Table of Contents
Introduction
Key Considerations for Employing in Singapore
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
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)
Language: English, Chinese, Malay, Tamil
Employer Costs: Low
Termination Complexity: Simple
Onboarding Timeline: Once we receive the relevant documents from the employee, the contract is approved by all parties, and the deposit (if applicable) is paid, Omnipresent can onboard the employee within just 48 business hours.
Payroll Frequency: Monthly
*Once we receive the relevant documents from the employee, the contract is approved by all parties, and the deposit (if applicable) is paid, Omnipresent can onboard the employee within just 3 business days.
3. Benefits
Medical benefits are provided through the healthcare system and partially through the employee's MediSave Account. The Private Medical Insurance is mandatory for S Pass and Work Permit holders only.
Mandatory
Health Insurance
CPF: Central Provident Fund (Social Security) : Medical benefits are provided through the healthcare system and partially through the employee's MediSave Account.
Employer contribution 7.5% - 17%
Employee contribution 5% -20%
Medisave Account - a national medical savings scheme.
MediShield Life - a basic health insurance plan (premiums vary and are deducted from the employee's Medisave Account).
**Employers must provide health Insurance for all foreign workers in Singapore on Work Permit or S Pass. Medical coverage must provide a minimum of SGD 15,000 per year for each employee’s in-patient care and day surgery.Employers must purchase a Primary Care Plan (PCP) as part of work pass requirements for Work Permit and S Pass holders who live in dormitories, or who work in the Construction, Marine Shipyard and Process (CMP) sectors**
Retirement
CPF: Central Provident Fund (Social Security)
CPF (Central Provident Fund) is the main nationally mandated benefit or social security expense.
** The amount varies, but typically between 17% - 20% of the employee’s salary must be paid into the Central Provident Fund by the employer.No CPF for contributions for Foreigners.
Workers’ Compensation
Work Injury Compensation (WIC) It is mandatory for employers to purchase WIC insurance plan for all manual workers and for non-manual workers earning up to SGD 2,600 per month (from 1 April2021). As Legal Employer, Omnipresent will purchase this insurance where required.
Supplementary:
Life Assurance
IncludesTotalPermanent Disability -TPD,Personal Accident - PA), Accidental Death & Dismemberment (AD&D) Around 95% of local and global companies provide Life, 94% provide AD&D and around 70% provide critical illness
Private Medical Insurance
(PMI) Most multinational and local employers provide supplementary medical benefits; benefits are typically provided through group
PMI plans. Employers would typically finance 100% of the premium.
Retirement :
Only 5% of employers provide supplementary retirement benefits due to high levels of mandatory CFP contributions.If offered, the supplementary
retirement benefits through voluntary CPF contributions as a DC plan are for Singapore citizens and permanent residents only.
Business Travel Insurance
Omnipresent also provides business travel insurance to all its employees.
4. Employment Contracts
Contract Types
Indefinite-term contracts
Fixed-term contracts (permitted and common)
Requirements
Omnipresent requires a written employment contract to outline the EOR terms and provide clarity for both employers and employees. Omnipresent ensures that all necessary key terms are included in the employment contracts we provide.
Language: English
Written contracts
Signature Requirements: Simple electronic signature.
Backdating: Not permitted under Omnipresent’s policy..
Language: English
Signature Requirements: Digital signatures accepted
Contract Customisation
We provide optional clauses for customisation when adding an employee to our platform. This allows you to tailor certain contract aspects, such as unlimited time off or extra-legal sick days.
However, certain contract elements cannot be customised due to compliance risks or Omnipresent's policy. Examples include overtime, restrictive covenants, and stylistic changes
Probation Period
We provide our clients with options to incorporate a probationary period that aligns with their preferences and meets statutory requirements. In Singapore, the ranger is between 3 - 6 months. Termination during probation requires notice or salary in lieu.
5. Onboarding
Timeline
The onboarding steps involved are:
Platform Set Up
Right-to-Work Check
Employment Contract
Benefits
Payroll enrollment.
Visa Sponsorship
EORs are not allowed to sponsor work visas in Singapore anymore.
Existing visa holders will not be affected but this regulatory change will have impact on renewals.
Right-to-Work
Mandatory for all employees
Foreigners require a valid work visa before employment starts.
Employee Transfers from Another EOR
If the employee has previously worked for you, whether in another country or through another EOR provider, we can recognise their length of service. This recognition of seniority will need to be mentioned in the employment contract.
6. Leaves
Annual Leave
An employee is entitled to 7 days of statutory paid annual leave for the first 12 months of continuous service with the same employer.
It's common practice that the employee receives 14 to 20 days of annual leave in addition to public holidays.
For every subsequent 12 months of continuous service with the same employer, the employee is entitled to one additional day of statutory paid annual leave, up to 14 days of statutory paid annual leave per year.
Sick Leave
Under the Employment Act, employees who have served their employer for at least 3 months may be entitled to up to 60 days of statutory paid sick leave
Requires MC (medical certificate) issued by a registered doctor
Maternity Leave
The employee may be entitled to up to 16 weeks of maternity leave, The maternity leave period is paid by the employer, and reimbursed by the government.
Eligibility
Under the Child Development Co-Savings Act 2001 (CDCA), a female employee is generally entitled to receive up to 16 weeks of statutory paid maternity leave if:
The child is a Singapore citizen at the time of birth or becomes a Singapore citizen within 12 months thereafter
The employee has served her employer for a continuous period of at least three months preceding the date of her confinement.
If the female employee does not qualify for statutory maternity leave benefits under the CDCA, she may nonetheless be entitled to receive up to 12 weeks of statutory maternity leave under the EA if:
The employee is covered under the Employment Act
The employee has served her employer for a continuous period of at least three months preceding the date of her confinement.
In such a case, the female employee is statutorily entitled to receive her gross rate of pay for a period of 8 weeks out of those 12 weeks of statutory maternity leave
Under the Employment Act, a female employee is also entitled to receive payment from her employer at her gross rate of pay for 8 weeks unless, at the time of the confinement:
The employee has two or more living children
Those children were born during more than one previous confinement.
Paternity Leave
A male employee who is the natural father of a child is entitled to receive 4 weeks of statutory paid paternity leave if:
The child is a Singapore citizen at the time of birth or becomes a Singapore citizen within 12 months thereafter
The employee is lawfully married to the child’s mother at some point between conception and birth
The employee has served their employer for a continuous period of at least three months preceding the date of birth of the child
The paternity leave will be funded by the government - this is referred to as GPPL. Each week of GPPL is capped at SGD 2,500, including employee contributions.
Childcare Leave
Employees in Singapore have an entitlement to paid child care leave under either the Employment Act or the Child Development Co-Savings Act (CDCA). Where an employee meets the criteria for paid 6-day childcare leave under both Acts, the Child Development Co-Savings Act entitlement will prevail.
Military Service Leave
The employer must grant unpaid leave during an employee’s period of service. Such employees are entitled to resume the same position upon returning from service.
Public Holidays
Under the Employment Act, every employee is entitled to a paid holiday at their gross rate of pay on a public holiday
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
The payroll cycle in Singapore is monthly.
Payroll runs from the 1st of the month to the end of the month.
Payroll cut-off date is 15th of the month (any changes to payroll or variables must be shared with Omnipresent by this date).
Payment date is the last working day of the month (this is when employees will receive their salary payment).
Employee onboarding needs to be finalised by the 15th of the month for the employee to be included in that month’s payroll.Compensation
Extra Payments (Bonus, Commission etc.)
There is no mandatory extra payment, however, some employers in Singapore offer a 13th month payment known as the Annual Wage Supplement (AWS)
Many companies provide performance-based bonuses based on individual or company performance. This can be quarterly, semi-annual, or annual.
Retention Bonuses Given to employees who stay with the company for a certain period to encourage long-term employment.
Sales Commissions Employees in sales roles may receive commission-based pay on top of their base salary.
Transportation & Meal Allowances :Some companies reimburse travel expenses or provide meal subsidies.
Housing Allowance: Common for expatriates, where employers cover rent or housing costs.
Education Allowance: Some companies provide school fee support for employees' children, especially for expatriates.
Other Incentives & Allowances
Medical & Insurance Benefits – Some companies provide private health insurance in addition to MediShield Life (national healthcare scheme).
Stock Options & Profit-Sharing – Certain companies, especially in tech and finance, offer equity-based compensation.
Paid Time Off (PTO) Bonuses – Some companies provide extra paid leave as a reward for loyalty.
Taxes in Singapore
Income Tax: Singapore follows a progressive resident tax rate ranging from 0% to 24% based on annual chargeable income. Non-residents are taxed at a flat rate of 15% or the resident rate, whichever results in higher tax.
CPF (Central Provident Fund) Contributions: CPF is mandatory for Singapore citizens and Permanent Residents (PRs). Employers and employees contribute based on salary and age, with rates up to 37% (20% employee, 17% employer).
Skills Development Levy (SDL): Employers must contribute SDL at 0.25% of the employee’s monthly salary, capped at SGD 11.25 per employee per month.
Foreign Worker Levy (FWL): Employers of foreign workers on Work Permits or S Passes must pay a monthly levy based on sector and employee qualifications.
Supplementary Retirement Scheme (SRS) Contributions: A voluntary savings scheme that provides tax benefits; contributions are tax-deductible.
Goods and Services Tax (GST) Contributions: While not an employee tax, individuals and businesses should be aware of GST, currently at 9% in 2024.
Tax Documents in Singapore
Employees receive tax documents that are essential for their annual tax filing. Below are key documents related to tax submissions in Singapore:
Form IR8A (Statement of Earnings)
Purpose: Employers must provide this form to employees by March 1 each year. It reports total salary, bonuses, and taxable benefits.
Issuance: Required for all employees except those whose employers participate in the Auto-Inclusion Scheme (AIS).
Form IR8S (Excess CPF Contributions)
Purpose: Required if employers made excess CPF contributions beyond statutory limits.
Usage: Employees may need this form to adjust their taxable income.
Form Appendix 8A (Taxable Benefits-in-Kind)
Purpose: Reports non-cash benefits such as housing, transportation, or meal allowances.
Usage: Must be submitted if an employer provided benefits-in-kind.
Form Appendix 8B (Employee Stock Options and Share Ownership Plans)
Purpose: Details taxable gains from stock options or share awards.
Usage: Employees with stock benefits must include this form in their tax submission.
Notices of Assessment (NOA)
Purpose: Issued by the Inland Revenue Authority of Singapore (IRAS) after tax assessment. It confirms tax payable/refundable.
Usage: Employees can check and pay taxes based on the NOA.
CPF Contribution Statements
Purpose: Employees may refer to CPF statements to verify contributions.
Usage: Not required for filing but useful for reference.
Tax Filing Process in Singapore
Employees in Singapore must submit their tax returns annually through the IRAS e-Filing system (myTax Portal). Below is the general process:
Receiving Tax Documents
Employers issue IR8A and relevant forms by March 1.
Employees should gather necessary documents, including CPF and investment statements.
Filing Tax Returns
Auto-Inclusion Scheme (AIS): Most employers submit salary details directly to IRAS, reducing manual filing.
Self-Employed Individuals: Must declare income and allowable business expenses manually.
e-Filing via myTax Portal: Employees log in using their Singpass to review and submit tax returns.
Paper Filing: Allowed for those unable to e-File, but less common.
Filing Deadline
April 15: Paper filing deadline.
April 18: e-Filing deadline.
Receiving Tax Assessments
IRAS issues the Notice of Assessment (NOA) from June onwards.
Employees must verify and raise objections within 30 days if necessary.
Paying Taxes
Payment must be made within 30 days of NOA issuance.
Options include GIRO installment plans, credit card payments, internet banking, or AXS machines.
Claiming Tax Reliefs & Rebates
Common tax reliefs include:
Earned Income Relief
Parenthood Tax Rebate
CPF Cash Top-Up Relief
Course Fees Relief
Foreign Maid Levy Relief (for married women or widows with children)
Taxpayers should review eligibility and claim applicable reliefs to reduce taxable income.
Employer Costs
Estimated 17%–20% (CPF contributions apply to citizens and PRs only)To get a more detailed estimate based on the employee salary use the OmniCalculator, or contact us for further information.
Work Schedule
The standard working hours are 44 hours per week
Common structure: 5-day workweek (9 AM – 6 PM)
The Employment Act is Singapore’s main labor law. It provides for the basic terms and conditions at work for employees covered by the Act. The hours of work guidelines apply only to those covered under Part IV of the Employment Act.
8. Termination Process
Before proceeding with a termination (including verbal discussion with the employee about the risk of termination) you must first get in touch with Omnipresent. We will then provide guidance on next steps. You can read our full guidance here.
To initiate a termination, you need to submit a termination request through the OmniPlatform after which our relevant teams will assess the case and plan a compliant termination process.
We cannot process termination on the same day as requested.
Involuntary termination
Under Singapore law, there are no express statutory prohibitions on the grounds for dismissing an employee. However, the following provisions and guidelines influence how terminations should be approached:
Tripartite guidelines on wrongful dismissal (WD Guidelines): While not legally binding, these guidelines clarify that poor performance is not a legitimate reason for summary dismissal unless it rises to the level of misconduct.
Termination types:
By notice or salary in lieu of notice: Employment can be terminated in accordance with the terms of the employment contract by providing the requisite notice or salary in lieu of notice.
Summary dismissal: Permitted only in cases of gross misconduct, where employment is terminated without notice or payment in lieu of notice.
Severance Pay
There is no statutory requirement for employers to provide severance pay to employees whose employment is terminated. Any entitlement to severance pay is determined by the terms of the employment contract, collective agreements (in unionized companies), or company policies
Notice Period
Statutory requirements for notice periods
In Singapore, the notice period required for terminating employment is typically governed by the Employment Act (EA) or the terms of the employment contract. If the contract does not specify a notice period, the statutory minimums under the EA apply.
Minimum notice periods under the Employment Act:The statutory notice period depends on the employee's length of service:
1 day: For employees with less than 26 weeks of service.
1 week: For employees with 26 weeks to less than 24 months of service.
2 weeks: For employees with 24 months to less than 60 months of service.
4 weeks: For employees with 5 years or more of service.
Fixed-Term contracts:For early termination of a fixed-term contract, a notice period proportional to the length of service is required unless otherwise specified in the contract.
Probationary Employees: Employers and employees may agree to shorter notice periods during the probationary period. Common practice is 5 days during probation.
Non-EA Covered Employees: For employees not covered by the EA (e.g., higher-income earners or professionals), the notice period is determined by the employment contract or common law, which requires reasonable notice in the absence of a contractual agreement.
Key rules for notice periods
Equal Application:
The notice period must be the same for both the employer and the employee.
Contracts cannot impose a longer notice requirement on the employee than the employer.
Termination without notice: Either party may terminate the contract without notice by providing salary in lieu of notice equivalent to the period not served.
Gross misconduct: No notice or salary in lieu of notice is required if termination is due to gross misconduct.
Written notice: Notice must be provided in writing to ensure clarity and compliance
Protected employees
Categories of protected employees
Certain categories of employees in Singapore are protected by statutory requirements and restrictions that employers must comply with when terminating employment. Key groups include:
Pregnant employees:
Under the Employment Act, it is an offense to terminate a pregnant employee:
While she is on maternity leave.
In a way that causes her last day of employment to fall during her maternity leave.
Pregnant employees who have served at least three months before notice of termination may be entitled to maternity leave benefits if:
The termination is without sufficient cause.
The termination is due to redundancy or employer reorganization.
Employers must ensure compliance with these rules to avoid penalties and maintain fairness.
Employees involved in Trade Union activities:
Employees cannot be terminated on grounds of participating in trade union-related activities or for seeking union representation.
Dismissal in such cases may be challenged as an unlawful dismissal.
Older employees: Under the Retirement and Re-employment Act (RRA):
Employers are prohibited from terminating employment based solely on an employee reaching retirement age.
Employers are required to offer re-employment to eligible employees who have reached retirement age, subject to specific conditions.
Other special cases: Employees covered under specific collective agreements or industrial relations frameworks may have additional protections based on industry or union stipulations.
9. Invoice Schedule
Setup Fees: Once Terms are signed, Omnipresent begins deploying resources for the setup process. Trigger [Employee Details Added]
Deposits: Payable when the local employment contract is ready for signature. The deposit enables Omnipresent to move forward securely to sign the local employment contract with the employee. Trigger [Employee Details Added]
Initial Salary Prepayment: The first month’s estimated labour costs are invoiced on the first day of employment. Trigger [Employment Start Date]
Ongoing monthly Employment Costs and Fees: Thereafter, we invoice monthly in arrears for labour costs - once the final payroll, taxes, insurance, social security contributions, expenses and deductions have been calculated. Each monthly invoice will include our monthly service fee, deposit insurance (if applicable), and an FX fee (if applicable). Trigger [Payroll Date] Typically the last working day of the month, but varies by country.
10. Get Started with Omnipresent
We handle your employment needs in Singapore—contracts, benefits, tax, compliance, and more. Start hiring confidently and compliantly.