Singapore Employment Law & Compliance Guide for Employers
Key employment laws in Singapore: what employers need to know
Employment in Singapore is governed mainly by the Employment Act, which covers almost all employees, with extra hours and overtime protection in Part IV for lower-paid staff. The Central Provident Fund Act and the Employment of Foreign Manpower Act set pension contributions and work pass rules. Foreign employers are often surprised that there is no general minimum wage but strict salary floors for work passes, and that CPF applies only to citizens and permanent residents. This page summarises the core employer rules, with official sources.
Singapore employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | No general minimum wage. Progressive Wage Models set mandatory wage ladders in sectors such as cleaning, security, landscape, retail, food services and waste management. Firms hiring foreign workers must pay local staff at least the Local Qualifying Salary of SGD 1,800 a month (full-time). | Ministry of Manpower – Progressive Wage Model |
| Standard working hours | Part IV employees: 44 hours a week, up to 8 hours a day (or 9 on a 5-day week), and 1 rest day a week. Part IV covers workmen earning up to SGD 4,500 and other staff up to SGD 2,600 basic monthly salary. | Ministry of Manpower – Hours of work, overtime and rest days |
| Overtime pay | Part IV employees: at least 1.5 times the hourly basic rate for work beyond normal hours, capped at 72 overtime hours a month. Employees outside Part IV receive overtime pay only if their contract provides it. | Ministry of Manpower – Hours of work, overtime and rest days |
| Paid annual leave | 7 days in the first year, rising by 1 day a year to 14 days from the 8th year, for employees with at least 3 months' service. Many contracts give more. | Ministry of Manpower – Annual leave |
| Public holidays | 11 paid public holidays a year. An employee who works on one is owed an extra day's pay or a day off in lieu. A holiday falling on a Sunday moves to the next day. | Ministry of Manpower – Public holidays |
| Sick leave | After 3 months' service: up to 14 days paid outpatient sick leave and up to 60 days hospitalisation leave a year (including the 14), with a medical certificate; pro-rated between 3 and 6 months' service. | Ministry of Manpower – Sick leave |
| Maternity and parental leave | Maternity: 16 weeks for a Singapore-citizen child (12 weeks otherwise). Paternity: 4 weeks, government-paid. Shared parental leave: 10 weeks for children born from 1 April 2026, reimbursed up to SGD 2,500 a week. | Ministry of Manpower – Shared parental leave |
| Probation period | No statutory rule; 3 to 6 months is usual and is set in the contract, often with a shorter notice period. Annual leave and paid sick leave start only after 3 months' service. | Ministry of Manpower – Termination with notice |
| Notice period | As agreed in the contract, the same for both sides. If the contract is silent: 1 day (under 26 weeks' service), 1 week (26 weeks to 2 years), 2 weeks (2–5 years), 4 weeks (5+ years). Salary in lieu of notice is allowed. | Ministry of Manpower – Termination with notice |
| Severance pay | No statutory severance. Retrenchment benefit is owed only under the contract or a collective agreement; tripartite guidance expects it for staff with 2+ years' service, commonly 2 weeks to 1 month's pay per year. | Ministry of Manpower – Responsible retrenchment |
| Employer social contributions | CPF for citizens and PRs: 17% up to age 55, then 16%, 12.5%, 9% and 7.5% for older bands (2026). Monthly wages counted up to SGD 8,000. Plus Skills Development Levy (0.25%) for all staff and levies for S Pass and Work Permit holders. | CPF Board – How much CPF contributions to pay |
| Employee social contributions | CPF for citizens and PRs: 20% up to age 55, then 18%, 12.5%, 7.5% and 5% (2026), on monthly wages up to SGD 8,000. Foreign pass holders pay no CPF. Self-help group contributions are deducted unless the employee opts out. | CPF Board – How much CPF contributions to pay |
| Income tax on salaries | No monthly withholding for residents: employees file their own returns and employers report pay to IRAS each year. Resident rates 0–24%; non-residents pay the higher of 15% or resident rates on employment income. Tax clearance applies when foreign staff leave. | IRAS – Individual income tax rates |
| Mandatory bonuses and 13th-month pay | None required by law. An annual wage supplement (13th-month pay) is common but owed only if the contract or a collective agreement provides it. Bonuses are additional wages for CPF, subject to an annual ceiling. | CPF Board – How much CPF contributions to pay |
| Work permits for foreign nationals | Employment Pass: minimum SGD 5,600 a month (SGD 6,200 in financial services), rising with age, plus 40 COMPASS points. S Pass: from SGD 3,300. Thresholds rise for new applications from 1 January 2027. The employer or an appointed agent applies. | Ministry of Manpower – Employment Pass eligibility |
| Employment contract requirements | Key Employment Terms must be given in writing within 14 days of starting, for employment of 14 days or more, and itemised payslips are required. No language rule; contracts are normally in English. No registration of contracts. | Ministry of Manpower – Key Employment Terms |
Employer obligations in Singapore, topic by topic
Filter by primary service relevance
Does an employment contract in Singapore have to be in writing, and what must it cover?
How many hours can employees work in Singapore, and who is entitled to overtime pay?
Is there a minimum wage in Singapore, and what salary floors apply?
How much paid leave must employers give in Singapore?
What are the CPF contribution rates in 2026, and how is salary taxed in Singapore?
How can an employer end employment in Singapore, and is severance required?
Can a company in Singapore hire a foreign national, and which work pass is needed?
Can a foreign company engage contractors in Singapore instead of employees?
What anti-discrimination rules apply to employers in Singapore, and when does the Workplace Fairness Act apply?
Key employment laws in Singapore and official sources
- Employment Act 1968 — Sets core terms for almost all employees, plus hours, overtime and rest-day rules for lower-paid staff under Part IV.
- Central Provident Fund Act 1953 — Requires CPF contributions for employees who are citizens or permanent residents, at age-based rates up to the wage ceilings.
- Employment of Foreign Manpower Act 1990 — Requires a valid work pass for foreign employees and sets employer duties and penalties.
- Income Tax Act 1947 — Sets income tax on employment income, employer reporting duties and tax clearance for departing foreign employees.
- Child Development Co-Savings Act 2001 — Provides government-paid maternity, paternity, shared parental and childcare leave for eligible parents.
- Retirement and Re-employment Act 1993 — Sets the minimum retirement age and the duty to offer re-employment to eligible older employees.
- Workplace Fairness Act 2025 — Will prohibit workplace discrimination on specified characteristics and require grievance-handling processes once it commences.
FAQs: hiring employees in Singapore
Can a foreign company hire employees in Singapore without a local entity?
Only to a limited extent. Registering for CPF and sponsoring work passes require a Singapore-registered employer, so a foreign company usually incorporates a subsidiary or registers a branch. The alternative is an Employer of Record, a Singapore company that becomes the legal employer, runs payroll and CPF, and can sponsor work passes, while the foreign company directs the work.
How much does an employee cost in Singapore on top of gross salary?
For a citizen or permanent resident aged 55 or under, the employer pays 17% CPF on monthly wages up to SGD 8,000, plus the Skills Development Levy of 0.25% (maximum SGD 11.25 a month). Rates are lower for older employees. Employment Pass holders attract no CPF, while S Pass and Work Permit holders attract monthly levies. Medical insurance and benefits are usually extra.
What is the minimum wage in Singapore in 2026?
Singapore has no general minimum wage. Instead, Progressive Wage Models set mandatory minimum wages in sectors such as cleaning, security, landscape, retail, food services and waste management. Companies employing foreign workers must pay local staff at least the Local Qualifying Salary of SGD 1,800 a month for full-time work. Work passes also have salary floors: from SGD 5,600 a month for an Employment Pass and SGD 3,300 for an S Pass.
How much notice and severance does an employer owe when dismissing an employee in Singapore?
Notice is set by the contract; if it is silent, the minimum ranges from 1 day under 26 weeks’ service to 4 weeks after 5 years, and salary in lieu is allowed. There is no statutory severance. For retrenchment, tripartite guidance expects a benefit for staff with 2 or more years’ service, commonly 2 weeks to 1 month’s pay per year. Dismissals without just cause can be challenged.
Can a company hire a foreign national in Singapore, and what permit is needed?
Yes. Professionals need an Employment Pass, with a minimum salary from SGD 5,600 a month (higher with age and in financial services) and 40 COMPASS points. Mid-skilled staff need an S Pass, from SGD 3,300, subject to quota and levy. The Singapore employer or its agent applies to MOM. Both salary floors rise for new applications from 1 January 2027.
Is it risky to engage contractors instead of employees in Singapore?
It can be. Courts look at the real relationship, including control over work, integration into the business and financial risk, rather than the contract title. A misclassified contractor can claim Employment Act rights, and unpaid CPF can be recovered for citizens and PRs. A foreign contractor working in Singapore also needs a valid pass. Long-term, managed roles are safer as employment.
Related NNRoad resources for Singapore: Employer of Record in Singapore · Payroll in Singapore · Hiring foreign employees in Singapore · Contractors and on-demand talent in Singapore · Singapore employer cost calculator
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Regulation Updates in Singapore
Discover the latest employment and compliance updates in Singapore — helping you stay ahead in a changing regulatory landscape.
How much CPF contributions to pay
What it is: The policy update informs employers that CPF contributions will increase, with changes taking effect on 2027-01.
What it changes: Employers should adjust payroll processes and employer social contributions accordingly to reflect the CPF increase, ahead of the 2027-01 effective date.
Who is affected:
- Employers
What employers should do:
- Prepare to update payroll processes to accommodate higher CPF contributions before 2027-01.
- Adjust employer social contribution calculations in line with the CPF increase.
Notes: Effective month: 2027-01.
Enhancements to Work Permit eService on myMOM Portal
What it is: Enhancements to the Work Permit eService on the myMOM Portal allow employers to view medical examination results submitted by medical service providers and to issue work permits online using the enhanced Work Permit eService function.
What it changes: The new process removes the prior requirement to upload hard-copy medical reports; employers will view medical exam results and issue work permits online via the enhanced eService.
Who is affected:
- Employers who use the Work Permit eService on the myMOM Portal
What employers should do:
- Use the enhanced Work Permit eService ‘Issue Work Permit’ function to view medical examination results and to issue work permits online when processing applications after the effective date.
Notes: Effective month: 2026-05.
From May 2026: Issue Work Permit function on myMOM Portal
What it is: From May 2026, the Issue Work Permit function on the myMOM Portal enables medical service providers to submit medical examination results electronically and notifies employers when results are available, affecting how work permits are issued.
What it changes: Medical examination results will be submitted electronically by medical service providers, and employers will receive notifications through the system, altering employers’ work permit operational procedures that EOR and payroll providers must implement.
Who is affected:
- Employers
What employers should do:
- Prepare to receive electronic medical examination results via the myMOM Portal and implement the associated notification workflow.
- Coordinate with EOR and payroll providers to align with the new automated process for issuing work permits.
Notes: Effective month: 2026-05.
Oct 2025: Singapore Low Pay Incidence & Progressive Wage Model Reform
Incidence of Low Pay: In 2024, approximately 30% of full-time employed residents in Singapore earned less than two-thirds of the median wage, highlighting significant income disparity within the workforce.
Update first published on NNRoad in Oct 2025. The current rules are summarised in the sections above.