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Hiring Employees in Singapore: A Comprehensive Guide

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Written by Asma Makni
Updated yesterday

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)

  • 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


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

    • Business Travel Insurance

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)

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 2 working days, including:

  1. Platform Setup

  2. Right-to-Work Check

  3. Employment Contract Processing

  4. 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

  • 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

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


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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