Country Overview
Singapore is one of the world’s most attractive relocation destinations, combining safety, a high quality of life, and ultra-modern infrastructure. The city-state is consistently ranked among the safest countries globally and offers a cosmopolitan, multicultural lifestyle with world-class food, iconic architecture, and a clean, well-organised urban environment.
Singapore is a global hub for Financial Services, Technology, Life Sciences, Biotech, and Professional Services, with a highly skilled, English-speaking workforce. Of the 6.11 million resident population, approximately 1.91 million are foreign nationals, so international teams integrate naturally. Changi Airport connects to over 150 cities worldwide, making the country a strategic base for the Asia-Pacific region. All foreign nationals require an appropriate work pass to take up employment in Singapore.
*This guide is intended for general informational purposes only and should not be viewed as legal or tax advice. The information discussed may change frequently, and Access Financial cannot guarantee that all content remains current at all times.
2026 Key Legislative Updates
Employment Pass minimum qualifying salary remains S$5,600 (S$6,200 financial services); rising to S$6,000 / S$6,600 from 1 January 2027. S Pass minimum remains S$3,300 (S$3,800 financial services); rising to S$3,600 / S$4,000 from 1 January 2027. CPF Ordinary Wage ceiling increased to S$8,000 per month from 1 January 2026.
Contracts
Singapore employment contracts define the terms of engagement — type, duration, notice, pay, and benefits. Under the Employment Act, Key Employment Terms (KETs) must be provided in writing to all employees within 14 days of starting work.
Contract Types
| Contract Type | Duration | Key Features |
|---|---|---|
| Permanent | Indefinite | Open-ended; continues until terminated by either party with notice. Most common for local hires and expats on EP |
| Fixed-Term | Specified end date | Ends on a date or project completion; often used for project-based expat roles (e.g. 1–2 year assignments) |
| Part-Time | Indefinite or fixed | Under 35 hours/week; pro-rated leave and benefits by law |
| Freelance / Contractor | Project-based | Typically engaged via an EOR or umbrella company; work pass still required for foreign nationals |
Key Employment Terms (KETs) — 14-Day Rule
All employers must issue KETs in writing within 14 days of an employee starting work. This is a statutory requirement under the Employment Act and applies to all employees covered by the Act, regardless of nationality or pass type.
What Your Contract Must Include
Mandatory Key Employment Terms
- Full name of employer and employee
- Job title, main duties and responsibilities
- Start date of employment and contract duration
- Working hours, rest day, working days per week
- Salary period and basic salary
- Fixed allowances and deductions
- Overtime payment and rate (if eligible)
- Annual leave, sick leave, medical, maternity benefits
- Probation and notice period
Common Additional Clauses
- Confidentiality / NDA provisions
- Intellectual property assignment
- Restrictive covenants (non-compete, non-solicit)
- Garden leave provisions
- Bonus and commission structure
- Relocation and housing allowances
- Tax equalisation clauses (for senior expats)
Access Financial drafts Singapore-compliant employment contracts and manages onboarding for EOR engagements.
Working Hours & Overtime
The Employment Act sets a maximum of 44 hours per week. However, statutory work hours and mandatory overtime pay rules apply only to “workmen” earning under S$4,500/month and non-workmen earning under S$2,600/month. Most professional EP holders fall outside these caps, and hours are governed by contract.
| Parameter | Rule | Notes |
|---|---|---|
| Maximum weekly hours (covered employees) | 44 hrs/week | Or 8 hrs/day over a 6-day week |
| Typical office hours | 9:00am – 6:00pm | Monday to Friday with 1-hour lunch break |
| Overtime rate (eligible employees) | 1.5× hourly rate | For workmen < S$4,500 and non-workmen < S$2,600/month |
| Maximum overtime | 72 hrs/month | Applies to employees covered by Part IV of the Employment Act |
| Rest day | 1 day per week | Usually Sunday; work on rest day attracts premium pay |
| Public holidays | 11 days/yr | Extra day’s pay or day off in lieu if working on a PH |
No National Minimum Wage
Singapore has no universal minimum wage. However, work pass salary thresholds effectively act as minimum salary floors for foreign professionals — EP requires S$5,600/month (rising to S$6,000 in January 2027) and S Pass requires S$3,300/month.
Probation Period
No statutory probation period in Singapore law — it is contractual, typically 3 to 6 months.
| Parameter | Standard practice | Legal notes |
|---|---|---|
| Typical duration | 3–6 months | No statutory maximum; 6 months most common for professional roles |
| Notice during probation | 1 day to 1 week | Often shorter than post-confirmation notice; specified in contract |
| Extension | Allowed | Must be agreed in writing; typically up to 3 months extension |
| Day-one statutory rights | Most rights apply | Sick leave (after 3 months), maternity protection, anti-discrimination protection |
Immigration & Work Visas
Singapore operates a strict, employer-sponsored work pass system administered by the Ministry of Manpower (MOM). All foreign nationals require an appropriate work pass before commencing employment.
COMPASS Framework
Since September 2023, all new Employment Pass applications must pass the Complementarity Assessment Framework (COMPASS) — a points-based evaluation scoring salary, qualifications, employer diversity, and support for local hiring. Candidates need at least 40 points to pass. Applicants earning fixed monthly salary of S$22,500 or more are exempt.
Work Pass Types
| Visa Route | Min. Salary (2026) | Sponsor? | Duration |
|---|---|---|---|
| Employment Pass (EP) | S$5,600/mo (S$6,200 finance) | Yes | 1–2 years; renewable |
| S Pass | S$3,300/mo (S$3,800 finance) | Yes — quota + S$650 levy | Up to 2 years; renewable |
| Work Permit | No fixed minimum | Yes — sector-specific | Up to 2 years; restrictions apply |
| Personalised Employment Pass (PEP) | S$22,500/mo | No (individual-tied) | 3 years; non-renewable |
| ONE Pass | S$30,000/mo or exceptional achievement | No | 5 years; renewable |
| EntrePass | Business viability criteria | Self (own venture) | 1 year initially; renewable |
Application Process & Timeline
| Step | Detail | Notes |
|---|---|---|
| Employer application | Via myMOM Portal | Sponsor must be a Singapore-registered entity |
| Processing time | 1–3 weeks (EP/S Pass) | Up to 8 weeks if qualification verification required |
| In-Principle Approval (IPA) | Letter from MOM | Allows entry to Singapore for pass issuance |
| Medical examination | Required for S Pass / Work Permit | Includes TB, HIV, syphilis, malaria screening |
| Pass issuance | Photo + fingerprints at MOM | Physical card issued; serves as ID and right-to-work |
| Foreign Identification Number (FIN) | Issued with pass | Used for tax, banking, Singpass registration |
Dependant & Family Passes
| Pass Type | Eligibility | Who Qualifies |
|---|---|---|
| Dependant’s Pass (DP) | EP holder earning ≥ S$6,000/mo | Legal spouse and unmarried children under 21 |
| Long-Term Visit Pass (LTVP) | EP holder earning ≥ S$6,000/mo | Common-law spouse, step-child, handicapped child |
| LTVP (Parents) | EP holder earning ≥ S$12,000/mo | Parents of the EP holder |
Leave Entitlements
Singapore’s statutory leave entitlements are modest by international standards, but most professional employers offer enhanced benefits above the statutory floor.
Annual Leave
| Length of service | Statutory minimum | Market practice (professional) |
|---|---|---|
| 1 year | 7 days | 14–18 days |
| 2 years | 8 days | 14–18 days |
| 5 years | 11 days | 18–21 days |
| 8+ years | 14 days | 21–25 days |
Parental Leave
| Leave type | Duration | Eligibility / Pay |
|---|---|---|
| Maternity (Singapore citizen child) | 16 weeks | Government-paid for most of leave; employer claims reimbursement |
| Maternity (non-citizen child) | 12 weeks | 8 weeks employer-paid; 4 weeks typically unpaid |
| Paternity (citizen child) | 2 weeks | Government-paid |
| Shared Parental Leave | Up to 10 weeks | Shared between parents; subject to government scheme |
| Childcare Leave (citizen child, < 7 yrs) | 6 days/year | 2 employer-paid + 4 government-paid; per parent |
| Childcare Leave (non-citizen child) | 2 days/year | Employer-paid; after 3 months’ service |
Sick Leave
| Length of service | Outpatient sick leave | Hospitalisation leave |
|---|---|---|
| 3 months | 5 days | 15 days |
| 4 months | 8 days | 30 days |
| 5 months | 11 days | 45 days |
| 6+ months | 14 days | 60 days |
Public Holidays 2026
Singapore has 11 gazetted public holidays in 2026, reflecting its multicultural fabric — including Chinese, Malay, Indian, and Christian observances. When a public holiday falls on a Sunday, the following Monday is observed in lieu.
| Date | Day | Holiday |
|---|---|---|
| 1 January | Thursday | New Year’s Day |
| 17 February | Tuesday | Chinese New Year (Day 1) |
| 18 February | Wednesday | Chinese New Year (Day 2) |
| 21 March | Saturday | Hari Raya Puasa |
| 3 April | Friday | Good Friday |
| 1 May | Friday | Labour Day |
| 27 May | Wednesday | Hari Raya Haji |
| 31 May (Mon 1 June in lieu) | Sunday | Vesak Day |
| 9 August (Mon 10 Aug in lieu) | Sunday | National Day |
| 8 November (Mon 9 Nov in lieu) | Sunday | Deepavali |
| 25 December | Friday | Christmas Day |
Notice Periods
The Employment Act sets statutory minimum notice by length of service. Most professional contracts specify longer notice periods, particularly for senior roles.
| Length of service | Statutory minimum notice | Typical professional contract |
|---|---|---|
| Under 26 weeks | 1 day | 1 week to 1 month |
| 26 weeks – 2 years | 1 week | 1 month |
| 2 – 5 years | 2 weeks | 1–2 months |
| 5+ years | 4 weeks | 2–3 months (senior roles) |
Termination & Severance
Singapore does not mandate severance pay by statute. However, the Ministry of Manpower (MOM) issues guidelines on retrenchment benefits, and market practice provides retrenchment pay in most professional dismissals.
| Parameter | Rule | Notes |
|---|---|---|
| Statutory severance | None mandated | No legal requirement (unlike UK/EU) |
| Retrenchment eligibility | 2+ years’ service | Per Employment Act for covered employees |
| MOM-recommended retrenchment pay | 2 weeks – 1 month per year of service | Market norm; not a legal floor |
| Notification (5+ retrenchments) | MOM mandatory notification | Within 5 working days of issuing retrenchment notices |
| Tax clearance (Form IR21) | Required for foreigners leaving | Employer files at least 1 month before last day; final pay withheld until cleared |
Tax Clearance (Form IR21) — Mandatory for Departing Foreigners
When a foreign employee ceases employment in Singapore, the employer must file Form IR21 with IRAS at least 1 month before the last day and withhold final pay until tax is cleared. This applies on resignation, transfer overseas, or permanent departure.
Income Tax
Singapore’s tax year follows the calendar year. Personal income tax is filed with the Inland Revenue Authority of Singapore (IRAS) by 18 April (e-filing) for the previous year’s income. Singapore operates a territorial tax system — only Singapore-sourced income is taxable.
Resident Income Tax Rates (YA 2026)
| Band | Chargeable Income | Rate |
|---|---|---|
| 1 | First S$20,000 | 0% |
| 2 | Next S$10,000 | 2% |
| 3 | Next S$10,000 | 3.5% |
| 4 | Next S$40,000 | 7% |
| 5 | Next S$40,000 | 11.5% |
| 6 | Next S$40,000 | 15% |
| 7 | Next S$40,000 | 18% |
| 8 | Next S$40,000 | 19% |
| 9 | Next S$40,000 | 19.5% |
| 10 | Next S$40,000 | 20% |
| 11 | Next S$180,000 | 22% |
| 12 | Next S$500,000 | 23% |
| 13 | Above S$1,000,000 | 24% |
No Capital Gains, Dividend, or Inheritance Tax
Singapore does not levy capital gains tax, dividend tax, or estate/inheritance tax. Bank interest received by individuals is also exempt. Combined with the 24% top marginal rate, this makes Singapore one of the most tax-efficient jurisdictions in Asia for high earners.
Non-Resident & Short-Stay Taxation
| Status | Tax treatment | Notes |
|---|---|---|
| Short stay ≤ 60 days | Exempt | Excludes directors, public entertainers, professionals |
| Non-resident employment income | 15% flat or progressive resident rates, whichever higher | For stays 61–182 days |
| Non-resident director’s fees / other | 24% flat | Including rental income, consultancy fees |
| Tax resident | Progressive 0%–24% | 183+ days, or work pass ≥ 1 year |
GST (Goods and Services Tax)
| Rate | % | Applies to |
|---|---|---|
| Standard | 9% | Most goods and services (effective 1 Jan 2024) |
| Zero-rated | 0% | Exports of goods, international services |
| Exempt | — | Financial services, sale and lease of residential property, digital payment tokens |
| Registration threshold | S$1,000,000 | Annual taxable turnover above which GST registration is mandatory |
Let Access Financial handle your Singapore payroll and tax filings — seamlessly and compliantly, with local specialists on call.
Benefits
Singapore’s statutory benefits are concentrated on CPF-eligible citizens and PRs. For foreign professionals, competitive employers layer supplemental benefits — particularly medical insurance — to attract and retain talent.
Mandatory Statutory Benefits
| Benefit | Provision | Notes |
|---|---|---|
| CPF (citizens / PRs) | 37% total (17% emp + 20% empee) | Up to S$8,000 monthly Ordinary Wage ceiling |
| Annual Leave | 7–14 days | Increases with service; statutory minimum |
| Sick Leave | Up to 14 outpatient / 60 hospitalisation days/yr | After 6 months’ service |
| Maternity Leave (citizen child) | 16 weeks paid | Government-funded for most |
| Paternity Leave (citizen child) | 2 weeks paid | Government-funded |
| Public Holidays | 11 days/year | All employees under Employment Act |
| Mandatory Medical Insurance | Required for S Pass / Work Permit holders | Min. S$60,000 coverage; employer-paid |
| Work Injury Compensation Insurance (WICA) | Mandatory for manual workers; non-manual earning ≤ S$2,600/mo | Covers workplace injuries / occupational diseases |
Market-Standard Supplemental Benefits
| Benefit | Prevalence | Typical provision |
|---|---|---|
| Private Medical Insurance | Standard at professional employers | Group hospital & surgical, often outpatient GP/specialist |
| Dental & Optical | Common | Annual cap S$300–S$1,000 |
| Life & Personal Accident Insurance | Very common | 2–4× annual salary |
| Annual Wage Supplement (13th-month bonus) | Widespread | One month’s salary; not statutory but contractual norm |
| Flexible / Hybrid Working | Standard post-2021 | 2–3 days office attendance typical |
| Housing / Education Allowance | Senior expat packages | Significant for relocated executives |
Pension System
Singapore’s retirement system is built entirely on the Central Provident Fund (CPF) — there is no separate state pension. CPF is mandatory for citizens and PRs only. Foreign work pass holders should plan retirement savings independently or via home-country schemes.
| Parameter | 2026 | Notes |
|---|---|---|
| CPF retirement age (drawdown) | 65 | Statutory payout eligibility age |
| Retirement age (re-employment) | 63, rising to 65 by 2030 | Statutory minimum retirement age |
| CPF Ordinary Wage ceiling | S$8,000/month | Up from S$7,400 — effective 1 Jan 2026 |
| CPF annual salary ceiling | S$102,000 | Total contribution cap per year |
| Full Retirement Sum (FRS) 2026 | S$213,000 | Required to receive full CPF LIFE monthly payout |
| Basic Retirement Sum (BRS) 2026 | S$106,500 | Minimum to start CPF LIFE |
| CPF interest rate (Ordinary Account) | 2.5% p.a. | Risk-free floor; Special/MediSave/Retirement at 4% p.a. base |
| Foreign work pass holders | Not eligible to contribute | Plan retirement via home-country scheme or private investment |
Insurances
Singapore’s healthcare and insurance landscape is high-quality but largely user-pays for foreigners. Public hospitals are excellent but charge full rates to non-residents; most expats rely on employer-provided private medical insurance.
| Insurance | Min. Cover | Required by |
|---|---|---|
| Medical Insurance (S Pass / Work Permit) | S$60,000/yr inpatient | Mandatory; employer cost; cannot be deducted from salary |
| Work Injury Compensation Insurance (WICA) | S$45,000 – S$262,000 per case | Mandatory for manual workers and lower-paid non-manual employees |
| Foreign Worker Medical Insurance | S$60,000/yr | Mandatory for migrant workers (effective July 2023 update) |
| MediShield Life | Standard public coverage | Citizens / PRs only; not available to work pass holders |
Professional Indemnity Insurance — Contractors
Not mandated by law for most professions, but often contractually required by Singapore end-clients in financial services, technology, and consulting. Standard cover S$1M; financial services often require S$2M+. AF advises on appropriate cover for your sector.
Private Health Insurance (Indicative Monthly Premium)
| Provider | Typical monthly cost | Type |
|---|---|---|
| AIA | S$150–S$400 (individual) | Comprehensive international |
| Prudential | S$140–S$380 (individual) | Comprehensive |
| Cigna / IMG | S$200–S$500 (individual) | International / expat-focused |
| Bupa Global | S$300–S$700 (individual) | Premium international |
AF Solutions
Access Financial supports end-clients, recruitment agencies, and employees in Singapore — handling payroll, tax compliance, and onboarding.
For End-Clients
Managing a contingent workforce can be complex. Our solutions streamline workforce management, making it simple, compliant, and cost-effective.
For Recruiters
We offer a complete suite of services, allowing you to simply, compliantly, and efficiently place your candidates internationally, with minimum fuss.
For Contractors
Focus on what you do best and let us take care of your payroll, tax compliance, work pass, and immigration needs.
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FAQ
Find answers to our most frequently asked questions below.
What solutions do you offer in Singapore?
In Singapore, Access Financial provides one compliant engagement model:
Employed/EOR (umbrella): We become the legal employer of your employees in Singapore. Your business retains full control of the day-to-day work and deliverables, while we carry the employment, payroll, and tax liability.
When should a company consider using an EOR?
An EOR is especially useful in a range of scenarios. It is the most efficient route when you want to convert existing contractors into compliant employees and reduce misclassification risk, or when you need to hire talent in a country where you do not have a local entity. It also allows you to onboard quickly without going through a lengthy and complex company registration process, while ensuring full compliance with local employment law, payroll, and tax regulations. Beyond these core use cases, an EOR is equally valuable when you are testing a new market before committing to a long-term investment, or when you simply need temporary or project-based hires abroad.
Is permanent establishment (PE) risk avoided?
An EOR is a third-party business that legally employs international workers on your behalf, creating a clear layer of separation between your company and the staff based in other countries. The EOR becomes the legal employer for those workers, so although the employees continue to deliver services to your business, the legal distancing helps mitigate many common PE risks. That said, PE is determined by the facts on the ground (the nature of the activity, contract-signing authority, where revenue is generated, and so on), not solely by who issues the payslip. We therefore recommend reviewing each engagement with our specialists to confirm the appropriate structure.
What is your pricing model?
Our standard management fee is 5% of the contract value, with a minimum of €550. We also offer volume discounts on bulk engagements. To discuss pricing for your specific scenario, please get in touch with our team here: https://accessfinancial.com/#get-started.
Social Insurance (CPF)
The Central Provident Fund (CPF) is Singapore’s mandatory social security and retirement savings scheme. Critically, CPF applies only to Singapore Citizens and Permanent Residents — foreign employees on work passes do not contribute, and neither do their employers.
January 2026 Change — CPF Ordinary Wage Ceiling Raised
From 1 January 2026, the CPF Ordinary Wage ceiling rose from S$7,400 to S$8,000/month. Contribution rates for employees aged above 55 to 65 also increased. The annual salary ceiling remains S$102,000. Applies to citizens and PRs only.
CPF Contribution Rates (Citizens & PRs, age 55 and below)
Phased CPF for New Permanent Residents