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Global Payroll Team
Written by Global Payroll Team
Last updated May 7, 2026
Expert Reviewed
Payroll in Singapore
Tax in Singapore
Immigration in Singapore

Singapore map

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Employer of Record/PEO and Payroll Services in Singapore

Singapore is a global hub for business, with many multinational companies and fast-growing startups choosing Singapore as their regional or global headquarters. The country offers a strong business environment, transparent regulation, advanced infrastructure, and a vibrant innovation ecosystem that continues to attract investors, technology companies, and high-growth enterprises.

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Doing Business in Singapore

The Singapore government continues to promote a pro-business environment through transparent regulation, a competitive tax regime, strong intellectual property protection, and policies that support innovation, productivity, and international trade. Singapore remains one of Asia’s leading locations for regional headquarters, financial services, advanced manufacturing, logistics, and technology operations.

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 vary by institution, with many branches operating Monday to Friday during standard business hours.

Working Week

The standard working week is commonly Monday to Friday, although working arrangements vary by employer and industry.

Labor Law

Singapore’s main labor law is the Employment Act, which covers the basic terms and working conditions for most employees. Employers must also comply with Ministry of Manpower requirements on salary payment, employment records, leave, public holidays, termination, and work pass rules where foreign employees are involved.

Main Industries

Electronics, chemicals, biomedical sciences, financial services, logistics, advanced manufacturing, transport engineering and information technology.

GDP Growth

4.4%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Singapore

Population

6.11 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
Singapore, SG
12:04 am, May 14, 2026
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Sunrise: 6:55 am
Sunset: 7:06 pm

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Payroll

Employers must pay salary at least once a month. Salary must generally be paid within 7 days after the end of the salary period, while overtime payment must generally be paid within 14 days after the end of the salary period.

It’s acceptable to provide employees with online payslips

Payslip

Payroll records must generally be kept for 2 years

Reports

Usually 7 days in the first year, increasing by one day for each year of service up to 14 days

Annual Leave

Employees are entitled to up to 14 days of outpatient sick leave and 60 days of hospitalization leave, including the 14 outpatient days, after meeting the qualifying conditions

Sick Leave

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

Maternity & Paternity Leave

1 day to 4 weeks if no contractual notice period applies, depending on length of service

Employee Termination

As stipulated by the employment contract, there may be an annual bonus or 13th month payment, but it is not mandated by law

13th month salary

No national minimum wage applies, although sectoral wage floors exist under the Progressive Wage Model for specified sectors

Minimum Wage

Overtime is generally paid at 1.5 times the hourly basic rate for employees covered by the overtime provisions

Overtime

Severance varies by agreement/service.

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 helps ensure hiring practices comply with local employment laws and Ministry of Manpower regulations.

Operational Efficiency

From payroll administration to benefits management, a Singapore PEO handles all HR tasks. This reduces administrative burden and supports 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 employment laws strictly, and missteps in employment practices can lead to penalties. A Singapore PEO keeps you up to date with regulatory changes and helps ensure your workforce is managed in 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. Resident individual tax rates are progressive, while non-resident employment income is generally taxed at 15% or the resident progressive rates, whichever results in a higher tax amount. The CPF (Central Provident Fund) is a compulsory social security savings scheme for Singapore citizens and permanent residents, supporting retirement, healthcare and housing needs.

Tax

Employment income of non-residents is generally taxed at 15% or the progressive resident tax rates, whichever is higher. Resident personal income tax rates are progressive and currently go up to 24%.

17%

Corporate Income Tax

24%

Personal Income Tax

9%

Sales Tax

9%

VAT

Social Security

The CPF contribution framework depends on citizenship or permanent resident status, age, and wage band. For Singapore citizens and permanent residents in the standard category aged 55 and below earning more than the relevant monthly threshold, the total CPF contribution rate is 37%.

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 Key Employment Terms to employees covered under the Employment Act who are hired for 14 days or more. Employers must also maintain proper employment records and comply with rules on working time, salary payment, leave, public holidays, and termination. Overtime provisions under Part IV of the Employment Act apply only to employees within the applicable categories and salary thresholds.

Employment Agreement

Key employment terms 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 and deductions, and types of leave and other core terms.

Working condition

The Work Injury Compensation Act allows employees to make claims for work-related injury or disease without having to take legal action. Employers must also comply with statutory rules on hours of work, overtime, rest days, and public holiday pay where the relevant provisions apply.

Leaves

Employee leave entitlements include paid annual leave, paid sick leave and paid hospitalization leave. Where an employee has worked for at least 3 months but less than a year, annual leave and sick leave entitlements are generally prorated based on the number of completed months of service.

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 salary in lieu of notice. If the termination is due to misconduct, the employer should conduct due inquiry before disciplinary action. Employees who believe they have been wrongfully dismissed may file claims through the appropriate dispute resolution channels.

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1 day to 4 weeks

Minimum notice period for terminating an employee

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11

Total number of public holidays

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44

Working hours per week

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Not statutory

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 may consider options such as the EntrePass or permanent residence routes such as the Global Investor Programme, subject to the relevant eligibility criteria. Foreign employees must hold a valid work pass before starting work in Singapore.

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Residency permits

There are different types of work passes and permits in Singapore, including the Employment Pass, S Pass, Work Permit, Dependant’s Pass, Long-Term Visit Pass and EntrePass. Pass validity depends on the pass type and applicant profile. EntrePass is generally issued for 1 year in the first instance, while Employment Passes are commonly issued for up to 2 years on first issuance and up to 3 years on renewal.

Work Permit validity

Validity depends on the work pass type, with many passes issued for up to 1 to 2 years initially

Required Documents

Appointment or offer letter, where applicable

Valid passport

Completed application form

Educational certificates and supporting qualifications, where required

Work experience records, where relevant

Passport photographs, where requested

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

Any additional supporting documents required by the Ministry of Manpower for the specific pass type

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!

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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    FAQs

    What is an Employer of Record (EOR) in Singapore and how does it work for foreign companies?

    At Mercans, we provide Employer of Record services in Singapore that allow international companies to hire local talent without forming a local entity. We act as the legal employer, handle all employment contracts, process payroll, manage taxes and statutory benefits and ensure full compliance with Singapore labour and employment regulations.

    Why should businesses use an EOR instead of establishing a legal entity in Singapore?

    Using Mercans as your EOR in Singapore enables your company to enter the market quickly and cost-effectively. You avoid the time and expense of entity setup, local licensing, and ongoing HR and payroll administration. Mercans takes care of employment and tax compliance while you focus on your core business growth.

    How does payroll outsourcing in Singapore ensure compliance with tax and employment laws?

    Mercans’ payroll outsourcing services in Singapore cover timely salary payments, correct tax withholdings, statutory contributions, and detailed reporting. Our system is aligned with Singapore employment law including contract requirements, payslip standards, and social security regulations, providing transparent, accurate, and compliant payroll operations.

    Can an Employer of Record in Singapore hire employees and manage work visas for international companies?

    Yes. Mercans can hire both Singapore local employees and expatriate workers on behalf of your international organisation. We manage work pass applications, visa sponsorship, and employment authorisations, ensuring compliance with Singapore immigration and labour legislation.

    What are the main benefits of using EOR and payroll services in Singapore for global expansion?

    The key advantages of choosing Mercans for EOR and payroll services in Singapore include accelerated market entry, lowered administrative burden, cost efficiency, full local compliance with employment and tax requirements, access to local HR expertise, and the flexibility to scale your workforce without managing a local entity.

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