Employer of Record (EOR) in Singapore
Employer of Record (EOR) in Singapore enables businesses to hire employees quickly without setting up a legal entity. Singapore has a workforce of around 3.7 million people, highly skilled in finance, technology, logistics, life sciences, and professional services. With its strategic location in Asia and business-friendly regulations, Singapore is a preferred hub for multinational companies. However, local compliance with employment laws, payroll, work permits, and contributions to the Central Provident Fund (CPF) can be complex. EOR services help businesses manage hiring, payroll, and compliance efficiently while staying aligned with Singapore’s labor regulations.
About Singapore
Singapore is a global financial and innovation hub, known for its pro-business environment, political stability, and highly skilled workforce. Located at the crossroads of major Asian trade routes, it serves as a gateway for businesses expanding into Asia-Pacific markets.
The country has a reputation for transparent governance, low corruption, and strong intellectual property protection. Singapore ranks among the top countries in ease of doing business and digital readiness. English is widely spoken, and the workforce is multilingual, reflecting the country’s multicultural population.
Industries such as finance, technology, pharmaceuticals, biotechnology, logistics, and advanced manufacturing thrive in Singapore due to strong government support and investment in innovation. For global companies, Singapore provides a stable environment with access to world-class infrastructure and a competitive workforce.
Employment Terms and Regulations
Types of Contracts
- Permanent employment contracts
- Fixed-term contracts
- Part-time and temporary contracts
Working Hours
- Standard: 44 hours per week
- Overtime capped at 72 hours per month (with exceptions)
Minimum Wage
- No statutory minimum wage, except for certain roles (e.g., cleaners, security officers) covered under Progressive Wage Model
Probation Period
- Commonly 3–6 months, based on employer policy
Taxation and Contributions
- Employers must contribute to Central Provident Fund (CPF) for Singapore citizens and permanent residents.
- No CPF contributions required for foreign employees.
- Corporate tax rate: 17% (flat).
Types of Leave
Annual Leave:
7–14 days, based on service length
Maternity Leave:
16 weeks
Paternity Leave:
2 weeks
Sick Leave:
14 days outpatient, 60 days hospitalization leave
Employee Benefits
- CPF contributions (for locals/PRs)
- Medical coverage (often provided by employers)
- Paid annual leave
- Family leave entitlements
Termination Process
- Notice periods typically 1–3 months, depending on the contract
- Termination requires notice or payment in lieu of notice
- Employers must ensure compliance with Employment Act provisions
Employer Taxes
- CPF Contribution (Employer): 17% of wages (for Singapore citizens and PRs, capped at wage ceilings)
- No social security contributions for foreign workers
- Skills Development Levy (SDL): 0.25% of monthly wages, minimum SGD 2, maximum SGD 11.25
Total Employer Taxes:
Around 17%–18% of gross salary for local hires; much lower for foreign hires (only SDL applies).
EMPLOYER TAXES
17%–18% (Estimated)
FAQ's
How an Employer of Record Manages Employment in Singapore
Establishing a legal entity in Singapore can be costly and time-consuming. We simplify the process by employing and paying your Singapore-based talent on your behalf. We handle employment contracts, CPF registrations, and payroll in compliance with Singapore labor law. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent in Singapore without setting up a local subsidiary.
Payment Processes for Employees in Singapore
We manage payroll for your Singapore-based workforce. Employee hours, leave, holidays, bonuses, and CPF contributions are calculated in accordance with Singapore requirements. Invoicing is handled monthly in your preferred currency, including Euros (EUR), US Dollars (USD), or British Pounds (GBP), ensuring your employees receive their salaries promptly in Singapore Dollars (SGD).
Full-time Employees vs. Independent Contractors in Singapore
Independent contractors in Singapore engage with multiple companies and are self-employed, while full-time employees work exclusively for one employer and receive statutory benefits such as CPF coverage, paid leave, and dismissal protections. Misclassifying employees as contractors carries legal and financial risk under Singapore labor law. Partnering with an EOR for compliant hiring and payment removes that risk.
Reliable Employee Support in Singapore
Our platform offers accessible support for employers and employees with inquiries about benefits, contracts, and employment in Singapore. Every client is assigned a dedicated account manager who serves as the primary contact for HR and compliance assistance throughout the employment relationship.
