Singapore vs Hong Kong
Hiring in Singapore vs Hong Kong, an honest guide for 2026
Singapore has deeper APAC tech talent and a stable regulatory environment, but employer CPF contributions run 17% for local hires under 55, and the COMPASS framework adds a scoring layer to every Employment Pass application. Hong Kong's MPF employer contribution is capped at HK$1,500 per month (5% of relevant income up to HK$30,000), its work-pass regime is simpler, and entity incorporation takes one to two working days. The right market turns on your talent pool, cost model and how long you plan to stay on EOR before setting up your own entity.
Trusted by 1,000+ growing teams
- 17% vs 5%
- Singapore employer CPF contribution (citizens and PRs under 55) versus Hong Kong MPF employer rate. MPF is capped at HK$1,500 per employee per month.
- COMPASS
- Singapore Employment Pass applications are scored on a points framework since September 2023. Hong Kong work permits have no equivalent points-based gate.
- $599
- Teamed flat EOR fee, same rate in Singapore and Hong Kong. FX absorbed at zero markup. Real HR and legal experts on every plan.
Singapore or Hong Kong: which APAC market is the better fit for your next hire?
Singapore has deeper APAC tech talent and a stable regulatory environment, but employer CPF contributions run 17% for local hires under 55, and the COMPASS framework adds a scoring layer to every Employment Pass application. Hong Kong's MPF employer contribution is capped at HK$1,500 per month (5% of relevant income up to HK$30,000), its work-pass regime is simpler, and entity incorporation takes one to two working days. The right market turns on your talent pool, cost model and how long you plan to stay on EOR before setting up your own entity.
At a glance
Singapore
Best for: companies hiring from Singapore's deep tech, fintech and regional-HQ talent pool, comfortable with CPF obligations for local hires and COMPASS requirements for Employment Pass holders, and planning several APAC hires before the crossover to their own Pte. Ltd. makes financial sense.
Hong Kong
Best for: companies that want the lowest employer on-cost in APAC, are hiring from Hong Kong's financial-services and professional talent market, and value the SAR's straightforward work-permit regime and one-to-two-day entity incorporation.
| Where it matters | Who leads | Why |
|---|---|---|
| Employer contribution cost | Hong Kong | Hong Kong's MPF employer contribution is capped at HK$1,500 per employee per month (5% of relevant income up to HK$30,000). Singapore's CPF employer rate is 17% for employees below 55 on ordinary wages up to S$6,800 per month. For a Singapore citizen or PR earning S$8,000 gross, employer CPF runs S$1,156 per month. CPF does not apply to foreign EP or S Pass holders. |
| Work pass and foreign talent hiring | Hong Kong | Singapore Employment Pass applicants since September 2023 must score at least 40 COMPASS points across salary, qualifications, employer diversity and local workforce support. Hong Kong work permits do not have an equivalent points-based gate, and the minimum salary threshold for an Employment Visa is lower. For fast-moving international hiring, the HK route involves fewer application variables. |
| Regulatory and legal stability | Singapore | Singapore is rated AAA by all three major agencies, operates a common-law framework with consistent enforcement and strong IP protection. Hong Kong retains its common-law system under the Basic Law, but a number of international employers have noted the post-2020 operating environment as a factor in APAC location decisions. For companies building a long-term regional footprint, regulatory predictability matters. |
| Talent market depth for tech and regional HQ roles | Singapore | Singapore is the established APAC headquarters location for a large share of the world's major technology companies, with deep talent pools in software engineering, fintech, operations and professional services. Hong Kong retains strength in financial services, asset management and trading, but tech-focused talent density is higher in Singapore for most of the roles a growing company is likely to hire. |
| Path to your own entity | Hong Kong | A Hong Kong Limited company can be incorporated in one to two working days through the Companies Registry, one of the fastest turnarounds in the world. A Singapore Pte. Ltd. via ACRA's Bizfile+ is also fast, typically one to three working days for standard cases. Both are straightforward, but Hong Kong's one-step process and lower ongoing compliance overhead can make the EOR-to-entity crossover marginally simpler for a company planning ahead. |
| Teamed entity model | Singapore | Teamed owns a Singapore entity directly; Singapore is one of 57 countries where Teamed operates its own legal entity (verified 2026-06-17). Hong Kong hires are served through a vetted in-country partner. Both routes deliver compliantly, but the accountability chain is shorter in Singapore. Ask any EOR per country where accountability sits before you sign. |
Singapore on G2
Who Singapore is for
This guide is for rapidly growing companies with an international footprint deciding where to place their first or next APAC hire. You have a role in mind, a salary band, and you need a clear cost and compliance picture for both markets before you commit.
Not the right fit if
- Deciding which EOR provider to use in APAC?. See the Best EOR in Singapore and Best EOR in Hong Kong scored guides, both on the /compare hub, for a full provider-by-provider rubric.
Find your pick in 20 seconds
| If you are… | Start with | Why |
|---|---|---|
| Your role is in tech, fintech or regional operations with APAC scope | Singapore | Singapore is the established APAC HQ for most major technology and SaaS companies. The talent pool is deeper for software, product, operations and professional-services roles, and the employment framework is well understood by internationally experienced candidates. |
| Employer contribution cost is your primary constraint | Hong Kong | Hong Kong MPF employer contributions are capped at HK$1,500 per employee per month. Singapore CPF runs at 17% for local hires under 55 on ordinary wages, with no monthly cap. For a mixed citizenship team, the cost difference is material. |
| You are hiring foreign nationals who will need a work pass | Lean toward Hong Kong for simplicity | Singapore's COMPASS framework requires Employment Pass applicants to score at least 40 points across salary, qualifications, employer diversity and local workforce support. Hong Kong does not have a points-based gate. If your candidate profile doesn't clearly pass COMPASS, HK involves fewer application risks. |
| You plan to set up your own entity quickly | Hong Kong, marginally | A Hong Kong Limited can be incorporated in one to two working days. A Singapore Pte. Ltd. typically takes one to three working days. Both are fast, but Hong Kong's Companies Registry is among the fastest in the world and the ongoing compliance overhead is lower. |
| You want the longest EOR runway before setting up your own entity | Singapore, via Teamed | Teamed owns a Singapore entity and will proactively model the crossover month when a Pte. Ltd. starts to make sense. GEMO sets up the entity on the same platform with no re-onboarding of existing EOR employees. The accountability chain is shorter in Singapore for hard compliance moments. |
What is hiring in Singapore vs Hong Kong via EOR?
An Employer of Record (EOR) in Singapore or Hong Kong legally employs your people through its own entity or a vetted local partner, so you can hire compliantly before you have a Singapore Pte. Ltd. or a Hong Kong Limited company. The EOR issues a local-law employment contract, runs payroll in the local currency, manages statutory obligations, and carries the responsibilities of the legal employer while you direct the day-to-day work. In Singapore, that means Central Provident Fund (CPF) contributions for citizens and permanent residents (17% employer-side for employees under 55) and Ministry of Manpower (MOM) work-pass management for foreign nationals under the COMPASS framework. In Hong Kong, it means Mandatory Provident Fund (MPF) contributions at 5% of relevant income, capped at HK$1,500 per employee per month, and compliance with the Employment Ordinance (Cap. 58).
Both are common-law markets with relatively employer-friendly employment frameworks compared to continental Europe. Neither requires social justification for a standard termination. The main cost difference is the employer contribution rate: Singapore CPF for local hires is material at 17%; Hong Kong MPF is capped at a level that makes the effective rate lower for most professionals. The main compliance difference is work-pass management: Singapore's COMPASS adds a scored layer to every Employment Pass application that Hong Kong's system does not have. Ask any EOR who handles those moments: a real HR or legal expert with country-specific depth, or a generalist support queue.
Employer contributions: CPF versus MPF and what they mean for your cost model
The EOR fee is the same in Singapore and Hong Kong. The cost variable is the statutory employer contribution the EOR passes through at cost. Singapore CPF is 17% of ordinary wages for citizens and permanent residents below 55, on wages up to S$6,800 per month. Hong Kong MPF is 5% of relevant income, capped at HK$1,500 per employee per month. For a Singapore citizen earning S$8,000 per month, employer CPF runs S$1,156. For a HK employee earning HK$60,000 per month, employer MPF is HK$1,500 (2.5% effective). A key nuance: CPF does not apply to foreigners on Employment Passes or S Passes. If you are hiring a foreign national for a Singapore EP role, the CPF line is zero, but COMPASS work-pass costs and processing time are real.
| Detail | Singapore | Hong Kong |
|---|---|---|
| Contribution scheme | Central Provident Fund (CPF). Covers retirement, healthcare and housing for Singapore citizens and permanent residents. | Mandatory Provident Fund (MPF). Covers retirement savings for all employees aged 18 to 64 in Hong Kong, regardless of nationality. |
| Employer contribution rate | 17% of ordinary wages for employees below 55, on wages up to the ordinary wage ceiling of S$6,800/month. Rate tapers for employees 55 to 70+. Applies to citizens and PRs only. | 5% of relevant income, with a mandatory monthly cap of HK$1,500 per employee (reached at relevant income of HK$30,000/month). Applies to all employees. |
| Applies to foreign nationals? | No. Foreign nationals on Employment Passes or S Passes are not subject to CPF. No employer CPF obligation for EP/S Pass holders. | Yes. MPF applies to all employees in Hong Kong regardless of nationality or work-pass status. |
| EOR pass-through treatment | All EOR providers pass Singapore CPF through at cost. Not the provider margin. | All EOR providers pass Hong Kong MPF through at cost. Not the provider margin. |
The number that matters most for your cost model
For a local Singapore citizen earning S$8,000 per month, employer CPF is S$1,156 per month. For a Hong Kong employee earning HK$60,000 per month, employer MPF is HK$1,500 per month. If your Singapore hire is a foreign national on an EP, the CPF line is zero but COMPASS compliance and work-pass management have their own overhead. Build the model around the employee's citizenship and salary, not just the market name.
Work pass and foreign talent hiring: COMPASS versus the HK Employment Visa
Every company hiring international talent into APAC needs to think about work-pass requirements before the first day. Singapore's COMPASS framework, in place since September 2023, requires Employment Pass applicants to score at least 40 points across four criteria: salary against the industry benchmark, educational qualifications, employer workforce diversity and local workforce support. An application below 40 points is rejected; scores between 40 and 59 pass but may face additional scrutiny. Hong Kong uses a different Employment Visa route with no equivalent points-based gate. The sponsoring employer files an application with Immigration, the applicant demonstrates relevant experience and a bona fide job offer, and processing typically takes four to eight weeks. For companies with a candidate profile that clearly passes COMPASS, Singapore is straightforward. For companies with a candidate who may not score highly on diversity or local workforce support criteria, Hong Kong involves fewer application variables.
| Detail | Singapore | Hong Kong |
|---|---|---|
| Work pass type for professionals | Employment Pass (EP). Requires minimum monthly salary of S$5,000 (S$5,500 in financial services) and a COMPASS score of at least 40 points. | Employment Visa (EV). No points-based scoring. Applicants must have relevant qualifications or experience and a confirmed job offer from a Hong Kong employer. |
| Points-based assessment | COMPASS framework (since September 2023). Four scored criteria: salary vs industry benchmark, qualifications, employer diversity, local workforce support. Applications scoring below 40 points are rejected. | No equivalent points-based gate. Immigration assesses applications on individual merit, experience and job offer validity. |
| Minimum salary threshold | S$5,000/month for standard EP (S$5,500 in financial services), verified September 2023. | No fixed minimum salary threshold published for Employment Visas. Salary is assessed relative to role and industry. |
| EOR role in work-pass management | The EOR, as the legal employer, sponsors and manages MOM applications. COMPASS scoring requires real employment-law expertise. A COMPASS shortfall or appeal needs a real expert, not a generalist queue. | The EOR sponsors the Employment Visa as the legal employer and manages the Immigration application. No points-based assessment to navigate, but a proper job offer and documentation are required. |
The question to ask any EOR before you hire a foreign national in Singapore
Does your team score my candidate under COMPASS before we start the application? What is our workforce diversity score if this EP is our first Singapore hire? If we score below 40, what are the options? A real HR or legal expert who knows MOM practice matters far more than a fast onboarding dashboard at this moment.
Employment law and termination: two common-law markets, one key difference
Both Singapore and Hong Kong operate common-law employment frameworks, and neither requires social justification for a standard termination. That puts them in a materially different position from continental European markets. The Employment Act in Singapore and the Employment Ordinance in Hong Kong both provide statutory notice periods, annual leave entitlements and protections against wrongful dismissal. The key termination difference is in long-term protections: Hong Kong provides statutory severance payments for redundancies after 24 months and long service payments after 5 years; Singapore's Employment Act provides retrenchment benefits for employees with at least two years of service, though the quantum is not fixed by statute and is often negotiated or set by industry norms. In both markets, the EOR runs the termination procedure as the legal employer. Ask any EOR who handles the hard moments: a real HR or legal expert with country-specific depth, or a generalist ticket queue.
| Detail | Singapore | Hong Kong |
|---|---|---|
| Governing legislation | Employment Act (EA). Covers most employees in Singapore except domestic workers. Managers and executives earning above S$4,500/month are covered by core EA provisions but not Part IV (overtime, rest days). | Employment Ordinance (Cap. 58). Covers all employees in Hong Kong except domestic workers, apprentices under a separate scheme and certain civil servants. |
| Statutory notice period | Minimum notice under the Employment Act: 1 day (less than 26 weeks service), 1 week (26 weeks to 2 years), 2 weeks (2 to 5 years), 4 weeks (5 or more years). Employment contracts commonly set 1 to 3 months. | Minimum notice under Cap. 58: 7 days. Employment contracts typically set 1 month for professional roles. Either party can pay salary in lieu of notice. |
| Redundancy and severance | The Employment Act provides for retrenchment benefits for employees with 2 or more years of service. The amount is not fixed by statute; industry norm is 2 weeks pay per year of service, but this can be negotiated. | Employment Ordinance provides statutory severance payments (redundancy) for employees with 24 or more months of service, and long service payments for employees with 5 or more years who are not dismissed for misconduct. The statutory rate is 2/3 month pay per year of service, capped. |
| EOR role in the procedure | The EOR, as the legal employer, manages the termination process, issues notice, calculates any retrenchment benefit and handles MOM statutory notification if required. | The EOR manages the termination, calculates any severance or long service payment entitlement, and files the IR56F employer notification with the Inland Revenue Department on exit. |
Why the support model matters at a termination
A contested retrenchment in Singapore or a disputed long service payment calculation in Hong Kong needs a real HR or legal expert who knows the framework, not a generalist ticket queue. Ask any EOR: who handles a contested exit, are they on your plan or a paid upgrade, and what is the typical timeline in that market? A real expert on every plan is part of what you are paying for.
EOR entity model and the accountability chain in each market
Teamed owns a Singapore entity directly; Singapore is one of 57 countries where Teamed operates its own legal entity (confirmed 2026-06-17). Hong Kong hires are served through a vetted in-country partner. Both routes deliver compliantly, but the accountability chain differs. With an owned entity, Teamed is the direct legal employer in Singapore with no intermediate partner. In Hong Kong, there is an additional link in the chain. This matters most when a hard compliance moment arrives: a COMPASS appeal in Singapore, a contested severance calculation in Hong Kong, or an IR56G tax-clearance hold. Ask any EOR the same question: owned entity or vetted partner for my specific country, and who calls back if an edge case arises?
| Detail | Singapore | Hong Kong |
|---|---|---|
| Teamed entity model | Teamed-owned entity. Teamed is the direct legal employer in Singapore with no intermediate partner. Singapore is one of 57 owned-entity countries (verified 2026-06-17). | Vetted in-country partner. The partner is the legal employer in Hong Kong; Teamed coordinates and takes accountability for the compliance outcome. |
| Accountability on a work-pass or compliance edge case | Teamed handles COMPASS applications, MOM notifications and Employment Act obligations directly through its own Singapore entity and real HR and legal experts. | Teamed coordinates through the vetted HK partner, with real HR and legal experts handling Employment Ordinance compliance and MPF administration. |
| What both routes share | Real HR and legal experts, FX absorbed at zero markup, no AI bot wall and the same $599 flat fee on every plan. | Real HR and legal experts, FX absorbed at zero markup, no AI bot wall and the same $599 flat fee on every plan. |
| Path to your own entity | Global Entity & Employment Operations (GEMO) sets up a Singapore Pte. Ltd. and keeps managing it on the same platform, with no re-onboarding of existing EOR employees. Teamed models the crossover month proactively. | GEMO sets up a Hong Kong Limited company and keeps managing it on the same platform, with no re-onboarding of existing EOR employees. HK incorporation takes one to two working days via the Companies Registry. |
What to confirm before you commit to a market
Is your country owned-entity or partner-served? Who is the legal employer on the employment contract? If a COMPASS query arrives or a long service payment dispute emerges, who calls back and how fast? Get those answers in writing before you sign. Teamed will tell you plainly which market it owns and which it serves via a vetted partner.
Why the comparison matters
Behind every line item is a real person, in a real place.
The fee, the FX and the support model are not abstractions. They decide whether the person you hired in Barcelona or Rome is paid right, on time, by someone who knows their employment law. That is the comparison worth running.
What each stakeholder evaluates
| Criterion | Legal | Finance | People Ops | Security |
|---|---|---|---|---|
| Employer contributions and total cost of employment | Both markets' contribution rates are set by statute, not negotiable with the EOR. Get a full employer-cost model showing gross salary, CPF or MPF contributions and the EOR fee for each market before deciding. CPF applies only to Singapore citizens and permanent residents; confirm the citizenship and employment-pass status of your intended hire before assuming a contribution rate. | For a Singapore citizen earning S$8,000/month, employer CPF is S$1,156/month. For the same hire on an EP (foreigner), employer CPF is zero but COMPASS work-pass compliance has its own overhead. For a Hong Kong employee earning HK$60,000/month, employer MPF is HK$1,500/month. The EOR fee is $599 in both markets. Model the contribution line per candidate, not per market. | CPF in Singapore is a significant employee benefit: employees get CPF contributions toward retirement, healthcare and housing. Some Singapore candidates factor the CPF accumulation into their total compensation picture. Hong Kong MPF provides retirement savings only. If your talent pool includes Singaporeans who value CPF accumulation, the contribution is not just a cost; it is part of the offer. | CPF contributions in Singapore are remitted to the CPF Board monthly. MPF in Hong Kong is remitted to an approved fund trustee monthly. Both are statutory obligations; late or incorrect payment carries penalties. The EOR carries this risk as the legal employer. |
| Work pass and foreign talent management | Singapore's COMPASS assessment requires the EOR to be well versed in MOM practice before the application is submitted. A rejected EP application delays your hire by weeks and may require an appeal. Confirm with any EOR how they assess COMPASS eligibility before the application goes in, and whether they have real HR and legal experts with MOM experience on your plan or on a paid add-on. | A rejected or delayed EP in Singapore carries a real cost: your candidate cannot start, may withdraw, and any onboarding preparation is paused. Hong Kong work permits involve fewer application variables. If your hiring timeline is tight or your candidate pool has COMPASS uncertainty, factor that risk into the market decision. | COMPASS scoring includes a diversity criterion that considers the existing citizenship mix of your Singapore workforce. For a first Singapore hire at a company with no prior Singapore team, the diversity score may be low. An EOR with real COMPASS expertise will model this before you file, not after the rejection arrives. | Work-pass data submitted to MOM in Singapore includes personal information on the applicant and their employer's workforce composition. Confirm that the EOR's data handling for MOM applications complies with Singapore's Personal Data Protection Act (PDPA). |
| Termination and exit procedure | Both markets allow termination without social justification for a standard dismissal, which puts them in a very different category from continental Europe. In Singapore, retrenchment benefits are not fixed by statute; the quantum is often 2 weeks pay per year of service by industry norm. In Hong Kong, severance and long service payment entitlements are set by statute under Cap. 58. Ask any EOR who runs the termination, whether that person has country-specific depth, and whether the IR56G tax-clearance notification process for Hong Kong is handled proactively. | In Hong Kong, an employee with 5 or more years of service is entitled to a long service payment on certain terminations regardless of redundancy. That entitlement is a real liability to price into your cost model if you plan a long-term hire. Singapore's retrenchment benefit is negotiated and typically lower at 2 weeks pay per year. At 3 years of service, the Singapore cost of exit is lower on the statutory floor. | Both Employment Act and Employment Ordinance terminations require notice (or salary in lieu) and final payroll settlement within prescribed timeframes. In Hong Kong, the IRD must be notified via IR56F and the employer may need to hold the final-month salary pending tax clearance. Your EOR handles these as the legal employer; confirm this is managed proactively, not on request. | At termination, payroll data, personal records and benefit files must be retained in both markets. Both Singapore and Hong Kong have data-protection obligations on retention and deletion periods. Confirm the EOR data-handling policy before employment starts. |
How to start hiring in Singapore or Hong Kong via EOR
The decision is not just Singapore or Hong Kong; it's the total employer cost, the work-pass route, the termination framework and the path to your own entity. A real HR or legal expert helps you model all four before you sign.
Step 1
Map the role, the candidate and the market
Share the role, the salary band and the candidate's citizenship. Teamed models the total employer cost in each market: gross salary plus CPF or MPF plus the EOR fee, with FX shown against mid-market. If the hire is a foreign national heading to Singapore, Teamed assesses COMPASS eligibility before the application goes in.
Step 2
Issue a compliant employment contract
Teamed issues a local-law contract. In Singapore, the contract reflects Employment Act obligations including Part IV provisions where they apply. In Hong Kong, it reflects Employment Ordinance (Cap. 58) requirements including statutory annual leave and notice. Both are reviewed by real HR and legal experts before issue.
Step 3
Run payroll and manage statutory obligations
The first payroll runs in SGD or HKD, with FX absorbed at zero markup. In Singapore, CPF contributions are filed with the CPF Board for citizens and PRs; MOM work-pass obligations are managed for EP and S Pass holders. In Hong Kong, MPF is remitted to the approved fund trustee and the IRD employer return is handled annually.
Step 4
Model the entity crossover when you are ready
Teamed flags the month your headcount in Singapore or Hong Kong makes a local entity worth considering. Global Entity & Employment Operations (GEMO) sets up a Singapore Pte. Ltd. or a Hong Kong Limited and keeps managing it on the same system with no re-onboarding of existing EOR employees.
City Relay · London property management
Scaled a global team across multiple markets via EOR. Zero foreign entities opened.
- Global workforce covered by EOR across multiple markets
- 80%
- Foreign entities opened across all markets
- 0
- Compliance maintained across every market
- 100%
- Time to first payroll after engagement, not weeks
- Days
Challenge
City Relay, an award-winning London property-management company, needed to place employees internationally to support its growing business. Entity setup in each market was disproportionate to the initial headcount, and the employment law and payroll requirements in each country needed expert management.
Approach
City Relay used Teamed's EOR to employ staff compliantly across multiple markets, with Teamed handling local employment contracts, payroll, statutory contributions and compliance obligations in each country. No entities were set up; the legal employer relationship ran through Teamed's local structure in each market.
Result
Hires were on payroll within days in each market. No entity overhead, no foreign legal counsel on retainer, no compliance gap. City Relay scaled its global team further, with 80% of its workforce covered by EOR across multiple markets, without opening a single foreign entity.
Interactive tool
Model the full employer cost in Singapore or Hong Kong
Enter the gross salary, the country and your employee's citizenship. The employer-cost calculator shows the CPF or MPF contribution, the EOR fee and the FX-adjusted total. Most teams find the CPF versus MPF difference is only part of the picture; COMPASS work-pass risk and entity timeline are the other two variables that shift the market decision.
Decision checklist
- Choose Singapore if your role is in tech, fintech, operations or any sector where Singapore serves as the established APAC HQ, and your candidate is a Singapore citizen, PR or a foreign national who clearly passes COMPASS. The talent pool is deeper and the regulatory environment is AAA-stable.
- Choose Hong Kong if the employer on-cost is your primary constraint and you have a team earning above HK$30,000 per month. The MPF cap makes the effective employer contribution rate materially lower than Singapore CPF for local hires.
- Choose Hong Kong if your foreign national candidate does not clearly pass Singapore's COMPASS framework. A rejected EP application delays your hire by weeks; the Hong Kong work-permit route has no equivalent points-based gate.
- Choose Singapore if you want Teamed to employ your hire through its own entity. The shorter accountability chain for COMPASS appeals, Employment Act compliance and CPF administration matters when a hard question arrives, and Teamed's owned Singapore entity provides it.
- Choose either market via GEMO when you are ready for your own entity. Teamed models the crossover month proactively, sets up a Singapore Pte. Ltd. or Hong Kong Limited on the same system, and migrates existing EOR employees with no re-onboarding.
- Ask any EOR one question for both markets before you sign: owned entity or vetted partner for this specific country, and who calls back if a work-pass query or severance dispute arrives?
Honest take
When Hong Kong is the better hiring market for your team
- Choose Hong Kong if your employer cost model is the primary constraint and you are hiring employees who will earn above HK$30,000 per month. The MPF employer contribution is capped at HK$1,500 per month, an effective rate of 2.5% at HK$60,000. Singapore CPF for a citizen or PR earning the equivalent is 17% on ordinary wages up to S$6,800 per month. For a mixed citizenship or higher-earning team, Hong Kong's MPF cap makes the employer on-cost materially lower.
- Choose Hong Kong if your candidate cannot clearly clear Singapore's COMPASS framework. Employment Pass rejections delay your hire and may require a new candidate search. Hong Kong does not use a points-based assessment gate for its work permits; if your hiring velocity or candidate profile creates COMPASS uncertainty, Hong Kong avoids that variable.
- Choose Hong Kong if you plan to set up your own entity quickly. A Hong Kong Limited company can be incorporated in one to two working days via the Companies Registry, among the fastest in the world. Singapore Pte. Ltd. incorporation is also fast, but Hong Kong's lower ongoing compliance overhead and the speed of the entity route can make it the cleaner commercial decision for a team that knows it will move off EOR within 12 to 18 months.
Teamed operates in both Singapore and Hong Kong and earns the same $599 fee in both markets. We would rather help you choose the right market than win a hire in the wrong one.
Questions to ask any EOR before you sign
- 1What are the total employer on-costs (MPF or CPF plus the EOR fee) for this specific role, salary and employee citizenship in each market?
- 2In Singapore, is my hire a citizen, permanent resident or foreign national? The CPF obligation and COMPASS work-pass route differ sharply by status.
- 3If my candidate needs a Singapore Employment Pass, does your team have real HR and legal experts with COMPASS experience who manage MOM applications, or does that go to a generalist queue?
- 4In Hong Kong, who handles Employment Ordinance edge cases: severance disputes, long service payment calculations and the IR56F tax-clearance notification on exit?
- 5For both markets, is my hire employed through your own entity or a vetted local partner? Who carries accountability if a compliance edge case arises?
- 6When my headcount in Singapore or Hong Kong justifies my own entity, will you tell me proactively and help me set it up without re-onboarding existing staff?
- 7What FX markup applies when salary is converted between SGD or HKD and my home currency, and is the applied rate shown on the invoice?
- 8What deposit or pre-funding do you require, and are there setup, offboarding, minimum-term or admin fees in the contract? Read it line by line before you sign.
Frequently asked questions
Is it cheaper to hire in Singapore or Hong Kong via EOR?
The EOR fee is the same in both markets at $599 per employee per month. The cost difference is the statutory employer contribution. Singapore CPF is 17% of ordinary wages for citizens and PRs below 55, on wages up to S$6,800 per month. Hong Kong MPF is 5% of relevant income, capped at HK$1,500 per employee per month. For a Singapore citizen earning S$8,000, employer CPF is S$1,156 per month. For a Hong Kong employee earning HK$60,000, employer MPF is HK$1,500 (2.5% effective). CPF does not apply to foreign EP or S Pass holders. For a mixed team, the cost comparison turns on the citizenship profile of your planned hires, not just the market.What is Singapore's COMPASS framework and how does it affect an EOR hire?
COMPASS is the Complementarity Assessment Framework introduced by Singapore's Ministry of Manpower in September 2023 for all new Employment Pass applications. Applicants score on four criteria: salary against the industry median benchmark, educational qualifications, diversity of the employing company's existing workforce, and whether the company supports local workforce development. A total score below 40 points results in rejection. The EOR, as the legal employer, sponsors the EP application. An EOR with real HR and legal experts who understand MOM practice can assess COMPASS eligibility and flag any shortfalls before the application is submitted, not after the rejection arrives. For companies hiring their first Singapore employee, the diversity score may be low because there is no existing local workforce to measure against; some providers have structures to address this. Ask your EOR specifically how they model COMPASS before you file.How does termination work in Singapore vs Hong Kong via EOR?
Both Singapore and Hong Kong are common-law markets with no requirement to socially justify a standard termination, which makes them more straightforward than continental European markets. In Singapore, the Employment Act sets minimum notice periods ranging from 1 day to 4 weeks based on tenure. Retrenchment benefits for employees with 2 or more years of service are not fixed by statute; the industry norm is roughly 2 weeks pay per year of service. In Hong Kong, the Employment Ordinance (Cap. 58) sets a 7-day minimum notice (contracts commonly set 1 month for professional roles) and provides for statutory severance payments after 24 months and long service payments after 5 years of service. The EOR runs the procedure in both markets as the legal employer. In Hong Kong, the employer must also notify the IRD via an IR56F form and may need to withhold final-month salary pending tax clearance. Ask any EOR who handles a contested exit in each market, whether that person has country-specific depth, and whether that access is on your plan.Does Teamed own an entity in Singapore and Hong Kong?
Teamed owns a Singapore entity directly; Singapore is one of 57 countries where Teamed operates its own legal entity (confirmed 2026-06-17). Hong Kong is not among those 57; HK hires are served through a vetted in-country partner. Both routes deliver compliantly, but the accountability chain is shorter in Singapore. For hard compliance moments, a COMPASS appeal or an Employment Act dispute, Teamed acts as the direct legal employer in Singapore rather than coordinating through a partner. Ask any EOR whether your specific country is owned-entity or partner-served before you sign, and ask where accountability sits if an edge case arises.When should I set up my own entity in Singapore or Hong Kong instead of using EOR?
Both Singapore and Hong Kong are fast to incorporate in: a Pte. Ltd. in Singapore via ACRA Bizfile+ typically takes one to three working days; a Hong Kong Limited via the Companies Registry can be done in one to two working days. The crossover point from EOR to your own entity depends on your headcount, salary levels, the market and the fixed cost of running a local company (director, bookkeeping, annual filings). As a rough guide, the cumulative per-seat EOR fee at a growing headcount eventually approaches those fixed running costs. The exact month depends on the market and salary structure. Teamed models the crossover per country and flags the month proactively. Global Entity & Employment Operations (GEMO) then sets up the entity on the same platform with no re-onboarding of existing EOR employees.How does Hong Kong employment tax work for my hire?
Hong Kong has no PAYE-style income-tax withholding at source by the employer. Employees file salaries tax directly with the Inland Revenue Department (IRD) on an annual basis. The employer's tax obligations are primarily reporting: an annual employer return (IR56B) listing all employees and their earnings, and a departure notification (IR56G) or cessation notification (IR56F) when an employee leaves Hong Kong or ceases employment. On cessation, the employer may be required to hold the final-month salary until the IRD issues a tax-clearance letter. The EOR manages all of these as the legal employer. Singapore operates a different system: employees are also not taxed at source for most purposes, but the Auto-Inclusion Scheme (AIS) means their employment income is auto-included in their IRAS tax assessments. CPF, which is separate from income tax, is the main payroll obligation in Singapore.
Common questions
Singapore vs Hong Kong for hiring: which is the better APAC market for a growing company?
It depends on your talent pool, your candidates' citizenship and your cost model. Singapore has deeper tech, fintech and regional-HQ talent but employer CPF for local hires runs 17% of ordinary wages for employees under 55, and the COMPASS framework adds a scoring assessment to every Employment Pass application. Hong Kong's MPF employer contribution is capped at HK$1,500 per month and its work-pass regime is simpler; entity incorporation takes one to two working days. For foreign nationals on EP in Singapore, CPF does not apply, but COMPASS is still a variable. If your role is in tech or operations and your candidate clearly passes COMPASS, Singapore is the established APAC anchor. If employer on-cost is the constraint or your candidate's COMPASS score is uncertain, Hong Kong involves fewer variables. Ask any EOR for a side-by-side employer-cost model that accounts for the candidate's citizenship before you commit.What is the employer CPF contribution in Singapore for a company using an EOR?
The Singapore CPF employer contribution rate is 17% of ordinary wages for employees below 55 years old, on wages up to the ordinary wage ceiling of S$6,800 per month (effective 1 January 2024). For employees aged 55 to 60, the employer rate is 15%; for 60 to 65, it is 11.5%; and it tapers further for older workers. CPF applies only to Singapore citizens and permanent residents. Foreign nationals on Employment Passes or S Passes are not subject to CPF. The EOR, as the legal employer, remits CPF contributions to the CPF Board on behalf of the employee. All EOR providers pass CPF through at cost; it is not a provider margin. The $599 Teamed EOR fee is flat and separate from the CPF contribution line.
For the buying committee
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