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Employer of Record/PEO and Payroll Services in Singapore

Singapore is a global hub for business, with many top multinationals and fast-growing startups choosing to set Singapore as their headquarters. With a vibrant ecosystem that features over 150 venture capital funds, incubators and accelerators, Singapore has been consistently ranked as one of the world’s most innovative cities.

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Doing Business in Singapore

The Singapore government is committed to creating a pro-business environment through its economic and manpower policies, transparent tax regime, compliance with global standards and strong IP (intellectual property) protection. Over S$8.3 billion has been put aside over three years to spur economic transformation and business growth. This sits alongside tax incentives for qualifying expansionary economic activities and grants to support training and building capabilities in research and innovation.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Singapore is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banking Hours: Monday - Friday from 9:30 am - 3:00 pm

Working Week

The standard working week is from Monday to Friday from 9:00 am - 7:00 pm

Labor Law

The Singapore EDB (Economic Development Board) has curated a network of business partners to help companies expand into Singapore. This network includes support in accounting and taxation, legal advisory, banking, office space solutions, recruitment and HR solutions, market entry advisory and more. Singapore’s main labor law is the Employment Act which covers the basic terms and working conditions for most types of employment.

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Main Industries

Electronics, chemicals, biomedical sciences, logistics and transport engineering.

GDP Growth

7.10%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Singapore

Population

5.686 million

Capital

Singapore

Major Languages

English, Tamil. Malay and Mandarin Chinese

Currency

Singapore dollar

Internet Domain

.sg

International Dialing Code

+65

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Singapore
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Payroll

Employers must pay all employee salaries at least once a month and within seven days after the end of the salary period. Exceptions include overtime and resignation without notice

It’s acceptable to provide employees with online payslips

Payslip

Payroll report must be kept for 2 years

Reports

Usually 7 days in the first year, increasing by one day for each year of service. However,, employers may even grant 14 - 20 days for employees after one year

Annual Leave

Employees are entitled to 370 days of paid sick leave with at least six months’ service. The first three days are paid by the employer at 89% of the salary rate

Sick Leave

16 weeks of paid maternity leave and 2 weeks of paid paternity leave

Maternity & Paternity Leave

1 week

Employee Termination

As stipulated by the employment contract, there is a customary 13th month salary at the end of the year

13th month salary

No national minimum wage applies

Minimum Wage

15% of the hourly rate for employees

Overtime

Usually provided after two years of completed service, employees will be paid 2 - 4 weeks’ pay for each year of employment.

Severance Pay

PEO Singapore

Mercans PEO (Professional Employer Organization) services in Singapore provide a comprehensive HR outsourcing solution for foreign companies to establish a local presence, compliantly hire and manage employees, handle HR, payroll, benefits, tax compliance, and other administrative tasks, while reducing costs and administrative burden.

Through our Singapore PEO, we provide services that are flexible and cost-effective for companies seeking to outsource their HR and payroll processes. As a Professional Employer Organization, Mercans offers a range of services including employee benefits, payroll administration, and compliance with Singapore employment laws. By entrusting their HR and payroll needs to Mercans, companies can focus on their core business activities and ensure a smooth and efficient HR operation.

Partnering with our Singapore PEO presents the fastest and most efficient way to enter the Singapore market.

Contact us to explore how PEO Singapore solutions from Mercans can support your seamless expansion!

Benefits of Hiring an Employee through a PEO in Singapore

If you’re exploring business expansion in Southeast Asia, Singapore is likely on your radar. Working with a PEO in Singapore provides a fast, compliant, and cost-effective way to hire employees without setting up a local entity. Here’s how a Singapore PEO can streamline your expansion

Swift Market Launch

With a PEO Singapore partner, you can hire talent and begin operations quickly—often within days. This bypasses the need for company incorporation, allowing your business to test the market or scale rapidly with minimal delay.

Seamless Compliance with Local Laws

Singapore’s employment regulations—covering contracts, statutory benefits, CPF contributions, and termination—can be intricate for foreign employers. A PEO in Singapore ensures all hiring practices comply with local labor laws and MOM (Ministry of Manpower) regulations.

Operational Efficiency

From payroll administration to benefits management, a Singapore PEO handles all HR tasks. This reduces administrative burden and ensures timely, accurate salary payments and statutory filings.

Cost-Effective Setup

Establishing a legal entity in Singapore requires financial investment and ongoing compliance management. A PEO Singapore solution allows you to operate leanly, hiring local staff without the overhead of entity registration.

Legal Risk Reduction

Singapore enforces its labor laws strictly, and missteps in employment practices can lead to penalties. A Singapore PEO keeps you up to date with regulatory changes and ensures your workforce is managed in full compliance.

Access to Local Expertise and Talent

Singapore is a global business hub with a highly educated, multilingual workforce. Partnering with a PEO in Singapore gives you immediate access to this talent pool, along with insights into local hiring expectations and practices.

Scalable Workforce Strategy

Whether you’re hiring one employee or growing a regional team, a PEO Singapore service gives you the flexibility to scale without long-term infrastructure commitments, adapting easily to business needs.

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Tax and Social Security

Income tax rates depend on the individual’s tax residency status. The personal income tax rates for resident taxpayers are progressive, that is, higher income earners pay a proportionately higher rate. The CPF (Central Provident Fund) is a compulsory savings and pension plan for Singaporeans and permanent residents. It serves to fund their retirement, healthcare and housing needs.

Tax

Employment income of non-residents is taxed at a flat rate of 15% or the progressive resident tax rates (whichever is higher). Certain income of non-resident individuals is also subject to withholding tax (the rate depends on the type of income derived).

17%

Corporate Income Tax

22%

Personal Income Tax

7%

Sales Tax

7%

VAT

Social Security

A key pillar of Singapore’s social security system, the CPF can be withdrawn from, at the age of 55. The government also supplements CPF savings of lower wage workers through schemes such as Workfare (targeted at Singaporean workers whose earnings are in the bottom 20%) and top-ups to MediSave (national medical savings scheme that helps individuals set aside part of their income to meet healthcare needs).

37%

Social Security Rate

17%

Social Security Rate for Employers

20%

Social Security Rate for Employees

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Employment Law

Employers are required to provide KETs (Key Employment Terms) to employees covered under the Employment Act and if they are hired for a continuous period of 14 days or more. Companies that operate multi-country payroll should ensure that where Singapore is concerned, proper records of employee attendance and working hours must be maintained. This minimizes misunderstandings and disputes. Regulations on working hours and overtime payments under the Employment Act are only applicable to workmen whose basic monthly salaries do not exceed $4,500 and non-workmen whose basic monthly salaries do not exceed $2,600. They are not applicable to managers and executives.

Employment Agreement

Key employment terms (KETs) must include the job title and main duties of the individual, start date for employment, duration of employment (if on a fixed-term contract), working arrangements, salary period, salary (including allowances, deductions, bonuses and incentives), types of leave and more.

Working condition

The Work Injury Compensation Act (WICA) allows employees to make claims for work-related injury or disease without having to take legal action. Certain types of work-related accidents must be reported to the Ministry of Manpower and there are also different reporting requirements for different types of accidents.

Leaves

Employee leave entitlements include paid annual leave, paid sick leave and paid hospitalization leave. Where an employee has worked for at least three months but less than a year, the number of days they are entitled to will be prorated based on the number of full months they have worked.

Employment termination

Either the employer or employee can terminate a contract of service. During termination, the employee must give the employer advance notice in writing or pay compensation in lieu of notice. If however the termination is due to misconduct, the employer must hold an inquiry before instituting disciplinary action. If an employee believes that they have been wrongfully dismissed, a wrongful dismissal claim could be filed at TADM (Tripartite Alliance for Dispute Management).

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One week

Minimum notice period for terminating an employee

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11

Total number of public holidays

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40

Working hours per week

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Up to four weeks

Total number of days for Compassionate & Bereavement Leave

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Immigration

Foreign investors and entrepreneurs who are interested in setting up a base in Singapore can apply for either the EntrePass or apply for Singapore Permanent Residence (PR) under the Global Investor Programme (GIP).

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Residency permits

There are different types of work permits such as for migrant workers, migrant domestic workers and confinement nannies. There are also different types of passes such as the Employment Pass, Dependent’s Pass and the Long Term Visit Pass. Successful applicants for the EntrePass will be awarded a one year pass. The GIP for which applicants will need to meet criteria, accords PR status to investors with a substantial business track record.

Work Permit validity

Two years

Required Documents

Appointment letter

Valid passport

Completed application form

Certificates by educational institutions indicating study undertaken

Work experience certificate

Two color photographs

Description of the nature of work to be performed by the applicant.

Compliant, reliable, error-free and touchless payroll in Singapore

Build the best team and hire top talent compliantly in Singapore. Get in touch with Singapore payroll outsourcing & PEO specialists for a free consultation!

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This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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