What does a $60,000 hire cost in Singapore?
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Total annual employer cost
Full cost breakdown
Statutory contributions and typical benefits for an employee in Singapore at $60,000 base salary.
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Key Takeaways for Hiring in Singapore
- Singapore requires a registered local entity to sponsor work passes (work visas). You can’t use an EOR for foreign hires.
- Employers must contribute to the Central Provident Fund (CPF), Singapore’s social security system, for citizens and permanent residents, but not for foreign workers.
- Payroll runs monthly, with salaries due by the seventh day of the following month.
- Final payments are due within seven days of termination, after receiving tax clearance.
Continent
Asia
Capital
Singapore
Currency
Singapore Dollar (SGD)
Language
English, Malay, Mandarin, Tamil
Payroll Cycle
Monthly
VAT
9%
Quick Facts For Hiring In Singapore
Singapore Employment Contract Overview
A clear employment contract is essential in Singapore, where core terms like hours, benefits, and notice rules must be documented from day one. Below are the key details every compliant contract should include.
Employees earn paid annual leave after three months of service:
- Seven days in the first year
- Increases by one day per year
- Capped at 14 days from year eight onward
The employment contract typically specifies the notice period.
If the contract doesn’t specify a notice period, the Employment Act defines the notice period by length of service:
- Less than 26 weeks: one day
- 26 weeks to less than two years: one week
- Two years to less than five years: two weeks
- Five years or more: four weeks
What Do You Need To Include In A Singaporean Employment Contract?
Employment contracts in Singapore need to clearly spell out the key terms of the job: hours and leave to pay, benefits, and notice rules.
Employee Information
- Full name
- ID/Passport number
- Address
- Role / Job title
- Duties (Job Description)
- Start date
- End date (if applicable)
- Leave entitlements
- Contract duration
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
Payroll
Average employer cost
7.75% to 17.25%
| Category | Details |
|---|---|
| 13th Salary | Not mandatory; subject to employer discretion |
| Avg employer tax | 7.75% to 17.25% |
Tax Breakdown
Personal Income Tax (PIT)
| Category | Rate / Details |
|---|---|
| Tax Rates | Progressive rates ranging from 0% to 22% based on annual income. |
Corporate Income Tax (CIT)
| Category | Rate / Details |
|---|---|
| Standard Rate | 17% on chargeable income |
| Tax Exemptions | Various exemptions and incentives are available for qualifying companies. |
Central Provident Fund (CPF)
| Category | Rate / Details |
|---|---|
| Employee Contributions | Up to 20% for employees aged 55 and below |
| Employer Contributions | Up to 17% for employees aged 55 and below |
Skills Development Levy (SDL)
| Category | Rate / Details |
|---|---|
| Rate | 0.25% of monthly gross wages, subject to a minimum of SGD 2 and a maximum of SGD 11.25. |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 9% |
Mandatory Employee Benefits In Singapore
Singapore only allows locally registered companies to sponsor work passes, so EORs can’t employ expats. If you need to hire foreign talent, you’ll have to do it through your own Singapore entity.
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government | Payroll Contributions | CPF contributions fund MediSave, which employees use for hospitalization and outpatient care. MediShield Life is the basic mandatory health insurance plan administered by the CPF Board. |
| Pension/Social Security | Government | Payroll Contributions | The Central Provident Fund (CPF) is Singapore’s statutory retirement and social security system for citizens and permanent residents. It includes the Ordinary Account, Special Account, Retirement Accounts, and Medisave Accounts. CPF LIFE provides lifelong monthly payouts from retirement age. |
| Other Statutory Benefits | Government | Payroll Contributions | Employers must insure employees under the Work Injury Compensation Act (WICA) and maintain a safe workplace under Ministry of Manpower rules. |
Leave And Holiday Entitlement In Singapore
Annual Leave
Employees in Singapore earn paid annual leave after three months of service. Entitlement starts at 7 days in the first year and increases by 1 day each year, up to a maximum of 14 days from the eighth year onward.
Public Holidays
Singapore has 11 gazetted public holidays each year, including New Year’s Day, Chinese New Year, Hari Raya Puasa, Good Friday, Labour Day, Vesak Day, Hari Raya Haji, National Day, Deepavali, and Christmas Day.
Sick Leave
Eligible employees can take up to 14 days of paid outpatient sick leave per year once they complete three months of service.
They may also take up to 60 days of hospitalization leave annually, which includes the 14 days of outpatient leave. Sick leave is prorated if the employee has worked less than six months.
Maternity Leave
Eligible mothers of Singapore Citizen children receive 16 weeks of maternity leave: the first 8 weeks are employer-paid and the next 8 weeks are reimbursed by the government.
Mothers of non-citizen children receive 12 weeks, with 8 paid weeks followed by 4 unpaid weeks.
Paternity Leave
Eligible fathers of Singapore Citizen children receive 2 weeks of Government-Paid Paternity Leave (GPPL) and must take the leave within 12 months of the child’s birth.
From 1 April 2025, this increases to 4 weeks, with shared parental leave expanding to 6 weeks by 2026. Fathers may also share up to 4 weeks of the mother’s 16-week leave with mutual agreement.
Other Types of Leave
-
Childcare Leave: Parents of Singapore Citizen children under seven receive 6 days of childcare leave yearly (3 employer-paid, 3 government-paid). Parents of children aged 7–12 receive 2 days.
-
Compassionate Leave / Marriage Leave / Bereavement Leave: Not mandated by law, but commonly offered as part of company policy, typically 1–5 days depending on the practice.
Termination and Offboarding in Singapore
When employment ends in Singapore, timing and communication matter just as much as paperwork. This section highlights what employers should pay attention to so every exit is handled compliantly and professionally.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Singapore employee resignation
Notice
Form
The employee must provide written notice of resignation. The day the notice is given counts toward the notice period.
Notice period
As agreed in the employment contract. If not stated, Singapore’s Employment Act requires: less than 26 weeks of employment: 1 day, 26 weeks to less than 2 years: 1 week, 2 to less than 5 years: 2 weeks, more than 5 years: 4 weeks
Payment in lieu of notice or notice waiver
Allowed
End-of-Service Benefits
Severance/Gratuity
Not applicable under Singapore’s Employment Act.
Other Benefits
- Prorated salary for days worked until the termination date.
- Payment for accrued but unused annual leave.
- Payment of bonuses, commissions, or expenses due under the contract.
- Repatriation flight where the employer is sponsoring the employee’s work permit.
Termination Documentation
- Written resignation notice.
- Final dues letter confirming the employee has received all payments owed.
Employer Termination With Cause in Singapore
Acceptable grounds
Termination for cause in Singapore applies when either party willfully breaches a condition of the contract of service.
This includes situations where:
- The employer fails to pay the salary according to the contract.
- The employee is absent for more than two consecutive days without approved leave, has no reasonable excuse, or does not inform (or attempt to inform) the employer of the reason.
- The employee commits misconduct that is inconsistent with the terms of employment, following a due inquiry.
- The employee or the employee’s dependent faces immediate danger from violence or disease.
Notice
Form
Written notice.
Notice period:
Termination takes effect immediately and does not require a notice period.
Payment in lieu of notice or notice waiver:
Not applicable.
End-of-Service Benefits
Severance
Not applicable.
Other Benefits
- Prorated salary for days worked up to the termination date.
- Payment for accrued but unused annual leave.
- Payment of bonuses, commissions, or expenses that are due under the employment contract.
- Repatriation flight if the employer sponsors the employee’s work permit
Termination Documentation
- Written termination notice
- Final dues letter (document signed by the employee confirming that they have been paid all their final dues).
Employer Termination Without Cause in Singapore
Notice
Form
The employer must issue a written notice of termination. The day the notice is given counts toward the notice period
Notice period:
As stated in the employment contract. If the contract does not specify a notice period, the Employment Act requires:
- Less than 26 weeks of employment: 1 day’s notice
- 26 weeks to less than 2 years: 1 week
- 2 to less than 5 years: 2 weeks
- More than 5 years: 4 weeks’ notice
Payment in lieu of notice or notice waiver:
Allowed
End-of-Service Benefits
Severance/Gratuity
Not applicable.
Other Benefits
- Prorated salary for days worked up to the termination date.
- Payment for unused annual leave.
- Bonus, commission, or expense payments due under the contract.
- Repatriation flight if the employer sponsors the employee’s work permit.
Termination Documentation
- Written termination notice
- Final dues letter (document signed by the employee confirming that they have been paid all their final dues).
Mutual Termination Agreements in Singapore
MTA is a voluntary agreement signed by both parties (employer and employee) to terminate an employment contract by mutual consent.
Notice
Form
The agreed terms of the mutual termination must be documented in writing, through a mutual termination agreement (MTA) signed by both parties.
Notice period:
Not required when both parties agree to end the contract. They may choose a termination date that takes effect immediately or in the future.
Payment in lieu of notice or notice waiver:
Since termination is consensual, both parties can waive any notice period in the agreement.
End-of-Service Benefits
Severance/Gratuity
Not applicable.
Other Benefits
- Repatriation Flight: Where the employee is sponsored by the client, one-way flight to employee’s home country or agreed destination
-
Prorated Salary and Leave: Included in MTA:
- Final salary up to termination date
- Accrued but unused leave pay
- Prorated bonus/commission/expenses (if applicable and agreed)
- Ex-Gratia Payment (if any): Not legally required but may be included to facilitate an amicable separation. It should be clearly stated in the agreement.
Termination Documentation:
-
Mutual Termination Agreement, signed by both parties, outlining:
- Termination date
- Final entitlements
- Waivers and releases (if applicable)
- Return of company property
- Non-disparagement / confidentiality clauses (optional)
Offboarding Process for the End of Fixed-term Contracts in Singapore
If the Fixed-Term Contract Ends Normally
Notice
A fixed‑term contract ends automatically upon reaching its specified term or date. Neither party needs to give notice unless the contract explicitly states otherwise.
End-of-Service Benefits
Severance/Gratuity
Singapore’s law does not require severance pay upon the normal expiration of a fixed‑term contract. The ending is considered part of the agreed employment terms.
Other Benefits
If the employee has provided at least 3 months of continuous service under term contracts (with no more than 1‑month gap between renewals), then they are entitled to statutory leave benefits such as annual, medical, paternity, adoption, and childcare leave.
If the Employer Terminates Early
Acceptable Grounds
The employer is not legally required to provide a reason for termination if proper notice is given, unless dismissal is due to misconduct, in which case due process must be followed.
Notice
- The employer must provide written notice per the contract or compensation in lieu if terminating early.
- If the contract doesn’t specify a notice period, the Employment Act’s defaults apply.
- Employers may dismiss without notice only for grave misconduct, but must conduct a proper inquiry and document proceedings. Failure to follow due process can lead to claims of wrongful dismissal.
Termination Documentation
A written termination letter is required to formalize the end of employment, even if it’s through early termination.
Final Payment Timing, Immigration and Visa Compliance in Singapore
Final Payment Deadline: 7 days from termination date. Employers must notify the Comptroller of Income Tax of the termination, and they cannot make final payments until the Comptroller grants permission.
Visa and Immigration Compliance
If the employer sponsors the work permit, they must cancel it within seven days of the termination date.
Supporting Guides
Frequently Asked Questions
Can I hire foreign workers in Singapore without a local entity?
No. Singapore requires a registered local entity to sponsor work passes. EORs can’t employ expats in Singapore—you’ll need your own entity to hire foreign talent.
What’s the difference between an Employment Pass and S Pass?
An Employment Pass is for professionals earning at least S,000/month (higher for older or more experienced candidates). An S Pass is for mid-skilled workers earning at least S,150/month. Both require employer sponsorship and quota limitations may apply.
Do I need to contribute to CPF for foreign employees?
No. Foreign employees on work passes are exempt from CPF contributions. However, you may need to pay a foreign worker levy depending on the pass type and your company’s quota.
How quickly must I pay employees after termination?
Within seven days of the termination date. You must also notify the Comptroller of Income Tax and wait for clearance before making the final payment.
What happens if an employee doesn’t serve their notice period?
The employer may deduct up to one month’s salary in lieu of notice, but only if this is clearly stated in the employment contract.
Can I include a non-compete clause in Singapore employment contracts?
Yes, but it must be reasonable in scope, duration, and geography to be enforceable. Singapore courts won’t uphold overly broad restraints that go beyond protecting legitimate business interests.
