandatory, it is customary to provide 13-month bonuses equivalent to one month's salary at the end of the year.
Employer payroll contributions are generally estimated at an additional 17.25% - 32.25% on top of the employee salary in Singapore.
In Singapore , the typical estimation for employee payroll contributions cost is around 20%.
The computation of income tax in Singapore follows a progressive rate system, with factors such as household status and the number of children potentially influencing the overall tax rates.
In Singapore, the minimum retirement age is 63, extending to reemployment until age 68. By 2030, these ages will be raised to 65 and 70. The Central Provident Fund (CPF) is the main government-mandated pension system. At 55, employees are eligible to receive the savings as a lump sum, and at 65, they may withdraw up to 20% or choose monthly payouts.
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.
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:
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.
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:
Spouses with three months of service can take a two-week paid paternity leave within 16 weeks after their child's birth. The Government-Paid Paternity Leave (GPPL) funds this, with employees receiving their regular salary, capped at 2,500 SGD per week or a total of 5,000 SGD. Adoptive fathers may also be eligible if they meet the specified criteria.
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:
Fathers who meet the eligibility criteria can request Shared Parental Leave, which is a 4-week reduction from their wife's 16-week maternity leave. Parents with a minimum of 3 months of service are granted 6 days of annual childcare leave until the child reaches 7, capped at 42 days. The payment structure for this leave is as follows:
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.
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.
In Singapore, the day designated for voting or polling is observed as a public holiday.
Employees are granted paid reservist leave every year upon receiving the government-issued Notification of National Service Call-Up (SAF 100).
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 seven days. Compliant terminations include:
In Singapore, the minimum notice period is initially set at 1 day and can be extended based on the following tenure:
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 2-4 weeks' pay for each year of employment upon termination.
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