An Employer of Record (EOR) in Singapore is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer. Discover the key considerations and essential details you should be aware of before opting for an Employer of Record (EOR) in Singapore.
On this page:
- Employer of Record (EOR) Singapore Pricing
- Employer of record (EOR) Singapore Obligations
- Key Facts About Singapore
- Top Job Portals in Singapore for Hiring Knowledge Workers
- Background Checks
- Employee Onboarding
- Employment Contracts
- Payroll in Singapore
- Work Passes in Singapore
- Employment Laws
- Social Security
- Personal Income Tax
- Employee Benefits
- Record Keeping
- Incorporating a Local Entity in Singapore
- Starting Business as a Foreign Entrepreneur
- Must Know Terms in Singapore Employment Landscape
Employer of Record (EOR) Pricing in Singapore
An Employer of Record (EOR) in Singapore typically charges either a flat fee or a percentage of the employee's gross salary. Pricing for EOR services in Singapore starts at $249. Additionally, an EOR may request a security deposit equal to one month's salary or the employee's notice period, which is refunded when the employee leaves. Generally, the cost of an EOR ranges between 5% and 15% of the employee's total compensation.
Employer of Record (EOR) Singapore Obligations
- Compliance with Regulatory Authorities: Adhere to regulations set by the Ministry of Manpower (MOM) and the Inland Revenue Authority of Singapore (IRAS). Ensure compliance with local labor laws, including the timely submission of CPF contributions and IR8A forms.
- Employment Contract Development: Draft employment contracts compliant with MOM regulations, ensuring clear terms of employment, salary, and benefits.
- Employee Management Processes: Streamline onboarding and offboarding to ensure compliance during hiring and terminations. Support the recruitment process and conduct background checks for new hires.
- Payroll Management: Manage monthly payroll functions, calculate salaries per statutory guidelines, and facilitate salary transfers through GIRO. Automate CPF, CDAC, SINDA, and MBMF contributions for smooth processing.
- Leave Policy Compliance: Track and manage various types of leave, including annual, medical, childcare, maternity, paternity, unpaid, and National Service leave. Ensure alignment with MOM regulations and prorate leave based on the joining date and financial year.
- Benefits Enrollment and Management: Guide employees through benefits enrollment and ensure compliance with Singapore’s CPF and Medisave healthcare requirements. Manage ongoing benefits administration, covering healthcare, retirement savings, and leave entitlements, and support employees with any benefits-related questions.
- Work Permit Sponsorship: Facilitate work permit sponsorship to enable global mobility for employees, ensuring compliance with MOM regulations and documentation.
- Data and Reporting Management: Maintain accurate employee records, including details of new hires and terminations. Implement MOM Auto Data Transfer (ADT) and streamline monthly reporting with automated CPF return generation.
- Communication and Documentation: Distribute secure itemized payslips via mobile application, complying with regulations effective since April 1, 2016. Prepare payroll reports for management review and tax filing reconciliation.
- Reminders and Notifications: Set up alerts for deadlines, such as work permit expirations, confirmations, resignation dates, and CPF/IRAS submission dates. Ensure timely preparation and submission of income information (IR8A) and cessation forms (IR21) for foreign employees.
- Statutory Compliance Monitoring: Regularly review compliance with MOM, CPF, and IRAS requirements, focusing on salary payments and tax obligations.
Key Facts About Singapore
Singapore’s Position as a Business Hub:
- Recognized as Southeast Asia’s largest transshipment port (2022, trade.gov).
- Thriving startup sectors in Ecommerce, Foodtech, and Fintech (StartupBlink).
- Home to 4,500 tech startups, 400 venture capital firms, and 240 accelerators and incubators (Startup Genome).
- Hosts major events like Echelon Asia Summit, Tech in Asia Conference, and Singapore FinTech Festival, attracting 60,000+ participants from 130+ countries (icademy.eu).
Support for Talent and Business Growth:
- Tech@SG Program: Offers up to 10 employment passes for fast-growing companies to hire global talent with backing from the Economic Development Board (EDB) and Enterprise Singapore, minimizing rejection risk.
- Tech Programme: Enables one-year talent exchanges between Singapore and Indonesia for young tech professionals, with minimum salary requirements (S$5,000 for Tech@SG, S$3,000 for Tech Programme).
Talent Competitiveness:
- Singapore ranks 1st in Asia and 12th globally in the 2023 Global Talent Competitiveness Index (GTCI).
- Leads globally in high-level skills and talent impact, with over 60% of its workforce in high-skilled roles (MOM, 2022).
Challenges in Tech Talent:
- Shortage of skilled tech talent, particularly in AI, data analytics, and cybersecurity.
- Four in ten global organizations anticipate Gen AI to increase workforce needs; 75% see Gen AI impacting talent strategies within two years.
- The National AI Strategy 2.0 aims to expand Singapore’s AI workforce to 15,000 professionals in three to five years, with a revised AI apprenticeship program to boost skills.
Top Job Portals in Singapore for Hiring Knowledge Workers
For hiring knowledge workers in Singapore, LinkedIn is a top choice due to its wide reach and professional network, making it ideal for recruiting across industries. If you're looking for tech talent, platforms like TechCareers, Indeed, and LinkedIn are great options, while eFinancialCareers is perfect for hiring professionals in the finance sector. For roles in executive management or specialized fields, Hays and Randstad are reliable, offering access to high-quality candidates. Additionally, MyCareersFuture, a government-backed portal, helps employers connect with local, skilled talent. Ultimately, the best platform depends on the type of knowledge workers you need, whether it's in tech, finance, or executive roles.
Pre-Employment Background Checks in Singapore
In Singapore, background checks are essential for assessing a candidate’s suitability before hiring. Common checks include:
Education Background Checks▶
Employment History Checks ▶
Criminal Record Checks ▶
Additional Checks ▶
- Credit History Checks
- Drug Screenings
- Medical Record Checks
- Social Media and Adverse Media Checks
Data Protection Compliance ▶
Timelines ▶
- Employment/Education History: Days to weeks, depending on verification.
- Criminal Record Checks (COC): 5 to 30 working days, longer for non-residents.
Employee Onboarding in Singapore
When hiring in Singapore, employers must carefully manage a structured onboarding process to ensure compliance and to create a smooth experience for new employees. Employer obligations include gathering necessary documentation, establishing payroll and benefits, and overseeing tax and insurance processes.
Document Collection and Verification
A fundamental part of onboarding involves verifying the employee’s eligibility to work in Singapore and gathering all necessary identification and supporting documents. Singaporean citizens and PRs should provide their NRIC, while foreign hires must present valid work passes, such as Employment Pass or S Pass. Employers should secure copies of these documents for record-keeping and compliance. Additional documentation such as CPF statements, educational qualifications, references from prior employers, and relevant tax records may also be needed to complete the onboarding process. Ensuring that these documents are in place helps streamline payroll setup and verifies an employee’s background.
Setting Up Payroll and Banking
Payroll setup is a critical component of the onboarding process, ensuring accurate salary payments and deductions from the start. Employers must establish contributions to the CPF, Skills Development Levy, and Self-Help Groups, where applicable, in alignment with local regulations. New employees must provide details of their Singapore-based bank account to enable salary disbursement. Employers should ensure that employees are informed about the payroll process, including the need for correct banking details to prevent any payment delays. If automatic transfers via GIRO are available, employers should assist employees in setting up this feature for convenience.
Insurance Enrollment and Benefit Plans
A comprehensive benefits package is essential for employee satisfaction and well-being. In Singapore, employers are responsible for ensuring CPF contributions, which help fund essential healthcare and retirement benefits. Employees may also have the option to enroll in company-sponsored health plans that provide additional coverage for outpatient care, hospital expenses, and, in some cases, disability insurance. Employers should outline the available options clearly, including details on enrolling dependents if eligible, and clarify the procedures for making claims. Offering thorough guidance on insurance enrollment helps employees feel supported and ensures they can access necessary health benefits from day one.
Tax Compliance and Reporting
Tax documentation is another area of responsibility for employers, who must ensure that employees complete and submit all necessary tax forms. The IR8A form, required for income tax declarations, must be completed accurately to report salary details, employer contributions, and deductions. Employers should also collect prior tax assessments, if relevant, to support accurate tax planning and filing. Employees must be encouraged to promptly update HR with any changes to their residency status or personal information to avoid compliance issues. By managing tax documentation effectively, employers can support employees in meeting their tax obligations smoothly.
A successful onboarding process in Singapore involves more than welcoming a new employee. Employers play a crucial role in meeting all regulatory requirements, including document collection, payroll setup, insurance coverage, and tax compliance, to create a seamless transition for new team members.
Employment Contracts in Singapore ▶
In Singapore, employment contracts are termed "contracts of service" by the Ministry of Manpower. These contracts define the relationship between employers and employees, encompassing crucial terms and conditions of employment. The agreement can take various forms, including written, verbal, expressed, or implied, with a preference for written documentation to minimize disputes.
A contract of service signifies an agreement where one party agrees to employ another as an employee, and the other agrees to serve as an employee. Employers are obligated to provide Key Employment Terms (KETs) in writing to employees meeting specific criteria, such as entering into a contract of service on or after April 1, 2016, being covered by the Employment Act, and being employed for 14 days or more (referring to the contract duration, not the number of workdays).
Employers must issue KETs within 14 days after the commencement of employment. For instance, if an employee starts work on January 1, the KETs should be issued by January 15. KETs can be provided in a soft or hard copy, including handwritten formats. Certain common KETs, like leave policies and medical benefits, can be outlined in an employee handbook or on a company intranet.
KETs should cover essential aspects, including work arrangements and salary. Employers can use the KETs verification tool to ensure all necessary sections are included. Understanding and adhering to these guidelines ensure transparency and a clear understanding of employment terms for both employers and employees in Singapore. Compliance with these regulations helps maintain positive employer-employee relationships and minimizes the risk of disputes.
Payroll in Singapore
Payroll Setup in Singapore - Following are the requirements to run payroll in Singapore as per EY Global Payroll Guide.
#1. Government Employment Requirements
What Are the Registration Steps for Employers?
How Do You Register with CorpPass? ▶
Businesses need to obtain CorpPass access to manage tax submissions, request employee permits, oversee payroll activities, and engage in other official processes with government organizations.
What Is the Auto-Inclusion Scheme (AIS) and How Does It Work? (AIS) ▶
Employers must register for the Auto-Inclusion Scheme (AIS) via the myTax Portal on the Inland Revenue Authority of Singapore (IRAS) website. Under AIS, employers must submit Form IR8A (reporting employees' earnings) and relevant appendices directly to IRAS. This information will be automatically included in the employee’s tax assessment, so the employee does not need to report their income from the company when filing their own tax return.
The return must be furnished not later than March 1st of the following year. Employers who do not comply with the regulations may face a fine of up to $5,000 upon conviction. If the fine is not paid, they could also be subject to imprisonment for a term of up to 6 months.
What Are the Key Compliance Requirements for Employers?
When Is Tax Clearance (IR21) Needed for Foreign and SPR Employees? ▶
When a non-Singapore Citizen employee (such as a foreign employee or Singapore Permanent Resident) ends their employment, is posted overseas, or plans to leave Singapore for more than three months, the employer must obtain tax clearance for them. The employer is responsible for submitting Form IR21 and withholding any payments owed to the employee for tax clearance. This requirement applies to all work pass holders, including those with a Personalized Employment Pass (PEP).
Form IR21 must be filed with IRAS at least one month before the employee's last day. Failure to comply with this requirement may result in a fine of up to SGD 1,000, unless IRAS agrees to a shorter notice period.
How Should Employee Earnings Be Reported? ▶
Singapore's tax system is territorial, taxing income earned or derived from the country. Employment income is considered Singapore-sourced if earned from work in Singapore, regardless of where the contract is signed or payment made. This includes cash, in-kind benefits, employer contributions to overseas pensions, and gains from equity awards.
By law (Section 68(2) of the Income Tax Act), employers must submit Form IR8A/E and the relevant appendices (Appendix 8A/E, Appendix 8B, or Form IR8S) for employees in Singapore by 1 March each year.
- Form IR8A: Used to declare the remuneration of all employees.
- Appendix 8A: Completed for employees receiving benefits-in-kind.
- Appendix 8B: Completed for employees who have gains or profits from share options or other Share Ownership Plans due to their employment. This must be submitted for Singaporeans or Singapore Permanent Residents who have ceased employment or were posted overseas in 2024.
- Form IR8S: Completed for excess CPF contributions made by the employer.
What Is the Skills Development Levy (SDL) and How Is It Calculated? ▶
Under the SDL Act, all employers in Singapore must pay a monthly SDL for each employee working in Singapore, regardless of nationality. This includes part-time, casual employees, and business travelers from overseas.
The levy is based on the employee's gross monthly remuneration, set at 0.25%. The minimum levy is SGD 2 per month per employee, while the maximum is SGD 11.25. If an employee works only part of a month, the levy can be prorated based on their remuneration.
SDL payments are typically made alongside Central Provident Fund (CPF) contributions. However, companies with only foreign employees must submit and pay directly to the SkillsFuture Singapore Agency (SFS) if they do not have a CPF account.
What Are the Self-Help Group (SHG) Fund Contributions? ▶
Self-Help Groups (SHGs) in Singapore include the Chinese Development Assistance Council (CDAC) Fund, Mosque Building and Mendaki (MBMF) Fund, Singapore Indian Development Association (SINDA) Fund, and Eurasian Community Fund (ECF). These funds aim to support low-income households in the Chinese, Muslim, Indian, and Eurasian communities.
Employers must deduct a prescribed amount from the monthly remuneration of local and foreign employees based on their race or religion. The contribution amount varies according to the specific agency's rate and the employee's monthly pay. The CPF Board is the authorized collection agency for all SHGs, and payments should be made by the 14th of the following month.
#2. Pension and Social Security Essentials
How Do Employers Register for Pension Contributions?
What Is Required to Register for the Central Provident Fund (CPF)? ▶
What Are the CPF Contribution Requirements?
How Are CPF Contributions Calculated and Paid? ▶
#3. Payroll and Compensation Essentials
What Are the Payslip Requirements? ▶
Itemized payslip includes the below
- Employer and employee name
- Date of payment
- Basic salary
- Salary period – start and end date
- Allowances
- Other pay (e.g., bonuses, rest day pay, public holiday pay)
- Deductions
- Overtime hours worked
- Overtime pay
- Overtime pay period – start and end date (if different from salary period)
- Net salary paid
How Should Salary Payments Be Managed?▶
This table outlines the timelines for regular, overtime, final, and termination payments as required by the Employment Act.
| Situation | Payment Timeline |
|---|---|
| Regular salary payment | At least once a month, within 7 days after the end of the pay period |
| Overtime payment | Within 14 days after the end of the pay period |
| Resigned with notice served | Final pay on the last day of employment |
| Resigned without notice | Final pay within 7 days of last working day |
| Terminated by employer | Final pay on last day of work, or within 3 working days if immediate payment isn't possible |
Work Passes in Singapore
All foreigners planning to work in Singapore must obtain a valid work pass (or visa) before starting employment. Employers hiring foreign workers must ensure that they possess a valid pass.
Employment Pass ▶
EntrePass ▶
Personalized Employment Pass (PEP) ▶
S Pass ▶
Work Permit for migrant worker ▶
Foreign Worker Levy (FWL) ▶
The Foreign Worker Levy (FWL) is a fee that employers in Singapore must pay when hiring foreign workers, designed to control the number of foreign workers and encourage the hiring of local talent. The levy varies based on the worker's pass type and industry.
- S Pass Holders: For mid-skilled foreign workers, the levy ranges from $450 to $650, depending on the sector and company quota.
- Work Permit Holders: The levy depends on the worker's skill level and industry, with basic-skilled workers paying $370 to $700, and higher-skilled workers paying $250 to $600.
Payment Information:
- Due Date: Levy payments must be made by the 17th of the following month.
- Payment Method: Payments are made via GIRO. Setting up a GIRO account is required if one is not already in place.
An Employer of Record (EOR) in Singapore provides hassle-free work pass sponsorship and HR compliance, allowing you to focus on your core business.
Employment Laws in Singapore
Singapore's dynamic economy thrives on a well-regulated and balanced employment landscape. The Employment Act serves as the cornerstone, ensuring fair treatment and minimum standards for all employees, except for specific excluded groups like managerial staff earning exceeding specific salary thresholds. This framework safeguards fundamental rights like minimum wage, working hours, leave entitlements, and termination procedures, fostering a stable and secure work environment for both employers and employees.
Minimum Wages ▶
Singapore does not have a mandated minimum wage. Instead, wages are determined by market forces of supply and demand.
Payroll Cycle ▶
In accordance with the regulations outlined in the Employment Act, employees must be paid at least once a month, within seven days after the salary period ends. Overtime payments are due within 14 days. The exceptions are:
- Dismissal/Termination: Pay on the last day or within 3 days of termination.
- Resignation with Notice: Pay on the last day of employment.
- Resignation without Notice: Pay within 7 days after the last day of employment.
Probation Period and Notice Period ▶
In Singapore, the probation period typically ranges from 3 to 6 months, but the specific duration is determined by the employer and explicitly stated in the employment contract. It's important to note that having a probation period is at the discretion of the employer and is not mandatory.
The notice period, which is the duration between an employee's resignation and their final day of work, varies based on the length of the employee's service:
- Less than 26 weeks: 1 day
- 26 weeks to less than 2 years: 1 week
- 2 years to less than 5 years: 2 weeks
- 5 years or more: 4 weeks
Should an employee wish to leave before the notice period concludes, they have the option to do so by compensating with the payment of their salary in lieu of notice.
Working Hours ▶
The regular working hours are from 9 am to 6 pm, Monday through Friday, with a 1-hour lunch break, totaling 40 hours per week. Contractual working hours refer to the mutually agreed-upon hours between you and your employer as specified in the contract of service.
- If you work 5 days or fewer each week, your contractual hours can extend up to 9 hours per day or 44 hours weekly.
- If you work more than 5 days a week, your contractual hours are up to 8 hours a day or 44 hours weekly.
Overtime Pay ▶
Overtime pay is applicable to all work conducted beyond the standard hours, excluding breaks.
- Non-workmen earning a monthly basic salary of $2,600 or less.
- Workmen with a monthly basic salary of $4,500 or less, typically engaged in manual labor.
The overtime rate for non-workmen is capped at $2,600 per month or an hourly rate of $13.60.
To ensure timely and accurate payment, it's crucial to receive your correct overtime pay for work performed beyond the contractual hours. Employers are obligated to pay at least 1.5 times the hourly basic rate for overtime work, and this payment should be settled within 14 days after the end of the salary period.
For instance, if a non-workman earns $2,600 monthly and works 2 hours of overtime, the overtime pay would be calculated as follows:
$13.60 × 1.5 × 2 hours = $40.80.
The calculation of overtime pay involves multiplying the hourly basic rate by 1.5 and the number of hours worked overtime.
The hourly basic rate is determined based on the employee category:
- For monthly-rated employees: (12 x Monthly basic rate of pay) / (52 x 44)
- For daily-rated employees: Daily pay at the basic rate / Working hours per day
- For piece-rated employees: Total weekly pay at the basic rate of pay / Total number of hours worked in the week
13th Month Salary ▶
The Annual Wage Supplement (AWS), commonly known as the "13th month payment," is a once-a-year payment in addition to an employee's total annual wage.
The provision of AWS is not mandatory, and its payment is contingent on the terms outlined in your employment contract or collective agreement. Employers are encouraged to grant AWS as a means of acknowledging their employees' contributions to the company's overall performance.
In cases where business results for the year are exceptionally poor, employers have the flexibility to negotiate a reduced amount for AWS.
There is a limit on the AWS amount that an employer can pay. If no AWS was provided before 26 August 1988, the employer cannot exceed a payment equivalent to 1 month's salary.
Termination and Notice Period ▶
Notice for termination, whether initiated by the employer or the employee, is a written obligation that must be fulfilled. The duration of the notice period is determined by the terms agreed upon in the employment contract.
The day on which the notice is officially given is considered part of the notice period. In cases where no specific notice period was agreed upon initially, the following standards apply based on the length of employment:
- Employment less than 2 weeks: 1 day notice period
- Employment period of 26 weeks – 2 years: 1 week notice period
- Employment period of 2 – 5 years: 2 weeks notice period
- Employment period of 5 years and above: 4 weeks notice period
Mutual agreement between the parties involved can lead to the waiver of the notice period. Employees who successfully complete the stipulated notice period are entitled to Central Provident Fund (CPF) contributions for the corresponding salary during the notice period.
Severance Pay ▶
The calculation of termination or severance pay considers multiple factors, such as your years of service and salary. Generally, this payout spans from one to three months' salary for every year of service.
Employment Acts in Singapore
Employment Acts in Singapore are designed to protect the rights of employees while ensuring fair and equitable treatment in the workplace. These laws cover a wide range of issues, from work injury compensation to employee benefits, workplace safety, and dispute resolution.
- Work Injury Compensation Act (WICA): Provides compensation for employees who suffer work-related injuries or diseases, covering medical expenses, lost income, and rehabilitation costs, without requiring proof of employer fault.
- Child Development Co-Savings Act (CDCA): Supports working parents with paid maternity and paternity leave, childcare leave, and co-savings for children's early education and development.
- Retirement and Re-employment Act (RPA): Ensures that employees can continue working beyond the retirement age of 62, with re-employment opportunities up to 67, to support older workers' participation in the workforce.
- Employment Act (EA): Governs the rights and responsibilities of employees and employers, covering issues like working hours, rest days, wages, and termination procedures for most employees.
- Employment Claims Act (ECA): Provides a quick and affordable process for resolving salary-related disputes through mediation by the Tripartite Alliance for Dispute Management (TADM) and formal hearings at the Employment Claims Tribunal (ECT).
- Employment (Part-Time Employees) Regulations: Ensures part-time employees are entitled to pro-rated benefits, such as annual leave and sick leave, and protects their working conditions to ensure fairness compared to full-time workers.
- Employment of Foreign Manpower Act (EFMA): Regulates the employment of foreign workers in Singapore, setting requirements for work passes, wages, housing, and other welfare standards to protect foreign employees.
- Breach of Employment Act: Refers to violations of the Employment Act by either employer or employee, such as failure to pay wages or wrongful dismissal, with employees able to seek redress through the Ministry of Manpower or the Employment Claims Tribunal.
- Transfer of Employment Act: Protects employees' rights during the transfer of business ownership or operations, ensuring continuity of employment, benefits, and entitlements after the transfer.
- Central Provident Fund (CPF) Act: Establishes a mandatory savings scheme for retirement, healthcare, and housing, with both employers and employees contributing to the CPF, ensuring financial security for workers.
- Workplace Safety and Health Act (WSHA): Sets workplace safety and health standards, requiring employers to ensure safe working conditions, conduct risk assessments, and comply with regulations to prevent accidents and protect employees.
CPF Contribution Changes from 1 January 2025
1. Increase in CPF Ordinary Wage Ceiling from 1 January 2025
- The CPF Ordinary Wage (OW) ceiling, which limits the amount of ordinary wages that attract CPF contributions each month, will increase to $8,000 by 2026. The increase will be phased in over four steps, starting from 1 September 2023, to give employers and employees time to adjust.
- The CPF annual salary ceiling of $102,000 will remain unchanged. This ceiling determines the maximum CPF contributions based on total annual wages, including both Ordinary Wages and Additional Wages.
- The Additional Wage ceiling and CPF Annual Limit will remain the same. The Additional Wage ceiling will be calculated as $102,000 minus the total Ordinary Wages for the year, and the CPF Annual Limit will stay at $37,740.
CPF OW and Annual Salary Ceilings from 2023 to 2026
| Period | CPF OW Ceiling | CPF Annual Salary Ceiling |
|---|---|---|
| 1 Jan 2016 - 31 Aug 2023 | $6,000 | $102,000 |
| 1 Sep - 31 Dec 2023 | $6,300 | $102,000 |
| 1 Jan - 31 Dec 2024 | $6,800 | $102,000 |
| 1 Jan - 31 Dec 2025 | $7,400 | $102,000 |
| 1 Jan 2026 onwards | $8,000 | $102,000 |
2. Increase in CPF Contribution Rates from 1 January 2025
- CPF contribution rates for employees aged 55 to 65 will increase starting from 1 January 2025, to help them save more for retirement. The new rates apply to wages earned from that date.
Contribution Rates for Employees Earning More than $750 per Month
| Age Group | 2024 Rate (%) | 2025 Rate (%) | Employer Contribution (%) | Employee Contribution (%) |
|---|---|---|---|---|
| 55 and below | 37 | 37 | 17 | 20 |
| 55 to 60 | 31 | 32.5 (+1.5) | 15.5 (+0.5) | 17 (+1) |
| 60 to 65 | 22 | 23.5 (+1.5) | 12 (+0.5) | 11.5 (+1) |
| 65 to 70 | 16.5 | 16.5 | 9 | 7.5 |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
- The increase in contributions for employees aged 55 to 65 will be fully allocated to their Retirement Account (RA), up to the Full Retirement Sum (FRS). If the FRS is already met, the excess will be credited to their Ordinary Account.
- For employees earning between $500 and $750 monthly, the employee contribution rates will continue to be gradually phased in.
- There will be no changes to the contribution rates for first and second-year Singapore Permanent Residents (SPRs).
Personal Income Tax in Singapore
Income tax rates are contingent on an individual's tax residency status in Singapore. For a particular Year of Assessment (YA), individuals qualify as tax residents if they are Singapore Citizens or Singapore Permanent Residents residing in Singapore, excluding temporary absences. Foreigners become tax residents if they have stayed or worked in Singapore for at least 183 days in the previous calendar year, continuously for three consecutive years (even with less than 183 days in the first and/or third year), or worked in Singapore for a continuous period spanning two calendar years with a total stay of at least 183 days. Singapore's progressive personal income tax rates for resident taxpayers, effective from YA 2024 onwards, mean higher income earners face higher proportions of tax. The highest personal income tax rate stands at 22%, with various tax brackets and corresponding rates based on chargeable income.
Resident Tax Rates (From YA 2024 onwards) ▶
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
|---|---|---|
| First $20,000 Next $10,000 |
0 2 |
0 200 |
| First $30,000 Next $10,000 |
- 3.50 |
200 350 |
| First $40,000 Next $40,000 |
- 7 |
550 2,800 |
| First $80,000 Next $40,000 |
- 11.5 |
3,350 4,600 |
| First $120,000 Next $40,000 |
- 15 |
7,950 6,000 |
| First $160,000 Next $40,000 |
- 18 |
13,950 7,200 |
| First $200,000 Next $40,000 |
- 19 |
21,150 7,600 |
| First $240,000 Next $40,000 |
- 19.5 |
28,750 7,800 |
| First $280,000 Next $40,000 |
- 20 |
36,550 8,000 |
| First $320,000 Next $180,000 |
- 22 |
44,550 39,600 |
| First $500,000 Next $500,000 |
- 23 |
84,150 115,000 |
| First $1,000,000 In excess of $1,000,000 |
- 24 |
199,150 - |
Employee Benefits in Singapore
The Singapore Employment Act stipulates specific benefits that employers must offer to their employees. Here are some compulsory employee benefits in Singapore:
- Annual Leave: Employers must grant a minimum of seven days of annual leave to employees who have completed at least three months of service. Additional leave is provided based on the duration of employment, as outlined in the employment contract.
- Sick Leave: The Employment Act mandates paid sick leave for employees. The entitlement varies, with a maximum of 14 days per year for those employed for more than six months.
- Hospitalization Leave: Employees hospitalized are entitled to paid hospitalization leave. The duration depends on the hospital stay and the employee's length of service.
- Maternity Leave: Female employees receive paid maternity leave, with the duration determined by their length of service and the number of children. Additional benefits include childcare leave and extended maternity leave.
- Paternity Leave: Male employees are entitled to paid paternity leave, the duration of which depends on their length of service and the number of children.
- Singapore Central Provident Fund (CPF): CPF is a mandatory social security savings plan requiring both employers and employees to contribute to retirement, healthcare, and home ownership.
- Injury Compensation Insurance: Mandatory for employees engaged in manual work, this insurance provides compensation for work-related injuries or illnesses.
- Health Insurance: While Singaporean Citizens and permanent residents can utilize MediSave, only Work Permit and S Pass holders are entitled to healthcare or medical insurance benefits from employers. Health insurance is not compulsory for Employment Pass holders.
Record Keeping
Employers must keep pay slip records in soft or hard copy for at least two years for current employees. For former employees, these records must be retained for one year after they leave. In addition to salary records, employers must maintain employee records with the following details:
- Address
- NRIC number or Work Pass number and expiry date
- Gender
- Employment start date
- Employment end date
- Working hours, including breaks
- Leave dates and public holidays taken
Incorporating a Local Entity in Singapore
Incorporating a local entity in Singapore involves a structured approach to establishing a legal business presence. This process includes key steps such as selecting an appropriate SSIC code, defining your business structure, and securing a registered business address. You'll also need to apply for a unique company name, complete the local incorporation process, and appoint essential officers. Additionally, setting a financial period and uploading a company constitution are important steps to ensure compliance and readiness for operations.
SSIC Code Selection ▶
During the incorporation process, businesses must select the appropriate SSIC code that accurately reflects their core activities. This classification impacts various aspects of business operations, including regulatory compliance, tax obligations, licensing requirements, and eligibility for government programs.
Business Structure ▶
In Singapore, tax and compliance rules differ based on the business structure. Each type of business entity has its own set of regulatory requirements, tax obligations, and reporting standards:
- Local Companies (e.g., Private Limited Company or Pte. Ltd.)
- Sole Proprietorship/ Partnership
- Limited Liability Partnership (LLP)
- Limited Partnership (LP)
The e-Adviser for Business Structure is a simple tool that helps you find the most suitable business structure in Singapore.
- Funding: Will you finance your business with personal funds or seek external investors?
- Liability: Are you open to unlimited liability, or do you prefer to protect personal assets?
- Government Support: Would you like to qualify for government grants, even if it means extra filing obligations?
- Tax: Do you prefer being taxed at personal income tax rates or the 17% corporate tax rate?
- Future Plans: Do you intend to keep the business small, or aim for significant growth and potential investors?
Business Address ▶
When registering a business with ACRA, you must provide a physical address, as P.O. Box addresses are not accepted. Sole proprietorships and partnerships should list their operational address, while companies and LLPs need a registered office address accessible to the public during business hours. Business owners must also provide their residential address, which can be substituted with an Alternate Address for privacy, subject to a fee.
Apply a Local Company Name ▶
To apply for a local company name with ACRA, lodgers can reserve a new company name by providing essential information, such as the proposed company name, type, primary activity, and details of the proposed director and company officers, including their address, ID number, ID type, and nationality. If your business falls under specific regulations or requires special licenses, you may need to submit approvals from relevant authorities, which confirm that your business plans meet initial compliance standards. The e-Service for this application takes about 5 to 20 minutes to complete, and processing usually takes 3 working days. However, if further review by another agency is necessary, it may take between 14 to 60 days. Please note that the application fee is non-refundable.
Local Company Incorporation ▶
To incorporate a local company with ACRA, applicants must provide the transaction number from the approved company name application, along with key information about the proposed director and company officers, such as their address, identification details, nationality, and contact information. Additional requirements include share details, the registered office address, and a copy of the company constitution if customized. The e-Service process usually takes about 20 minutes to complete, and the standard processing time is 3 working days. However, if the application requires further approval from another agency, the process could extend to 14 to 60 days.
Select your Financial Period ▶
When deciding on your company’s Financial Year End (FYE), you can choose either a 12-month or a 52-week accounting period. For instance, if you opt for a 12-month period starting on January 1, 2025, the FYE will be December 31, 2025. Alternatively, if you select a 52-week period starting on Wednesday, January 1, 2025, the FYE will fall on Wednesday, December 30, 2025.
You are free to choose any date for the FYE, with common options being March 31, June 30, September 30, or December 31. This choice is important because it determines the deadlines for your company’s corporate filings and tax obligations. Private companies must hold their Annual General Meeting (AGM) within 6 months of the FYE and file annual returns within 7 months.
Upload the Company Constitution ▶
When incorporating your company, you need to submit a copy of the constitution, which outlines the rules for how the company will be managed. This legal document defines the roles and responsibilities of the directors, shareholders, and company secretary.
The constitution should include key details such as the company’s name, registered office address, business activities, member liabilities, share capital, and governance rules. These governance rules cover aspects like share transfers, calling meetings, and appointing or resigning directors or the secretary.
A signed copy of the constitution must be kept at the company’s registered office. If any changes are made, the company must pass a special resolution in a general meeting and submit the updated constitution and resolution to ACRA via BizFile+ within 14 days.
Appoint Officers ▶
The next step in incorporating your company is appointing its officers. Every company must have at least one director and one company secretary.
Before submitting the incorporation application, you’ll need to provide the personal details and contact information for each officer, including their full name, NRIC number, nationality, phone number, email address, and residential address. For individuals with an NRIC or certain FIN holders, some information will be automatically retrieved from government records.
Required officers include:
- Company Director (mandatory)
- Company Secretary (mandatory)
- Auditor (required unless exempted)
- Chief Executive Officer (optional)
- Managing Director (Optional)
After Incorporation
After incorporating a business in Singapore, there are several essential steps to ensure ongoing compliance and smooth operations. Begin by registering for CorpPass to facilitate secure government transactions, setting up the Register of Registrable Controllers (RORC), and obtaining a CPF Submission Number for employee contributions. It’s also crucial to manage monthly responsibilities, prepare for reporting requirements from the second financial year onward, and understand guidelines for hiring and managing employees.
Getting Started with CorpPass Registration for Singapore Registered Entities ▶
The CorpPass registration process involves several steps: verifying eligibility, identifying the appropriate CorpPass roles, and completing the registration and setup.
1. Eligibility Requirements
To register for CorpPass, your organization must meet specific criteria:
- Eligible Entities: Local entities with a Unique Entity Number (UEN) or overseas organizations without a local UEN can register.
- Ineligible Entities: Local entities without a UEN cannot register for CorpPass.
2. Identifying CorpPass Roles
CorpPass supports various roles, each with specific responsibilities and access levels for conducting business-to-government (B2G) transactions.
- Registered Officer (RO): The RO is the individual officially registered with the entity at ACRA or another UEN-issuing agency. This person nominates the CorpPass Admin and approves the Admin's registration request. The RO does not need a CorpPass account unless they are also designated as the CorpPass Admin.
Roles Overview:
- CorpPass Admin: Has full access to manage registrations, create user accounts, assign roles, view users, and perform transactions.
- Sub-Admin: Can manage users and services, view information, and conduct transactions but cannot initiate registration.
- Enquiry User: Can view user and service information and transact but lacks management capabilities.
- User: Has access to conduct transactions only.
| Role | Register | Manage Users & Services | View Information | Transact |
|---|---|---|---|---|
| CorpPass Admin | Yes | Yes | Yes | Yes |
| Sub-Admin | No | Yes | Yes | Yes |
| Enquiry User | No | No | Yes | Yes |
| User | No | No | No | Yes |
- Key Functions:
- Register: Initiates the registration process.
- Manage: Allows creating user accounts and assigning access levels.
- View: Enables viewing of users and associated digital services.
- Transact: Allows performing transactions with the digital services.
3. Registering for CorpPass
When registering, choose the approach based on your organization's structure and the number of employees requiring access.
Setting Up the Register of Registrable Controllers (RORC) ▶
To comply with the RORC requirements, companies must complete the setup within 30 days of incorporation and submit the RORC information to ACRA within 2 business days of the setup, unless exempted. Non-compliance may result in a fine of up to $5,000.
What is the RORC?
The Register of Registrable Controllers (RORC) is a record that contains information about the company's registrable controllers, also known as beneficial owners. These individuals have significant influence or control over the company.
Who Qualifies as a Registrable Controller?
A registrable controller is someone who meets any of the following criteria:
- Holds an interest in more than 25% of the company’s shares
- Controls more than 25% of the company’s voting rights
- Exercises significant influence or control over the company or Limited Liability Partnership (LLP)
Filing Requirements
All companies are required to submit their RORC details to ACRA through the BizFile+ portal.
Register for CPF Submission Number ▶
The CSN enables employers to carry out transactions with the CPF Board, including making CPF contributions and managing employer-related tasks.
A CSN is made up of a Unique Entity Number (UEN) or an NRIC/FIN (for individuals trading under their own name), along with a CPF Payment Code. The CPF Payment Code specifies the type of payment being made to the CPF Board, such as compulsory CPF contributions, voluntary contributions, or MediSave payments under the Additional MediSave Contribution Scheme. A different CSN is required for each type of payment made by the employer.
Monthly Responsibilities ▶
For businesses employing non-resident workers:
- Access the Ministry of Manpower (MOM) Foreign Worker Levy invoice by the 6th day of each month.
- Ensure levy payment is processed via GIRO by the 17th day of the month.
For businesses employing Singapore Citizens or Permanent Residents (PRs):
- Complete monthly contributions for employee CPF and pay the Skills Development Levy (SDL) by the end of the month.
- Employers who do not settle these payments by the 14th of the following month may face penalties.
From the Second Financial Year Onwards ▶
- By the 1st of March in your second financial year, if enrolled in the Auto-Inclusion Scheme (AIS) for Employment Income, report employee earnings electronically to IRAS. Otherwise, provide employees with Form IR8A and any necessary supporting documents.
Employment of Workers ▶
When hiring local or foreign staff:
- It is advisable to obtain a CPF Submission Number (CSN) after setting up a CorpPass account, as it is required for submitting CPF contributions.
-
Before the commencement of work, make sure to secure work injury
compensation (WIC) insurance for:
- Workers engaged in manual labor
- Non-manual workers earning less than $2,600 per month
Starting a Business in Singapore: Key Requirements for Foreign Entrepreneurs
Starting a business in Singapore offers great opportunities for foreign entrepreneurs due to its strong economy and favorable business environment. However, newcomers may find the regulatory requirements challenging. Understanding the key steps for establishing a company is essential for a smooth setup process. This includes appointing a local director and complying with various legal regulations. Below are the main requirements for foreign entrepreneurs looking to start a business in Singapore.
Key Requirements for Foreigners to Establish a Business in Singapore
Local Director Requirement ▶
Company Secretary Appointment ▶
Registered Office Address ▶
Corporate Bank Account ▶
Work Visas ▶
Businesses should consider switching from an Employer of Record (EOR) to their own entity when they experience consistent growth, have long-term hiring needs, and wish to integrate their company culture more effectively. Cost considerations and the ability to manage local compliance directly are also crucial factors in this decision. Regularly evaluating these aspects can help determine the right timing for the transition.
Must Know Terms in Singapore Employment Landscape
IRAS ▶
ACRA ▶
- Business registration: ACRA oversees the registration of companies, partnerships, and sole proprietorships in Singapore.
- Compliance and enforcement: It ensures that businesses comply with regulations, such as annual filing requirements and corporate governance standards.
- Public accountants regulation: ACRA regulates public accountants and accounting firms, ensuring professional standards are maintained.
- Corporate information: It provides access to corporate information and filings through BizFile+, ACRA’s online business filing and information portal.
CorpPass ▶
SingPass ▶
GIRO ▶
IR8A ▶
SSIC ▶
ISIC ▶
NRIC ▶
UEN ▶
Entities in Singapore may need to interact with various government agencies to meet their specific requirements. Some of these agencies include the Inland Revenue Authority of Singapore (IRAS), the Accounting and Corporate Regulatory Authority (ACRA), and the Ministry of Manpower (MOM).
A Unique Entity Number (UEN) is issued to entities such as businesses, local companies, LLPs, societies, and representative offices. It serves as a single identification number for convenient interactions with government agencies and is recognized by UEN Issuance Agencies.
UEN Issuance Agency ▶
Digital Services ▶
Digital services in Singapore are online government portals that facilitate business-to-government transactions. Examples include ACRA BizFile+ (for business registration), AIC eServices for Financing Scheme (eFASS), and the submission of income records for self-employed individuals.
CorpPass supports over 300 government digital services across more than 70 agencies, with more services progressively joining the platform. It acts as an authorization system, ensuring only authorized corporate users can access and transact with the digital services linked to CorpPass.
Eurasian Community Fund (ECF) ▶
Chinese Development Assistance Council (CDAC) ▶
Mosque Building and Mendaki Fund (MBMF) ▶
SINDA Fund (SF) ▶
Embracing an Employer of Record (EOR) solution in Singapore is a strategic imperative for companies aiming at global expansion. By offloading critical tasks such as compliance with local employment laws, navigating complex payroll intricacies, and ensuring statutory adherence to the EOR, businesses can seamlessly establish their presence in Singapore without the hassles tied to setting up a legal entity. This collaborative partnership empowers companies to concentrate on their core objectives and growth strategies, assuring that their workforce in Singapore operates in full compliance with local regulations. The EOR simplifies international employment processes, offering invaluable guidance in navigating the multifaceted landscape of Singaporean employment regulations.
EOR Thailand | EOR Vietnam | EOR Indonesia | EOR Malaysia | EOR Singapore
Social Security in Singapore
Social Insurance in Singapore revolves around the Central Provident Fund (CPF), a mandatory social security savings program sustained by contributions from both employers and employees. This vital component of Singapore's social security system addresses the retirement, housing, and healthcare needs of its populace.
The CPF consists of three distinct savings accounts:-
Ordinary Account: Usable for various purposes, such as home purchases,
investments, and education.
-
Special Account: Restricted until retirement, unless funds are allocated
for retirement-related financial products. Functions as income during
retirement.
-
Medisave Account: Dedicated to covering medical expenses, hospitalization
costs, and approved medical insurance.
Employer contributions are mandatory, ranging from 7.5 percent to 17 percent, contingent on the employee's age and income. Simultaneously, employee contributions range from 5 percent to 20 percent. CPF savings earn risk-free interest, with rates varying across accounts and age groups, regularly updated on the CPF government website.
CPF Contribution Rates for 2023
CPF Contribution Rates from January 1, 2024, Onwards
For Singapore Permanent Residents (SPRs), CPF contribution rates vary based on the SPR status year, applying the mentioned rates from the third year onwards. Additionally, contribution rates may adjust according to monthly salary, with the specified rates applicable to individuals earning more than $750 per month.