Hiring in Singapore Guide — Sirius First
Singapore Hiring Guide  ·  2026

Hiring Employees in Singapore:
A Guide for Foreign Companies

Everything overseas founders and HR teams need to know about hiring in Singapore — your two main options, visa requirements, payroll obligations, and how to get started quickly.

Section 01

Hiring Options in Singapore

Foreign companies have two practical paths to hiring employees in Singapore. The right choice depends on your timeline, planned headcount, and whether you need to generate revenue under a Singapore entity.

Employer of Record (EOR)

A third-party company legally employs your staff in Singapore on your behalf. You direct the work — they handle contracts, payroll, CPF, and compliance.

Fastest routeNo setup costBest for 1–15 hires

Singapore Subsidiary

Register a private limited company (Pte. Ltd.) with ACRA. Gives you full commercial presence and is best for larger or long-term teams who need to invoice locally.

2–4 wks setupFull controlBest for 15+ hires

Representative Office

Permits market research only — no commercial activity or revenue generation. Rarely suitable for active hiring or building an operational team.

Limited scopeNo revenueExploratory only

Most foreign companies expanding into Singapore for the first time use EOR. It removes the incorporation wait, avoids corporate secretarial costs, and gets your first hire onboarded in 7–14 days.

Section 02

Employer of Record — The Recommended Solution for Most Foreign Companies

Under an Employer of Record arrangement, a licensed Singapore company becomes the legal employer of your staff on your behalf. You retain full day-to-day control of the employee's work — the EOR handles all employment obligations: contracts, payroll, CPF contributions, work pass applications, and statutory filings.

This allows a foreign company to have boots on the ground in Singapore within 1–2 weeks, without any of the administrative overhead of running a local entity.

Key distinction: The employee works for your business — the EOR is the legal employer on paper, responsible for ensuring all Singapore employment law and MOM obligations are met.

Full Service Detail

Sirius First Employer of Record

Sirius First is MOM EA Licensed and operates as a Singapore EOR for global companies. We manage contracts, payroll, CPF, work passes, and ongoing HR compliance — so your team is operational from Day 1.

Section 03

EOR vs Setting Up a Singapore Entity

The decision between EOR and incorporating a Singapore subsidiary comes down to speed, cost, headcount, and long-term commercial intent. The table below summarises the key differences.

Employer of Record Singapore Incorporation
Setup Time 1–2 weeks 4–8 weeks
Setup Cost Minimal SGD 1,500–3,000+ upfront
Local Director Required No Yes — mandatory under ACRA
HR & Payroll Admin Fully managed by EOR Internal HR or outsourced
Compliance Handled by EOR provider Managed internally
Work Pass Sponsorship Via EOR's MOM licence Via your own entity
Best For 1–15 employees, fast market entry, market testing Long-term, 15+ staff, local revenue generation

Note on commercial activity: If your Singapore team needs to generate revenue or sign contracts under a Singapore entity name, you'll need to incorporate. EOR covers employment only — commercial operations remain with your overseas headquarters.

Section 04

Work Visa & Pass Requirements

Singapore citizens and Permanent Residents can work without a pass. Foreign employees need a valid work pass before legally starting work. MOM issues three main pass types for professional and skilled workers.

Employment Pass

Employment Pass (EP)

The primary pathway for foreign professionals, managers, and executives. Minimum salary SGD 5,600/month. Must pass MOM's COMPASS points assessment.

S Pass

S Pass

For skilled mid-level professionals. Minimum salary SGD 3,150/month. Subject to company headcount quota (10–15%). Employer pays a monthly levy.

Dependant Pass

Dependant Pass (DP)

For spouses and children under 21 of EP holders. EP holder must earn at least SGD 6,000/month to sponsor. DP holders may work via Letter of Consent.

Full Service Detail

Work Visa & Immigration Advisory

Sirius First manages EP, S Pass, and Dependant Pass applications end-to-end — including COMPASS assessments, MOM correspondence, renewals, and appeals. Our 98% approval rate is built on rigorous pre-submission review.

Section 05

Payroll Obligations & CPF

Employers must process payroll monthly, remit CPF contributions on time, and file annual income returns with IRAS. Foreign nationals on work passes are exempt from CPF — it applies to Singapore citizens and PRs only.

CPF Contribution Rates

Age Group Employer % Employee % Total %
55 and below 17% 20% 37%
56–60 15% 15% 30%
61–65 11.5% 9.5% 21%
66–70 9% 7% 16%
Above 70 7.5% 5% 12.5%

Key Monthly Obligations

Monthly payslips: Must be issued within 3 days of salary payment with itemised deductions and net pay.

CPF remittance: Due by the 14th of the following month. Late payments attract interest and potential prosecution.

IR8A annual filing: Employment income reported to IRAS by 1 March. Employers with 6+ employees must file electronically via AIS.

Skills Development Levy: 0.25% of gross monthly wages per employee, capped at SGD 11.25/month.

Section 06

Employment Law Essentials

Singapore's Employment Act provides statutory protections for most employees regardless of salary. The key provisions below are what foreign employers should understand before onboarding their first hire.

Annual Leave

Minimum 7 days

Accrues from year one, increasing by 1 day per year of service up to 14 days. Pro-rated for employees under 1 year of service.

Sick Leave

14 days outpatient

Plus 60 days hospitalisation leave per year. Entitlement accrues proportionally over the first year of employment.

Notice Period

1 day to 4 weeks

Scales with tenure. Notice can be waived by salary in lieu. Should be stated clearly in the employment contract.

Maternity & Paternity

16 weeks GPML

Government-Paid Maternity Leave for Singapore citizens. 2 weeks GPPL for fathers. Government reimburses employer for eligible employees.

Under an EOR arrangement, your provider takes on responsibility for ensuring all Employment Act obligations are met. This is one of the primary reasons companies choose EOR over managing employment compliance independently.

Section 07

Cost Overview: What to Budget

When calculating the true cost of a Singapore hire, factor in on-costs beyond base salary. The table below shows a typical breakdown for a foreign national on an Employment Pass, hired via EOR.

Base salary SGD 5,600–15,000/month
CPF (foreign EP holder) Not applicable
Skills Development Levy Max SGD 11.25/month
EP application (first-time) SGD 105 + SGD 225 (issuance)
EOR management fee Typically 5–15% of salary
Total monthly cost (est.) Salary × 1.05–1.20

For Singapore citizens and PRs, add CPF employer contributions (17% for employees under 55). This is the most common cost surprise for first-time Singapore employers. Under Sirius First's EOR service, CPF is calculated and remitted automatically on your behalf.

Get Started

Planning to Hire Employees
in Singapore?

Speak with our advisors to determine the most suitable path — EOR, entity setup, or immigration support. No commitment required.