Employer of Record in Singapore

Expanding your team into Singapore offers access to a dynamic talent pool and a thriving economy, but it requires navigating local employment regulations. Traditionally, hiring employees in Singapore necessitates establishing a legal entity, which involves a significant investment of time, capital, and administrative resources to register the company, obtain necessary licenses, and ensure compliance with the Accounting and Corporate Regulatory Authority (ACRA) and other government bodies. However, several pathways exist for companies looking to engage talent within the city-state.

When considering how to bring on new team members in Singapore, you generally have a few key options:

• Establishing a Local Entity: This involves setting up a subsidiary or branch office, which provides full control but demands extensive setup time, legal counsel, and ongoing compliance management for payroll, taxes, and HR.
• Utilizing an Employer of Record (EOR): Partnering with an EOR like Rivermate allows you to hire employees quickly and compliantly without the need to establish your own entity.
• Hiring Independent Contractors: Engaging individuals as independent contractors can be suitable for project-based work, but it's crucial to ensure the classification adheres strictly to Singaporean labor laws to avoid misclassification risks.

How an EOR Works in Singapore

An Employer of Record (EOR) acts as the legal employer for your team members in Singapore, handling all local compliance while you retain full control over daily management and responsibilities. This structure allows your company to operate in Singapore without a physical presence or legal entity.

An EOR in Singapore typically takes care of:

• Local employment contract generation compliant with Singaporean labor laws.
• Payroll processing and disbursement, including all mandatory contributions like the Central Provident Fund (CPF).
• Employee income tax declarations and filings.
• Administration of statutory benefits such as annual leave, sick leave, and public holidays.
• Work permit and visa sponsorship for foreign employees, if required.
• Comprehensive HR support for onboarding, offboarding, and other administrative tasks.

Benefits of Using an EOR in Singapore

For companies looking to hire in Singapore without establishing a local entity, an EOR offers compelling advantages:

• Rapid Market Entry: Hire employees in Singapore in days, not months, bypassing the lengthy process of entity registration.
• Guaranteed Compliance: Mitigate risks associated with Singaporean labor laws, tax regulations, and payroll compliance.
• Cost Efficiency: Avoid the significant financial outlay and ongoing costs of setting up and maintaining a local legal entity.
• Operational Simplicity: Focus on your core business objectives while the EOR handles complex HR, payroll, and legal administration.
• Flexibility and Scalability: Test the market or scale your team up and down with greater ease and reduced commitment.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Singapore includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Singapore.

Singapore's tax system offers low rates to attract foreign investment and talent. Employers must comply with obligations such as CPF contributions, income tax withholding, and reporting deadlines. CPF contributions are mandatory for Singapore citizens and PRs, with rates varying by age and salary, capped at a $6,000 monthly salary and a $102,000 annual wage ceiling. Foreign employees are generally exempt from CPF, except PRs.

Employers are responsible for deducting and remitting income tax under the PAYE scheme, with progressive rates from 0% to 24%. Tax residency is based on days present, with residents taxed at progressive rates and non-residents at 15% or higher. Employers must submit Form IR8A by March 1 and notify IRAS via Form IR21 when foreign employees leave, while CPF contributions are due by the 14th of the following month.

Employees can claim deductions such as CPF contributions, course fees, donations, and reliefs for parents and children, reducing taxable income. Foreign workers working over 60 days are taxed similarly to residents, but those under 60 days are exempt. The corporate tax rate for companies is 17%, and Singapore has DTAs to prevent double taxation. Key data points are summarized below:

Singapore's salary landscape in 2025 is characterized by competitive market rates influenced by industry, role, experience, and company size. Key sectors like technology, finance, healthcare, manufacturing, and professional services offer broad salary ranges, with roles such as Software Engineers earning SGD 80,000–150,000 and Medical Doctors up to SGD 300,000+. The following table summarizes typical annual salaries:

Singapore does not enforce a universal minimum wage but implements the Progressive Wage Model (PWM) in sectors like retail and security, setting minimum wages such as SGD 1,800 for retail assistants. Compensation packages often include bonuses like the 13th month (AWS), performance bonuses, commissions, and allowances (transport, meal, housing). Salaries are typically paid monthly via direct bank transfer, with detailed payslips required.

Salary trends for 2025 indicate increased demand for tech talent, a shift toward skills-based pay, and enhanced benefits emphasizing employee well-being. Overall, moderate salary growth is expected, driven by a tight labor market and rising living costs.

Singapore's employment regulations mandate minimum leave entitlements to promote work-life balance. Annual leave increases with tenure, starting at 7 days for 1 year of service and reaching 14 days for employees with 8 or more years. Public holidays total 11 days annually, with paid days off; work on these days entitles employees to extra pay or a day off in lieu. Sick leave is available after 3 months of employment, with entitlements depending on service length, covering outpatient and hospitalization leave.

Parental leave policies include 16 weeks of paid maternity leave for Singapore citizens, with government subsidies, and 2 weeks of paid paternity leave for eligible fathers, reimbursed by the government. Adoption leave varies from 12 to 16 weeks, funded partially by the government. Employers may also offer other leave types such as bereavement, study, sabbatical, marriage, and examination leave, depending on company policies.

Singapore's employee benefits system combines mandatory legal requirements with optional perks to attract and retain talent. Employers must provide statutory benefits such as CPF contributions, paid annual leave (7-14 days), sick leave (14 outpatient, 60 hospitalization days), public holidays, maternity and paternity leave, childcare leave, and work injury compensation. CPF contributions vary by age, with maximum rates for employees up to age 55, covering retirement, healthcare, and housing needs.

Beyond legal obligations, many employers offer additional benefits like health insurance, dental, vision, life, and personal accident insurance, along with wellness programs, flexible work arrangements, professional development, subsidized meals, and transportation allowances. Providing comprehensive health coverage, including outpatient and hospitalization plans, is a key competitive advantage. Retirement savings primarily rely on CPF contributions, with some companies offering supplementary schemes.

Offering robust health insurance and supplementary benefits enhances talent attraction, especially in competitive industries like tech and finance. Larger firms tend to provide more comprehensive packages, aligning benefits with industry standards and employee expectations.

Employment agreements in Singapore are vital for defining the rights and obligations of employers and employees, helping to prevent disputes and ensure legal compliance. They typically fall into two categories: fixed-term contracts and indefinite-term contracts, each suited to different employment arrangements.

Key clauses must include basic legal requirements, such as job scope, salary, working hours, leave entitlements, and termination procedures. Employers should stay updated on evolving employment laws to maintain compliance and attract talent. Properly drafted agreements are essential for a positive employment relationship and legal protection.

Remote work in Singapore is growing, driven by industry trends and technological advancements. While there is no specific remote work law, existing employment laws like the Employment Act and tripartite guidelines promote fair consideration and clear communication of flexible work arrangements (FWAs). Employers are obligated to fairly evaluate remote work requests, ensure occupational safety, and maintain data privacy under the Personal Data Protection Act (PDPA). Key employer responsibilities include establishing transparent policies, assessing job suitability, providing training, and implementing data security measures such as encryption and multi-factor authentication.

Flexible work options commonly adopted include flextime, compressed workweeks, job sharing, and part-time arrangements. Employers should develop clear policies, evaluate role suitability, and support remote workers with appropriate tools and performance management systems. Data protection remains critical, requiring encryption, access controls, and employee training. Additionally, companies should define equipment provisioning and expense reimbursement policies, covering internet, ergonomic setups, and work-related costs.

Employers should focus on creating supportive, compliant, and transparent remote work policies to optimize productivity and employee well-being.

In Singapore, employers must follow the Employment Act and common law for lawful employee termination, ensuring proper procedures, documentation, and adherence to notice periods and severance obligations. Notice periods depend on the employee's length of service, ranging from 1 day for less than 26 weeks to 4 weeks for employees with 5 or more years. Employers can pay in lieu of notice, and employment contracts may specify longer notice periods. Severance pay is generally only required for redundancy, often calculated as two weeks to one month’s salary per year of service, with eligibility typically after one or two years of employment.

Terminations are classified as with cause (misconduct, poor performance, absenteeism) or without cause (redundancy, restructuring, business closure). Employers must follow procedural fairness, including documentation, fair investigation, clear communication, and providing the notice or payment in lieu. Employees are protected against wrongful dismissal; claims can be filed via mediation or with the Employment Claims Tribunal, which may order reinstatement or compensation if dismissal is unjustified.

Singapore's economy is increasingly embracing independent professionals, offering businesses access to specialized skills without long-term employment commitments. This shift necessitates a clear understanding of legal distinctions between employees and independent contractors, as misclassification can lead to penalties. Key factors in classification include control, integration, economic reality, contract terms, provision of tools, and exclusivity. Proper classification affects tax, insurance, and legal obligations, making it crucial for companies to navigate these distinctions carefully.

A robust independent contractor agreement is essential, covering scope of work, payment terms, relationship status, confidentiality, intellectual property, indemnity, and governing law. Intellectual property rights must be explicitly assigned in contracts to ensure the engaging party owns the IP created. Contractors, considered self-employed, are responsible for their own tax obligations, including income tax and GST registration if applicable. They must also maintain records and file tax returns timely. Insurance coverage, such as professional indemnity and public liability, is typically the contractor's responsibility, though clients may specify requirements.

Independent contractors are prevalent in sectors like technology, creative and marketing, consulting, media, education, and professional services. This trend reflects a demand for project-based and specialized work across Singapore's economy. Employers must ensure compliance with local regulations and contractual clarity to effectively engage independent talent.

Singapore offers a structured work permit system overseen by the Ministry of Manpower (MOM), catering to various skill levels and industries. Key visa types include the Employment Pass (EP) for professionals earning at least SGD 5,000/month, S Pass for mid-level workers earning SGD 3,000/month, and Work Permits for semi-skilled workers in sectors like construction and manufacturing. Entrepreneurs and high-earning professionals can apply for EntrePass and Personalised EP, respectively. Employers are responsible for sponsoring and ensuring compliance throughout the application process, which involves submitting documents such as passports, educational certificates, and employment details. Typical processing times range from 1 to 3 weeks, with fees varying by visa type.

Foreign workers can also pursue permanent residency through schemes like the PTS, GIP, or family sponsorship, provided they meet specific criteria such as stable employment and contribution to the economy. Dependent visas, including the Dependant's Pass and Long-Term Visit Pass, allow family members to join workers in Singapore, subject to minimum salary and relationship proof requirements. Employers and employees must adhere to strict compliance obligations, including maintaining valid visas, reporting employment changes, and following legal regulations to avoid penalties. Staying updated on regulations is essential for a smooth employment experience.

Employers must ensure compliance with visa regulations, including paying levies, maintaining records, and reporting employment status changes. Employees are obligated to adhere to visa conditions, avoid illegal activities, and update personal information. Non-compliance can lead to penalties, including fines, imprisonment, or visa revocation.