Countrypedia · Asia Pacific
Hiring in Singapore
A practical guide to employing staff in Singapore — contracts, working time, leave, termination, CPF and employer costs for 2026.
Employment contracts
The Employment Act covers all employees, with extra protections (hours, overtime) for workmen earning up to S$4,500 and other employees earning up to S$2,600 a month. Employers must issue Key Employment Terms in writing within 14 days of starting.
- Probation is contractual (typically 3–6 months).
- Itemised payslips are mandatory.
- The Workplace Fairness Act 2025 prohibits discrimination in hiring and employment on grounds such as age, nationality, sex, race and disability.
Working hours
| Normal hours | 44 hours a week for employees covered by Part IV |
|---|---|
| Overtime | 1.5 times the hourly basic rate, up to 72 hours a month (Part IV employees) |
| Rest day | 1 per week |
Leave and holidays
| Annual leave | 7 days in the first year, rising by 1 day per year of service to 14 days |
|---|---|
| Sick leave | 14 days outpatient and up to 60 days hospitalisation a year, after 3 months’ service |
| Maternity | 16 weeks of government-paid maternity leave (citizen child, eligibility rules apply) |
| Paternity | 4 weeks of government-paid paternity leave |
| Shared parental leave | 10 weeks from April 2026, shared between parents |
| Childcare leave | 6 days a year (citizen child under 7) |
| Public holidays | 11 days a year |
Notice and termination
Either party can end a contract by giving notice as set in the contract. If the contract is silent, the Employment Act minimums apply:
| Under 26 weeks’ service | 1 day |
|---|---|
| 26 weeks to under 2 years | 1 week |
| 2 to under 5 years | 2 weeks |
| 5 years or more | 4 weeks |
| Retrenchment benefit | Not statutory, but 2 weeks to 1 month per year of service is the norm for employees with 2+ years’ service |
| Wrongful dismissal | Claims go to the Tribunal for Employment Claims |
Payroll and employer costs
CPF applies to Singapore citizens and permanent residents. Contributions are paid by the 14th of the following month; annual income is reported to IRAS through IR8A (Auto-Inclusion Scheme).
| CPF (age 55 and below) | Employer 17% + employee 20% |
|---|---|
| Ordinary Wage ceiling | S$8,000 a month from 1 January 2026 |
| Annual salary ceiling | S$102,000 (total CPF-able wages) |
| Skills Development Levy | 0.25% of monthly pay (minimum S$2, maximum S$11.25), for all employees including foreigners |
| Foreign worker levy | Applies to Work Permit and S Pass holders |
Income tax (residents)
Progressive rates from 0% to 24%. The first S$20,000 of chargeable income is tax-free; the top rate of 24% applies above S$1 million. Employers do not withhold tax monthly — employees file their own returns.
Benefits and practice
- A 13th-month bonus (Annual Wage Supplement) is common but not statutory.
- Employment Pass applicants must meet a minimum qualifying salary (S$5,600 a month, S$6,200 in financial services) and pass the COMPASS framework.
- Medical insurance and dental cover are standard market benefits.
Hire in Singapore with Truerix
Truerix employs your Singapore staff through our own local entity — Employment Act contracts, CPF and SDL, IR8A reporting and Employment Pass applications handled for you.
Sources: Ministry of Manpower – Employment Act · CPF Board – Contribution rates · IRAS – Individual income tax rates · Ministry of Manpower – Employment Pass