Hiring in Singapore

Singapore's primary employment legislation is the Employment Act, which covers all employees under a contract of service except seafarers, domestic workers, and statutory board or government employees. Part IV of the Act (overtime, rest days, hours of work) applies only to workmen earning up to SGD 4,500/month and non-workmen earning up to SGD 2,600/month. Employees not covered by the Employment Act still have contractual protections and common law rights. The Ministry of Manpower (MOM) enforces these rules actively, and EOR providers handle the full scope of compliance.

Termination notice periods follow either the employment contract or statutory defaults: 1 day during probation, 1 week for tenure under 26 weeks, 2 weeks for 26 weeks to 2 years, and 4 weeks for 2+ years. Employers can pay salary in lieu of notice. There is no statutory severance, but employees with 2+ years of service who are retrenched can claim retrenchment benefits. The tripartite advisory recommends a norm of 2 weeks to 1 month of salary per year of service. Wrongful dismissal claims go through the Employment Claims Tribunal.

Employees get 7 days of paid annual leave in the first year of service, rising by 1 day each year up to 14 days. Singapore has 11 gazetted public holidays. If a public holiday falls on a rest day, the next working day is a paid holiday. Employees who work on a public holiday receive an extra day's salary. Sick leave provides 14 days of paid outpatient leave and 60 days of paid hospitalization leave per year (inclusive of the 14 outpatient days), subject to at least 3 months of service.

Payroll in Singapore centers on the Central Provident Fund (CPF). Both employers and employees contribute monthly. For employees aged 55 and below, the employer contributes 17%% and the employee contributes 20%%, on wages up to the CPF ceiling of SGD 6,800/month (ordinary wages). Employees aged 55-60 see rates drop to 15%% (employer) and 16%% (employee). At 60-65 the split is 11.5%% and 10.5%%. At 65-70 it is 9%% and 7.5%%. Above 70, rates fall to 7.5%% (employer) and 5%% (employee). The Skills Development Levy (SDL) also applies at 0.25%% of gross wages, with a minimum of SGD 2/month. There is no personal income tax withholding system for locals. Employers file IR8A forms annually and handle tax clearance (IR21) for departing foreign employees.

Parental leave is generous. Mothers receive 16 weeks of Government-Paid Maternity Leave (GPML) for the first and second child if they meet eligibility. The employer pays the first 8 weeks and the government reimburses the last 8 weeks (capped at SGD 10,000/week). For the third child and beyond, the government funds all 16 weeks. Fathers get 2 weeks of Government-Paid Paternity Leave. Working parents of Singapore citizens under 7 years old get 6 days of paid childcare leave per year per parent (2 days employer-paid, 4 days government-paid, for each of the first 3 qualifying children). Adoption leave of 12 weeks is also available.

Overtime pay applies to employees covered by Part IV of the Employment Act. The rate is 1.5 times the hourly basic rate, and monthly overtime is capped at 72 hours. For foreign worker hiring, companies must obtain the correct work pass. Employment Passes (EP) require a minimum salary of SGD 5,600/month (SGD 6,200 for financial services). S Passes target mid-level workers and require at least SGD 3,150/month. S Pass holders are subject to a foreign worker levy and a dependency ratio ceiling that varies by sector (10%% in services, 18%% in manufacturing). EP holders have no levy or quota. Companies must also advertise roles on MyCareersFuture for at least 14 days before applying for an EP, under the Fair Consideration Framework.