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Hiring Employees in Singapore: A Comprehensive Guide

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Written by Asma Makni
Updated this week

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in Singapore

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring in Singapore requires compliance with well-regulated labor laws, mandatory benefits schemes, and immigration requirements. Omnipresent’s Employer of Record (EOR) service ensures a compliant and seamless employment experience from onboarding to offboarding.


2. Key Considerations for Employing in Singapore

  • Currency: Singapore Dollar (SGD, S$)

  • Language: English

  • Employer Costs: Moderate (~17%–20% of salary)

  • Termination Complexity: Moderate

  • Onboarding Timeline: ~10–15 calendar days (excluding visa processing)

  • Payroll Frequency: Monthly


3. Benefits

What We Offer

  • Mandatory:

    • Central Provident Fund (CPF) contributions (for Singapore citizens and PRs)

    • Work Injury Compensation Insurance (WICA)

    • Public Healthcare Access

  • Supplementary:

    • Group Health Insurance

    • Dental & Vision Coverage

Healthcare

  • Public healthcare is available through MediShield Life.

  • Employers typically offer private health insurance as an enhanced benefit.

Retirement

  • CPF Contributions are required for Singapore citizens and PRs:

    • Employer: up to 17%

    • Employee: up to 20%

  • No CPF is payable for foreign employees


4. Employment Contracts

Contract Types

  • Indefinite-term contracts

  • Fixed-term contracts (permitted and common)

  • Part-time contracts

Requirements

  • Written contracts strongly recommended (mandatory for certain job classes)

  • Language: English

  • Signature Requirements: Digital signatures accepted

  • Backdating: Not permitted

Contract Customisation

  • Customisable: Unlimited PTO, extra-legal sick days, variable bonuses

  • Non-customisable: CPF opt-outs (if eligible), compliance-based terms

Probation Period

  • Typically 3–6 months, no legal minimum or maximum

  • Termination during probation requires notice or salary in lieu


5. Onboarding

Timeline

Typical onboarding takes 10–15 calendar days, including:

  1. Platform Setup

  2. Right-to-Work Check

  3. Employment Contract Processing

  4. Benefits & Payroll Enrollment

Visa Sponsorship

  • Omnipresent can support EP (Employment Pass) and S Pass applications for eligible roles

  • Processing timelines vary from 2–6 weeks depending on MOM workload

Right-to-Work

  • Mandatory for all employees

  • Foreigners require a valid work visa before employment starts

Employee Transfers

  • Seniority may be recognized, depending on prior contract


6. Leaves

Annual Leave

  • Minimum 7 days, increasing with service

  • Market standard is 14–20 days

Sick Leave

  • Up to 60 days per year, including 14 days outpatient and 46 days hospitalisation

  • Requires MC (medical certificate) issued by a registered doctor

Maternity Leave

  • 16 weeks for Singapore citizens

  • 12 weeks for non-citizens

Paternity Leave

  • 2 weeks paid (for Singapore citizen children)

Childcare Leave

  • 6 days/year (up to 2 children under age 7)

  • Extended childcare leave of 2 days (for children aged 7–12)

Public Holidays

  • 11 paid public holidays, including:

    • New Year’s Day, Chinese New Year, Good Friday, Hari Raya, Deepavali, National Day, Christmas, etc.


7. Payroll & Taxes

Payroll Cycle

  • Monthly

    • Cut-off: 6th of each month

    • Payment: Last working day of the month

Compensation

  • No statutory bonuses, but 13th-month bonus (AWS) is customary

  • Variable bonuses often linked to performance

Minimum Wage

  • No universal minimum wage

  • Minimum salary rules apply to visa holders:

    • S Pass: SGD 3,150/month (as of 2023)

    • Employment Pass: SGD 5,000/month

Employer Costs

  • Estimated 17%–20% (CPF contributions apply to citizens and PRs only)

  • Use the OmniCalculator for specifics

Work Schedule

  • 44 hours/week standard

  • Common structure: 5-day workweek (9 AM – 6 PM)


8. Termination Process

Notice Period

  • Minimum 1 week, depending on tenure

  • Contractually agreed periods are enforceable

  • Notice may be waived by payment in lieu

Termination Grounds

  • Allowed: redundancy, performance, misconduct

  • Mutual termination encouraged for smooth offboarding

Severance Pay

  • Not mandatory, unless specified by contract or CBA

  • Often 1–3 months’ salary offered as goodwill

Offboarding Checklist

  • Ensure all CPF contributions are complete

  • Provide final payslip and tax documentation

  • Cancel work pass (if applicable)


9. Invoice Schedule

Initial Fees

  • Setup Fees: Triggered when Terms are signed

  • Deposit: Due when the employment contract is ready

  • Initial Salary Prepayment: Invoiced on start date

Monthly Invoicing

  • Billed monthly in arrears after payroll confirmation

  • Invoice includes:

    • Labour cost

    • Employer contributions

    • Omnipresent service fee

    • FX and deposit insurance (if applicable)


10. Get Started with Omnipresent

We handle your employment needs in Singapore—contracts, benefits, tax, compliance, and more. Start hiring confidently and compliantly.

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