Singapore has no national minimum wage, no compulsory 13th month and short default notice periods. What shapes a Singapore hire instead is CPF, the national savings scheme that takes up to 37% of salary between employer and employee for citizens and permanent residents, and one rule from the Ministry of Manpower (MOM) that decides who you can employ through an employer of record at all.
Everything here comes from MOM, the CPF Board and IRAS, the Inland Revenue Authority, and each page is linked in the list at the end.
Who can you hire through an EOR in Singapore?
MOM states that an employer of record (EOR) cannot apply for a work pass for a foreigner who will be based in Singapore while working for an overseas company. Making that application is an offence. So if your candidate would need an Employment Pass or another work pass to work for you, an EOR is not the route.
For those hires, MOM points overseas businesses towards setting up a representative office or incorporating in Singapore, then applying through a work-pass route they are eligible for. Be wary of anyone who offers an EOR arrangement as a way around this.
That leaves an EOR for candidates who don't need a work pass sponsored for your business, such as Singapore citizens and permanent residents. That is also the group that pays CPF.
Entity, contractor or EOR in Singapore?
Once you know whether the candidate needs a work pass, the choice narrows quickly.
A Singapore company is the route for anyone who needs a work pass, and for a team you plan to build locally. You then handle payroll, CPF and the Employment Act yourself.
A contractor is judged on several factors, MOM says, with no single test: who controls the work, who provides the tools and premises, and who carries the business risk or shares the profit. When the work is independent, Hire with Columbus can run the contractor agreement and payments from $22.50 per contractor per month.
An EOR suits an eligible candidate you want on the books quickly. Hire with Columbus holds the contract, payroll and CPF from $179/month per employee, and onboarding tends to take 2 to 3 days.
What goes into a Singapore employment contract?
The Employment Act covers most employees, local and foreign, full-time and part-time. Employers must give written key employment terms within 14 days of the start for contracts of 14 days or more. They should cover the employer, role, pay, hours, leave and notice.
Probation and confirmation are set by the contract, and service counts from the original start date. Ending employment at the end of probation still needs written notice, or salary in lieu.
Who the hours and overtime rules cover
Part IV of the Employment Act, which sets hours, overtime and rest days, covers a narrower group. It applies to workmen earning a basic salary of up to S$4,500 a month and other employees earning up to S$2,600, and it excludes managers and executives. For everyone else, agree working time and overtime in the contract.
How do salary and CPF work?
Employees must be paid at least monthly, within 7 days after the end of the salary period. Overtime is due within 14 days. Each payment comes with an itemised payslip, and employers keep payslips for the latest 2 years.
No minimum wage, but salary floors
Singapore has no national minimum wage. Two schemes set floors for some workers instead. Progressive Wage requirements cover specified local workers by sector or occupation.
And any employer that hires foreign workers must pay its local employees at least the Local Qualifying Salary. From 1 July 2026, that's S$1,800 a month for full-time work of 35 to 44 hours a week, or S$10.50 an hour part-time.
MOM's labour-force survey puts median gross monthly income for full-time employed residents at S$5,775 in 2025, employer CPF included. Treat it as background when you price a role.
Bonuses and the AWS
The Annual Wage Supplement (AWS), a 13th-month payment, isn't compulsory. It's owed only if the contract or a collective agreement says so. State in the offer whether any bonus is guaranteed or conditional, and how it's calculated.
CPF contributions
CPF is compulsory for Singapore citizens and permanent residents earning more than S$50 a month. Foreign employees who aren't permanent residents are exempt. For citizens and permanent residents from their third year, with monthly wages above S$750, the 2026 rates are:
| Employee age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
CPF applies to ordinary wages up to S$8,000 a month in 2026. Bonuses and other additional wages have an annual ceiling of S$102,000 minus the ordinary wages that attracted CPF that year. Permanent residents in their first two years usually pay lower graduated rates.
Skills Development Levy
Employers also pay the Skills Development Levy for employees working in Singapore, foreign employees included. It's 0.25% of total monthly wages, with a minimum of S$2 and a maximum of S$11.25 per employee.
You can check CPF and SDL on a given salary with the Singapore cost calculator.
Income tax
Residents pay income tax on their chargeable income at these progressive rates, from Year of Assessment 2024 onwards:
| Chargeable income | Rate on that band |
|---|---|
| First S$20,000 | 0% |
| S$20,000 to S$30,000 | 2% |
| S$30,000 to S$40,000 | 3.5% |
| S$40,000 to S$80,000 | 7% |
| S$80,000 to S$120,000 | 11.5% |
| S$120,000 to S$160,000 | 15% |
| S$160,000 to S$200,000 | 18% |
| S$200,000 to S$240,000 | 19% |
| S$240,000 to S$280,000 | 19.5% |
| S$280,000 to S$320,000 | 20% |
| S$320,000 to S$500,000 | 22% |
| S$500,000 to S$1 million | 23% |
| Over S$1 million | 24% |
Non-residents' employment income is generally taxed at 15% or the resident rates, whichever gives more tax.
What are the hours and overtime rules?
For employees covered by Part IV, a normal schedule is up to 9 hours a day on five days or fewer a week, or 8 hours a day on more than five days, normally within 44 hours a week. There must be a break after no more than 6 hours in a row, and one rest day a week.
Overtime under Part IV is paid at least 1.5 times the hourly basic rate. The limits are 12 working hours a day and 72 overtime hours a month, unless an exemption applies.
Under the Tripartite Guidelines on flexible work, in place since 1 December 2024, employers must properly consider a formal request for flexible work and reply in writing within 2 months. They don't have to approve every request, but a rejection needs a reason.
What leave does the Employment Act give?
Annual leave
Employment Act employees qualify after 3 months of service. The minimum is 7 days in the first year, rising by one day each year to 14 days from the eighth year. The contract can give more.
Public holidays
Employment Act employees get 11 paid public holidays a year. If a holiday falls on a rest day, the next working day is a paid holiday. Working on a public holiday normally earns an extra day's basic pay.
Sick leave
After 6 months of service, eligible employees get up to 14 days of paid outpatient sick leave and 60 days of hospitalisation leave a year. The 60 includes the 14. Before that, the entitlement builds up:
| Months of service | Outpatient sick leave | Hospitalisation leave (including outpatient) |
|---|---|---|
| 3 | 5 days | 15 days |
| 4 | 8 days | 30 days |
| 5 | 11 days | 45 days |
| 6 or more | 14 days | 60 days |
Family leave
Much of Singapore's family leave is government-paid: the employer pays the employee and claims reimbursement, up to a cap.
| Leave | Length | Who pays |
|---|---|---|
| Government-Paid Maternity Leave | 16 weeks, for a Singapore citizen child | Employer pays the first 8 weeks for a first or second child, the government reimburses the last 8, capped at S$20,000 |
| Government-Paid Paternity Leave | 4 weeks, for births from 1 April 2025 | Reimbursed up to S$2,500 a week |
| Shared Parental Leave | 10 weeks between the parents, for births from 1 April 2026 | Reimbursed up to S$2,500 a week |
| Childcare leave | 6 days a year, child a citizen under 7 | Employer pays 3 days, government reimburses 3 |
| Unpaid infant care leave | 12 days a year per parent, child a citizen under 2 | Unpaid |
Where the government-paid scheme doesn't apply, the Employment Act can give 12 weeks of maternity leave, with the first 8 weeks paid by the employer only when its conditions are met. Parents of non-citizen children under 7 can get 2 days of paid childcare leave.
Work injury insurance
Employers must buy work injury compensation insurance for all manual employees, and for non-manual employees earning S$2,600 a month or less. For other employees, the employer is still liable for a valid claim even without insurance.
How do notice and retrenchment work?
Notice must be in writing, and the contract's notice period must be the same for both sides. If the contract says nothing, the Employment Act default applies:
| Length of service | Notice |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Salary in lieu of notice is allowed. Notice doesn't make a discriminatory or retaliatory dismissal lawful, though: a wrongful-dismissal claim generally goes to the Tribunal for Employment Claims (TADM) within one month of the last day of work.
Retrenchment
Employees with at least 2 years' service are eligible for retrenchment benefits. The amount comes from the contract or collective agreement, or negotiation. MOM describes the prevailing norm as 2 weeks to one month of salary per year of service, but it isn't a fixed statutory formula.
A Singapore-registered employer with at least 10 employees must notify MOM within 5 working days of telling an employee they're being retrenched.
Tax clearance for non-citizens
When a non-citizen employee leaves, the employer must generally file Form IR21 with IRAS at least one month in advance and hold back money from that point until clearance. Check the exemptions first.
What has changed recently?
- 1 December 2024: flexible work guidelines. Employers must consider formal flexible-work requests and reply in writing within 2 months.
- 1 April 2025: longer paternity leave. Government-Paid Paternity Leave is 4 weeks for qualifying births.
- 1 January 2026: CPF rates. New age-banded rates apply, with the ordinary wage ceiling at S$8,000 a month.
- 1 April 2026: more shared parental leave. Parents share 10 weeks for qualifying births, up from 6.
- 1 July 2026: retirement and re-employment ages. The minimum retirement age is 64 and the re-employment age 69.
- 1 July 2026: higher Local Qualifying Salary. S$1,800 a month for full-time local employees.
Singapore hiring with Hire with Columbus
For candidates who don't need a work pass sponsored for your business, Hire with Columbus is the employer: contract, payroll, CPF, the Skills Development Levy and leave records. You set the work.
Prices start from $179/month per employee, with contractors from $22.50/month, and onboarding is generally 2 to 3 days from the accepted offer. Model a salary with the Singapore cost calculator, compare pricing or get started.
Sources
Sources for every figure on this page:
- Ministry of Manpower, Can an EOR apply for a work pass for a foreigner working for an overseas company? (checked 13 September 2026)
- Ministry of Manpower, What is a contract of service (checked 13 September 2026)
- Ministry of Manpower, Who the Employment Act covers (checked 13 September 2026)
- Ministry of Manpower, Ending employment at the end of probation (checked 13 September 2026)
- Ministry of Manpower, Paying salary (checked 13 September 2026)
- Ministry of Manpower, Itemised payslips (checked 13 September 2026)
- Ministry of Manpower, Local Qualifying Salary (as of 1 July 2026)
- MOM Manpower Research and Statistics Department, Labour Force in Singapore 2025 (released 29 January 2026)
- Ministry of Manpower, Annual Wage Supplement and variable payments (as of 1 October 2026)
- CPF Board, CPF contributions as an employee (checked 13 September 2026)
- CPF Board, How much CPF contributions to pay (as of 1 January 2026)
- CPF Board, CPF contribution rates and wage ceilings, 2026 (as of 1 January 2026)
- CPF Board, Skills Development Levy (checked 13 September 2026)
- IRAS, Individual income tax rates (Year of Assessment 2024 onwards)
- Ministry of Manpower, Hours of work, overtime and rest days (checked 13 September 2026)
- Ministry of Manpower, Tripartite Guidelines on flexible work requests (as of 1 December 2024)
- Ministry of Manpower, Annual leave entitlement (checked 13 September 2026)
- Ministry of Manpower, Public holidays entitlement and pay (checked 13 September 2026)
- Ministry of Manpower, Sick leave entitlement (checked 13 September 2026)
- Ministry of Manpower, Maternity leave entitlement (checked 13 September 2026)
- Ministry of Manpower, Paternity leave (as of 1 April 2025)
- Ministry of Manpower, Shared parental leave (as of 1 April 2026)
- Ministry of Manpower, Childcare leave entitlement (checked 13 September 2026)
- Ministry of Manpower, Unpaid infant care leave (checked 13 September 2026)
- Ministry of Manpower, Work injury compensation insurance (checked 13 September 2026)
- Ministry of Manpower, Termination with notice (checked 13 September 2026)
- Ministry of Manpower, Wrongful dismissal (checked 13 September 2026)
- Ministry of Manpower, Responsible retrenchment (checked 13 September 2026)
- Ministry of Manpower, Mandatory retrenchment notifications (checked 13 September 2026)
- Ministry of Manpower, Re-employment (as of 1 July 2026)
- IRAS, Tax clearance for foreign employees (IR21) (checked 13 September 2026)
Frequently asked questions
How much does an EOR cost in Singapore?
Hire with Columbus employs eligible candidates in Singapore from $179 per employee per month, with no setup fee. That covers the employment contract, monthly payroll, CPF contributions and the Skills Development Levy. The bigger cost is what sits on top of salary, which you can estimate for a specific salary with the Singapore cost calculator.
Can I hire employees in Singapore without setting up a local entity?
Yes, for candidates who don't need a work pass sponsored for your business, such as Singapore citizens and permanent residents. The Ministry of Manpower says an EOR cannot apply for a work pass for a foreigner who will work in Singapore for an overseas company, and making that application is an offence. For those hires, you need a representative office or a Singapore company.
How long does it take to hire someone in Singapore?
Onboarding through Hire with Columbus typically takes 2 to 3 days once your candidate has accepted. The employer then has 14 days from the start to give written key employment terms. Check early whether the candidate needs a work pass, because an EOR can't sponsor one for your overseas company.
What does an employer pay on top of gross salary in Singapore?
For citizens and permanent residents aged 55 and below, employer CPF is 17% of ordinary wages up to S$8,000 a month in 2026, with lower rates for older employees. Foreign employees who aren't permanent residents don't pay CPF. Employers also pay the Skills Development Levy of 0.25% of wages, between S$2 and S$11.25 per employee a month.
What is the notice period for terminating an employee in Singapore?
The contract sets it, and it must be the same for both sides. If the contract says nothing, the default is 1 day below 26 weeks of service, 1 week up to 2 years, 2 weeks up to 5 years and 4 weeks after that. Salary in lieu of notice is allowed, but it doesn't make a discriminatory or retaliatory dismissal lawful.
Is a 13th-month salary mandatory in Singapore?
No. The Annual Wage Supplement, a 13th-month payment, is owed only if the employment contract or a collective agreement provides for it. State in the offer whether any bonus is guaranteed or conditional and how it's calculated.
How much paid leave are employees entitled to in Singapore?
Employment Act employees get at least 7 days of annual leave in their first year, rising by one day a year to 14 days from the eighth year, once they have 3 months of service. They also get 11 paid public holidays, and after 6 months up to 14 days of outpatient sick leave within 60 days of hospitalisation leave.
What is the difference between hiring an employee and a contractor in Singapore?
The Ministry of Manpower says there's no single test: control over the work, who provides the tools and premises, and who bears the business risk all matter, whatever the contract is called. For genuinely independent work, Hire with Columbus can run contractor agreements and payments from $22.50 per contractor per month.
What changed in Singapore
Checked against official sources on .
No rule changes recorded since we began logging them.