SingaporeSingapore is the easiest place in Asia to employ someone: English-language contracts, a single retirement scheme instead of a maze of funds, low termination risk, and a tax authority that mostly wants one annual report. The surprise for US founders is that the big statutory cost, CPF, applies only to Singapore citizens and permanent residents, so the compliance picture changes completely depending on who you hire.
Here's what you actually need to know.
Quick facts
| Singapore | |
|---|---|
| Currency | Singapore Dollar (SGD) |
| Standard work week | 44 hours, 5 days |
| Payroll frequency | Monthly |
| Employer statutory cost | ~17% on top of gross salary (citizens/PRs) |
| Minimum wage | None statutory (sector-specific PWM excepted) |
| Probation | Up to 6 months (3 is the default) |
| Notice period | 30 days (contract can set its own) |
| 13th month pay | Not mandatory (AWS bonus is common) |
| Employees paid in | SGD, required by law |
First decision: contractor or employee?
Singapore recognizes genuine contract-for-service arrangements, and its professional class is comfortable invoicing foreign clients. For an independent consultant with their own clients and schedule, contracting is clean and fast.
The misclassification line still exists: someone working your hours, exclusively for you, under your management is an employee under the Employment Act regardless of the label, and that means owed CPF contributions with penalties and interest for late payment. Singapore's enforcement is documentation-driven and strict. When someone becomes core to the team, convert them through an employer of record (EOR) or your own Singapore entity.
One EOR-specific constraint to know up front: an EOR can realistically hire Singapore citizens and permanent residents only. Since 2024, the Ministry of Manpower has restricted EOR providers from sponsoring work passes for foreign nationals, so relocating a non-resident into Singapore under an EOR generally isn't an option. Confirm current MOM rules for your specific case.
Paying contractors in Singapore
The mechanics:
- Collect a W-8BEN before the first payment. It certifies the contractor is a non-US person, so you generally don't issue a 1099. Confirm your setup with your accountant.
- Sign a real contract with scope, rate, IP assignment, and termination terms. English contracts are the norm in Singapore, but use one drafted for Singapore law.
- Pay in USD or SGD, their choice. Contractors can invoice in either. Wires into Singapore are reliable, but the $25-45 per-wire fee plus the spread hidden in the exchange rate adds up on a monthly retainer.
Shor pays Singapore contractors over local rails at a flat disclosed 2% FX margin, for $19/month per contractor. Contracts, W-8BEN collection, and invoicing are built in.
Hiring full-time employees
The statutory cost structure is unusually simple, with one big caveat about who it applies to:
| Contribution | Rate (employer side) | Notes |
|---|---|---|
| CPF (Central Provident Fund) | 17% | Citizens and PRs aged 55 and under; employee contributes 20% |
| SDL (Skills Development Levy) | 0.25% | Min SGD 2, max SGD 11.25 per month |
The key surprise: CPF applies only to Singapore citizens and permanent residents. Foreign employees on work passes are outside CPF entirely, no employer contribution and no employee deduction. That makes a citizen hire cost roughly 17% more than their gross salary, while rates step down for older workers (16% employer for ages 55-60, 12.5% for 60-65). PRs in their first two years contribute at graduated rates. Statutory rates change, so confirm the exact figures with your accountant or your EOR.
2026 brought real changes worth knowing. The CPF ordinary wage ceiling rose to SGD 8,000/month on January 1, 2026, the final step of a phased increase, so contributions now apply to a larger slice of higher salaries. Shared parental leave expanded to 10 weeks per eligible parent from April 1, 2026, government-paid and capped. And the statutory retirement age rose to 64 (re-employment age 69) on July 1, 2026. Multiple advisory and government sources confirm all three; your payroll provider should already be running the new numbers.
Employees must be paid in SGD, monthly, with itemized payslips (they're mandatory by law). Employers must also issue written Key Employment Terms to covered employees.
Leave and benefits
- Annual leave: starts at 7 days statutory and rises to 14 with tenure; market offers are typically 14-20
- Sick leave: 14 days outpatient at full pay (with hospitalization leave separate), subject to service and medical certificate conditions
- Maternity leave: 16 weeks at full pay, with government reimbursement covering part of it
- Paternity leave: 4 weeks (28 days), paid
- Public holidays: ~11 days
Beyond statute, competitive Singapore offers commonly add private medical and dental insurance, transport, meal, and mobile allowances, and an annual bonus (the "AWS" 13th month, common but not statutory).
Ending employment
Singapore is the lowest-friction termination regime in this guide series, but it isn't at-will:
- Notice of 30 days is the norm; the contract can set its own notice, and payment in lieu is allowed
- No universal statutory severance. Retrenchment benefits of 2 weeks to 1 month per year of service are the norm for unionized companies and recommended practice elsewhere, but not a general legal requirement
- Misconduct dismissals need an investigation and documented fair process
- For a departing foreign employee, you must file tax clearance (IR21) and withhold the final payment until the tax authority clears it
Final settlement covers accrued salary, outstanding leave, notice pay if applicable, and any retrenchment benefit.
Documents we'll collect from your employee at onboarding
NRIC (for citizens and PRs) or FIN and work pass details, a Singapore bank account for salary, plus address, date of birth, and tax residency status.
What it costs through Shor
- Contractors: $19/month each
- Full-time employees (EOR): $449/month each, with CPF filings, IR8A tax reporting, SDL, and itemized payslips handled
No setup fees, no annual lock-in, and the FX margin is a flat disclosed 2%. The pricing calculator shows the full Singapore math including every statutory line.
Next steps, depending on where you are: the EOR pricing comparison puts published provider prices side by side, and EOR vs. your own entity has the breakeven math for when a local entity starts to win. To see Singapore against the rest of our coverage, the reference tables compare employer costs, notice periods, and public holidays across every country here. Already with another provider? Switching EOR providers covers the traps worth planning around.
FAQ
Can I pay Singapore employees in USD? No. Salary must be paid in SGD to a Singapore bank account. Contractors can invoice in USD or SGD.
Do I pay CPF for a foreign employee in Singapore? No. CPF applies only to Singapore citizens and permanent residents. But note that an EOR generally can't sponsor work passes for foreign nationals under current MOM rules, so EOR hiring in Singapore is effectively for citizens and PRs, who do get CPF.
How fast can someone start? Contractors: same day, once the contract is signed and the W-8BEN is in. Employees via EOR: typically one to two weeks, since Singapore has no lengthy statutory registration chain for citizen and PR hires.
What does an employer of record in Singapore cost? With Shor, $449/month per employee, plus the statutory employer contributions (about 17% CPF for citizens and PRs, plus the small SDL levy) that any Singapore employer pays. Deel and Remote charge $599-699/month for the same coverage.