Build Your Singapore Team Without a Local Entity.
Hire Singapore citizens, PRs, or foreign professionals without incorporating, appointing a resident director, or managing ACRA filings. RecruitGo handles CPF, SDL, work pass sponsorship, and Employment Act compliance so your team is operational in days.
What Is an Employer of Record in Singapore?
An Employer of Record (EOR) is a locally registered company that legally employs workers in Singapore on your behalf. RecruitGo's Singapore entity becomes the legal employer. We sign the employment contract, manage CPF contributions for Singapore citizens and PRs, withhold and file income tax, pay the Skills Development Levy (SDL), and handle all reporting required under the Employment Act 1968.
You retain full control over the employee's work, schedule, and responsibilities. They report to you, work on your projects, and function as part of your team. We handle everything that Singapore's Ministry of Manpower (MOM) requires of an employer.
Why EOR in Singapore? Setting up a Singapore company is fast (1 to 2 days via ACRA) and affordable (minimum paid-up capital: S$1). But it requires at least one Singapore-resident director, a local registered address, a corporate secretary, annual ACRA filings, and ongoing compliance. EOR makes sense when you need to hire 1 to 10 people without maintaining a full local entity, or want to test the market before committing to incorporation. See full EOR vs entity comparison →
Who Should Use EOR in Singapore?
What It Costs to Hire Through EOR
Singapore's employer costs depend heavily on whether the employee is a Singapore citizen/PR (CPF applies) or a foreign worker on a work pass (no CPF). CPF is the largest employer cost at 17% for employees under 55, capped at the Ordinary Wage ceiling of S$8,000/month from January 2026. The Skills Development Levy (SDL) at 0.25% applies to all employees including foreign workers.
| Component | Monthly (S$) | Rate |
|---|---|---|
| Gross salary | 7,000 | — |
| CPF (employer) | 1,190 | 17% (capped at S$8,000 OW) |
| SDL | 17.50 | 0.25% (min S$2, max S$11.25 unless >S$4,500) |
| Total employer cost | ~8,208 | ~117% |
* CPF rates for Singapore citizens/PRs (from 3rd year) under 55: employer 17%, employee 20%. OW ceiling is S$8,000/month from January 2026 (up from S$7,400 in 2025). Annual salary ceiling remains S$102,000. For foreign workers on Employment Pass or S Pass, there is no CPF. Only SDL (0.25%) and Foreign Worker Levy (for S Pass/Work Permit holders) apply. EOR management fee not included above.
Foreign workers vs locals: If you're hiring a foreign professional on an Employment Pass, your only statutory employer cost is SDL (0.25%). No CPF. This makes Singapore one of the cheapest markets to employ foreign talent from a statutory perspective. However, for Singapore citizens and PRs, CPF adds 17% on top, making total employer cost comparable to Thailand or Malaysia.
How Hiring Works Through EOR
You share the role, salary, candidate nationality, and start date. We confirm whether the hire requires a work pass (EP, S Pass, or Work Permit), calculate CPF applicability, and return a cost breakdown within 24 hours.
We draft an employment contract compliant with the Employment Act, register the employee for CPF (if Singapore citizen/PR), set up income tax withholding, and apply for any required work pass through MOM’s system.
We run monthly payroll in SGD, calculate and remit CPF contributions by the 14th of the following month, pay SDL, process income tax obligations, and provide itemized payslips as required by law.
We monitor changes to CPF rates and ceilings, Employment Act amendments, work pass policies (including COMPASS scoring for EP holders), SDL rates, and parental leave expansions including the new Shared Parental Leave scheme.
EOR vs Singapore Entity vs Contractors
| EOR | Pte. Ltd. (ACRA) | Contractor | |
|---|---|---|---|
| Time to first hire | 1 to 3 days | 1 to 2 weeks (incl. bank) | Immediate |
| Setup cost | None | S$1K to 5K+ | None |
| Resident director | Not required | At least 1 required | Not applicable |
| Work pass sponsorship | Handled by EOR | Your responsibility | Not applicable |
| CPF compliance | Handled by EOR | Your responsibility | None |
| Best for | 1 to 10 people, speed | 10+, permanent presence | Short-term projects only |
Why EOR over your own Pte. Ltd.? Singapore entity setup is among the world's fastest, but it comes with ongoing obligations: annual ACRA filings, corporate tax returns, a local company secretary, a resident director (Singapore citizen, PR, or EntrePass holder), and a registered office address. For teams under 10 people, EOR removes all of this overhead while keeping your Singapore presence fully compliant.
Personal Income Tax
Singapore uses a progressive income tax system with no capital gains tax and no inheritance tax. Tax residents are taxed on income earned in Singapore at rates from 0% to 24%. The tax year is the calendar year (January to December), with filing for YA 2026 (income earned in 2025) due by April 18, 2026 (e-filing).
| Chargeable income (S$) | Tax rate |
|---|---|
| First 20,000 | 0% |
| 20,001 to 30,000 | 2% |
| 30,001 to 40,000 | 3.5% |
| 40,001 to 80,000 | 7% |
| 80,001 to 120,000 | 11.5% |
| 120,001 to 160,000 | 15% |
| 160,001 to 200,000 | 18% |
| 200,001 to 240,000 | 19% |
| 240,001 to 280,000 | 19.5% |
| 280,001 to 320,000 | 20% |
| 320,001 to 500,000 | 22% |
| 500,001 to 1,000,000 | 23% |
| Over 1,000,000 | 24% |
Non-residents: Employment income is taxed at 15% flat or progressive resident rates, whichever produces higher tax. Director's fees and other non-employment income are taxed at 24%. Short-term employment of 60 days or less is tax-exempt (except for directors, entertainers, and professionals). For YA 2026, tax residents receive a personal income tax rebate of 60% of tax payable, capped at S$200.
Central Provident Fund and Skills Development Levy
CPF is Singapore's mandatory savings system covering retirement, healthcare, and housing. It applies only to Singapore citizens and Permanent Residents. Foreign workers on Employment Pass, S Pass, or Work Permit do not contribute to CPF. The Skills Development Levy (SDL) applies to all employees, including foreign workers.
CPF contribution rates (from January 2026)
| Employee age | Employer rate | Employee rate | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 13.5% | 13% | 26.5% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
2026 CPF changes: The Ordinary Wage (OW) ceiling increased to S$8,000/month from January 2026 (up from S$7,400 in 2025). This is the final step in a phased increase that began in September 2023. The annual salary ceiling remains at S$102,000. Contribution rates for employees aged 55 to 65 were also increased to strengthen retirement savings. A CPF Transition Offset is available to help employers absorb the cost increase.
Skills Development Levy (SDL)
SDL is payable for all employees working in Singapore, including foreign workers. The rate is 0.25% of monthly total wages, with a minimum of S$2 and a maximum of S$11.25 per employee per month (for employees earning up to S$4,500). For employees earning above S$4,500, the levy is 0.25% with no maximum. SDL funds workforce training programs.
Employee Benefits and Leave Entitlements
Annual leave
Employees covered by the Employment Act are entitled to paid annual leave starting at 7 days after 1 year of service, increasing by 1 day per year up to a maximum of 14 days after 8 years. Most employers offer more generous leave in practice, particularly for professional roles (14 to 21 days is common).
Sick leave
After 6 months of service, employees are entitled to 14 days of paid outpatient sick leave and 60 days of paid hospitalization leave (inclusive of outpatient days) per year. A medical certificate from a company-approved doctor is required.
Parental leave (significantly expanded from April 2025)
No mandatory 13th month or bonus: Singapore has no statutory bonus requirement. However, most companies provide an Annual Wage Supplement (AWS), commonly known as the “13th month,” typically equivalent to 1 month's salary paid in December. While not legally required, it is deeply embedded in Singapore's employment culture and expected by candidates.
Termination Rules and Retrenchment
Singapore does not have statutory severance pay in most cases. Termination must follow the notice period specified in the employment contract, or the statutory minimum under the Employment Act. Employers must have just cause and act fairly. Wrongful dismissal claims can be filed with TADM (Tripartite Alliance for Dispute Management) within 1 month of the last day of employment.
Statutory notice periods (if not specified in contract)
| Length of service | Minimum notice |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Most employment contracts specify longer notice periods (typically 1 to 3 months for professional roles). Either party may pay salary in lieu of notice to terminate immediately.
Retrenchment benefits
Singapore does not mandate statutory severance pay. However, employees with at least 2 years of continuous service are eligible for retrenchment benefits under the Employment Act. The amount is not fixed by law but left to mutual agreement. The prevailing market practice, as recommended by MOM's Tripartite Advisory, is 2 weeks' to 1 month's salary per year of service, depending on the company's financial position.
Foreign employee termination: When a foreign employee's employment ends, the employer must cancel their Employment Pass or S Pass through MOM. The employee has 30 days to leave Singapore or find a new employer to sponsor a new pass. Employers must also file Form IR21 with IRAS for tax clearance and withhold all monies due until clearance is received. The employer is responsible for repatriation costs if the employee cannot remain in Singapore.
Working Hours and Overtime
The Employment Act's Part IV (hours, overtime, rest days) applies to employees earning up to S$2,600/month or manual labourers regardless of salary. Most professionals in Singapore are not covered by Part IV but are still protected by other Employment Act provisions. Standard contractual working hours are typically 44 hours per week (5.5 days) or 40 hours (5 days).
| Scenario | Rate (Part IV employees) |
|---|---|
| Overtime (beyond contractual hours) | 1.5x hourly basic rate |
| Work on rest day (at employer’s request) | 1x daily basic rate (additional) |
| Overtime on rest day | 2x hourly basic rate |
| Work on public holiday | 1x daily basic rate (additional to holiday pay) |
| Maximum overtime | 72 hours per month |
Frequently Asked Questions
For a Singapore citizen or PR under 55, the employer’s statutory cost is CPF at 17% (capped at S$8,000/month OW ceiling in 2026) plus SDL at 0.25%. For a S$7,000/month employee, total employer cost is approximately S$8,208, or about 117% of gross salary. For foreign EP holders, the only statutory cost is SDL (0.25%), making Singapore extremely cost-effective for foreign hires. The EOR management fee is additional.
No. CPF applies only to Singapore citizens and Permanent Residents. Foreign workers on Employment Pass, S Pass, or Work Permit do not contribute to CPF and their employers do not pay CPF for them. The only statutory employer cost for foreign employees is SDL (0.25%).
From January 2026, the Ordinary Wage ceiling increased from S$7,400 to S$8,000/month (the final step in a phased increase since September 2023). Contribution rates for employees aged 55 to 65 also increased (e.g., total rate for 55-60 rose to 34%). A CPF Transition Offset helps employers absorb the additional cost.
No statutory severance pay exists for most terminations. For retrenchment, employees with 2+ years of service are eligible for retrenchment benefits, but the amount is not fixed by law. Market practice is 2 weeks’ to 1 month’s salary per year of service. Many contracts specify the terms.
From April 1, 2025, paternity leave doubled from 2 weeks to 4 mandatory weeks for fathers of Singapore citizen children. A new Shared Parental Leave scheme also provides 6 weeks of additional leave shared between parents (increasing to 10 weeks from April 2026). All government-funded, capped at S$2,500/week.
The Employment Act covers all employees working under a contract of service in Singapore, except domestic workers, seafarers, and public officers. However, Part IV (hours, overtime, rest days) only applies to employees earning up to S$2,600/month or manual labourers. Professionals earning above this are still covered by core protections like salary payment, leave, and wrongful dismissal.
No. The Annual Wage Supplement (AWS) is not legally required. However, it is deeply embedded in Singapore’s employment culture. Most companies provide it, and not offering one makes recruitment significantly harder. It is typically 1 month’s salary paid in December.
You must cancel their work pass through MOM, file Form IR21 with IRAS for tax clearance, and withhold all monies due until clearance is received. The employee has 30 days to leave Singapore or secure a new pass. You are responsible for repatriation costs.
Yes. RecruitGo can sponsor Employment Passes, S Passes, and other work passes for foreign employees, subject to MOM’s eligibility criteria including salary thresholds, qualifications, and the COMPASS points-based framework for EP applications introduced in September 2023.
