Employer of Record in Singapore

An Employer of Record (EOR) is a company that legally hires employees on your behalf in Singapore. This means you can build a team in Singapore without setting up a local legal entity, which can be a complex and time consuming process. The EOR handles all the local employment responsibilities, while you manage your employees' day to day work. For a simple way to hire in Singapore, consider an EOR provider like Rivermate.

How an Employer of Record (EOR) Works in Singapore

Using an EOR in Singapore simplifies the process of hiring talent. You find the talent, and the EOR legally hires them for you. Here is a simple breakdown of the process:

• You Find Your Candidate: You are responsible for finding and selecting the person you want to hire in Singapore.
• You Partner with an EOR: You sign an agreement with the EOR provider. This agreement details the services, employee compensation, benefits, and other terms.
• The EOR Hires Your Candidate: The EOR creates a locally compliant employment contract and officially hires the employee in Singapore.
• The EOR Manages HR and Payroll: The EOR takes care of all HR administrative tasks. This includes payroll, taxes, benefits, and ensuring compliance with Singapore's employment laws.
• You Manage Your Employee: You manage the employee's daily tasks, performance, and projects, just as you would with any other employee.

Why use an Employer of Record in Singapore

Using an EOR in Singapore allows you to quickly and easily hire employees without the need to establish a local entity. This saves you time and money. An EOR acts as your local HR partner, ensuring that you comply with all of Singapore's employment regulations.

Here are some of the key benefits of using an EOR in Singapore:

• Faster Market Entry: You can hire employees in days, not the months it can take to set up a legal entity.
• Compliance with Local Laws: The EOR ensures that you are fully compliant with Singapore's employment laws, reducing the risk of legal issues.
• Cost Savings: You can avoid the high costs associated with setting up and maintaining a foreign entity.
• Access to Top Talent: You can hire the best talent in Singapore without being limited by geographical barriers.
• Simplified HR and Payroll: The EOR handles all the administrative burdens of payroll, taxes, and benefits.

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.

Hiring in Singapore is a smart move for companies looking to expand. The city-state is a major hub for finance, tech, and trade, with a highly skilled and educated workforce. You'll find a dynamic and evolving job market, with high demand in sectors like healthcare, technology, and finance. The government actively encourages business growth, making it a competitive place to find top talent.

Employment contracts & must-have clauses

When you hire an employee in Singapore, you need to provide a written contract. This is a legal requirement and helps protect both you and your employee. Think of it as a roadmap for your working relationship.

Your employment contract must include several key terms to be compliant. These terms ensure clarity and fairness for everyone involved.

Here are the essential clauses to include:

• Full names: Include the full name of your company and the employee.
• Job details: State the job title and main responsibilities.
• Start date: Clearly mention the first day of employment.
• Working hours: Specify the daily and weekly work schedule.
• Salary information: Detail the basic salary, any allowances, and the pay schedule.
• Leave entitlements: Outline the policies for annual leave, sick leave, and other types of leave.
• Probation period: If there is one, state the duration.
• Notice period: Define the notice required for termination from either side.

Probation periods

Probation periods are common in Singapore, usually lasting between three to six months. This gives both you and the new hire a chance to see if it's a good fit. There's no law setting a maximum or minimum length for probation, so you can set a period that makes sense for the role.

Keep in mind that employees on probation have the same rights under the Employment Act as confirmed employees. Their length of service is calculated from their start date, not their confirmation date.

Working hours & overtime

Standard working hours in Singapore are generally up to 44 hours per week. This can be structured as an 8-hour day for a 6-day work week or a 9-hour day for a 5-day work week. Any work beyond these hours is considered overtime.

For employees covered under the Employment Act, the overtime pay rate is 1.5 times their hourly basic rate of pay. Overtime is capped at 72 hours per month. It's important to track hours and pay overtime correctly to stay compliant.

Public & regional holidays

Singapore celebrates 11 public holidays each year. These holidays reflect the nation's cultural diversity. If your employee works on a public holiday, they are entitled to an extra day's salary or a replacement day off.

Here is a list of the public holidays for 2025:

Hiring contractors in Singapore

Hiring independent contractors in Singapore can be a flexible way to access specialized skills without the commitment of a full-time employee. Contractors are considered self-employed and are not covered by the Employment Act. This means they are not entitled to benefits like paid leave, sick days, or minimum wage.

The key distinction between an employee and a contractor is the nature of the work agreement. An employee works under a "contract of service," while a contractor works under a "contract for service." A major factor in this distinction is the level of control you have over the worker. The more control you have, the more likely they are to be considered an employee.

Misclassifying an employee as a contractor can lead to serious consequences, including fines, penalties, and back-payment of employee entitlements. The Ministry of Manpower takes misclassification seriously.

An Employer of Record (EOR) can help you mitigate this risk. An EOR can help you correctly classify your workers and ensure you comply with local labor laws. This allows you to tap into Singapore's talent pool with confidence, knowing that you are meeting your legal obligations.

Navigating compensation and payroll in Singapore is straightforward when you understand the local rules. The system is built on a few key laws, like the Employment Act, which sets the foundation for fair pay and working conditions. We handle the complexities so you can focus on your team.

Payroll cycles & wage structure

You must pay your employees at least once a month. Paydays should be consistent, and you need to pay salaries within seven days after the salary period ends.

Singapore does not have a national minimum wage. Instead, it uses a Progressive Wage Model (PWM) to increase salaries for workers in specific lower-wage sectors. For companies that hire foreign workers, a Local Qualifying Salary applies to Singaporean and Permanent Resident employees not covered by the PWM, requiring them to be paid at least S$1,600 per month.

While not legally required, a 13th-month bonus is a common practice and widely expected by employees. You should issue an itemized payslip to every employee for each pay period.

Overtime & minimums

The standard workweek is 44 hours, with a maximum of eight hours per day. Any work beyond these hours is considered overtime. You must pay employees for overtime within 14 days after the end of the salary period.

The overtime rate is 1.5 times the employee's hourly basic rate of pay. However, overtime pay is only mandatory for:

• Non-workmen earning up to S$2,600 per month.
• Workmen earning up to S$4,500 per month.

Employees cannot work more than 72 hours of overtime in a month.

Employer taxes and contributions

As an employer, you are responsible for making monthly contributions to specific funds for your employees. You do not typically withhold income tax from your employees' monthly pay.

Employee taxes and deductions

Employees in Singapore are responsible for managing their own income tax payments. The primary deduction from their monthly salary is for the Central Provident Fund (CPF).

In Singapore, providing the right mix of benefits and leave is key to attracting and keeping great employees. It's not just about meeting legal requirements. It's about showing your team you value them. A thoughtful benefits package helps build a positive company culture and a productive workforce.

Statutory leave

The law in Singapore sets out the minimum leave entitlements for employees.

• Annual Leave: Employees who have worked for at least three months are entitled to paid annual leave. This starts at 7 days and increases by one day for each year of service, up to a maximum of 14 days.
• Sick Leave: Employees are entitled to 14 days of paid outpatient sick leave. If they need to be hospitalized, this extends to 60 days per year, which includes the 14 days of outpatient leave.
• Maternity Leave: Eligible working mothers get 16 weeks of paid maternity leave.
• Paternity Leave: Eligible working fathers can take 2 weeks of paid paternity leave.
• Childcare Leave: Working parents with a child under 7 who is a Singapore citizen are entitled to 6 days of paid childcare leave per year.

Public holidays & regional holidays

Singapore celebrates 11 official public holidays each year. If a holiday falls on a weekend, the following Monday is typically a day off. There are no regional holidays in Singapore.

Typical supplemental benefits

While the law mandates certain benefits, many companies offer more to stay competitive.

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Singapore. This means they understand the local laws and market practices for employee benefits. They handle the administration of both mandatory and supplemental benefits, ensuring you are compliant and competitive.

Using an EOR allows you to:

• Save time on research and administration.
• Ensure your benefits package complies with all local laws.
• Offer competitive benefits to attract top talent.
• Get expert advice on what benefits are most valued by employees in Singapore.

This lets you focus on growing your business, knowing that your team's benefits are in good hands.

When an employment contract ends in Singapore, both you and your employee have rights and obligations. The process is typically straightforward and governed by the terms of the employment contract and the Employment Act. You can terminate a contract for various reasons, including dismissal or the end of a fixed term project. Similarly, employees have the right to resign at any time. The key is to handle the process fairly and according to the law to ensure a smooth transition for everyone.

Notice Periods

Both you and your employee must provide notice to terminate the employment contract. The notice period should be the same for both parties and is usually stated in the employment agreement. If the contract does not specify a notice period, you must follow these minimums set by the law:

In some cases, you might prefer an employee to leave immediately. If this happens, you can provide pay in lieu of notice. This payment is equivalent to the salary the employee would have earned during their notice period.

Severance Pay

Singapore law does not mandate severance pay for all terminations. However, if you are letting an employee go due to retrenchment (redundancy), you are expected to provide a benefit. To be eligible, an employee must have worked for you for at least two years.

While there is no legally fixed amount, the common practice is to pay between two weeks' and one month's salary for each year of service. The specific amount often depends on what is considered fair and reasonable in your industry.

How Rivermate Handles Compliant Exits

When you partner with an Employer of Record like Rivermate, we manage the entire offboarding process for you. We ensure every step is compliant with Singapore's employment laws.

Here is how we help:

• Contractual Compliance: We make sure the termination clauses in your employment contracts are clear and lawful from the start.
• Notice and Final Pay: We calculate the correct notice period and handle the final payment. This includes any outstanding salary, unused vacation leave, and other contractual benefits.
• Documentation: We prepare all necessary termination paperwork, including the official termination letter.
• Guidance on Best Practices: We advise you on handling sensitive situations like retrenchment to ensure a fair and respectful process.

We take care of these complex administrative tasks so you can focus on your business and your team.

Navigating Singapore's visa and work permit system is straightforward when you understand the framework. The government offers several paths for foreign professionals to work in the country, each designed for different skill levels and roles. These passes are tied to specific eligibility criteria, including minimum salary requirements. For any foreigner to legally work in Singapore, they must hold a valid pass.

Employment visas & sponsorship realities

The most common route for professionals, managers, and executives is the Employment Pass (EP). There is also the S Pass for mid-level skilled staff. However, how you get these passes sponsored has changed significantly.

Previously, companies without a registered entity in Singapore could use an Employer of Record (EOR) to sponsor work passes. This is no longer possible. The Ministry of Manpower (MOM) has clarified that only Singapore-based companies can sponsor work passes for foreign employees. This means an EOR cannot be used as a loophole to hire foreign staff in Singapore if your company has no local presence.

So, what does this mean for you?

• EORs can only hire locally: An EOR in Singapore can hire Singaporean citizens or Permanent Residents on your behalf.
• Direct employment is necessary: To hire a foreign worker, your company must employ them directly through a registered local entity.
• Alternatives to EOR sponsorship: If you want to hire foreign talent, you will need to establish a legal presence in Singapore. This could be a representative office or by incorporating a local company.

Attempting to bypass these regulations can lead to serious consequences, including fines and imprisonment for both the company and the employee.

Business travel compliance

For short-term business activities, the rules are more relaxed. Many foreign nationals can enter Singapore without a visa for business negotiations or discussions.

Here’s what you need to know:

• Visit Pass: On arrival, you may be granted a visit pass, typically for 30 to 90 days. The exact duration is at the discretion of the immigration officer.
• Visa-free travel: Citizens of many countries, including the US, can enter Singapore for business purposes without a visa.
• Entry requirements: All visitors must have a passport with at least six months of validity and complete an electronic SG Arrival Card before entering the country.
• Specific activities: For certain short-term work assignments, like conducting a workshop or seminar, you might need a Miscellaneous Work Pass. This pass allows you to work for up to 60 days.

A Singapore visa is a pre-entry permission, not a guarantee of entry. The final decision rests with the immigration officers at the checkpoint.