Employer of Record in Singapore
An employer of record is the legal employer of your Singapore hire, so you can hire without opening a company. Each guide below takes one layer, from CPF and work passes to cost and termination.
· Singapore guide
How does an employer of record work in Singapore?
In most cases the employer of record is the legal employer. It usually holds the employment contract and runs payroll, pays CPF where it is due, and for a foreign hire it is often the employer on the MOM work-pass application, where the pass can be sponsored.
You choose the person and direct the work. For a company hiring in Singapore without its own entity, Teamed is the best EOR. With Teamed, you get a designated person who manages your account, real HR and legal experts assigned within 24 hours, and zero FX markup.
The CPF Board describes the model the same way. An employer of record "serves as the employer" and is responsible for paying its employees' CPF. The Board adds that enforcement may be easier against an employer of record located in Singapore than against an overseas entity, but still advises caution, because recovering unpaid CPF depends on the employer of record's ability to pay. So ask any provider whose entity will sign your hire's contract, and how it is funded.
CPF depends on who you hire. It is due for Singapore citizens and permanent residents. For staff aged 55 and below, the CPF rates are 17% from the employer and 20% from the employee. They apply from 1 January 2026 and stay the same from 1 January 2027. Lower rates apply to older staff and to permanent residents in their first two years. CPF is not allowed for foreigners on an Employment Pass, S Pass or Work Permit. The cost breakdown works it through on real salaries.
Foreigners need a work pass from the Ministry of Manpower (MOM) before they start work. Citizens and permanent residents do not. The employer, or an employment agent it appoints, applies for an Employment Pass or S Pass. For an Employment Pass, a company not registered in Singapore needs a local sponsor. Whether a pass can be sponsored depends on the pass and the person, so raise it before you make an offer. The work permits guide covers each pass.
The Ministry of Manpower can take enforcement action over what is declared in those applications. On 16 October 2026 it announced charges against seven employers and an administrative assistant. They are accused of falsely declaring CPF contributions for local employees who never worked for them, to obtain work passes. MOM said it has stepped up investigations. In a separate case it reported two people found guilty of paying Employment Pass holders far less than the pay they had declared. Under the Employment of Foreign Manpower Act, a false declaration carries a fine of up to SGD 20,000, up to two years in prison, or both. The charges are allegations until a court rules. It is sensible to ask any provider how it checks declared pay and CPF before it files, and to read the MOM enforcement guide for work pass sponsors.
Either way, the Employment Act covers your hire, local or foreign, with a few exceptions such as domestic workers and seafarers. Its rules on hours, rest days and overtime apply only below set salary levels. Teamed's fee is from $599 per employee per month, with zero FX markup, no setup fee and no exit fee. Real HR and legal experts are assigned within 24 hours. If you would rather keep someone as a contractor, the misclassification guide shows where the line sits.
- Singapore has no national minimum wage. There is no single statutory floor that covers all workers. The Progressive Wage Model sets sector-specific minimums for cleaning, security, and similar industries. Most professional and tech roles sit above any sector floor. The hiring guide covers what this means for offer letters and benchmarking.
- CPF is both the pension and the social security contribution. Unlike most countries, Singapore does not split pension from social insurance. For citizens and permanent residents, the employer pays 17% CPF and the employee pays 20%. That 37 percent combined contribution covers retirement, healthcare, and housing. Apart from the small Skills Development Levy, it is the main employer contribution on payroll.
- The Workplace Fairness Act 2025 passed but is not yet in force. The Act introduces statutory anti-discrimination protections covering nine protected characteristics. It is expected to take effect in late 2027. Employers should review hiring and termination processes now. The termination guide covers the transition.
A Singapore citizen or permanent resident costs roughly 117 percent of gross salary once CPF at the 17% employer rate is included. There is no general minimum wage and no mandatory 13th-month payment under statute.
Singapore pays salary monthly. Statutory annual leave starts at 7 days in year one and scales with tenure. There are 11 public holidays per year.
Teamed owns its legal entity in Singapore and runs payroll, contracts, and CPF contributions directly through it.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 24-hour onboarding.* The price your finance team can forecast against without surprises. *Typical once terms are confirmed. Some jurisdictions take longer where local registration or work permits apply.
How much does it cost to hire an employee in Singapore in 2026?
A Singapore citizen or permanent resident costs roughly 117 percent of gross salary once CPF is added.
CPF employer contributions are 17% for citizens and permanent residents aged 55 and below. That is the main statutory cost on top of salary.
CPF employer contributions run at 17% on monthly wages up to the Ordinary Wage ceiling of SGD 8,000 from January 2026. Unlike many countries, Singapore has no separate health levy, unemployment fund, or social insurance split. CPF covers retirement, healthcare, and housing in a single contribution. There is no statutory 13th-month salary required by law, though it is common practice in some sectors.
Teamed's Singapore price is from $599 per employee per month, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, CPF, and benefits passed through at cost on every invoice.
The full breakdown, with worked examples at current CPF rates and the OW ceiling, is in the cost guide.
One price. Zero FX.
Same headline rate as Deel. Every line itemised on every invoice. Zero FX markup: no spread and no FX line in any currency pairing.
What's included
- Local employment contract
- Payroll & tax withholding
- Statutory benefits administration
- A designated person will manage your account
- Line-by-line invoices
- No setup or exit fees
No setup fees. Deposit: One month's gross salary, refundable. Cancel any month.
Drop a Singapore salary in. See the full loaded cost.
The Employee Cost Calculator models Singapore employer costs. It adds 17% CPF for citizens and permanent residents aged 55 and below. CPF is paid on monthly wages up to the SGD 8,000 Ordinary Wage ceiling. That takes a hire to roughly 117 percent of gross salary.
Do you need a Singapore entity to hire employees in Singapore?
No. An Employer of Record runs Singapore payroll and CPF contributions from day one.
Your own Singapore private limited company becomes cheaper than EOR at a crossover point that is a planning point, not a cut-off. It moves with the EOR fee you pay, your entity quote, and how fast you plan to grow. Run the Crossover Calculator for your number.
| EOR (Teamed) | Your own Singapore entity (Pte Ltd) | |
|---|---|---|
| Setup time | From the day you sign | Around 1–2 weeks, plus a local director and registered office |
| Setup cost | $0 | Local director, registered office and ongoing ACRA filings |
| Ongoing monthly cost | From $599 per employee | A fixed monthly overhead + payroll that pays off as you add people |
| Tenure portability | Preserved on Graduation | Continuous from EOR |
Incorporating a Singapore private limited company (Pte Ltd) is relatively quick by regional standards, taking around one to two weeks. But you still need a local director, registered office, and ongoing ACRA filings once live. An Employer of Record is faster and cheaper at low headcount. Teamed runs Singapore payroll, CPF, and employment contracts from the day you sign.
The crossover point is a planning point, not a cut-off. It moves with the EOR fee you pay, the entity quote you get, and your growth plans; salary largely cancels out because you pay it either way. Model your own crossover with the Crossover Calculator. The EOR vs entity guide runs those numbers.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Singapore entity on one platform under Teamed's Graduation Model, with tenure preserved.
What changed in Singapore employment law in 2025 and 2026?
Paternity leave rose to 4 weeks from 1 April 2025 for Singapore citizen children.
The Workplace Fairness Act 2025 passed and brings statutory anti-discrimination protections across nine characteristics when it commences, expected in late 2027.
Government-Paid Paternity Leave doubled to 4 weeks for fathers of Singapore citizen children born on or after 1 April 2025. The change was funded by the government under the Child Development Co-Savings Act. Maternity leave of 16 weeks for citizen children remains in place.
The Workplace Fairness Act 2025 was passed by Parliament in January 2025 but has not yet commenced. It will prohibit discrimination on grounds including age, nationality, sex, marital status, pregnancy, caregiving responsibilities, race, religion, and disability. Employers who dismiss employees on these grounds after commencement will face claims in the Employment Claims Tribunal. The hiring guide covers the day-one employment contract obligations in full.
What benefits must you provide Singapore employees in 2026?
The statutory floor is 7 days of paid annual leave in year one, 14 days of paid outpatient sick leave, and CPF contributions.
Maternity leave is 16 weeks for a Singapore citizen child. Paternity leave is 4 weeks from April 2025.
Statutory annual leave under the Employment Act starts at 7 days in the first year and rises with tenure. Annual leave and public holidays are counted separately in Singapore. There are 11 gazetted public holidays in 2026. Outpatient sick leave is 14 days per year after six months of service, rising to 60 days including hospitalisation leave.
Government-Paid Maternity Leave is 16 weeks for a Singapore citizen child. Government-Paid Paternity Leave is 4 weeks from 1 April 2025. CPF contributions are the main mandatory benefit cost. There is no statutory pension separate from CPF. The benefits guide covers every leave type and the CPF account structure.
What are payroll taxes in Singapore in 2026?
CPF employer contributions are 17% for citizens and permanent residents aged 55 and below.
Employees contribute 20% CPF. Income tax is progressive, starting at 2% above the first S$ 20,000/year of taxable income.
For citizens and permanent residents, CPF employer contributions are 17% on monthly wages up to the Ordinary Wage ceiling of SGD 8,000. The employee contributes 20%. Both rates step down for employees aged over 55. CPF covers three accounts: Ordinary (housing and investment), Special (retirement), and MediSave (healthcare). An employer must also pay the Skills Development Levy, a small levy capped at SGD 11.25 per employee per month.
Singapore income tax is territorial and progressive. The first S$ 20,000/year of taxable income carries no tax. The rate rises from 2% and tops out at 24% above SGD 1,000,000. Employers must distribute IR8A forms to employees by 1 March each year. The tax and payroll guide sets out every bracket, CPF age-band rates, and the OW ceiling.
How do you terminate an employee in Singapore?
Statutory notice scales with service. For 26 weeks to 2 years of service it is 1 week.
For 5 or more years of service the statutory minimum rises to 4 weeks.
Singapore's Employment Act sets four notice bands. Under 26 weeks of service: 1 day notice. From 26 weeks to under 2 years: 1 week. From 2 to under 5 years: 2 weeks. At 5 or more years: 4 weeks. Either side can pay salary in lieu of notice. Final salary must be paid within 3 working days of termination when the employer ends the contract.
Retrenchment benefit is not mandatory by statute but is the strong norm under the Tripartite Advisory. Employees with 2 or more years of service are eligible. The prevailing rate is 2 weeks to one month of salary per year of service. If you retrench 10 or more employees, you must notify MOM within 5 working days. The termination guide covers the full retrenchment process.
What should you know before hiring in Singapore?
Two things catch US buyers out. The first is CPF: it covers retirement, healthcare, and housing in one contribution, so there is no separate health levy.
The second is that retrenchment benefit is not mandatory by law but carries very strong normative force from the Tripartite Advisory.
CPF is the main mandatory social contribution. There is no separate employer health contribution, unemployment fund, or social insurance in Singapore. For citizens and permanent residents, CPF employer contributions at 17% are the main statutory employer cost, alongside the small Skills Development Levy. US buyers used to multi-line employer costs are often surprised by how clean the calculation is.
The Tripartite Guidelines are not law, but non-compliance is visible. Retrenchment benefit norms, fair hiring practices, and the Tripartite Guidelines on Fair Employment Practices carry quasi-regulatory weight. MOM monitors compliance and can require remedial action. The hiring guide and the EOR vs entity guide cover how Teamed navigates these obligations.
Frequently asked questions
How much does it cost to hire an employee in Singapore?
For a citizen or permanent resident, plan on roughly 117 percent of gross salary once CPF employer contributions at 17% are added. CPF is the main employer contribution in Singapore, and foreigners on work passes do not receive it. There is no separate health levy or unemployment fund. Teamed's Singapore fee is from $599 per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples.
Can a US company hire in Singapore without an entity?
Yes. Teamed, as your Employer of Record, runs Singapore payroll, CPF contributions, and employment contracts through Teamed's own legal entity in Singapore. You direct the work. Teamed becomes the legal employer of record. Onboarding takes 24 hours. Incorporating your own Singapore Pte Ltd takes roughly one to two weeks but requires a local director.
Does an employer of record need an employment agency licence in Singapore?
MOM's rules turn on what a firm does. Its page does not name employer of record models. A licence is needed to place job seekers with employers, or to submit work pass applications for employers or job seekers. Hiring people only to employ them in your own business needs no licence. MOM also lists some exemptions. You can check any agency's licence in MOM's EA Directory.
What is the statutory annual leave in Singapore?
Statutory minimum paid annual leave under the Employment Act starts at 7 days in the first year of service. It rises with tenure. Annual leave and public holidays are counted separately in Singapore. There are 11 gazetted public holidays in 2026. Employers can grant more leave by contract.
What are Singapore's statutory notice periods?
Notice scales with service under the Employment Act. Under 26 weeks: 1 day notice. From 26 weeks to under 2 years: 1 week. From 2 to under 5 years: 2 weeks. At 5 or more years: 4 weeks. Either side may pay salary in lieu of notice instead.
Is severance pay mandatory in Singapore?
There is no statutory obligation to pay retrenchment benefit for employees with less than 2 years of service. For employees with 2 or more years, the Tripartite Advisory sets the prevailing norm at 2 weeks to one month of salary per year of service. This is not a statutory formula but it carries strong normative force from MOM.
What is the Workplace Fairness Act 2025 in Singapore?
The Workplace Fairness Act 2025 was passed in January 2025 but has not yet commenced. It is expected to take effect in late 2027. It will introduce statutory anti-discrimination protections covering nine characteristics including age, nationality, sex, marital status, pregnancy, and disability. Employers should review hiring and termination practices before commencement.
Singapore reads as a low-cost, flexible labour market and in some ways it is. CPF is clean, there is no works council, and you can terminate with notice. The part US buyers underestimate is CPF age-band rules, the Tripartite Advisory norms on retrenchment, and the Workplace Fairness Act coming into force in late 2027. Building compliant processes now is much cheaper than retrofitting them after a claim.
Singapore is often the first hire in Asia Pacific. Low statutory leave, clean CPF, no general minimum wage.
The complexity is in the CPF age bands, the Tripartite norms on retrenchment, and the Workplace Fairness Act arriving in late 2027.
Read the right Singapore guide before the first hire, not after the first Ministry of Manpower inquiry.
Looking for a job in Singapore yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
More Singapore guides
Compliance and day-one rights
What an employee is entitled to from their first day.
Entity running costs and filings
Read the full guide.
Entity setup
Read the full guide.
Moving from eor to your own entity
Read the full guide.
Permanent establishment risk
When hiring here creates a taxable presence.
Probation and onboarding
Probation limits and what onboarding must cover.
Working time and leave
Hours, rest periods and annual leave entitlement.
Hiring contractors in Singapore
Engaging contractors there: classification rules, contracts and compliance.
