Employer of Record (EOR) Singapore: Hiring Talent in Singapore Without an Entity

Singapore is one of Asia’s most attractive markets for businesses expanding into the region. With its highly skilled workforce, strong legal framework, and global business connectivity, many international companies look to hire employees in Singapore as part of their regional growth strategy.

However, hiring in Singapore usually requires setting up a local legal entity, managing payroll, and complying with employment regulations. For companies that want to hire quickly without going through the lengthy incorporation process, an Employer of Record (EOR) offers a practical alternative.

What is Employer of Record Singapore?

An Employer of Record (EOR) is a service provider that allows companies to hire employees in another country without setting up a local legal entity.

In Singapore, employment regulations, payroll reporting, and statutory requirements must comply with strict local standards. An EOR acts as the legal employer of the workforce, ensuring that every aspect of employment follows Singapore’s regulatory framework.

In Singapore, an EOR handles:

• Employment contracts compliant with Singapore law
• Payroll processing and salary payments
• Statutory contributions such as CPF
• Tax filings and reporting
• Employee onboarding and HR administration
• Termination procedures and compliance

Is Employer of Record Legal in Singapore?

The Employer of Record (EOR) model is legal in Singapore, but it must operate within the country’s employment and immigration regulations.

In Singapore, an EOR arrangement means a local entity legally employs workers on behalf of a foreign company, while the client company manages the employee’s day-to-day work and responsibilities.

Singapore’s legal framework, including the Employment Act and payroll regulations, allows companies to use this structure as long as the EOR provider follows all statutory requirements such as CPF contributions, employment contracts, and tax reporting.

However, regulatory clarification issued by Singapore’s Ministry of Manpower (MOM) in 2024 introduced important limitations. EOR providers cannot sponsor work passes for foreign nationals who will work in Singapore for an overseas company without a local entity. Work passes must be sponsored by a Singapore-registered company that is the genuine employer benefiting from the work.

Key Employment Regulations in Singapore

Below are some of the key employment regulations employers must follow.

1. Employment Act

The Employment Act is Singapore’s main labour law and covers most employees working under a contract of service. It regulates important aspects of employment such as working hours, overtime pay, leave entitlements, and termination conditions.

Under the Act, employers must provide employees with key employment terms in writing, including salary, working hours, job scope, and notice periods. The law also sets guidelines for overtime payments and rest days for employees earning below certain salary thresholds.

2. Central Provident Fund Contributions

The Central Provident Fund (CPF) is Singapore’s mandatory social security system for citizens and permanent residents. Employers are required to contribute a percentage of the employee’s monthly wages to CPF, with the contribution rate depending on the employee’s age and wage level.

As of recent guidelines, the combined employer and employee CPF contribution rate can reach up to 37 percent of monthly wages, with the employer contributing up to 17 percent for eligible employees. These contributions support retirement savings, healthcare, and housing.

3. Salary Payment and Payslip Requirements

Employers must pay salaries at least once per month and within 7 days after the end of the salary period. If overtime work is involved, payment must be made within 14 days after the salary period ends.

Singapore also requires employers to provide itemised payslips to employees. These payslips must clearly show salary components such as basic pay, allowances, deductions, overtime payments, and net salary.

4. Statutory Leave Entitlements

Employees leave in Singapore are entitled to several types of statutory leave, including:

• Annual leave, which increases by 1 days with years of service
• Paid sick leave once eligibility conditions are met
• Maternity leave for eligible employees
• Paternity leave and shared parental leave under government schemes

Employers must follow the minimum entitlements set by law, although many companies offer more competitive benefits to attract talent.

5. Skills Development Levy

Employers must also contribute to the Skills Development Levy (SDL), which funds workforce training and skills upgrading initiatives. The levy is calculated based on employee wages and must be submitted together with CPF contributions.

6. Work Pass and Immigration Regulations

Companies hiring foreign employees in Singapore must comply with immigration regulations managed by the Ministry of Manpower. Foreign professionals typically require work passes such as the Employment Pass (EP) or S Pass, which have salary thresholds and qualification requirements.

Employers are responsible for applying for and maintaining valid work passes and ensuring employees meet eligibility criteria.

Employer of Record vs Entity Setup in Singapore

Factor	Employer of Record (EOR)	Local Entity Setup
Legal employer	The EOR provider becomes the legal employer and hires employees on your behalf.	Your company becomes the legal employer in Singapore.
Entity requirement	No local entity required. You can hire employees immediately through the EOR’s registered entity.	Requires registering a Singapore company with ACRA and completing legal setup.
Hiring speed	Employees can often be onboarded within days or a few weeks.	Entity setup and administrative preparation can take several weeks before hiring begins.
Compliance management	The EOR manages employment contracts, payroll, CPF contributions, and regulatory compliance.	Your company must manage payroll, statutory contributions, tax reporting, and employment compliance internally.
Administrative workload	Minimal administrative burden since HR and payroll processes are handled by the EOR.	Requires internal HR, payroll systems, and ongoing regulatory management.
Market entry strategy	Ideal for testing the Singapore market or hiring a small team quickly.	Suitable for companies planning long term operations and larger teams in Singapore.
Cost structure	Typically involves a service fee charged per employee.	Higher upfront costs for company incorporation, legal support, and administrative setup.
Operational control	Day to day work is managed by your company, but the EOR remains the legal employer.	Full control over employment relationships and HR policies.

Hiring Talent in Singapore with Glints TalentHub

Hiring in Singapore offers access to a highly skilled workforce and one of the most business-friendly ecosystems in Asia. However, navigating employment law, payroll compliance, and regulatory requirements can be challenging for companies without a local presence.

An Employer of Record simplifies the process by acting as the legal employer, managing payroll, statutory contributions, and compliance obligations while you focus on building and managing your team.

For companies exploring expansion into Singapore, an EOR provides a flexible and efficient way to hire talent without the delays and administrative complexity of establishing a local entity.

This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.

Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.

Schedule a no-obligation consultation with our experts to receive a tailored proposal today!