Employer of Record in Singapore

Why workforce consulting is key in Singapore

Hiring in Singapore can be different to what most Western employers are used to, and getting local help is key. Rivermate Global Consulting helps you structure, plan, and execute your global strategy while staying aligned with local requirements. You’ll work with experienced professionals who know how to build to scale and connect you with suitable service providers in Singapore.

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Singapore’s labor market: A snapshot

The hiring market
Greatest hiring activity:	PMET vacancies (Professionals, Managers, Executives and Technicians) account for 56.3% of all job vacancies in Singapore. The largest hiring demand for workers comes from the planning areas, Downtown Core and Queenstown.
Onboarding timelines:	Once a candidate has accepted an employment offer: Local: 2 - 3 business days Foreign hire: Up to 2 months
In-demand sectors:	Information and communication, financial and insurance services and professional services.
Sectors with occupation shortages:	As listed by the Shortage Occupation List (SOL):
Agritech, financial services, green economy, healthcare, infocomm technology, maritime and semi-conductor.

The salary market
Mandatory contributions:	Central Provident Fund: Contributions vary based on the employee’s citizenship status, age group and total wages. Skills Development Levy: 0.25% for each employee. Minimum levy is S$2 (employees earning less than S$800 a month) and the maximum is S$11.25 (employees earning more than $4,500 a month). SHG contributions: Contributions vary according to the fund. Foreign Worker Levy: Applies to employers who hire Work Permit and S-Pass employees. Varies according to sector, the worker’s qualification and the number of Work Permit and S-Pass holders employed. Work injury compensation insurance: Varies
Statutory minimum wage:	There is no national statutory minimum wage for Singapore, however the Progressive Wage Model requires employers in certain sectors to pay set wages. The Local Qualifying Salary sets the minimum salary for local employees who work for companies that also employ foreign workers. This amount is currently S$1,800 a month.
Personal income tax rates:	Progressive tax rate ranging from 0% to 24%

Hiring in Singapore: what it's really like

For overseas companies, Singapore serves as a premier Asia-Pacific launchpad into APAC, providing regional connectivity and a pro-business environment. Its progress in advanced biomedical, smart-city and agricultural innovations has attracted the attention of foreign investors, who want to draw from the talented and diverse workforce.

Despite the country’s reputation for being business-friendly, Singapore labor laws are given priority by authorities. Local labor laws are primarily overseen by the Ministry of Manpower and offer local and foreign workers strong protections.
Employers are encouraged to work within the boundaries of its well-established labor framework.

Employment contracts must be simply written and include clear definitions of employment terms. What appears to be minor stipulations in Singapore employment law can quickly become challenging. For example, using the incorrect job title for a sector can trigger additional scrutiny from authorities when registering employees for mandatory benefits.

How much does it cost to hire in Singapore?

The total employment cost in Singapore will be affected by several factors, including the minimum wage stipulations, market-related salaries, mandatory contributions, variable pay and additional benefits. Possible future financial obligations at termination of a contract also play a role in the total costs.

Salary benchmarks

A combination of the Progressive Wage Model, Local Qualifying Salary and market salary surveys can be used as a starting point for ensuring workers are being paid adequate wages in Singapore.

Statutory obligations

The Central Provident Fund is Singapore’s mandatory social security system and applies to Singapore citizens and Permanent Residents. The CPF contribution rates are calculated based on the employee’s citizenship status, age group and total wages. In January 2027, there will be an increase to these rates for employees earning more than S$750 and in the age groups above 55 to 60 and above 60 to 65. Employers must remit CPF contributions by the 14th of each month.

The Skills Development Levy must be paid for all employees in Singapore and is used to support workforce upgrading. The general levy is 0.25% of monthly total wages but there are also minimum and maximum levels based on an employee’s salary. The Singapore government provides employers with a SDL calculator to work out your SDL contribution.

Self-Help Group contribution (SHG) is intended for the upliftment of certain low-income households and the less privileged in certain communities. These contributions are deducted from an employee’s salary and collected by the CPF Board.

Companies that hire Work Permit holders must pay a monthly Foreign Worker Levy. The levy liability starts from the day the Temporary Work Permit or Work Permit is issued and ends when the permit is cancelled or expires. In July 2026, the Singapore Ministry of Manpower provided updated guidelines on how to calculate your quota and levy bill. By upgrading a worker to a higher-skilled status you can reduce your levy bill.

The final contribution is the work injury compensation insurance which must be purchased for manual workers and non-manual workers who earn $2,600 or less a month.

Employment cost calculator

Basic working conditions and employee rights

From an international perspective, statutory employee benefits influence the final true cost of hiring and affect how a Singapore employer is perceived in the market. The Employment Act is foundational to the governance of working conditions and employment terms in Singapore. It guides employers towards setting appropriate expectations and developing sound HR practices in the market.

Who is covered by Singapore’s Employment Act?
Employees under a contract of service, except where the Act specifically identifies parties that are not covered under a specific section of the law. For example, Part 4 of the Act does not cover managers or executives. Foreign employees are concurrently covered by the Employment of Foreign Manpower Act.

Statutory benefit	Description
Working hours (common work arrangements)	If an employee works 5 days or less a week: Up to 9 hours a day or 44 hours a week. If an employee works more than 5 days a week: Up to 8 hours a day or 44 hours a week. Employees working less than 35 hours a week are covered by the Employment of Part-time Employees Regulations.
Overtime	Overtime for non-workmen: Overtime work is all work in excess of normal working hours (excluding breaks). Employees may claim overtime if they earn a monthly basic salary of S$2,600 or less. An employee must be paid at least 1.5 times the hourly basic rate of pay. Calculate overtime pay Employers cannot substitute overtime pay for time off if the employee is covered under Part 4 of the Act. Maximum overtime hours are set by the Act and if employers require employers to work beyond these hours, they must apply for an exemption.
Paid public holidays	Any employee covered by the Act is entitled to 11 paid holidays a year but if they are required to work on paid holidays, they must be compensated according to the rates set out by the Act.
Annual leave	Employees covered by the Act and who have worked at least three months are entitled to annual leave. Leave entitlement depends on the years of service, starting with 7 days in the first year of service and increasing to 14 days for 8 or more years of service.
Sick leave	Employees covered by the Act, who have worked at least three months and have notified their employer within 48 hours of their absence, are entitled to sick leave.
There are two kinds of paid sick leave (outpatient and hospitalisation) and eligible employees are compensated according to the type of sick leave they take. Entitlement: Outpatient: Up to 14 days of paid sick leave Hospitalisation: Up to 60 days paid sick leave after six months. This amount includes the 14 days for outpatient sick leave. Between three and six months of work, sick leave is pro-rated according to the stipulations set by the Act. An employee is entitled to their salary when they are on sick leave for at least one day and the reimbursement of medical consultation fees if their medical certificate is from an approved practitioner.
Maternity, paternity, adoption, childcare and shared parental leave	The Employment Act provides various types of leave for eligible employees. Each type of leave has very specific eligibility criteria and compensation rules which can be found here: Maternity leave Paternity leave Adoption leave Childcare leave Shared parental leave

Hiring foreign nationals to work in Singapore

As a first-time employer in Singapore, you likely have many questions about expat hiring in the country. We cover the most common questions, drawing on the expertise of our local experts and legislation.

How complicated is it to hire foreign nationals to work in Singapore?

Singapore has very strict compliance requirements for foreigners and this can make it challenging. For starters, the salary requirements must pass two tests: the sector qualifying salary and the COMPASS test. Therefore, the minimum qualifying salary is not the only criteria for approval. There are also different kinds of passes with the fees for certain passes significantly higher than others. So, while the online application process is not complicated, these stipulations can make it challenging.

How do authorities allocate a company’s immigration quota?

They assess the quota based on how long the company has been operating, whether they pay their taxes as required and how much revenue the company earns. This is slightly different to other countries where the quota is based on a percentage of the total workforce or a ratio of local to foreign hires.

What are common passes used to hire foreign workers?

The Employment Pass (EP) is commonly used for foreign professionals, executives, managers and technicians. The S-Pass is used for skilled workers but the salary threshold for the S-Pass is much lower than the EP. The duration of both the EP and S-Pass for a first-time candidate is up to 2 years.

Are there further statutory obligations for foreign workers?

Employers are required to buy and maintain medical insurance for S-Pass holders. The coverage for each S-Pass employee must be at least $60,000 per year. This medical insurance must cover inpatient care and day surgery.

How Rivermate can help you hire compliantly in Singapore

By this point, it's clear that Singapore operates under a streamlined and highly effective business environment and employment framework, making it easier for a foreign entity to operate there. However, that doesn’t mean it won’t have its challenges.

Hiring international employees through your own Singapore entity requires a long-term investment in key infrastructure and local resources. This may be more than you initially need. Our global hiring experts in Singapore can help you establish the right expansion strategy, providing you with compliance support, market insights and connecting you with the right local partners.

Ready to hire in Singapore?

Rivermate handles the complexities so you can hire with confidence in Singapore.

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Sources:
https://www.mom.gov.sg/
https://www.cpf.gov.sg/content/dam/web/employer/employer-obligations/documents/CPFcontributionratesfrom1Jan2026.pdf