Guide to Hiring in Singapore

Employment trends and job market analysis

As the world’s most globalised economy, Singapore has a reputation for providing excellent working conditions for both local and expat employees. English is the main working language spoken; however, this is balanced against the local society’s diverse mix of cultures including Chinese, Malay, and Indian.

Singaporean employees are highly regarded for their excellent work ethic and glowing higher education profiles. This puts Singapore on the map for businesses that intend to hire for C-suite executive positions, whether directly or through an employer of record service.

Taxes

Employer contributions

Employers in Singapore are required to make Central Provident Fund (CPF) contributions for eligible Singapore Citizens and Permanent Residents. Contribution rates vary according to the employee's age and are intended to support retirement, healthcare, and housing needs.

Employer CPF contribution rates from 1 January 2026 are:

• 17% for employees aged 55 and below

• 16% for employees above 55 and up to 60 years old

• 12.5% for employees above 60 and up to 65 years old

• 9% for employees above 65 and up to 70 years old

• 7.5% for employees above 70 years old

These contribution rates form part of Singapore's CPF system and have been progressively adjusted in recent years to strengthen retirement adequacy for older workers. Employers should note that CPF contribution obligations are subject to CPF salary ceilings and may vary for certain categories of employees, including Permanent Residents during their initial years of CPF participation.

Skills Development Levy (SDL)

In addition to CPF contributions, employers in Singapore are required to pay the Skills Development Levy (SDL) for all employees. The SDL is used to support workforce development initiatives and training programmes administered through Singapore's national skills development framework.

The SDL is calculated at 0.25% of an employee's monthly remuneration and applies to all employees, including part-time employees, temporary workers, and foreign employees.

Key SDL requirements include:

• SDL rate: 0.25% of monthly remuneration.

• Minimum contribution: S$2.00 per employee per month.

• Maximum contribution: S$11.25 per employee per month.

• Contribution cap: SDL is calculated on the first S$4,500 of an employee's monthly wages.

• Coverage: Applies to all employees, including foreign workers and part-time employees.

Employers are responsible for calculating and paying the SDL together with their other statutory payroll obligations. The levy helps fund workforce upgrading initiatives, training grants, and continuing education programmes that support skills development across Singapore's economy.

CPF contribution ceilings

CPF contributions are subject to salary ceilings that limit the amount of wages on which CPF contributions are payable. These ceilings are important for both employers and employees when calculating payroll costs and statutory contributions.

As of 1 January 2026, the CPF salary ceilings are:

• Monthly Ordinary Wage (OW) Ceiling: S$8,000 per month.

• Annual CPF Salary Ceiling: S$102,000 per year (covering Ordinary Wages and Additional Wages combined).

CPF contributions are only payable on wages up to the applicable salary ceilings. Earnings above these limits are not subject to additional CPF contributions.

The increase in the Ordinary Wage Ceiling from previous years has resulted in higher CPF obligations for employers and employees earning higher salaries and should be considered when budgeting employment costs and total compensation packages in Singapore.

Employee taxes

Eligible employees in Singapore are required to contribute to the Central Provident Fund (CPF), with contribution rates determined by their age. CPF contributions support retirement savings, healthcare, and housing needs.

Employee CPF contribution rates from 1 January 2026 are:

• 20% for employees aged 55 and below

• 18% for employees above 55 and up to 60 years old

• 12.5% for employees above 60 and up to 65 years old

• 7.5% for employees above 65 and up to 70 years old

• 5% for employees above 70 years old

CPF contribution rates for employees aged above 55 have been progressively increased in recent years as part of Singapore's efforts to strengthen retirement adequacy and support longer working lives. Employees should note that CPF contribution obligations are subject to CPF salary ceilings and may vary for certain categories of Permanent Residents during their initial years of CPF participation.

In addition to CPF contributions, employees are subject to Singapore's personal income tax regime, which is administered separately by the Inland Revenue Authority of Singapore (IRAS).

Minimum wage

Singapore does not have a universal national minimum wage. However, employers must comply with several statutory wage frameworks that establish minimum pay requirements for certain workers and employment-related schemes.

The Local Qualifying Salary (LQS) is the minimum monthly salary that employers must pay full-time local employees to count them towards their local workforce when calculating foreign worker quota entitlements. From 1 July 2026, the LQS increased from S$1,600 to S$1,800 per month for full-time local employees.

In addition, Singapore operates a Progressive Wage Model (PWM), which sets mandatory minimum wage requirements in selected sectors and occupations. PWM requirements apply to workers in sectors including:

• Cleaning

• Security

• Landscape maintenance

• Retail

• Food services

• Waste management

• Lift and escalator maintenance

• In-house cleaning

• In-house security

• In-house landscape maintenance

Progressive wage requirements also apply to certain occupations, including administrative staff and drivers, with minimum salary levels increasing based on skills development and career progression requirements.

While Singapore does not prescribe a minimum wage for all workers, employers should ensure compliance with applicable LQS and Progressive Wage Model requirements when hiring and managing employees.

Hours of work

Singapore's Employment Act provides rules on working hours, overtime, rest days, and related protections for certain categories of employees. However, it is important to note that the provisions contained in Part IV of the Employment Act apply only to specific groups of employees.

Part IV protections generally apply to:

• Workmen earning up to S$4,500 per month in basic salary.

• Non-workmen earning up to S$2,600 per month in basic salary.

Managers and executives are covered by the Employment Act but are generally not covered by the Part IV provisions relating to working hours, overtime pay, and rest days. For employees outside Part IV coverage, working time arrangements are primarily governed by their employment contract.

For employees covered under Part IV of the Employment Act, common working hour limits are as follows:

• Employees working five days or fewer per week may work up to 9 hours per day, subject to a maximum of 44 hours per week.

• Employees working more than five days per week may work up to 8 hours per day, subject to a maximum of 44 hours per week.

Overtime

For employees covered under Part IV of the Employment Act, overtime work is subject to statutory limits and compensation requirements.

Employees are generally not permitted to work more than 12 hours per day, including overtime, except in specific circumstances such as:

• An accident or threat of accident.

• Work essential to national defence, security, or the life of the community.

• Urgent repairs to machinery or equipment.

• Unexpected interruptions to business operations.

Eligible employees may work a maximum of 72 hours of overtime per month, unless the employer obtains an exemption from the Ministry of Manpower.

Overtime pay rules include:

• Overtime compensation: At least 1.5 times the employee's basic hourly rate of pay.

• Payment deadline: Overtime pay must be paid within 14 days after the end of the salary period.

• Eligibility: Statutory overtime pay applies only to employees covered under Part IV of the Employment Act.

Employees who are not covered by Part IV are not entitled to statutory overtime pay, unless overtime benefits are provided under their employment contract or company policy.

Breaks and rest days

Employees covered under Part IV of the Employment Act are entitled to appropriate rest periods during the working week.

• Meal breaks: Employees covered by Part IV of the Employment Act are generally entitled to a meal break after working continuously for more than six hours.

• Rest days: Employees are entitled to at least one rest day per week.

• Weekly rest period: A rest day should comprise one whole day. Where work spans two calendar days, the rest period should comprise a continuous period of at least 30 hours.

While Sunday is commonly designated as a rest day, employers and employees may agree on a different day depending on operational requirements and workplace arrangements.

Employee benefits

Employers in Singapore are required to provide statutory employment entitlements, including CPF contributions (where applicable), paid leave entitlements, public holiday benefits, and protections under the Employment Act.

However, in today’s highly competitive employment market, companies that want to attract, hire, and retain employees must be able to provide supplementary employee benefits and perks that go beyond the basics.

The list below contains a selection of value-added benefits that can pad up your benefits package and help you to attract discerning employees:

• On-site wellness initiatives
• Mental health days
• Educational support
• Employee assistance programs
• Flexible spending dollars
• Volunteering days
• Home working allowance

Employment Act and workplace protections

Singapore's Employment Act provides the primary framework governing employment relationships in the country. Since the introduction of significant Employment Act amendments in 2019, most employees, including professionals, managers, and executives (PMEs), are generally covered by the core provisions of the Act, regardless of salary level, except for specific categories of employees such as seafarers, domestic workers, and public servants who are covered under separate legislation.

Key employment protections include:

• Employment Act coverage: Core Employment Act protections apply to most employees, including professionals, managers, and executives, regardless of industry or salary level.

• Working hours and overtime: Additional protections relating to working hours, overtime pay, and rest days under Part IV of the Employment Act apply only to eligible workmen earning up to S$4,500 per month and non-workmen earning up to S$2,600 per month in basic salary.

• Wrongful dismissal claims: Employees who believe they have been wrongfully dismissed may file a claim through the Employment Claims Tribunals (ECT), which handles employment-related disputes, including wrongful dismissal cases.

• Annual leave and public holidays: Employees covered by the Employment Act are entitled to statutory annual leave, paid public holidays, and other leave benefits in accordance with the Act.

• Sick leave certification: Employees may obtain medical certificates from registered medical practitioners when claiming eligible sick leave benefits under the Employment Act.

Workplace fairness and anti-discrimination

Singapore has strengthened workplace protections through the introduction of the Workplace Fairness Act 2025 and the Workplace Fairness (Dispute Resolution) Act 2025. These laws establish a framework to prevent workplace discrimination and promote fair employment practices.

The legislation is scheduled to take effect from end-2027 and will initially apply to employers with 25 or more employees. Employers should review their recruitment, promotion, performance management, grievance handling, and termination procedures to ensure compliance with the new requirements.

The legislation prohibits discrimination on protected grounds including:

• Age

• Nationality

• Sex

• Marital status

• Pregnancy status

• Caregiving responsibilities

• Race

• Religion

• Language ability

• Disability and certain mental health conditions

Employers should ensure that their recruitment, promotion, performance management, and termination practices comply with fair employment principles and prepare for the full implementation of workplace fairness legislation.

Types of leave available

Annual leave

Annual leave entitlement in Singapore depends on an employee's length of service. Under the Employment Act, eligible employees are entitled to a minimum of seven days of paid annual leave during their first year of service, increasing progressively to 14 days after eight years of service.

Sick leave

Employees covered by the Employment Act are entitled to paid sick leave after meeting the minimum service requirements and providing a valid medical certificate from a registered medical practitioner.

Employees who have completed at least six months of service are entitled to:

• 14 days of paid outpatient sick leave per year.

• 60 days of paid hospitalisation leave per year, including the 14 days of outpatient sick leave entitlement.

Employees who have completed between three and six months of service receive paid sick leave on a pro-rated basis:

• Less than 3 months of service: No paid sick leave entitlement.

• 3 months of service: 5 days of outpatient sick leave and 15 days of hospitalisation leave.

• 4 months of service: 8 days of outpatient sick leave and 30 days of hospitalisation leave.

• 5 months of service: 11 days of outpatient sick leave and 45 days of hospitalisation leave.

• 6 months or more of service: 14 days of outpatient sick leave and 60 days of hospitalisation leave.

Employees are generally required to inform their employer of their absence within 48 hours and provide the necessary medical certification to qualify for paid sick leave benefits.

Adoption leave

Eligible adoptive mothers are entitled to 12 weeks of paid adoption leave to care for an adopted child.

To qualify for adoption leave:

• The adopted child must be under 12 months of age at the point of formal intent to adopt.

• The employee must have worked for their employer, or been self-employed, for a continuous period of at least three months immediately before the formal intent to adopt.

• The adoption order must be granted within one year of the formal intent to adopt.

Where the adopted child is not a Singapore citizen at the point of adoption:

• At least one adoptive parent must be a Singapore citizen.

• The child must become a Singapore citizen within six months of the adoption.

Eligible adoptive fathers may also qualify for Government-Paid Paternity Leave, subject to the applicable eligibility requirements.

Childcare leave

Working parents of Singapore citizen children are entitled to six days of Government-Paid Childcare Leave (GPCL) per year. Parents of non-Singapore citizen children are entitled to two days of childcare leave per year under the Employment Act.

To qualify for Government-Paid Childcare Leave:

• The child must be below seven years of age.

• The child must be a Singapore citizen.

• The employee must have completed at least three months of continuous service with their employer.

• Self-employed individuals must have been engaged in work for at least three continuous months and have lost income during the childcare leave period.

Maternity leave

Eligible working mothers are entitled to 16 weeks of Government-Paid Maternity Leave (GPML). To qualify, the employee must generally have worked for their employer for at least three months before the birth of the child and satisfy the applicable citizenship requirements.

For children who are Singapore citizens, eligible mothers are entitled to the full 16 weeks of paid maternity leave, with the leave funded under the Government-Paid Maternity Leave scheme, subject to the applicable reimbursement limits.

Employees are protected from dismissal while on maternity leave, and employers must comply with the statutory maternity protection requirements under Singapore law.

Paternity leave

Eligible working fathers are entitled to four weeks of Government-Paid Paternity Leave (GPPL) for children born on or after 1 April 2025. The leave is fully government-funded and is available to employees who meet the applicable eligibility requirements, including minimum service requirements and citizenship criteria.

Employees are generally required to provide their employer with at least four weeks' notice before taking paternity leave where possible. The Government reimburses employers for GPPL payments, subject to a cap of S$2,500 per week, up to a maximum of S$10,000 per child.

From 1 April 2025, the full four-week entitlement became mandatory, replacing the previous arrangement under which two weeks were mandatory and an additional two weeks could be provided at the employer's discretion. In addition, employees are protected while taking Government-Paid Paternity Leave, and employers are prohibited from dismissing employees because they are exercising their statutory paternity leave entitlement.

Shared parental leave

Singapore introduced a new Shared Parental Leave (SPL) scheme to provide parents with additional flexibility in caring for their child during the first year after birth.

Under the current scheme:

• Parents of children born between 1 April 2025 and 31 March 2026 are entitled to 6 weeks of Shared Parental Leave.

• Parents of children born on or after 1 April 2026 are entitled to 10 weeks of Shared Parental Leave.

Shared Parental Leave is provided in addition to maternity and paternity leave entitlements and may be shared between eligible parents within the first 12 months following the child's birth. Government reimbursement is capped at S$2,500 per week.

For children born on or after 1 April 2026, eligible parents may be entitled to a combined total of 30 weeks of paid parental leave, comprising:

• 16 weeks of maternity leave

• 4 weeks of paternity leave

• 10 weeks of Shared Parental Leave

This replaces the previous Shared Parental Leave framework, under which fathers could share up to four weeks of the mother's maternity leave entitlement.

Unpaid infant care leave

Working parents are entitled to six days of unpaid infant care leave per year if they meet the following requirements:

• The child is a Singapore citizen.

• The child is under two years of age.

• The employee has completed at least three months of continuous service with their employer.

This entitlement allows parents to take additional time off to care for young children during their early years.

Attracting Singaporean talent

Here are some tips on how to hire employees in Singapore:

Today’s candidate-centric market requires companies to find innovative ways to attract candidates who want to work for them. Finding the right person to fill an open position is no simple task and hiring managers face a difficult challenge. Excellent benefits and culture are essential for attracting and retaining talented employees in Singapore, but here are some additional things that companies can do to improve their chances of success.

Leadership

Make sure that your managers at every level within your organisation are the best fit for their position. Poor leadership can drive away employees fast. Excellent leadership comes from years of experience and practice, which is why leadership training is essential to securing managers and department heads capable of engaging, inspiring and retaining employees.

Flexible working hours

According to a study conducted by Singapore's Institute of Policy Studies (IPS), 41 to 52% of employees believe that flexible work arrangements should be part of the new norm. Researchers also found that employees who had the ability to choose between different types of work arrangements reported better psychological well-being than those who did not.

For companies that are doing the opposite by forcing employees back to the workplace against their will, workstyle consultant Hardeep Matharu warns that the consequences of this can be dire. "There are very real risks of not just losing top talent, but also reducing their ability to attract talent,'' he says.

Learning & development (L&D)

Professionals in Singapore value the potential for career growth and learning opportunities. It's especially important because employees with the opportunity for training can continue contributing to their companies as the business evolves over time. Learning and development (L&D) investment can help businesses attract potential new employees and foster loyalty among their existing ones.

Companies should communicate opportunities for professional growth and development when marketing jobs and positions.

Diversity, equity & inclusion (DEI)

Over the past few years, public awareness of DEI has increased, and an increasing number of employees are considering DEI a significant priority when evaluating potential employers. A survey by the Singapore National Employers Federation (SNEF) and Kincentric found that 71% of employers recognised the positive impact of DEI on company culture and 55% recognised its impact on employee engagement.

A diverse and inclusive workforce is able to increase productivity and create a culture of innovation that can positively impact a business's bottom line.

Termination of employment

Employment relationships in Singapore may be terminated by either the employer or employee in accordance with the employment contract or the provisions of the Employment Act. The process for termination will depend on the terms of employment, the reason for termination, and any applicable statutory requirements.

Notice period

The notice period required to terminate an employment relationship is generally determined by the employment contract. Where no notice period is specified, the Employment Act provides the following minimum notice periods based on length of service:

• Less than 26 weeks of service: 1 day's notice

• 26 weeks to less than 2 years of service: 1 week's notice

• 2 years to less than 5 years of service: 2 weeks' notice

• 5 years or more of service: 4 weeks' notice

Employers and employees may agree to longer notice periods in the employment contract.

Probation period

There is no statutory probation period under Singapore law. Probation arrangements are governed by the employment contract and commonly range from three to six months, depending on the role and employer.

During probation, either party may generally terminate the employment relationship in accordance with the notice period stated in the employment contract. Employees on probation continue to be protected by the Employment Act and are entitled to statutory employment rights where applicable.

Wrongful dismissal

Employees who believe they have been wrongfully dismissed may file a claim with the Employment Claims Tribunals (ECT). The ECT handles employment-related disputes, including wrongful dismissal claims, and may order reinstatement or compensation where a dismissal is found to be unjustified.

Retrenchment

Singapore law does not require employers to provide retrenchment benefits. However, the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment recommends that employees with at least two years of service receive retrenchment benefits, typically ranging from two weeks to one month's salary per year of service, depending on the employer's financial circumstances and established company practices.

Employers with 10 or more employees must notify the Ministry of Manpower (MOM) within five working days if they retrench five or more employees within a six-month period.

Workplace fairness and termination

Employers should ensure that termination decisions are based on legitimate business, conduct, or performance-related reasons. Singapore's workplace fairness framework prohibits discriminatory employment practices, and employers should review their termination procedures to ensure compliance with applicable laws and fair employment principles.

Payment in lieu of notice

Instead of serving the required notice period, either party may choose to make a payment in lieu of notice. The amount payable is equivalent to the salary that would have been earned during the notice period.

Severance and retrenchment benefits

While severance or retrenchment benefits are not mandated by law, employers may provide such payments in accordance with employment contracts, collective agreements, company policies, or the Tripartite Advisory guidelines.

Employees affected by retrenchment may be entitled to benefits negotiated between the employer and employee, subject to the circumstances of the termination and any applicable agreements. 

How can I hire?

If you're looking for ways to hire people in Singapore, Airswift has a range of employment solutions that make hiring staff easier than ever before. We're experts at finding qualified candidates for your job openings, so we take care of everything else. You can just focus on growing your business!

Businesses can look into staff hiring options including:

Talent acquisition

Work with in-country talent acquisition specialists who can help you source top-quality candidates and hire locally in a competitive market.

Our contract hire service is designed to help you fill short-term roles and give your company the flexibility to respond to changes in need and market demand.

If you need to hire local talent for longer than a few months, our professional search service can help you find highly-skilled talent in Singapore for permanent roles within your company.

Employer of record

If you're looking for ways to hire remote workers without having to set up a physical office, an Employer of Record in Singapore makes it easier than ever to hire.

As an EOR, we help our clients avoid the hassles of setting up their own HR department by handling everything from compliance to employee onboarding and statutory benefits.

If you'd like to know more about how we can help you hire employees in Singapore, please get in touch with us today!

Although the information provided has been produced from sources believed to be reliable, Airswift makes no warranties, whether express or implied, regarding the accuracy, adequacy, completeness, legality, or reliability of any information herein. Accordingly, there shall be no liability attached to the use of the information herein, howsoever arising. For the latest information and specific queries regarding particular cases, please contact our team.