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How to Hire Employees in Singapore: A 2026 Guide for Overseas Companies

Insights · By Chen ChunJie · Updated 8 November 2026

Short answer: first decide who will employ the person and confirm their right to work. For a Singapore citizen or permanent resident, an overseas business can assess local EOR: the Local Team employs the person while the client manages their work. Foreign-national hiring requires a separate legal and work-authorization assessment.

Then agree the package, document the employment terms and set up payroll, contributions and reporting. The steps below show what to prepare before the first working day.

Last reviewed in November 2026 against MOM, CPF Board and IRAS sources.

Step 1: Decide who will employ the person

Identify the legal employer before making an offer. Choose between employing through your own Singapore operation and an appropriate employment service. Payroll outsourcing supports an existing employer; contractor engagement is a separate model for genuinely independent work.

Decision flowchart for choosing between hiring directly, an employer of record, setting up a company or a contractor in Singapore
OptionWhen it fits
Your own Singapore companyYou plan a team or will sign contracts with Singapore customers.
Employer of recordYou want to hire a Singapore citizen or PR now, before or instead of setting up a company.
Hire Foreigner serviceYou need NNRoad to employ a foreign employee; eligibility and the employment arrangement are assessed separately.
Payroll outsourcingYou already have a Singapore company but no payroll team.
ContractorYou need a contractor engagement, subject to assessment of the actual working arrangement and applicable status rules.
For a closer comparison of the models, read EOR vs PEO in Singapore.

Step 2: Check the candidate's right to work

Check citizenship, PR status or the candidate’s existing immigration permission. Citizens and PRs do not need a work pass. For foreign nationals, confirm the permitted role and arrangement before work starts; the table summarizes two common employer-sponsored passes, not every available route.

PassWho it is forMinimum monthly salary for new applications
Employment PassProfessionals, managers and executivesS$5,600 (S$6,200 in financial services), higher for older candidates. Rises to S$6,000 from 1 January 2027.
S PassMid-level skilled staffS$3,300 (S$3,800 in financial services), higher for older candidates. Rises to S$3,600 from 1 January 2027.

NNRoad’s Singapore EOR covers citizens and permanent residents. MOM does not permit an EOR to obtain work passes for foreigners based in Singapore while working for overseas companies. A foreign hire requires a separate assessment of the lawful employing arrangement and pass eligibility; salary thresholds alone do not establish eligibility.

Step 3: Set the salary and package

Singapore has no single statutory minimum wage for all jobs. Check whether the role is covered by a sectoral or occupational Progressive Wage requirement. Firms employing foreign workers must meet the relevant Progressive Wages and Local Qualifying Salary rules for their local staff. From 1 July 2026, LQS is S$1,800 gross monthly for full-time locals working 35–44 hours a week; part-time and overtime arrangements have different requirements. Quota counting is a separate calculation. See MOM’s LQS guidance and our Singapore wage guide.

Build a package that meets legal requirements and the role’s recruitment needs. Clarify which benefits are contractual and which payments remain discretionary:

  • Any agreed Annual Wage Supplement, including the amount and payment timing
  • Performance bonus terms and eligibility
  • Required insurance and any additional medical or group cover
  • Annual leave and any enhancement above the statutory entitlement

AWS is not automatically compulsory, but agreed contractual or collective-agreement obligations must be honoured.

For covered citizens and permanent residents, employer CPF depends on age and PR year, with a full rate of 17% for employees aged 55 and below. In 2026, the Ordinary Wage ceiling is S$8,000 a month; bonuses and other Additional Wages have a separate ceiling. Include the applicable Skills Development Levy and any required insurance in the budget. Use our Singapore employment cost calculator to estimate the package.

Step 4: Write the contract and Key Employment Terms

The Employment Act covers most employees, including managers and executives, with specified exclusions. For covered employees hired from 1 April 2016 for at least 14 continuous days, issue written Key Employment Terms within 14 days of starting. Include the applicable items below:

  • Job title, main duties, start date and, for fixed-term roles, the end date
  • Working arrangements: daily hours, working days per week and rest day
  • Salary period, basic salary, fixed allowances and deductions
  • Overtime pay rate, where it applies
  • Leave: annual, sick, hospitalisation and any other leave
  • Medical benefits, probation period and notice period

Agree probation and notice in writing. Probation does not suspend statutory rights, and leave eligibility depends on service rather than confirmation. MOM: Key Employment Terms.

Step 5: Set up payroll and CPF

For covered employees, salary is generally payable at least monthly and within 7 days after the salary period; overtime is due within 14 days. Issue payslips with salary or within 3 working days if supplied separately. Final-pay rules differ. MOM: salary payment.

Employee ageEmployer CPFEmployee CPFTotal
55 and below17%20%37%
Above 55 to 6016%18%34%
Above 60 to 6512.5%12.5%25%
Above 65 to 709%7.5%16.5%
Above 707.5%5%12.5%

Rates from 1 January 2026 for Singapore citizens and permanent residents from their third year of PR, earning more than S$750 a month. Contributions apply to ordinary wages up to S$8,000 a month. Source: CPF Board.

  • Remit applicable CPF, deducting the employee share from salary. CPF is due at month-end; the following month’s 14th is the enforcement threshold, or next working day where applicable.
  • Pay the Skills Development Levy for every employee, foreigners included.
  • Apply the relevant self-help group contribution rules, including eligibility and permitted opt-outs.
  • Prepare the required employment income information by 1 March of the following year. AIS employers submit electronically to IRAS; non-AIS employers provide Form IR8A and applicable appendices to employees. AIS is generally compulsory for employers with five or more employees, employers notified by IRAS and existing participants. Apply the relevant reporting exclusions, including income already reported for tax clearance. IRAS
  • Keep the latest two years of required employment records for current employees; retain the last two years of records for one year after an employee leaves. MOM

Step 6: Leave, working hours and public holidays

TopicThe rule
Annual leave7 days in year one, plus one day a year up to 14, after 3 months of service. MOM
Sick leavePro-rated paid sick leave after 3 months; after 6 months, up to 14 outpatient days and 60 hospitalisation days in total, including outpatient leave. Certification and notification conditions apply. MOM
Maternity leave16 weeks under the government-paid scheme for eligible mothers of Singapore-citizen children; otherwise, 12 weeks may apply under the Employment Act, with separate pay conditions. MOM
Paternity leave4 weeks for eligible fathers of Singapore-citizen children, subject to service and notice requirements. MOM
Shared parental leave10 weeks shared between eligible parents for children born from 1 April 2026, subject to citizenship, service and other scheme conditions. MOM
OvertimePart IV covers non-workmen earning up to S$2,600 basic monthly and workmen up to S$4,500, excluding managers and executives. Check hours, pay and any permitted exceptions. MOM
Public holidays11 days in 2026. MOM

Step 7: If the employee will work remotely

Working remotely does not by itself remove employment obligations. Assess Employment Act coverage, CPF eligibility and tax reporting from the actual employment relationship and worker’s circumstances. Confirm the approved work location and any immigration or client-site restrictions before the arrangement starts.

  • Write the work location and any home-working arrangement into the contract.
  • Since 1 December 2024, employers must consider formal requests for flexible work properly under the tripartite guidelines. MOM
  • Agree who provides equipment and how expenses are reimbursed.
  • Set clear rules on confidentiality, data access and ownership of work.

Step 8: Ending the employment

Either side can end the contract with the notice it sets out. If the contract says nothing, the Employment Act minimum applies:
Length of serviceMinimum notice
Less than 26 weeks1 day
26 weeks to less than 2 years1 week
2 years to less than 5 years2 weeks
5 years or more4 weeks
  • If the employee resigns and serves notice, final salary is due on the last day. If they resign without serving notice, payment is due within 7 days. For employer termination or dismissal, pay on the last day or, if that is not possible, within 3 working days. Apply any required IRAS tax-clearance withholding.
  • Make applicable final CPF contributions and complete the required income reporting. Do not report the same income again through IR8A or AIS if it has already been reported for IR21 tax clearance.
  • There is no universal statutory retrenchment-benefit amount. Honour contractual or collective-agreement entitlements and follow MOM’s responsible-retrenchment guidance; where no amount is agreed, it should be negotiated.
  • Companies with at least 10 employees must notify MOM within 5 working days of informing employees of a retrenchment. MOM

Hiring checklist for Singapore

  • Legal employer decided: your own company or an EOR
  • Candidate's citizenship, PR or pass status confirmed
  • Salary, AWS, bonus, leave and insurance agreed
  • Key Employment Terms issued within 14 days
  • CPF registration and payroll calendar set up
  • Itemised payslip template ready
  • Equipment, system access and remote-work rules agreed
  • Year-end IR8A process in place

Questions about hiring in Singapore

For suitable local hires, yes. The Local Team employs the Singapore citizen or permanent resident, administers the employment and payroll, and the client manages the work. For a foreign national, assess the permitted arrangement and work authorization separately through our Expat Employment service.

Timing depends on candidate availability, notice, document checks, agreed terms and onboarding readiness. Foreign hires also require assessment of the legal arrangement and any required work authorization. We confirm the steps and dependencies for the proposed hire rather than applying a universal start-time promise.

CPF generally applies to employees who are Singapore citizens or permanent residents, subject to the applicable wage and eligibility rules. Rates depend on age, PR year and wages. Foreign employees who are not PRs do not attract CPF, but SDL and other obligations may still apply.

AWS is not automatically compulsory. It becomes payable where the employment contract or collective agreement requires it. State the amount, eligibility and payment timing clearly before the employee accepts the offer.

Prepare a budget for gross salary, applicable employer contributions, insurance and agreed benefits, then confirm the full service scope separately. Employee deductions are not additional employer costs. See worked employment-cost examples and their assumptions.

Hiring your first employee in Singapore?

Tell us the role, salary, citizenship or PR status and intended start date. For a suitable local EOR arrangement, the Local Team employs the person and you manage their work. Foreign-national hiring is assessed separately.

We help manage employment risks within the agreed scope, provided you supply accurate information, report changes and follow our advisers’ compliance recommendations. We respond within 24 hours and provide a proposal within 3 days.

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