Hiring guide in Singapore

Contributions & taxes

Employer tax

The total employer tax is 17.25%.

Corporate tax

The corporate tax rate is 17%. 

Employee tax

The employee costs amount to 20%.

Income tax

• 0% — Up to 20,000 SGD Annually
• 2% — 20,000-30,000 SGD Annually
• 3.5% — 30,000-40,000 SGD Annually
• 7% — 40,000-80,000 SGD Annually
• 11.5% — 80,000-120,000 SGD Annually
• 15% — 120,000-160,000 SGD Annually
• 18% — 160,000-200,000 SGD Annually
• 19% — 200,000-240,000 SGD Annually
• 19.5% — 240,000-280,000 SGD Annually
• 20% — 280,000-320,000 SGD Annually
• 22% — 320,000-500,000 SGD Annually
• 23% — 500,000-1,000,000 SGD Annually
• 24% — above 1,000,000 SGD Annually

To calculate the salary and taxes in Singapore please click here.

Payroll cycle

Employees must receive their salary at least once a month, within 7 days after the end of the salary period.

Is there a 13th salary in Singapore?

The 13th salary is typically paid out at the end of the year.

Labor rules

Probation period

The probation period in Singapore is outlined in the employment contract and usually lasts 3–6 months.

Notice period 

The length of the notice period depends on the duration of employment:

• Less than 26 weeks of service – 1 day notice
• More than 26 weeks but less than 2 years of service – 1 week notice
• More than 2 years but less than 5 years of service – 2 weeks notice
• More than 5 years of service – 4 weeks notice

Severance period

In Singapore, employment contracts or collective agreements typically include “retrenchment benefit” payments that become due upon termination after an employee has served for at least two years. It is customary for this benefit to amount to 2 to 4 weeks’ pay for each year of employment.

Working hours

The standard working week in Singapore lasts 44 hours.

Leave and benefits

Public holidays

1. New Year’s Day
2. Chinese New Year
3. Good Friday
4. Eid al-Fitr
5. Labour Day
6. Vesak
7. Eid al-Adha
8. National Day of Singapore
9. Diwali
10. Christmas Day

Sick leave

After six months of service, employees are eligible for paid sick leave equivalent to 14 days per year at their regular gross salary if hospitalisation isn’t required or 60 days per year if hospitalisation is necessary. This leave encompasses 14 days of outpatient care.

Prior to completing six months of tenure, employees are entitled to a specific number of paid sick days based on their duration of employment:

• Up to three months – five days per year, with an extension to 15 days if hospitalisation is necessary.
• At four months – eight days per year, with a possibility of 45 days if hospitalisation occurs.
• At five months – 11 days per year, with a possibility of 45 days if hospitalisation occurs.
• At six months – 14 days per year, with a possibility of 60 days if hospitalisation is required.

Maternity leave & paternity leave

A pregnant employee who has been employed for a minimum of three months prior to the due date and whose child holds Singaporean citizenship is eligible for 16 weeks of paid maternity leave. This leave is divided into two segments: the employee can opt to take up to 8 weeks before the anticipated due date, with a minimum of 28 days, and the remaining weeks after the baby is born.

Moreover, the father or partner is eligible for 2 weeks of paid paternity leave following three months of employment and within 16 weeks after the birth of the baby.

Other leave

Bereavement leave

If an immediate family member passes away, although it’s not mandated by law, numerous Singaporean employers typically grant employees 2 to 3 days of paid leave.

Parental leave

Shared parental leave allows eligible fathers to request up to 4 weeks of their wife’s 16 weeks Maternity Leave. 

Childcare leave is granted to each parent with a minimum of 3 months of service, providing 6 days per year until the child reaches 7 years old, regardless of the number of children. Each parent’s childcare leave is capped at 42 days. Employees must utilise their yearly childcare leave entitlement by the end of the year and cannot carry it forward.

Extended childcare leave offers employees 2 days per year if their youngest child, a Singapore citizen, is between 7 and 12 years old. 

Marriage leave

If an employee gets married, they are entitled to take a maximum of 5 days of leave.

What are the minimum vacation days?

Annual Leave is specified for employees under the Employment Act who have served for a minimum of 3 months. They receive paid annual leave starting at a minimum of 7 days in their initial year, with an increment of one day for each subsequent year of service. Nevertheless, it is customary for employers to provide 14 to 20 days of annual leave after the completion of the first year.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Singapore, upload the documents from our onboarding list (relocation to log in/pricing). 

Why use Native Teams for hiring in Singapore?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.