Skip to main content
Mercans Logo
SUBMIT RFP CONTACT US
Employer of Record

Employer of Record (EOR) Singapore

Hire compliantly, pay accurately, expand confidently.

Get a free consultation Talk to an expert →
Global Payroll Team
Written by Global Payroll Team
Last updated April 24, 2026
Expert Reviewed

An Employer of Record (EOR) in Singapore serves as the legal employer for businesses expanding globally. As part of a Global Professional Employer Organization (Global PEO), Mercans’ EOR services offer comprehensive oversight, ensuring compliance with Singapore’s labor laws and handling essential tasks such as payroll, taxes, and statutory benefits.

The Employer of Record (EOR) is responsible for:
  • Ensuring compliance with Singapore’s employment laws.
  • Managing local payroll processes.
  • Handling tax filings and required paperwork.
  • Providing accurate payslips.
  • Ensuring timely salary payments.

Streamline global expansion with Mercans’ Global PEO services, hassle-free and without entity setup. Partnering with Mercans ensures legal compliance, intellectual property protection, and smooth global mobility, including work visas. As your Employer of Record in Singapore, we enable you to focus on business growth while we manage your global workforce efficiently. Choose Mercans for compliance, efficiency, and success.

Things you need to know before hiring in Singapore

Employment Contracts in Singapore

All employers must provide written Key Employment Terms (KETs) and itemized payslips to employees covered under the Employment Act (EA) who are hired after April 1, 2016, and will be employed for at least 14 consecutive days. KETs must include:

Employer’s full name (and trade name if different)

  • Employee’s full name
  • Job title, main duties, and responsibilities
  • Start date of employment
  • Employment duration (if on a fixed-term contract)
  • Work schedule (e.g., daily hours, number of workdays per week, rest days)
  • Salary details, including salary period and basic salary
  • Fixed allowances and deductions
  • Leave entitlements (e.g., annual leave, sick leave, maternity or paternity leave)
  • Medical and insurance benefits
  • Probation period (if applicable)
  • Notice period for termination or dismissal

KETs must be provided within 14 days of starting employment and can be in digital or hard copy. General policies like leave and medical benefits may be included in an employee handbook or on the company intranet, as long as they are accessible and provided within the same 14-day period. If all KETs are included in the employment contract, no extra documents are needed. While employees do not have to sign the KETs, employers are encouraged to get confirmation that the terms were issued.

Written employment contracts are not legally required, but they are recommended. Part-time employees working less than 35 hours a week should have contracts that specify their hourly basic and gross rates of pay, working hours, and working days per week or month. Part-time employees also need to receive KETs if they are covered under the EA, hired after April 1, 2016, and employed for at least 14 consecutive days.

Failure to provide KETs may lead to administrative penalties and may affect an employer’s ability to apply for work passes. Employers must also maintain employee records according to the Employment Regulations.

Working Hours

In Singapore, hours of work are regulated only for employees covered under Part IV of the Employment Act. For these employees, the general limit is 8 hours a day or 44 hours a week, although alternative work arrangements are possible under the Act. Employees who are not covered under Part IV will have their working hours governed by their employment contracts.

Overtime Pay

Overtime work covers work performed beyond contractual or statutory hours, excluding breaks. Eligibility for overtime under Part IV of the Employment Act applies generally to non-workmen earning a monthly basic salary of SGD 2,600 or less and workmen earning a monthly basic salary of SGD 4,500 or less. Employers must pay at least 1.5 times the hourly basic rate for overtime work, with payment due within 14 days after the end of the salary period.

Probation Period

In Singapore, probation periods are based on contract rather than statute. The majority of employees begin employment with a probationary period, commonly lasting 3 to 6 months. Successful completion of probation typically results in confirmation of employment. The employer may terminate employment during probation by giving the notice stated in the contract or salary in lieu of notice.

13th Month Salary (Annual Wage Supplement)

The AWS, often known as the “13th month payment,” is an annual bonus given in addition to an employee’s total annual wage. It is not mandatory and depends on the employment contract or collective agreement. Employers may grant AWS as a reward for employees’ contributions. Bonuses, one-time year-end rewards, and variable payments are not obligatory unless specified in the employment contract or collective agreement.

Independent Contractor vs Employee in Singapore

Flexibility in Contract Engagements
  • No Restrictions on Independent Contractors: In Singapore, businesses can engage independent contractors without fixed statutory restrictions on contract duration. This flexibility allows organizations to hire contractors based on their specific needs.
  • Unlimited Duration for Fixed-Term Contracts: Similarly, there are generally no statutory restrictions on the duration or renewal of fixed-term contracts. Companies can structure these contracts to align with project demands.
Distinguishing Between Employees and Independent Contractors

Key Factors for Classification

Determining whether an individual is classified as an employee or an independent contractor is complex, as there is no single definitive test. Courts consider several factors in making this distinction:

  • Control : Employers typically exert control over the work process, including the methods, timing, and location of the work. Employees are subject to workplace rules and regulations and may face disciplinary actions for violations.
  • Ownership of Tools and Equipment : Generally, employers provide the necessary tools and equipment for employees, whereas independent contractors often supply their own.
  • Method of Compensation : The way individuals are compensated can indicate their employment status. Employees usually receive regular payments, while contractors may be compensated through commissions or lump-sum payments.
  • Exclusivity of Work : Employment relationships are typically exclusive, with employees expected to commit their time and attention to their employer during work hours. In contrast, contractors may work for multiple clients simultaneously.
Employee Benefits and Protections

Employment Act Provisions

The Employment Act in Singapore outlines regulations regarding working hours, rest days, and minimum employment standards that apply specifically to employees. These standards include benefits such as:

  • Annual leave
  • Paid medical leave
  • Public holiday pay
  • Overtime compensation for employees covered under Part IV

Conversely, independent contractors are not entitled to these specific benefits.

Termination Protections

Employees enjoy certain protections against wrongful dismissal. Employment contracts may be terminated by mutual agreement, expiry, frustration, breach, misconduct, or with notice. Employees who believe they have been wrongfully dismissed may pursue claims through the Tripartite Alliance for Dispute Management and the Employment Claims Tribunals. Independent contractors typically rely on the termination provisions in their contracts.

Tax Obligations

Employers must make contributions to the Central Provident Fund (CPF) for employees who are Singapore citizens or permanent residents, subject to CPF rules. Employees are taxed on their employment income according to Singapore tax rules. In contrast, independent contractors are generally taxed as self-employed persons and may be able to deduct allowable business expenses.

Consequences of Misclassification

Penalties for Misclassifying Employees

Misclassifying employees as independent contractors can expose employers to claims for unpaid CPF contributions, statutory benefits, overtime, leave entitlements, and other Employment Act protections. Employers may also face enforcement action where applicable.

Top Skills on Demand in Singapore
Singapore’s vibrant tech landscape has heightened the demand for skilled professionals. This article identifies the top 10 sought-after tech skills, including Data Science, Amazon Web Services, Digital Transformation, Cloud Computing, Databases, SQL, Data Analysis, Java, Python, and C#. Whether you’re a hiring manager or a tech candidate, this list guides you on the most valuable skills in today’s job market. For candidates, it signals areas to focus on for upskilling, while hiring managers may find the hiring process challenging but can improve their chances with strategic approaches. In this tech-driven environment, data becomes your best ally.

Payroll in Singapore

  • Overview of Government Mandates: CorpPass, which stands for Singapore Corporate Access, serves as the corporate digital identity that enables businesses, non-profits, and associations to securely transact with Singapore government agencies online. Organizations must register for CorpPass to authorize employees or third parties to access various government e-services on their behalf. This registration is essential for conducting key business operations, including tax filing, payroll processing, and licensing applications.
  • Auto Inclusion Scheme (AIS) for Employment Income: Employers in Singapore may be required to register for the Auto Inclusion Scheme (AIS) through the myTax Portal from the Inland Revenue Authority of Singapore (IRAS). Since Year of Assessment 2022, employers with 5 or more employees, or those who receive a “Notice to File Employment Income of Employees Electronically,” must participate in AIS. Employers with fewer than 5 employees may also voluntarily join the scheme. Through AIS, employers submit employment income information electronically to IRAS.
  • Tax Clearance for Foreign and Singapore Permanent Resident Employees: When foreign employees or Singapore Permanent Resident employees leave their employment, go on overseas posting, or intend to leave Singapore for more than 3 months, employers are generally required to withhold all monies due and file Form IR21 with IRAS at least one month before the event. Once IRAS gives clearance, the employer may release any balance due in accordance with IRAS’ directive.
  • Reporting Employee Earnings: Singapore’s tax system generally taxes employment income earned in Singapore. Employers must submit Form IR8A, together with any relevant appendices or Form IR8S where applicable, for employees by 1 March each year unless the employee is included under AIS electronic submission arrangements.
  • Skills Development Levy (SDL): Employers in Singapore are required to contribute to the Skills Development Levy (SDL) for each employee, regardless of nationality. The SDL amount is based on the employee’s gross monthly remuneration and is calculated at a rate of 0.25%, with a minimum contribution of SGD 2 and a maximum of SGD 11.25 per employee per month.
  • Self-Help Group Fund (SHG): Employers must also make Self-Help Group contributions where applicable based on the employee’s race or religion, through the CPF Board.
  • Central Provident Fund (CPF) Registration: The CPF is a mandatory savings scheme aimed at securing retirement, housing, and healthcare for Singaporeans and PR employees. Employers must register for a CPF Submission Number upon hiring Singapore citizens or PR employees to ensure proper CPF payments under the CPF Act.
  • Ongoing Compliance with CPF Contributions: CPF contributions are required for Singapore citizens and PR employees, and the contribution rates depend on employee age, wages, and citizenship status. Employers must deduct the employee’s contribution from monthly wages and remit both employer and employee contributions to the CPF Board by the 14th of the following month. Late payment interest applies under CPF rules.
  • Changes in Foreign Worker Levy (FWL) Rates for S Pass Workers: The Foreign Worker Levy is required for hiring S Pass workers. Since 1 September 2025, the levy rate has been harmonised to SGD 650 across all sectors and levy tiers.

Payroll Management in Singapore
  • Overview of Government Mandates: CorpPass, which stands for Singapore Corporate Access, serves as the corporate digital identity that enables businesses, non-profits, and associations to securely transact with Singapore government agencies online. Organizations must register for CorpPass to authorize employees or third parties to access various government e-services on their behalf. This registration is essential for conducting key business operations, including tax filing, payroll processing, and licensing applications.
  • Auto Inclusion Scheme (AIS) for Employment Income: Employers in Singapore may be required to register for the Auto Inclusion Scheme (AIS) through the myTax Portal from the Inland Revenue Authority of Singapore (IRAS). Since Year of Assessment 2022, employers with 5 or more employees, or those who receive a “Notice to File Employment Income of Employees Electronically,” must participate in AIS. Employers with fewer than 5 employees may also voluntarily join the scheme. Through AIS, employers submit employment income information electronically to IRAS.

Ongoing Compliance Obligations
  • Tax Clearance for Foreign and Singapore Permanent Resident Employees: When foreign employees or Singapore Permanent Resident employees leave their employment, go on overseas posting, or intend to leave Singapore for more than 3 months, employers are generally required to withhold all monies due and file Form IR21 with IRAS at least one month before the event. Once IRAS gives clearance, the employer may release any balance due in accordance with IRAS’ directive.
  • Reporting Employee Earnings: Singapore’s tax system generally taxes employment income earned in Singapore. Employers must submit Form IR8A, together with any relevant appendices or Form IR8S where applicable, for employees by 1 March each year unless the employee is included under AIS electronic submission arrangements.
  • Skills Development Levy (SDL): Employers in Singapore are required to contribute to the Skills Development Levy (SDL) for each employee, regardless of nationality. The SDL amount is based on the employee’s gross monthly remuneration and is calculated at a rate of 0.25%, with a minimum contribution of SGD 2 and a maximum of SGD 11.25 per employee per month.
  • Self-Help Group Fund (SHG): Employers must also make Self-Help Group contributions where applicable based on the employee’s race or religion, through the CPF Board.

Pension Requirements
  • Central Provident Fund (CPF) Registration: The CPF is a mandatory savings scheme aimed at securing retirement, housing, and healthcare for Singaporeans and PR employees. Employers must register for a CPF Submission Number upon hiring Singapore citizens or PR employees to ensure proper CPF payments under the CPF Act.
  • Ongoing Compliance with CPF Contributions: CPF contributions are required for Singapore citizens and PR employees, and the contribution rates depend on employee age, wages, and citizenship status. Employers must deduct the employee’s contribution from monthly wages and remit both employer and employee contributions to the CPF Board by the 14th of the following month. Late payment interest applies under CPF rules. For employees posted overseas, CPF contributions are not mandatory, though voluntary contributions may be made.
  • Changes in Foreign Worker Levy (FWL) Rates for S Pass Workers: The Foreign Worker Levy is required for hiring S Pass workers. Since 1 September 2025, the levy rate has been harmonised to SGD 650 across all sectors and levy tiers.

Payroll Cycle

Employers are required to disburse salaries at least monthly, or at more frequent intervals if preferred. Payment must be completed within 7 days after the end of the salary period, and failure to do so is an offense.

Employment Obligations
  • Coverage Under the Employment Act: The Employment Act covers all employees in Singapore except seafarers, domestic workers, and public officers, who are governed by separate rules. Managers and executives are also covered by the Act, but they are not covered by Part IV on hours of work, overtime, and rest days.
  • Enhanced Protections for Part IV Employees: Part IV of the Employment Act provides additional protections to non-workmen earning up to SGD 2,600 basic salary and workmen earning up to SGD 4,500 basic salary. It governs working hours, rest periods, and overtime pay.
  • Streamlined Process for Wrongful Dismissal Claims: Wrongful dismissal claims are handled through mediation at TADM before they are heard by the Employment Claims Tribunals.
  • Key Employment Terms (KETs) Documentation: Employers must issue Key Employment Terms in writing within 14 days of hiring an employee if the employee is covered and hired for at least 14 days. KETs outline important employment details such as job responsibilities, salary, working hours, and leave entitlements.
  • Maintenance of Employment Records: Employers must maintain detailed employment and salary records for employees covered under the Employment Act. These records must generally be retained for 2 years for current employees and 1 year after an employee leaves.
Payroll Requirements
  • Itemized Pay Slip Regulations: Employers must issue itemized payslips together with salary payment or within 3 working days after the salary is paid to employees covered under the Employment Act.
  • Salary Payment Timelines: Employers must pay salaries at least once a month, with salary payments due within 7 days after the end of each salary period. For overtime work, payment must be made within 14 days after the salary period ends.
  • Salary Payment Methods: Payroll in Singapore can be processed via cash, cheque, or bank transfer. Bank transfer is the most common and secure method used for salary payments.

Minimum Wages

Singapore does not have a general statutory minimum wage. Wages are generally determined by market conditions, although sector-specific Progressive Wage requirements and Local Qualifying Salary rules may apply in certain situations.

Mercans’ Payroll Capabilities

Navigating payroll complexities in Singapore requires careful attention and comprehensive solutions. Mercans simplifies this process through its Employer of Record (EOR) services, ensuring accuracy, compliance, and operational efficiency in the unique landscape of Singapore payroll.

Singapore payroll operates on a monthly cycle and involves several stages, such as setup, salary calculations, and reporting. Mercans’ EOR services expertly manage these tasks with precision, providing a seamless payroll experience.

Facilitating payments in the local currency enhances convenience and minimizes currency exchange issues. Mercans simplifies this with its multi-country payment solutions, ensuring smooth financial transactions.

From initial payroll setup and processing to comprehensive administration, Mercans’ EOR services cover every aspect efficiently within the Singapore payroll framework. Whether it’s configuring software, processing salaries, or managing leave balances, Mercans ensures a streamlined payroll experience.

Compliance with local regulations is essential, and Mercans provides support for statutory filings, ensuring adherence to Singaporean laws. As your trusted payroll partner in Singapore, Mercans leverages its expertise in Employer of Record services to deliver accurate and efficient payroll operations, making it a reliable choice for businesses operating in Singapore.

Social Security in Singapore

Social Security Contributions

Central Provident Fund (CPF)

The CPF is Singapore’s national pension scheme designed to provide financial security for citizens and permanent residents. Only Singapore citizens and Singapore Permanent Residents are required to make CPF contributions. For employees aged 55 and below, from the third year of Permanent Residence onward, the standard CPF rates remain 17% for employers and 20% for employees, subject to wage ceilings.

The CPF Ordinary Wage ceiling is SGD 8,000 per month from 1 January 2026. The annual salary ceiling for total wages remains SGD 102,000. Reduced rates apply for employees earning lower wages, older employees, and Singapore PRs in their first 2 years of residency. Higher CPF rates for certain employees aged above 55 to 65 took effect from 1 January 2026 under the current step-up schedule.

Additionally, these contribution rates also extend to additional wages, such as year-end bonuses, subject to the applicable annual wage ceiling rules.

  • Total Wages : Subject to the CPF annual salary ceiling of SGD 102,000.
  • Additional Wages : Calculated based on the applicable Additional Wage ceiling formula after taking into account Ordinary Wages paid for the year.

Note : The annual salary ceiling remains SGD 102,000.

It’s important to note that foreign nationals and their employers are not required to contribute to the CPF. However, foreign employees who become Singapore permanent residents, along with their employers, may contribute at reduced rates for their first 2 years.

For further details, please refer to the Employment Income section under Income Determination and Personal Deductions for related information.

Supplementary Retirement Scheme (SRS)

The SRS is a voluntary savings scheme designed to encourage employees and self-employed individuals to save for retirement beyond their CPF contributions. Employers may contribute to employees’ SRS accounts, subject to the prevailing annual SRS contribution limits and tax rules.

Residency Status SRS Contribution Cap (%) Contribution Cap (SGD)
Singapore Citizens or Permanent Residents 15% 15,300
Foreigners 35% 35,700

Employers’ contributions to SRS accounts are taxable for employees but may also provide corresponding tax relief subject to Singapore tax rules.

Local Non-Income Taxes

  • Foreign Worker Levy (FWL): Employers are responsible for paying a monthly levy for each foreign employee where a levy applies, such as for Work Permit or S Pass holders. The levy rate varies based on the pass type, industry, and quota position.
  • Skills Development Levy (SDL): Employers must contribute a levy of 0.25% of the total monthly wages for each employee. The minimum levy payable is SGD 2 and the maximum is SGD 11.25 per employee per month.

The SDL contributes to the Skills Development Fund, which supports workforce upgrading programs and provides training grants. The SDL and SDF are managed by SkillsFuture Singapore, with the CPF Board acting as the collecting agent.

Singapore Employee Hiring Cost

In this hypothetical example of employing an individual in Singapore with a Gross Annual Salary of SGD 9,999.96, the employer incurs Total Annual Employer Costs amounting to SGD 1,725.00. These additional costs may cover components such as Employer CPF Contribution where applicable, Skills Development Levy, and insurance costs. The comprehensive Total Annual Cost, which includes both the Gross Annual Salary and the associated Employer Costs, sums up to SGD 11,724.96. This example underscores the holistic financial commitment involved in employing individuals, extending beyond the base salary to encompass various employer-related contributions and obligations in the Singaporean context.

Description Amount (SGD)
Gross Annual Salary 9,999.96
Skill Development Levy (SDL) 25
Central Provident Fund (CPF) – employer share 1,700.04
Total Annual Employer Costs 1,725.04
Total Annual Cost 11,724.96

Personal Income Tax

Income taxation in Singapore is generally applicable when income accrues in or is derived from Singapore. Foreign-sourced income received in Singapore by resident individuals is generally not taxable unless specific exceptions apply.

Residents and non-residents in Singapore face differing tax treatment. Residents benefit from personal reliefs and deductions and are subject to graduated tax rates, with the top resident tax rate at 24%. In contrast, non-residents are generally taxed at a flat rate of 24% without personal reliefs, except that employment income for non-residents is taxed at either 15% or resident rates, whichever results in a higher amount of tax. This concession does not apply to non-resident directors.

Below is an overview of the individual income tax rates for residents based on the years of assessment 2023 and 2024:

Taxable Income (SGD) Tax on Column 1 (SGD) Tax on Excess (%)
0 – 20,000 0.00 0
20,001 – 30,000 0 2
30,001 – 40,000 200.00 3.5
40,001 – 80,000 550.00 7
80,001 – 120,000 3,350.00 11.50
120,001 – 160,000 7,950 15.00
160,001 – 200,000 13,950.00 18.00
200,001 – 240,000 21,150 19.00
240,001 – 280,000 28,750 19.50
280,001 – 320,000 36,550 20
320,001 – 500,000 44,550 22
500,001 – 1,000,000 84,150 23
Above 1,000,000 199,150 24

For non-residents, a flat tax rate of 24% is generally applicable. Non-resident directors’ remuneration is also subject to tax at 24%.

Singapore imposes no additional local income taxes beyond the aforementioned regulations.

Employee Benefits in Singapore

Central Provident Fund (CPF)

A compulsory benefit for Singapore Citizens (SCs) and Permanent Residents (PRs), CPF is governed by legislation. Employers must adhere to these regulations and automatically enroll eligible employees in their monthly CPF declarations.

Currently, contributions from both employees and employers are determined by the age and income of the employee. For employees aged 55 and below, the standard total contribution rate is 37% of wages, with 17% from the employer and 20% from the employee, subject to CPF wage ceilings. The CPF Ordinary Wage ceiling is SGD 8,000 per month from 1 January 2026, while the annual salary ceiling remains SGD 102,000. Contribution levels vary for those earning lower wages, older employees, and PRs in their first 2 years.

During prime earning years, CPF contributions are allocated to three accounts: Ordinary, Special, and Medisave. At age 55, the Retirement Account is introduced.

Statutory Retirement Age

The statutory retirement age is 63 until 30 June 2026 and 64 from 1 July 2026. Employers are required to offer eligible employees re-employment up to age 68 until 30 June 2026 and up to age 69 from 1 July 2026.

Other benefits

Employees in Singapore enjoy a range of benefits, including statutory annual leave that starts at 7 days and increases with service, with many employers commonly offering more. Maternity and paternity leave benefits are provided, allowing eligible pregnant employees 16 weeks of Government-Paid Maternity Leave for Singapore citizen children, while eligible fathers are entitled to 4 weeks of Government-Paid Paternity Leave. Sick leave is regulated by the Employment Act, ensuring a minimum of 14 days of outpatient sick leave and 60 days of hospitalization leave subject to eligibility. Employees with children under 7 may be entitled to childcare leave, and parents with children aged 7 to 12 may be entitled to extended childcare leave.

Leaves

Annual Leave

Employees are entitled to at least 7 days of annual leave for the first year of service if covered under the Employment Act, with one additional day for each completed year of service up to a minimum statutory entitlement of 14 days by the 8th year.

For those not engaged in manual labor earning over SGD 2,600 monthly, annual leave agreements in employment contracts can exceed statutory entitlements.

Public Holidays

There are 11 paid public holidays a year for employees under the Employment Act. If an employee works on a public holiday, they are generally entitled to an extra day’s salary or another mutually agreed arrangement permitted under the Act.

Date Day Holiday
1 Jan 2026 Thu New Year’s Day
17 Feb 2026 Tue Chinese New Year
18 Feb 2026 Wed Chinese New Year Holiday
21 Mar 2026* Sat Hari Raya Puasa
3 Apr 2026 Fri Good Friday
1 May 2026 Fri Labour Day
27 May 2026* Wed Hari Raya Haji
31 May 2026 Sun Vesak Day
1 Jun 2026 Mon Vesak Day Holiday
9 Aug 2026 Sun National Day
10 Aug 2026 Mon National Day Holiday
8 Nov 2026 Sun Deepavali
9 Nov 2026 Mon Deepavali Holiday
25 Dec 2026 Fri Christmas Day

Sick Leave

Employees, after meeting the statutory service requirements, are eligible for paid outpatient sick leave and hospitalization leave annually. Sick leave requires prompt notification to the employer and a medical certificate.

Maternity/Paternity Leave

Eligible mothers receive either 16 weeks of Government-Paid Maternity Leave or 12 weeks of maternity leave depending on the child’s citizenship and other conditions. Eligible fathers get 4 weeks of Government-Paid Paternity Leave. Additionally, adoptive mothers may be entitled to paid leave for adopting Singapore citizen children.

Shared Parental Leave

Eligible working parents can share 6 weeks of Shared Parental Leave for children born from 1 April 2025 to 31 March 2026, and 10 weeks for children born from 1 April 2026 onwards, subject to the government-paid leave rules.

Childcare Leave

Parents of Singapore citizen children receive 6 days of paid childcare leave per year if the child is below 7 years old. The employer covers the first 3 days and the government covers the remainder, subject to caps and eligibility rules.

Extended Childcare Leave

For children aged 7 to 12, parents receive 2 days of extended childcare leave, reimbursed by the government subject to the applicable caps.

Unpaid Infant Care Leave

Eligible parents can take 6 days of unpaid leave annually for children under 2 years old who are Singapore citizens.

National Service Leave

Male Singapore citizens may be called for National Service training annually, with the government generally reimbursing make-up pay in accordance with the National Service framework.

Termination, Severance Pay and Notice Period

In Singapore, employment termination is a significant aspect regulated by employment laws and contract terms. Employers and employees need to adhere to specific guidelines regarding notice periods. When terminating an employee, it is crucial to provide sufficient notice or salary in lieu of notice, as outlined in the employment contract. The notice period varies based on the terms agreed upon.

Retrenchment benefits are not generally mandated by statute for all employees. However, employers may provide them as a matter of contract, collective agreement, policy, or retrenchment practice. The amount, if applicable, is often determined by factors such as length of service and company policy.

Employers may terminate employees for various reasons, including poor performance, redundancy, or misconduct. Regardless of the reason, employers should ensure fair and reasonable treatment throughout the termination process. Wrongful dismissal may lead to disputes and legal consequences.

Work Permit

Singapore has a highly developed free-market economy and remains a major destination for international talent. To work in Singapore, foreign workers generally need a Singapore work pass. This requirement applies irrespective of visa status. Singapore offers various types of work passes based on the nature of work and skill level. The categories include:

Singapore Work Visas for Professionals

  • Employment Pass: for foreign managers, executives, and professionals. In 2026, the minimum qualifying salary is generally SGD 5,600, with higher thresholds in financial services and for older candidates.
  • Personalized Employment Pass: offers flexibility for high-earning foreigners or existing Employment Pass holders, subject to current MOM eligibility criteria.
  • EntrePass: for eligible entrepreneurs starting and operating a business in Singapore.

Singapore Work Visas for Skilled and Semi-Skilled Workers

  • S Pass: for mid-level skilled workers. In 2026, the minimum qualifying salary is generally SGD 3,300, with higher thresholds in financial services and for older candidates.
  • Work Permit for Foreign Workers: for foreign workers in specific sectors, subject to sector rules, quota, and levy.
  • Work Permit for Foreign Domestic Workers (FDW): for eligible workers from approved source countries, subject to current MOM rules.

Other specialized permits for specific categories.

Singapore Work Visas for Trainees and Students

  • Training Employment Pass: for foreign nationals undergoing training for a limited period.
  • Work Holiday Pass: for foreign nationals under the Working Holiday Programme.
  • Training Work Permit: for unskilled or semi-skilled foreign students or trainees under the applicable rules.

Short-term Work Passes for Singapore

  • Miscellaneous Work Pass: for specific short-term work-related activities.
  • Limited work options may apply for foreign students under student pass rules.

Foreign workers must secure a job in Singapore before applying for a work pass. Employers or Employment Agencies handle applications through MOM’s systems. The process involves submitting an application, obtaining In-Principle Approval or rejection, traveling to Singapore where relevant, and obtaining the final work pass. Certain pass holders can bring family members through a Dependant’s Pass or Long-Term Visit Pass, subject to MOM criteria.

EOR Solutions in Singapore

EOR for Prospective Employees
Mercans offers seamless Employer of Record (EOR) solutions for businesses that have already identified their ideal candidates in Singapore. Our services encompass every aspect of the employee lifecycle, ensuring compliance with Singapore labor laws and regulations.
EOR + Recruitment
For those seeking assistance in talent acquisition, our EOR and recruitment services provide a holistic solution. We tap into our extensive network and expertise to help you find, onboard, and retain top talent, streamlining your expansion into the Singapore market.
Visa Sponsorship and Global Mobility
Navigating the intricacies of expatriate employment is simplified through our visa sponsorship and global mobility services. We facilitate the relocation of your international workforce, ensuring compliance with Singapore immigration and employment laws.
AOR for Contractor Payments
Businesses grappling with contractor payments can leverage our Assistance on Record (AOR) services. We handle the complexities of contractor payments, guaranteeing accuracy and compliance.
Converting Freelancers to Employees
Mercans supports the transition from independent contractors to permanent employees in Singapore. Our expertise ensures smooth conversions while adhering to legal requirements.
HCM Integration
Integrate Mercans’ EOR services seamlessly with your HCM system in Singapore for real-time data exchange, enhanced compliance, and cost-efficiency. Trust our expertise for a unified, compliant, and efficient approach, elevating your workforce management and payroll operations.

Best Employer of Record Singapore

  • Compliant with the Ministry of Manpower (MOM): Mercans is fully compliant with the regulations established by the Ministry of Manpower in Singapore, ensuring that all employment practices are lawful and safeguard the rights of both employers and employees.
  • Own Entity: As an independent legal entity, Mercans provides enhanced flexibility and efficiency in managing employment relationships, simplifying payroll processes and compliance requirements.
  • Supports All Employment Types – Employees, Freelancers, Contractors, Expats: Mercans accommodates various employment types, including employees, freelancers, contractors, and expatriates. This all-encompassing approach allows businesses to effortlessly adjust to their workforce demands.
  • Suitable for Enterprise Businesses: Mercans is designed to meet the needs of enterprise-level organizations, offering comprehensive solutions that support complex payroll and compliance requirements across diverse industries.
  • Supports Multiple Currencies: Mercans facilitates payroll in multiple currencies, streamlining financial transactions for businesses operating in Singapore while managing international payroll effectively.
  • Global Presence and Multi-Country Payroll Capabilities: With a strong global footprint, Mercans has extensive multi-country payroll capabilities, enabling businesses to efficiently handle payroll across various jurisdictions.
  • GDPR Certified, SOC 1 & SOC 2 Compliant: Mercans adheres to GDPR regulations, ensuring the protection of personal data. Its SOC 1 and SOC 2 certifications reflect a commitment to maintaining high standards of security and operational excellence.
  • ISO 20000 & ISO 27001 Certified: Mercans holds ISO 20000 and ISO 27001 certifications, demonstrating its dedication to quality management and information security, providing clients with reliable and secure services.
  • OWASP ASVS 3.0 Compliant: Mercans complies with the OWASP Application Security Verification Standard (ASVS) 3.0 guidelines, ensuring that its applications adhere to high-security standards for client data protection.
  • HRBlizz: Utilizing HRBlizz, a robust HR platform, Mercans streamlines HR processes, enhances workforce management, and improves the overall employee experience for its clients in Singapore.
  • G2N Nova: Through G2N Nova, Mercans delivers innovative solutions for business growth, ensuring that clients benefit from cutting-edge technology and efficient HR practices tailored to the Singaporean market.

Conclusion

In conclusion, Mercans stands out as a reliable partner for Employer of Record (EOR) services in Singapore, offering a seamless and efficient solution for businesses navigating the intricacies of the local employment landscape. With a commitment to precision, compliance, and streamlined operations, Mercans facilitates payroll management, statutory filings, and other crucial aspects, ensuring businesses can focus on their core operations. Trustworthy and experienced, Mercans is dedicated to providing comprehensive support, making it a valuable choice for businesses seeking EOR services in Singapore.

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
Contact Sales
Let's get this conversation started. Tell us a bit about your requirement, and we'll get in touch a soon as we can.

    Sample message

    1. We want to expand in $country

    2. We want you to employ 'X' number of employees on our behalf

    3. Contract duration – 3/6/9/12/18/24 months

    4. Number of legal entities (if any exist today)

    5. Employment type: EOR employee or contractor?

    6. Any benefits requirement or “standard statutory only”?

    FAQs

    What is an Employer of Record (EOR) in Singapore?

    An Employer of Record in Singapore is a third-party service provider that legally employs workers on behalf of another company. The EOR manages all employment-related responsibilities, including contracts, payroll, taxes, benefits, and compliance with Singapore’s labor laws, enabling businesses to hire employees without establishing a local entity.

    How can foreign companies hire employees in Singapore without setting up a local entity?

    Foreign companies can engage an EOR to hire employees in Singapore. The EOR assumes the legal employer role, handling all statutory obligations, while the client company manages the employee’s daily tasks. This approach allows businesses to operate in Singapore without the need for a local branch or subsidiary.

    What compliance, payroll, and HR responsibilities does an EOR in Singapore handle?

    An EOR in Singapore ensures compliance with local labor laws by managing employment contracts, processing payroll, withholding and remitting taxes, making Central Provident Fund (CPF) contributions, administering mandatory benefits, and completing statutory filings. They also handle work permits and visa sponsorship for expatriate employees.

    What are the main benefits of using EOR services in Singapore?

    Utilizing an EOR in Singapore offers several advantages: it simplifies market entry by eliminating the need for a local entity, ensures compliance with complex labor laws, reduces administrative burdens, mitigates legal risks, and accelerates the hiring process.

    How much does it cost to hire employees through an EOR in Singapore?

    The cost of hiring through an EOR in Singapore varies depending on the provider and the services included. Generally, fees can range from $599 to $2,000 per employee per month. It’s advisable to consult with the EOR provider for a detailed pricing structure.

    Is an EOR the best option for expanding a business into Singapore?

    An EOR is an effective solution for businesses looking to expand into Singapore without the complexities of setting up a local entity. It provides a compliant and efficient way to hire employees, allowing companies to focus on their core operations while the EOR manages employment-related tasks.

    Related Topics

    Global Payroll in Singapore
    Employer of Record/PEO and Payroll Services in Singapore
    Ready to hire in Singapore?

    No local entity needed. Our experts handle payroll, compliance, and onboarding.

    Talk to an expert
    Proven expertise in global payroll.