Hire Employees in Singapore: A Comprehensive Guide for 2026

Introduction

Hiring employees in Singapore is governed by the Employment Act, which sets minimum terms for salary, leave, notice, and termination for anyone under a contract of service. Employers also pay Central Provident Fund (CPF) contributions for Singapore citizens and permanent residents, at 17% for employees aged 55 and below.

The harder part is hiring foreign staff. An Employment Pass application has to clear a salary threshold and score at least 40 points under the Complementarity Assessment Framework (COMPASS), and two of those criteria score your company rather than the candidate.

A firm with no local staff scores poorly, so a strong candidate can still be turned down. An employer of record (EOR) removes that dependency, since it holds the entity and sponsors the pass.

In this guide, we cover the three ways to hire in Singapore, the employment laws that apply, leave entitlements, hiring challenges, and what a hire costs.

How to hire remote employees in Singapore?

Companies hire in Singapore through one of three routes: incorporating a local entity, engaging an employer of record that already holds one, or engaging contractors through an agent of record. The route depends on how long the role runs, whether the person needs a work pass, and how much of the employment relationship you want to hold directly.

Setting up a local entity

Registering a company in Singapore runs through ACRA's (Accounting and Corporate Regulatory Authority) BizFile+ portal. A private limited company needs at least one director ordinarily resident in Singapore, a company secretary appointed within six months, a registered local address that is not a P.O. box, and paid-up capital of $1.

Before the first payroll run, register with the CPF (Central Provident Fund) Board for a CPF Submission Number, which pairs your Unique Entity Number with a CPF payment code, and register as an employer with IRAS. Work pass sponsorship also sits behind the entity, so foreign hires cannot start until incorporation completes.

Hiring employees via EOR

The EOR already holds a Singapore entity, so it acts as the legal employer on paper while you direct the work. It issues Employment Act-compliant contracts, files CPF contributions and the Skills Development Levy, and sponsors work passes with MOM (Ministry of Manpower).

This route fits companies testing the market, hiring a handful of people, or needing someone onboarded before an entity could realistically be running payroll.

An EOR fits when the role is permanent, the person needs statutory benefits, and you want the employment relationship documented under Singapore law. Skuad acts as the legal employer, so hiring can start without waiting on incorporation.

Skuad can help companies hire, onboard, pay, and manage employees in Singapore through its EOR service. Skuad supports hiring across 160+ countries and payroll processing in 70+ currencies.

Here is what Skuad can help with:

• Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
• Supports employment contract generation aligned with local labour laws across supported markets
• Facilitates statutory contribution workflows covering applicable social security and pension obligations
• Supports payroll processing in 70+ currencies with tax withholding and statutory deductions
• Assists with work permit and visa applications for foreign nationals joining your team

Book a demo to see how Skuad supports your first Singapore hire

Hiring contractors through AOR

Contractor management fits defined, time-bound scopes where the worker controls how the work gets done. The exposure is classification, so the agreement and the payment trail have to hold up if the relationship is ever reviewed.

Contractors are engaged under a contract for service, so CPF contributions, statutory leave, and Employment Act protections do not apply.

The risk is classification. MOM assesses the substance of the working relationship rather than the label on the agreement, so a contractor working fixed hours under direct supervision can be treated as an employee, which brings back CPF liability and statutory entitlements retroactively.

Skuad supports AOR hiring models from a single platform:

• Helps onboard contractors on locally compliant agreements that reduce misclassification exposure
• Supports invoice generation, approval workflows, and payment processing
• Helps flag classification risk early with built-in worker classification checks
• Facilitates payouts across 70+ currencies without manual reconciliation
• Helps keep contractor records, agreements, and payment history in one dashboard alongside full-time employees

Compare AOR and contractor pricing to plan out your hiring in Singapore.

What are the employment laws in Singapore?

Hiring in Singapore means working across several statutes rather than one labour code. These are the ones that shape an employment relationship.

Each of these carries its own filings, deadlines, and records to keep. This is a full role for someone who knows the Singapore system in and out.

Skuad helps close that gap. Shield supports ongoing compliance monitoring across supported markets, so a threshold change reaches your employment records before it turns into a liability:

• Supports employment contract generation across 160+ countries, aligned with local labour laws and statutory requirements
• Facilitates statutory contribution workflows across supported markets, covering applicable social security and pension obligations
• Assists with statutory leave and benefits administration in line with local requirements
• Assists with termination and offboarding, including notice periods and severance calculations as required locally
• Helps your team stay aligned as local employment thresholds and filing rules are revised

Your HR team keeps ownership of the employment relationship while the regulatory tracking runs alongside it.

Book a demo to see how Skuad supports Singapore employment compliance as the rules change

How does leave structure look in Singapore?  

Statutory leave in Singapore splits between what the employer funds and what the government reimburses. Annual leave, sick leave, and public holidays fall entirely to the employer. Most parental leave is government-paid, though the employer pays first and claims reimbursement afterwards, so the cash goes out before it comes back.

What are the challenges of hiring in Singapore?

Singapore is a strong place to hire, with an educated, multilingual workforce and a business environment built for foreign companies. The hiring itself still carries legal, payroll, and administrative demands, especially for companies without a local entity or an experienced HR team. It is worth knowing the compliance mistakes that catch global employers out before you make your first offer.

Here is what gets in the way:

1. Compliance with employment laws

The Employment Act is Singapore’s main labor law. It covers most local and foreign employees working under a contract of service, although some provisions apply only to specific employee groups. For example, Part 4 rules covering working hours, rest days, and overtime generally exclude managers and executives.

For employees covered under Part 4, common requirements include:

• Contractual working hours of up to 44 hours per week
• Overtime pay of at least 1.5 times the employee’s hourly basic rate
• A general limit of 72 overtime hours per month
• Breaks, rest days, and maximum daily working-hour requirements

The coverage rules depend on the employee’s role and basic monthly salary, so applying one policy to the entire workforce may create errors.

2. Payroll and CPF contributions

Payroll in Singapore requires more than calculating an employee’s gross salary. Employers may need to account for salary deductions, overtime, bonuses, additional wages, applicable levies, tax reporting, and Central Provident Fund contributions.

CPF contribution rates depend on factors such as:

• The employee’s age
• Citizenship or permanent resident status
• The number of years the employee has held permanent resident status
• Ordinary and additional wages
• Applicable wage ceilings

Employers also need to determine whether a role falls under the Progressive Wage Model. Covered employers must meet applicable wage and training requirements for eligible Singapore citizens and permanent residents working in specified sectors or occupations.

3. Work pass requirements for foreign employees

Hiring foreign professionals can involve a longer process than hiring Singapore citizens or permanent residents. Employers must identify the appropriate work pass, review the candidate’s eligibility, prepare supporting documents, and complete the required application process.

Employment Pass candidates generally need to meet a qualifying salary requirement and pass the points-based Complementarity Assessment Framework, known as COMPASS, unless an exemption applies.

Many employers must also advertise the role on MyCareersFuture for at least 14 consecutive days and consider candidates fairly before submitting an Employment Pass or S Pass application. The advertisement must accurately state information such as the role, salary, and hiring organization.

Overseas companies without a Singapore-registered office may face another complication. Employment Pass applications generally need to be submitted by an employer, appointed employment agent, or local sponsor, depending on the company’s setup.

4. Employee and contractor classification

Hiring independent contractors may offer flexibility for project-based or specialized work. Companies still need to establish whether the working arrangement reflects a genuine contractor relationship.

Singapore does not apply one conclusive test to distinguish an employee from an independent contractor. Authorities may consider factors such as who controls the work, who provides tools and equipment, how the worker is paid, and whether the individual bears financial risk.

A worker described as a contractor in an agreement may still resemble an employee in practice. Misalignment between the contract and the working relationship can create questions around employment rights, payments, benefits, and statutory obligations.

What is the cost of hiring in Singapore?

Salary is the biggest number, but it is not the whole cost. What sits on top of it depends almost entirely on whether the person is a Singapore citizen or a foreigner on a work pass.

What do you pay on top of salary?

Entity or EOR

Employer cost in Singapore moves with who you hire. Two candidates on the same salary can carry very different totals once CPF, levies, and pass fees are counted, and the gap widens over a full year.

Skuad helps you model that before an offer goes out:

• Supports cost estimates that include employer contributions and statutory levies across supported markets
• Supports payroll processing in 70+ currencies with tax withholding and statutory deductions
• Helps consolidate salary, statutory contributions, and service fees into a single monthly invoice
• Assists with statutory reporting and year-end filings in line with local requirements

Calculate Singapore hiring costs before you make the offer

How Microsense Networks Hired Across Southeast Asia with Skuad?

Microsense Networks is a technology and networking company expanding across Southeast Asia. Hiring in Indonesia, Sri Lanka, and Thailand meant three separate sets of contractor rules, contracts, and payment routes. Skuad supported localized contracts, cross-border contractor payments, and compliance onboarding through one platform. The team onboarded nine contractors across the three markets.

Read the full case study

How to hire in Singapore without setting up an Entity?

Singapore's rules are clear and well documented. The work is in the volume. CPF and levy submissions every month, IR8A filings in March, work passes scored against your company profile, and leave entitlements that shift depending on the child's citizenship. Each one has its own deadline and its own authority.

Skuad supports the operational complexity of hiring in Singapore, including employment contracts, CPF and levy submissions, payroll in 70+ currencies, statutory leave, and work pass applications, so your team spends its time on the hire itself.

Companies across SaaS, fintech, logistics, and professional services use Skuad to support their entry into Singapore and build APAC teams without local HR infrastructure.

Book a demo and hire Singapore employees in a week without setting up an entity.

FAQs

1. How do companies hire employees in Singapore?

Companies typically hire in Singapore either by incorporating a private limited company and registering with IRAS and the CPF Board, or by engaging an employer of record that already holds a local entity. Foreign nationals also need a work pass approved by the Ministry of Manpower.

2. How much does it cost to hire an employee in Singapore?

Beyond salary, employers generally budget for CPF contributions of 17% for citizens and permanent residents aged 55 and below, capped at the S$8,000 monthly Ordinary Wage ceiling, plus the Skills Development Levy of 0.25% of monthly wages, capped at S$11.25 per employee.

3. Can a foreign company hire employees in Singapore without a local entity?

Foreign companies can typically hire in Singapore through an employer of record, which holds the local entity and acts as the legal employer for CPF submissions, IRAS filings, and work pass sponsorship. Hiring directly onto a foreign payroll is generally not workable for Singapore-based staff.

4. What happens if an employer does not issue Key Employment Terms in Singapore?

Employers covered by the Employment Act 1968 must issue written Key Employment Terms within 14 days of the start date for contracts of 14 days or more. The Ministry of Manpower can impose administrative penalties of up to S$400 per affected employee for each breach.

5. Is an employer of record cheaper than setting up an entity in Singapore?

This usually depends on headcount and how long you plan to stay. A Singapore private limited company carries incorporation, corporate secretarial, and annual filing costs regardless of team size, while an employer of record charges a monthly fee per employee. Small pilot teams generally find the second cheaper.

6. How long does it take to hire an employee in Singapore?

The timeline varies, but a local hire can generally start within a few weeks of accepting an offer. Employment Pass candidates take longer, since employers with ten or more staff usually advertise the role on MyCareersFuture for at least 14 days before applying.