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Singapore Hiring Guide

Hire compliantly in Singapore. Navigate CPF contributions, the foreign worker levy system and an employment framework where employer costs depend entirely on whether you’re hiring a citizen, PR or foreigner.

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Capital

Singapore

Language

EN, Chinese, Malay, Tamil

Average Salary

SGD 5,500

Payroll Cycle

Monthly

Employer Cost

17% CPF

Paid Leave

7-14 days

Public Holidays

11 days

Tax Rates

0-24%

Singapore Guides

Hiring guides covering regulations, contributions and costs specific to Singapore. Updated for 2026.

Best Employer of Record in Singapore

The CPF Ordinary Wage ceiling increased to SGD 8,000 in January 2026. Any provider still calculating CPF on the old SGD 7,400 ceiling is underpaying contributions and creating compliance exposure with the CPF Board.

Our assessment of providers in Singapore evaluates CPF accuracy across age brackets, foreign worker levy management and MOM compliance.

Best EORs in Singapore

Before You Hire in Singapore

Employer costs split dramatically by nationality. A Singaporean citizen costs 17% in CPF plus SDL. An Employment Pass holder costs SGD 11.25/month in SDL and nothing else. An S Pass holder costs SDL plus SGD 550-650/month in Foreign Worker Levy. The same role at the same salary has wildly different employer costs depending on who fills it.
CPF is a savings scheme, not a tax. The 17% employer contribution goes into the employee’s personal CPF account, split across Ordinary, Special and Medisave sub-accounts. The money belongs to the employee. This distinction matters when comparing total compensation across countries.
The CPF OW ceiling rose to SGD 8,000/month in January 2026. This is the final step in a phased increase from SGD 6,000 since 2023. Employer CPF is calculated only on salary up to this ceiling. Above SGD 8,000, employer CPF cost flattens at SGD 1,360/month maximum.
Singapore does not withhold income tax from payroll. Unlike most countries, employers do not deduct income tax from employee salaries. Employees file and pay their own tax annually. The employer’s only obligation is to report compensation to IRAS via the Auto-Inclusion Scheme.

Why hire in Singapore

Employment Pass holders cost almost nothing beyond salary

An EP holder earning SGD 8,000/month costs the employer SGD 11.25 in SDL and nothing else. No CPF, no levies, no social insurance. Total mandatory employer cost: 0.14% of salary. No other developed economy comes close to this for skilled foreign hires.

Payroll runs without employer tax withholding

No withholding at source. The employer reports compensation annually to IRAS and that's it. For companies managing payroll across multiple countries, Singapore is the simplest developed market to operate in.

CPF is a benefit employees value, not a cost they resent

CPF contributions go into the employee's personal account and can be used for housing, education and healthcare. The 17% employer cost buys genuine retention, not just compliance.

Ethnicity-based deductions signal local expertise

Singapore deducts small community fund contributions (CDAC, MBMF, SINDA, ECF) from employee salaries. No other country does this. Getting these right signals your payroll understands Singapore.

Key Employment Facts

Singapore's leave entitlement starts at just 7 days and the absence of employer tax withholding makes payroll operationally simpler than almost any other developed market.

Key Employment Facts
Minimum Wage	No national minimum (PWM sectors only)
Probation Period	Typically 3-6 months (contractual, not statutory)
Standard Working Hours	44 hours/week (Employment Act Part IV)
Paid Annual Leave	7 days (year 1), increasing by 1/year to 14 days
Notice Period	1 day to 4 weeks (by tenure, or per contract)
13th Salary	Not statutory (AWS common but not mandatory)
Sick Leave	14 days outpatient + 60 days hospitalization (paid)
Maternity Leave	16 weeks (first 8 weeks employer-paid, rest government-funded)

Good to Know: The Annual Wage Supplement (AWS, or “13th month”) is customary in Singapore but not legally required. However, if your employment contract includes it, it becomes a contractual obligation. Many providers include AWS in their standard Singapore contracts without flagging that it’s optional. Check what your contract actually commits you to.

What to Watch When Hiring in Singapore

CPF rates change at ages 55, 60, 65 and 70

Employer CPF drops from 17% to 14.5% at age 55, then 11% at 60, 8.5% at 65 and 7.5% at 70. The 2026 update increased rates for the 55-65 bracket specifically. Your payroll must track employee ages and apply rate changes from the month following each birthday.

Foreign worker quota and levy create a hidden cost structure

S Pass holders trigger SGD 550-650/month in levies, Work Permit holders SGD 300-950/month. If your headcount is levy-heavy, cumulative costs can exceed what you'd pay in CPF for citizens.

PR employees have graduated CPF rates for the first two years

First-year and second-year Permanent Residents contribute at reduced CPF rates. From the third year, full rates apply. If your provider applies full citizen rates to a new PR from day one, you're overpaying and the employee is being over-deducted.

Foreign employee exits require tax clearance

The employer must file Form IR21 with IRAS at least one month before a foreign employee's last day and withhold all payments until clearance is obtained. Missing this creates personal liability for unpaid tax.

Employer Costs and Employee Taxes in Singapore

When you hire in Singapore, employer costs range from 0.14% for EP holders to 17.25% for citizens/PRs (under 55), depending entirely on the employee's nationality and pass type.

Employer Contributions
Contribution	Citizens/PR	EP Holders
CPF	17% (capped at SGD 8,000 OW/month)	Not applicable
SDL	0.25% (min SGD 2, max SGD 11.25/month)	0.25% (min SGD 2, max SGD 11.25/month)
Foreign Worker Levy	Not applicable	Not applicable
Total Employer Cost	~17.25%	~0.14%

Employee Taxes
Tax / Contribution	Employee Rate
Income Tax (progressive, self-filed)	0-24% (not withheld by employer)
CPF (employee share, citizens/PR under 55)	20% (capped at SGD 8,000 OW/month)
Self-Help Group (SHG) contributions	SGD 0.50-3.00/month (by ethnicity and income)

Good to Know: Singapore’s employer cost story has two chapters. For citizens under 55 earning SGD 7,000/month: CPF at 17% = SGD 1,190 plus SDL SGD 11.25. Total employer cost: SGD 8,201/month or 1.17x salary. For an EP holder at the same salary: SDL SGD 11.25 only. Total employer cost: SGD 7,011/month or 1.002x salary. The difference is SGD 1,190/month, SGD 14,280/year. This cost gap is why Singapore’s work pass system and Saudization-style Fair Consideration Framework exist: without policy intervention, the economics overwhelmingly favor hiring foreigners.

Public Holidays in Singapore (2026)

Singapore has 11 public holidays across four cultural traditions. Three fall on Sundays in 2026, triggering Monday substitutes.

Date	Holiday
January 1	New Year’s Day
February 17	Chinese New Year Day 1
February 18	Chinese New Year Day 2
March 21	Hari Raya Puasa (approximate)
April 3	Good Friday
May 1	Labour Day
May 27	Hari Raya Haji (approximate)
May 31	Vesak Day (observed June 1, Monday)
August 9	National Day (observed August 10, Monday)
November 8	Deepavali (observed November 9, Monday)
December 25	Christmas Day

Good to Know: Singapore’s 11 public holidays span Chinese, Malay, Indian and Western traditions. Hari Raya Puasa and Hari Raya Haji dates shift annually with the Islamic calendar. When a public holiday falls on a Sunday, the following Monday is a paid public holiday. In 2026, this applies to Vesak Day (May 31), National Day (August 9) and Deepavali (November 8). Employees who work on a public holiday are entitled to an extra day’s salary or a replacement day off.