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Singapore Employment Guide

Your essential guide to the workforce, working customs, and labor rules in Singapore

Access essential insights to manage employment smoothly, stay compliant, and build a thriving team
Capital
Singapore
Time Zone
Singapore Standard Time GMT +8
Currency
Singapore Dollar (SGD)
Languages
English, Mandarin, Malay, Tamil
Payroll
Monthly
Employers Tax
17.25% ++
Employer of Record (EOR)
Professional Employer Organization (PEO)

Employment Law

Payroll & Tax
Compensation & Benefits

Talent Landscape

Singapore is an international business hub where many big companies have their APAC headquarters. The talent here is comparable with the likes of Silicon Valley; leaders come to Singapore to fill senior leadership positions and high-skill roles. Combined with its convenient geographical position, stable reputation, and ease of access into regional economies, these factors bolster Singapore’s attractiveness as Southeast Asia’s leading business hub.

In-Demand Roles

Full Stack Developer
Backend Developer
DevOps Engineer
Business Development Manager
Frontend Developer

Working Culture

Hierarchy and Professionalism

Titles like "Mr." and "Ms." are still common in formal settings, particularly in traditional industries. However, many companies, especially international and creative sectors, are moving towards a more casual and friendly approach in addressing colleagues.

Cultural Diversity and Inclusiveness

Singapore’s workforce is a blend of different ethnicities and nationalities. This diversity makes inclusiveness and respect for cultural differences essential, promoting teamwork and open communication in the workplace.

Punctuality and Efficiency

Punctuality is highly valued in Singapore’s work culture. Meetings, deadlines, and project timelines are closely adhered to, reflecting the nation’s reputation for efficiency and professionalism.

Work-life Balance and Well-being

While hard work is important, there is a growing focus on achieving work-life balance. Flexible working hours and wellness initiatives are increasingly common, showing a shift towards supporting employees' long-term well-being.

Average Salary

Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Tech Engineering
Software Engineer
$4,400
AI Engineer
$5,500
Business Development & Sales
Business Development Officer
$3,700
Sales Manager
$4,800
Product
Product Manager
$5,500
Data
Data Analyst
$3,700
Data Scientist
$5,500
Marketing & PR
Marketing Associate
$3,200
Marketing Manager
$4,800
Public Relations Manager
$4,400
Corporate Services
Human Resources Generalist
$3,200
Accountant
$3,700
Administrative Officer
$2,400
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Tech Engineering
Software Engineer
$4,400
AI Engineer
$5,500
Business Development & Sales
Business Development Officer
$3,700
Sales Manager
$4,800
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Product
Product Manager
$5,500
Data
Data Analyst
$3,700
Data Scientist
$5,500
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Marketing & PR
Marketing Associate
$3,200
Marketing Manager
$4,800
Public Relations Manager
$4,400
Job Position
Avg Monthly Salary (USD)
*3-5 Years of Experiences
Corporate Services
Human Resources Generalist
$3,200
Accountant
$3,700
Administrative Officer
$2,400

Payroll

Overtime Pay

  • You can claim overtime if you are a non-workman (white collar occupations e.g. clerks and retail assistants) earning a monthly basic salary of $2,600 or less or a workman (employees engaged in manual labour e.g. labourers and machine operators) earning a monthly basic salary of $4,500 or less
  • The overtime rate payable for non-workmen is capped at the salary level of $2,600, or an hourly rate of $13.60. For overtime work, employers must pay at least 1.5 times the hourly basic rate of pay
  • Overtime pay must be paid within 14 days of stipulated salary period
  • Employees are only allowed up to 72 overtime hours in a month, unless they apply for exemption to increase it

Basic Compensation

  • No minimum wage
  • Salary paid at least once a month, within 7 days after end salary period

Employment Law

Contracts

Employment agreements should be drafted in the English language. In Singapore, there are typically two types of employment agreements:

  • Indefinite-Term
  • Fixed-Term: There is no maximum duration for fixedterm contracts

Probation

While there is no maximum probationary period mandated by law, the common practice is to have a probationary period of 3 months

Working Hours

Employees covered by the Employment Act are subject to a work limit of 44 hours per week and 8 hours per day

Public Holiday

Singapore observes 11 public holidays a year. Employees who work on a public holiday must receive an extra day’s salary or leave day in lieu.

  • New Year’s Day
  • Chinese New Year (2 days)
  • Hari Raya Puasa
  • Hari Raya Haji
  • Good Friday
  • Labor Day
  • Vesak Day
  • National Day
  • Deepavali
  • Christmas Day

Employee Leave

Annual Leave

  • Employees who have worked at least 3 months are entitled to annual leave
  • Employees in their first year of service get 7 days annual leave, with one extra day every year until the 8th year, where it is fixed at 14 days thereafter

Special Leave

  • Paternity Leave: 2 paid weeks (for all eligible working fathers, including self-employed)
  • Shared Parental Leave: Working fathers can apply to share up to 4 weeks of their wife’s 16 weeks of government - paid maternity leave, subject to wife’s agreement
  • Childcare Leave: 6 paid days per year (parents of Singaporean children) 2 paid days per year (parents of non-citizens)
  • Infant Care: 6 unpaid days per year (parents of Singaporean children)
  • Compassionate Leave: A common practice to provide 2-3 days paid leave for a death in a family
  • Adoption leave: 12 paid weeks (for all eligible working mothers,including self-employed)
  • Maternity Leave: 16 government-paid weeks (if child is Singaporean citizen OR 12 paid weeks (if child is noncitizen)

Medical Leaves

  • Employees are entitled to both paid outpatient sick leave and paid hospitalization leave if they worked for at least 3 months
  • Employees must produce a medical certificate

Taxes

Employer Tax

Contribution Type
Details
Employee Monthly Contribution
17% of monthly salaries, up to SGD 6,000
Skill Development Levy (SDL)
0.25% of total wages, with a minimum of SGD 2 and a maximum of SGD 11.25 per employee/month
Contribution Type
Details
Employee Monthly Contribution
17% of monthly salaries, up to SGD 6,000
Skill Development Levy (SDL)
0.25% of total wages, with a minimum of SGD 2 and a maximum of SGD 11.25 per employee/month

Partial Tax Exemption

Chargeable Income (SGD)
Exempt
from Tax
Exempt Income (SGD)
First 10,000
75%
7,500
Next 190,000
50%
95,000
Total
50%
102,500
Chargeable Income (SGD)
Exempt from Tax
Exempt Income (SGD)
First 10,000
75%
7,500
Next 190,000
50%
95,000
Total
102,500

Startup Tax Exemption

Chargeable Income (SGD)
Exempt
from Tax
Exempt Income (SGD)
First 100,000
75%
75,000
Next 100,000
50%
50,000
Total
50%
125,000
Chargeable Income (SGD)
Exempt from Tax
Exempt Income (SGD)
First 100,000
75%
75,000
Next 100,000
50%
50,000
Total
125,000

Employee Tax (Progressive Rates)

Taxable Income Band (SGD)
National Income Tax Rates
1 – 20,000
0%
20,001 – 30,000
2%
30,001 – 40,000
3.50%
40,001 – 80,000
7%
80,001 – 120,000
11.50%
120,001 – 160,000
15%
160,001 – 200,000
18%
200,001 – 240,000
19%
240,001 – 280,000
19.50%
280,001 – 320,000
20%
320,001+
22%
Taxable Income Band (SGD)
National Income Tax Rates
1 – 20,000
0%
20,001 – 30,000
2%
30,001 – 40,000
3.50%
40,001 – 80,000
7%
80,001 – 120,000
11.50%
120,001 – 160,000
15%
160,001 – 200,000
18%
200,001 – 240,000
19%
240,001 – 280,000
19.50%
280,001 – 320,000
20%
320,001+
22%

CPF (Central Provident Fund) Contribution Rates

Employee Age Group
CPF Contribution Rate
55 & below
20%
55 to 60
14%
60 to 65
8.50%
65 to 70
6%
Above 70
5%
Employee Age Group
CPF Contribution Rate
55 & below
20%
55 to 60
14%
60 to 65
8.50%
65 to 70
6%
Above 70
5%

Bonus

Common practice: 13th month salary

While not required by the Employment Act of Singapore, it has become common practice to give an annual bonus equivalent to at least 1 month’s salary (13th month payment)

Termination

Termination with Notice

  • A written termination letter is required from either the employer or employee. Termination can occur through notice or salary in lieu of notice
  • Employer-initiated termination:
    • Unsatisfactory probation, employee misconduct, breach of contract, transfer, retirement, or retrenchment
  • Employee-initiated termination:
    • Resignation, employer contract breach, or retirement
  • Natural termination:
    • Expiry of fixed-term contract, end of probationary period, or death of either party

Severance Pay

  • No general right to severance pay, but guidelines suggest:
    • Employees with at least 2 years of service are eligible
    • Those with less than 2 years may receive ex gratia payments
    • Retrenchment benefits typically range from 2 weeks to 1 month of salary per year of service, depending on company finances and industry standards

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