Payroll & Employment Guide Singapore flag

Payroll & Employment Guide Singapore

If you’re looking to hire remotely in a country with a pro-business environment, strong legal framework, and world-class digital infrastructure, then Singapore is the perfect choice. Beyond the operational advantages, Singapore offers access to a highly skilled, multilingual talent pool with a 97% literacy rate.

Payroll & Employment Guide Singapore
CurrencySingapore Dollar (SGD)
LanguagesEnglish, Malay, Tamil, Mandarin
Minimum wageNo legally mandated minimum wage for all sectors
Employment cost17.25%
Working hours44 hours per week
VAT9%
Probation period3 to 6 months
Paid leave days7 days after 12 months of service
Categories

Hiring guide

The country has clear regulations around employment contracts, work passes, and social security contributions that employers must follow. However, if you aren’t familiar with its labour laws, you can easily fall into the misclassification pit, miss a tax submission date and bring your business legal issues.

Stay on the right track by obtaining accurate information on salaries, employment policies, costs, and more. Download our hiring guide for Singapore now!

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Employment contracts

Employment contracts in Singapore can be in written, oral, or electronic form, but written contracts are mandatory. Within 14 days of commencing employment, employers must provide employees with a written Key Employment Terms (KETs) document, as required by the Employment Act.

The contracts can be either permanent or fixed-term, and must outline the key elements of the employment relationship.

Notice periods: Range from one day to four weeks, depending on the length of employment

Termination of employment: Employment can end through various methods, including resignation by an employee with proper notice, termination by the employer with notice or payment in lieu of notice, summary dismissal for serious misconduct without notice, and others.

Access employment contracts for Singapore, crafted by legal experts. Get our template now!

Employee benefits

Singapore provides a structured employee benefits system that ensures worker protection and promotes work-life balance. It combines mandatory benefits with common employer perks to support financial security, healthcare, and personal growth.

  • Mandatory benefits: Central Provident Fund (CPF) contributions, Skills Development Levy (SDL), work injury compensation, severance pay
  • Common perks: Health insurance, meal vouchers, wellness programmes
  • Leave policies: Annual leave, sick leave, parental leave

Learn more about employee benefits in Singapore

Taxes

In Singapore, the tax system distinguishes clearly between employer obligations and employee responsibilities. Employees are responsible for filing and paying their own personal income tax directly to the Inland Revenue Authority of Singapore (IRAS). On the other hand, employers must make mandatory contributions to the Central Provident Fund (CPF) and report employee earnings to IRAS.

Personal income tax rate: a progressive personal income tax rate system for residents, ranging from 0% to 22%; non-residents are typically taxed at a flat rate of 15%
VAT: 9%
Tax allowances: Personal reliefs, course fees relief, CPF relief for mandatory employee CPF contributions, life insurance relief
Additional tax reliefs: Qualifying Child Relief (QCR) and Handicapped Child Relief (HCR) for parents, Working Mother's Child Relief (WMCR)

Payroll

In Singapore, employers are required to pay salaries as specified in individual or collective employment contracts. There is no statutory minimum wage applicable nationwide; instead, salary levels are determined by mutual agreement, collective bargaining, or progressive wage models in specific sectors. Salaries must be paid at least once a month.

Salary payment deadline: By the 7th of the following month.
Taxes and contributions payments deadline: By the 14th day of the following month.
Payroll declarations deadline: By the 20th of the following month.
Payroll currency: SGD

EOR services

Employer of Record (EOR) services let you hire employees in Singapore without setting up a legal entity. The EOR becomes the legal employer and handles all compliance and admin tasks, including:

  • Employment contracts
  • Payroll and tax withholding
  • Benefits administration
  • Employee onboarding and offboarding

PEO services

Professional Employer Organisation (PEO) services support your HR and administrative needs while you remain the legal employer. Ideal for companies with an existing legal entity in Singapore, PEO services include:

  • HR and workforce management
  • Payroll and benefits administration
  • Compliance with local labour laws
  • Support with employment contracts

Payroll calculator

Native Teams offers a payroll calculator tailored to Singapore’s labour laws. Easily estimate net and gross salaries, employer and employee contributions, and all mandatory deductions.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

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Frequently asked questions

When hiring a gig worker in Singapore, it’s important to treat them as independent contractors rather than employees. This means you’re generally not responsible for CPF contributions or employee benefits, but you should have a clear written contract outlining the scope of work, payment terms, intellectual property, and confidentiality. 

Ensure the worker has the proper legal status to work in Singapore, particularly if they are a foreign national, by verifying their work permits or visas. Gig workers are responsible for their own income tax and CPF contributions if they are Singapore citizens or permanent residents.