How to Choose an Employer of Record in Singapore: 8 Checks Before You Sign
Insights · By Chen ChunJie · Updated 7 October 2026
Short answer: choose a Singapore employer of record that employs through a named Singapore entity, gets CPF right for your employee’s age and residency status, puts every fee in writing and is clear about which employees it covers. The eight checks below take about an hour with each shortlisted provider and help you avoid the most common problems.
Last reviewed in October 2026 against MOM, CPF Board and IRAS sources.
1. Who will be the legal employer?
Ask for the name of the Singapore entity that will sign the employment contract. Some providers employ through their own company; others pass you to a local partner. Both can work, but with a partner you are relying on a company you have not vetted, and fixing a payroll error takes longer.
| Ask to see | Red flag |
|---|---|
| The entity’s name on the draft employment contract. | “Our local partner” with no name. |
2. Will CPF be right for your employee's age and PR year?
CPF rates change by age band and are lower in a permanent resident’s first two years. Ordinary wages are capped at S$8,000 a month in 2026, and bonuses fall under a separate annual ceiling. A provider who runs Singapore payroll every month will explain this without checking notes.
| Ask to see | Red flag |
|---|---|
| A worked payslip for your hire’s salary and age. | A single flat percentage for every employee. |
3. What exactly does the fee include?
Some providers charge a flat monthly fee, others a percentage of salary or of total employment cost. Ask what is charged on top: bonuses, expense claims, onboarding, offboarding, currency conversion and amendments to the contract.
| Ask to see | Red flag |
|---|---|
| A written price list that covers bonuses and expenses. | Extra charges that appear only in the contract. |
4. How is the deposit held and returned?
Many EORs ask for a deposit. Ask how much, when it is invoiced and exactly when it comes back.
| Ask to see | Red flag |
|---|---|
| A clear refund point, such as after the final invoice. | Vague wording about deposits being “applied” to fees. |
5. Is the provider clear about who its EOR can employ?
A Singapore EOR is built for employing Singapore citizens and permanent residents. A foreign candidate first needs an Employment Pass, S Pass or Work Permit, which is a different process with its own rules and costs. Ask which of your candidates the EOR covers and how a foreign hire would be handled.
| Ask to see | Red flag |
|---|---|
| A clear answer for each candidate’s citizenship, PR or pass status. | “We can employ anyone” with no questions about status. |
6. Will the contract, payslips and pay dates meet the Employment Act?
Key Employment Terms must be in writing within 14 days of the start date. Salary must be paid at least monthly, within 7 days after the salary period, with an itemised payslip.
| Ask to see | Red flag |
|---|---|
| Sample KETs and a sample payslip. | An English global template with no Singapore terms. |
7. Who handles year-end tax reporting?
Employers report employment income to IRAS each year through the Auto-Inclusion Scheme (IR8A). Ask whether this is included and when employees receive their forms.
| Ask to see | Red flag |
|---|---|
| IR8A included in the monthly fee. | Year-end reporting billed as an extra project. |
8. What happens when the employment ends or moves to your company?
Ask how notice works, how final pay and CPF are handled, and what the process is if you later move the employee to your own Singapore company.
| Ask to see | Red flag |
|---|---|
| A written exit and transfer process. | Exit fees or long minimum terms you only learn about at the end. |
Flat fee or percentage: which pricing is better?
Many global EOR platforms publish flat fees of roughly US$400 to US$700 per employee per month. A percentage fee scales with the salary. Neither is better in itself; compare what you would actually pay over a year for your hire, including bonuses, expense claims and the deposit.
For reference, NNRoad charges 8% of the monthly total employment cost, with a minimum of US$375. For a S$7,000 salary that is about US$513 a month. See the full cost breakdown.
How NNRoad answers these checks
| Check | NNRoad Singapore EOR |
|---|---|
| Legal employer | Our own Singapore entity |
| CPF | Calculated for each employee’s age band and PR year, within the S$8,000 ceiling |
| Fee | 8% of total monthly employment cost, minimum US$375; bonuses 8%; reimbursements 3% |
| Deposit | One month’s total employment cost, refunded after the final invoice |
| Who it covers | Singapore citizens and PRs. Foreign hires go through our Hire Foreigner in Singapore service |
| Payslips and KETs | Itemised payslips every month; KETs issued at onboarding |
| Year-end reporting | IR8A through the Auto-Inclusion Scheme, included |
| Invoicing | One payroll cycle and one invoice per month, in US dollars |
Common questions
What is the difference between a direct and an indirect EOR?
A direct EOR employs your hire through its own Singapore entity. An indirect EOR signs with you but uses a local partner as the actual employer. Ask which one you are buying, because it decides who you deal with when something goes wrong.
Is the cheapest Singapore EOR a good choice?
Sometimes. Compare the yearly cost, including bonus fees, expense fees and the deposit, and check the eight points above. A low fee with errors in CPF or payslips costs more in the end.
Does an EOR need a licence in Singapore?
There is no EOR-specific licence. A provider that also recruits candidates for you needs an employment agency licence from MOM. MOM
Can we change EOR provider later?
Yes, but the employee has to sign a new contract with the new provider. Plan the switch around a month end so payroll and CPF are not split.
Run these checks on NNRoad
Ask us for a sample contract, a sample payslip for your hire’s salary and a written quote. We reply within 24 hours.