Employer of Record in Singapore

General Information

• Currency: Singapore Dollar (SGD)
• Employer Taxes: 17.25%+350USD/month+450 SGD/Month
• Payroll Frequency: Monthly
• Employee Costs: 20%
• Capital: Singapore
• Fiscal Year: Setting the fiscal year cycle is at the discretion of the company. For individual income tax filing it is from 1st January to 31st December.

Main Aspects of the Labour Code

Minimum Wage

General: Singapore does not have a nationwide minimum wage. However, in recent years, minimum wages have been introduced for certain industries, including cleaning, security, and landscaping.

Additionally, Singapore has the Workfare scheme, which provides support to low-wage workers who are Singapore citizens, aged 35 and above, and earn a gross monthly income of no more than 2,300.00 SGD.

Payroll

Payroll Cycle: Monthly, paid within 7 days of the end of the salary period. In the event of termination/resignation, payment is due on the last day of work.

13th Salary

In Singapore, it is customary to provide a 13th-month salary, also known as an annual bonus, at the end of the year.

Working Hours

General: According to Part IV of the Singapore Employment Act, the standard maximum working hours are capped at 44 hours per week.

Overtime: For employees covered by the Employment Act, overtime is compensated at a minimum of 150% of the basic hourly rate for eligible employees. Overtime work is limited to a maximum of 12 hours per day and 72 hours per month. The maximum monthly overtime pay is capped at 4,500 SGD for white-collar workers and 2,600 SGD for blue-collar workers. Employers are required to pay overtime within 14 days of the end of the salary period.

Leave

Annual Leave (Vacation):

Employees covered by the Employment Act are entitled to paid annual leave after completing at least three months of service. In the first year, they receive a minimum of 7 days, with one additional day for each subsequent year of service. However, it is common for employers to offer 14–20 days of annual leave after the first year.

Public Holidays

When a public holiday falls on a Sunday, the following working day is given as a day off in lieu. For public holidays that fall on a Saturday, employers must either provide an extra day off or compensate the employee with additional pay.

Sick Days

After completing six months of service, employees are entitled to paid sick leave at their regular gross salary. They receive 14 days of sick leave per year if hospitalization is not required, or 60 days per year if hospitalization is necessary, including 14 days for outpatient care.

Before reaching six months of employment, the entitlement to paid sick leave is prorated based on the length of service:

• Up to 3 months: 5 days per year, 15 days if hospitalization is needed
• 4 months: 8 days per year, 45 days if hospitalization is needed
• 5 months: 11 days per year, 45 days if hospitalization is needed
• 6 months: 14 days per year, 60 days if hospitalization is needed

Employees must notify their employer of any inability to work within 48 hours and provide a medical certificate upon returning to work.

Maternity Leave

A pregnant employee who has been employed for at least three months before her due date and whose child is a Singaporean citizen is entitled to 16 weeks of paid maternity leave. This leave is divided into two periods: the employee can take up to 8 weeks before the expected due date, with a minimum of 28 days, and the remaining weeks after the birth.

If the child is not a Singaporean citizen, the maternity leave entitlement is reduced to 12 weeks.

For the first and second child, the employer pays for the first 8 weeks at the employee’s regular gross salary, while the government reimburses the additional 8 weeks, capped at 10,000 SGD per 4 weeks, or a total of 20,000 SGD per child.

From the birth of the third child onward, the government reimburses all 16 weeks of maternity leave, subject to the same cap of 10,000 SGD per 4 weeks, or a total of 20,000 SGD per child.

Paternity Leave

The father or partner is entitled to 2 weeks of paid paternity leave after the birth of the baby, provided they have completed at least three months of service. This leave must be taken within 16 weeks of the baby’s birth and is funded by the Government-Paid Paternity Leave (GPPL) scheme, capped at 2,500 SGD per week, up to a total of 5,000 SGD.

Adoptive fathers are also eligible for government-paid paternity leave, provided they meet the necessary eligibility requirements.

Parental Leave

Shared Parental Leave

Eligible fathers can apply for Shared Parental Leave, allowing them to share up to 4 weeks of their partner’s 16 weeks of Maternity Leave. This leave is reimbursed by the government, with a cap of 2,500 SGD per week.

Childcare Leave

Parents with at least 3 months of service are entitled to 6 days of Childcare Leave per year until the child turns 7 years old, regardless of the number of children. Each parent’s total entitlement is capped at 42 days. Childcare Leave must be used within the calendar year and cannot be carried forward.

The leave is paid as follows:

• The first 3 days are paid by the employer.
• The remaining 3 days are paid by the government.
• Payments are capped at 500 SGD per day, including CPF contributions, totaling up to 1,500 SGD per calendar year.

Extended Childcare Leave

Employees are eligible for 2 days of Extended Childcare Leave per year if their youngest child, who is a Singaporean citizen, is between 7 and 12 years old. This leave is reimbursed by the government, with a cap of 500 SGD per day.

Other Leave

Bereavement Leave

While not a statutory requirement, many employers in Singapore offer two to three days of paid leave in the event of an immediate family member’s death.

Marriage Leave

Employees are generally entitled to up to five days of leave for their marriage.

Voting Leave

In Singapore, voting or polling day is considered a public holiday.

Military Leave

Employees are entitled to paid reservist leave annually upon receiving the official Notification of National Service Call-Up – SAF 100 issued by the government.

Would you like to know the approximate cost of employment in Singapore?