What to know about hiring and paying in Singapore

With Vensure Global you can expand your global workforce to Singapore with ease. We help you find, hire, and pay employees accurately and compliantly, ensuring full alignment with local labor laws, payroll regulations, and employer requirements.

Quick Facts

Currency

Singapore Dollar

Capital

Singapore

Primary Language(s)

Malay, English, Mandarin, Tamil

Payroll Cycle

Monthly

Population

5.9 million

Value Added Tax (VAT)

9%

Expanding into Singapore

Thinking about hiring in Singapore? This guide covers the key employment laws, payroll rules, required benefits, and compliance considerations for employers. Explore everything you need to hire and manage talent in Singapore with confidence.

Payroll & Working Hours

Minimum Wage Requirements

Singapore does not have a universal national minimum wage. Instead, it uses a sector-specific Progressive Wage Model (PWM) and a mandatory Local Qualifying Salary (LQS) of at least S$1,600 per month for firms hiring foreign workers. PWM applies to industries like cleaning, security, and retail, setting wage floors based on skill and experience.

Working hours

  • Primary Time Zone: Singapore Time (SGT) – UTC +8
  • Working Hours: From 9:00 AM to 6:00 PM (SST), Monday through Friday
  • Ensure that international communications are aligned with these hours for immediate responses
  • For urgent matters outside normal hours, clearly specify this in your correspondence to prompt swift action

Overtime Pay

Overtime payment must be compensated at 1.5 times the basic hourly rate with a maximum of 12 hours worked on any one day and 72 hours in a month.

Maximum Hours

Standard workweek is capped at 44 hours per week

Break Requirements

Employees must not work more than 6 consecutive hours without a break.

Exception: If the nature of the work requires continuous operation for up to 8 hours, a meal break of at least 45 minutes must be provided.

Unpaid Breaks: Breaks (including meal breaks) are not counted as working hours and are typically unpaid, unless otherwise stated in the employment contract.

Hiring and Onboarding Information​

Background Checks

Employers must obtain consent from candidates before conducting background checks.

  • Common checks include criminal records, employment history, education verification, and references.
  • Background checks are particularly common in finance, healthcare, education, and government positions.
  • Employers must follow specific guidelines to ensure compliance with the PDPA, avoiding discriminatory practices and ensuring data security.

Verification and New Hire Reporting

Employers must verify the authenticity of documents provided by new hires and comply with reporting requirements:

  • Employers must verify the authenticity of documents such as identification, educational certificates, and work passes.
  • Employers may need to submit reports to relevant authorities, such as the Ministry of Manpower (MOM), detailing new hires and their employment status

Onboarding Process & Documentation

Collecting Required Documentation:

During the onboarding process, employers need to collect various documents from new hires to ensure compliance and proper record-keeping:

  • Employment Contract: Signed by both employer and employee
  • Personal Data Protection Agreement: Ensures compliance with data protection laws
  • Work Pass Application: For foreign employees
  • Tax Forms: Necessary for income tax deductions
  • Bank Account Details: For salary payments
  • Employee Handbook: Outlines of company policies and procedures

Providing Employee Rights and Obligations:

Employers must inform new hires about their rights and obligations under Singaporean law:

  • Employment Act: Governs various aspects of employment, including working hours, rest days, and leave entitlements
  • Central Provident Fund (CPF) Act: Details of the CPF contributions required from both employers and employees
  • Work right Initiative: Helps employees understand their rights and obligations in accordance with the Employment Act and CPF Act

Benefits Packages​

Healthcare

Healthcare services in Singapore are regulated under the Healthcare Services Act (HCSA):

  • Healthcare providers must hold relevant HCSA licenses to offer services such as acute hospital care, outpatient medical services, and nursing home care
  • The HCSA ensures that healthcare services are delivered in accordance with updated models of care, including mobile and virtual care

Retirement

The minimum retirement age is 63 years, and it will be raised to 64 years from July 2026.

  • Employers must offer re-employment to eligible employees who reach retirement age, provided they meet certain criteria
  • Employers receive an offset of up to 7% of an employee’s monthly wages for employing workers aged 60 and above

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Information​

Employment Contract Details

Employers must provide employees with written KETs within 14 days of starting work. These terms include details such as job title, main duties, salary, working hours, and leave entitlements

Probation Period

Probationary periods will be agreed in the employment contract and is only applicable to employees who have not worked for the employer before. Three to six months is a common period to use as probation.

Visas

Understanding Visa Categories

  • Visa-Free Entry: Nationals from certain countries may enter Singapore for a short period without a visa, primarily for tourism or short business trips
  • Business Visa (Singapore Business Visit Pass): Required for foreign nationals intending to stay temporarily for business meetings, presentations, or conferences
  • Employment Pass: For foreign professionals, managers, and executives needing to work in Singapore. Eligibility includes a fixed monthly salary threshold and acceptable educational qualifications
  • EntrePass: For foreign entrepreneurs who wish to start and operate a business in Singapore
  • Permanent Resident Visa: For those considering a long-term stay in Singapore

Application Process

  • Business Visa: Submit online through ICA e-Service platform with required documents. Processing typically takes 1 to 3 weeks
  • Employment Pass: Employer or agent submits through MOM online portal with supporting documents. Processing takes about 3 weeks

Independent Contractors

Independent contractors in Singapore are governed by different regulations compared to employees:

  • Independent contractors typically have more autonomy and provide their own equipment
  • independent contractors are paid through commissions or lump sum payments
  • Independent contractors are not entitled to employee benefits such as annual leave, paid medical leave, public holiday pay, and overtime pay
  • Contractors can deduct business expenses from their income to lower their taxes
  • Misclassifying employees as independent contractors can result in fines up to SGD 60,000 ($46,507.66 USD) and prison time

Time Off Policies​

Paid Time Off

Employees covered by the Employment Act who have completed at least three months of service are entitled to be paid annual leave. In their first year, they receive a minimum of 7 days, with an additional day for each subsequent year of service.

However, it is common for employers to offer between 14 and 20 days of annual leave after the first year.

Public Holidays

  • New Year’s Day
  • Chinese New Year
  • Chinese New Year Holiday (Day Off in Lieu)
  • Good Friday
  • Hari Raya Puasa
  • Labor Day
  • Vesak Day (Tentative)
  • Hari Raya Haji
  • National Day
  • Deepavali
  • Christmas Day

Bereavement

In the event of the death of an immediate family member, although this is not a statutory entitlement, many Singaporean employers allow employees two or three days of paid leave.

Leave Policies​

Maternity Leave

A pregnant employee who has been employed for at least three months before the due date and whose child is a Singaporean citizen is entitled to 16 weeks of paid maternity leave. This leave is divided into two periods: up to 8 weeks can be taken before the expected due date (but no less than 28 days), with the remaining weeks taken after the baby’s birth.

If the child is not a Singaporean citizen, the maternity leave period is reduced to 12 weeks.

For the first and second child, the employer pays for the first eight weeks at the regular gross salary. The additional eight weeks can be reimbursed by the government, capped at SGD 10,000($7,751.28 USD) per 4 weeks, or a total of SGD 20,000 ($15,502.55 USD) per child.

From the birth of the third child onwards, all 16 weeks of maternity leave are reimbursed directly by the government, capped at SGD 10,000 ($7,751.28 USD) per 4 weeks, or a total of SGD 20,000 ($15,502.55 USD) per child.

Paternity Leave

The father or partner is entitled to 2 weeks of paid paternity leave after the baby is born, provided they have completed three months of service. This leave must be taken within 16 weeks after the baby’s birth and is funded by the Government-Paid Paternity Leave (GPPL), capped at SGD 2,500 ($1,937.82 USD) per week, or a total of SGD 5,000 ($3,875.64 USD).

Adoptive fathers are also eligible for government-paid paternity leave if they meet the eligibility criteria.

Parental Leave

Eligible fathers can apply for Shared Parental Leave, allowing them to share up to 4 weeks of their wife’s 16 weeks of maternity leave. The payment is reimbursed by the government, capped at SGD 2,500 ($1,937.82 USD) per week.

Each parent with at least 3 months of service is eligible for 6 days of childcare leave per year until the year the child turns 7 years old, regardless of the number of children they have. Childcare leave is capped at 42 days for each parent.

Employees must use their yearly childcare leave entitlement by the end of the year, as it cannot be carried forward to the next year.

The leave is paid as follows:

  • The first 3 days are paid for by the employer
  • The remaining 3 days are paid by the government, capped at SGD 500($387.56 USD) per day, including CPF contributions, or a total of SGD 1,500($1,162.69USD) in any calendar year

Employees are also eligible for 2 days of extended childcare leave per year if their youngest child, who is a Singapore citizen, is between 7 and 12 years old (inclusive). These days are reimbursed by the government, capped at SGD 500($387.56 USD) per day.

Sick Leave

After completing six months of service, employees are entitled to paid sick leave at their regular gross salary. They receive 14 days per year if no hospitalization is required, or 60 days per year if hospitalization is necessary, which includes 14 days of outpatient care.

Before reaching six months of employment, the entitlement to paid sick leave varies based on the length of service:

  • Up to three months: 5 days per year, or 15 days if hospitalization is necessary
  • Four months: 8 days per year, or 45 days if hospitalization is necessary
  • Five months: 11 days per year, or 45 days if hospitalization is necessary
  • Six months: 14 days per year, or 60 days if hospitalization is necessary

Employees must inform their employer within 48 hours of any inability to work and provide a medical certificate upon returning to work for any period of sickness.

Termination Information

Termination Requirements

Either the employer or the employee can end the employment relationship by providing the legally required notice, as long as it is not for an illegal reason such as discrimination against a protected group, and it adheres to the employment contract.

Employees who leave should be paid for any outstanding holiday entitlement, provided the termination is not due to misconduct. The employer must obtain an appropriate tax clearance from IRAS before making the final payment.

If the employer terminates the contract or the employee resigns and works the full notice period, payment should be made on the last day of employment or within three days if this is not possible.

If an employee resigns without notice and does not work during the notice period, payment should be made within seven days of the last day of employment.

Notice Period

  • Less than 26 weeks of service – 1 day notice
  • More than 26 weeks but less than 2 years of service – 1 week notice
  • More than 2 years but less than 5 years of service – 2 weeks’ notice
  • More than 5 years of service – 4 weeks’ notice

During the probation period, employment can be terminated by either the employer or the employee with five days of notice

Severance Pay

Employment contracts and collective agreements include “retrenchment benefit” payments, which are provided upon termination after an employee has completed two years of service. Typically, these benefits amount to 2–4 weeks’ pay for each year of employment.

Unemployment Insurance

The SkillsFuture Jobseeker Support Scheme provides unemployment benefits for retrenched workers. This offers tiered payouts to eligible Singaporeans and permanent residents who earn up to S$5,000 ($3,873.49 USD) per month.

To qualify, individuals must:

  • Be aged 21 and above
  • Have earned a salary of S$5,000 or less per month in the last 12 months
  • Live in a property with an annual value of S$25,000 ($19,395.63 USD) or less
  • Have been unemployed for at least one month due to involuntary reasons such as retrenchment, business cessation, dismissals, or termination due to illness, injury, or accident
  • Have been employed for at least six months in the past 12 months before applying for the scheme

This marks a significant shift in Singapore’s approach to unemployment support, aiming to help lower- and middle-income workers bounce back from job losses.

Workplace Safety​

Anti-Discrimination Practices

The Workplace Fairness Act 2025, to strengthen protections against workplace discrimination and promote fair employment practices. The Act does not cover sexual orientation, gender identity, or criminal history. The acts prohibit discrimination in employment decisions (e.g., hiring, promotion, dismissal) based on:

  • Nationality
  • Age
  • Sex
  • Marital status
  • Pregnancy status
  • Caregiving responsibilities
  • Race
  • Religion and language
  • Disability
  • Mental health conditions

Excludes certain categories such as seafarers, domestic workers, and other prescribed employee groups.

Small businesses with fewer than 25 employees are exempted for five years from the law’s effective date.

Workplace Safety Standards

Adherence to the Workplace Safety and Health Act is required to maintain proper safety standards to protect employees.

Workers’ Compensation

The Work Injury Compensation Act allows employees to claim compensation for work-related injuries or diseases without needing to prove employer negligence.

  • Coverage includes both local and foreign employees
  • Compensation covers medical leave wages, medical expenses, and lump-sum compensation for permanent disability or death

Labor Laws

Labor Law Sanctions

  • Employment Act: This is the main labor law in Singapore, covering basic terms and conditions of employment. It includes provisions for salary, working hours, overtime, and termination. Employers who violate these provisions can face fines and other penalties
  • Workplace Safety and Health Act (WSHA): This act mandates safe working conditions and practices. Employers who fail to comply with safety regulations can be fined or imprisoned. Serious breaches can lead to hefty fines and even criminal charges
  • Work Injury Compensation Act (WICA): This act provides compensation to employees who suffer work-related injuries or illnesses. Employers who do not comply with the compensation requirements can face penalties
  • Employment of Foreign Manpower Act (EFMA): This act regulates the employment of foreign workers. Employers who violate the provisions, such as failing to pay salaries or providing adequate living conditions, can face fines, imprisonment, and revocation of work permits
  • Retirement and Re-employment Act (RRA): This act ensures that older employees are treated fairly and have opportunities for re-employment. Non-compliance can result in sanctions
  • Child Development Co-Savings Act (CDCSA): This act includes provisions for maternity and paternity leave. Employers who do not adhere to these requirements can face penalties

Disclaimer

The information included in this section are provided for reference as samples of official documents derived from government agencies, law firms, or other entities. This content is not and may not be construed to be legal advice or to be a legal opinion on any specific facts or circumstances, or to be a comprehensive or all-inclusive compilation of facts potentially relevant to country, federal, state, or local laws. Any data referenced here is for informational purposes only. It is strongly recommended that any data you view, be carefully reviewed as well as any applicable changes in federal, state, and local laws, regulations, guidance, and guidelines set forth by the governing agencies, which may change at any time and in such instances will render some content in the above information void or inaccurate. Users should not rely on this content for editing and customization exclusively but should consult an attorney for legal guidance for proper and compliant drafting. You are solely responsible for compliance with all applicable laws and regulations.

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