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Compliance
Published:
January 13, 2026
Last updated:
January 13, 2026
For regional HR leaders expanding into Singapore, understanding the country's employment law framework is essential for compliant hiring and payroll management. Singapore represents one of APAC's most business-friendly environments with transparent regulations, efficient government services, and strategic positioning as regional headquarters hub. The city-state's employment framework balances employer flexibility with employee protections through clear statutory requirements and active enforcement.
Organizations managing 100–300 employees across 3–7 APAC markets benefit from Singapore's relatively straightforward employment regulations compared to more complex markets (Japan, mainland China, Philippines). However, specific areas require attention: Key Employment Terms (KETs) documentation, Central Provident Fund (CPF) contributions, work pass regulations, and progressive wage requirements.
Singapore is globally recognized for its efficient, transparent, and business-friendly regulatory environment. Employment relationships are governed by clear legal frameworks applying to both local and foreign hires, stringently enforced by the Ministry of Manpower (MOM).
Employment Act (Cap. 91): Core legislation governing employment relationships. Provides stronger protections for employees covered under Part IV (earning SGD 2,600/month or less, or manual workers earning SGD 4,500/month or less).
Employment of Foreign Manpower Act (EFMA): Regulates foreign worker employment including work pass requirements, employer obligations, quotas, levies, and penalties.
Workplace Safety and Health Act: Establishes workplace safety standards and employer duties.
Industrial Relations Act: Governs employer-union relations and collective bargaining.
Tripartite Guidelines on Fair Employment Practices: Promotes merit-based employment and workplace fairness.
Ministry of Manpower (MOM): Primary enforcement authority conducting inspections, processing work passes, investigating complaints, and prosecuting violations.
Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP): Promotes fair employment and handles discrimination complaints.
Tripartite Alliance for Dispute Management (TADM): Mediates employment disputes.
Central Provident Fund (CPF) Board: Administers mandatory retirement savings and enforces contribution compliance.
Employment Claims Tribunals (ECT): Adjudicates employment disputes up to SGD 30,000.
Singapore does not mandate written contracts for all employees, but employers must issue Key Employment Terms (KETs) in writing within 14 days of employment commencement.
Mandatory KETs include: Employer and employee names, job title and duties, start date, duration (if fixed-term), working hours and days, salary period and rate, basic pay and allowances, overtime payment, leave entitlements, medical benefits, probation period (if applicable), notice period, other benefits.
Penalties: Fines up to SGD 5,000 per employee for failing to issue KETs.
Best practice: Comprehensive written employment contracts strongly recommended despite not being legally required.
Working hour provisions under Part IV of Employment Act apply to employees earning SGD 2,600/month or less, or manual workers earning SGD 4,500/month or less.
Exemptions: Managers, executives, professionals earning above thresholds generally not covered.
Maximum: 44 hours per week (typically 8 hours/day over 5.5 days or 8.8 hours/day over 5 days).
Rest day: Minimum 1 rest day per week.
Overtime rate: 1.5× regular hourly rate for covered employees.
Overtime cap: Maximum 72 hours overtime per month. Exceeding requires MOM approval.
Example: Employee earning SGD 2,400/month (SGD 13.04/hour) works 10 hours overtime:
Penalties: Fines up to SGD 10,000 and/or imprisonment up to 12 months for repeat offenses.
Singapore has no universal minimum wage. However, specific sectors covered by Progressive Wage Model (PWM) have mandatory minimums:
PWM sectors: Cleaning, security, landscape maintenance, lift maintenance, retail, food services (ongoing expansion).
Examples (2025):
Payment timing: Salaries must be paid within 7 days after end of salary period.
Payslip requirements: Itemized showing employee details, salary period, basic salary and allowances, overtime, bonuses, deductions (CPF if applicable, authorized deductions), net salary.
Salary records: Retain for minimum 2 years.
Permitted: CPF employee contributions, authorized absence (max one day's wage per day), damage/loss with documentation, accommodation with consent, loan recovery with consent.
Prohibited: Arbitrary deductions, excessive deductions, deductions as punishment.
Penalties: Fines up to SGD 10,000 and/or imprisonment for late payment, unlawful deductions, inadequate records.
Explore payroll compliance across APAC markets.
Singapore's CPF is a comprehensive mandatory savings scheme covering retirement, healthcare, and housing.
Mandatory for: Singapore Citizens and Permanent Residents employed in Singapore.
Exemptions: Foreign workers (EP, S Pass, Work Permit holders) generally not required to contribute.
Total contribution rates (2025):
Ordinary Wage ceiling: CPF calculated on monthly wages up to SGD 6,000/month.
Example - Age 35 earning SGD 5,000/month:
Example - Earning SGD 8,000/month:
Must be paid by last day of each month for that month's wages.
Late payment penalties: 1.5% per month interest plus potential prosecution and work pass debarment.
Learn more about Singapore CPF contribution requirements.
Employment Pass (EP): For foreign professionals, managers, executives.
Eligibility (2025 onwards):
S Pass: For mid-level skilled workers.
Work Permit: For semi-skilled workers.
Medical insurance: Minimum SGD 15,000 coverage per year for all foreign employees.
Acceptable accommodation: Ensure housing meets MOM standards.
Repatriation: Bear costs upon contract completion or termination.
Quota compliance: Maintain sector-specific foreign worker quotas.
Levy payment: Pay monthly foreign worker levies.
EFMA violations: Fines up to SGD 30,000 per illegal worker, imprisonment up to 12 months, permanent debarment from hiring foreign workers, director personal liability.
Statutory minimums:
Contracts may specify longer periods (common: 1-3 months for professionals). Payment in lieu permitted.
Immediate termination without notice permitted for serious misconduct (willful disobedience, misconduct, criminal breach of trust, habitual absence).
Best practice: Conduct investigation, document evidence, provide opportunity to respond.
Employees may file ECT claims for wrongful dismissal.
Remedies: Compensation up to SGD 30,000 (typically unpaid notice period salary plus contractual benefits).
Retrenchment: No statutory severance, but Tripartite Guidelines suggest retrenchment benefits and advance notification.
Learn more about employee termination challenges across APAC.
MOM inspections verify KETs issuance, wage payment timing, CPF compliance, working hours/overtime, work pass validity, accommodation standards, workplace safety.
Enforcement: Warnings, compliance orders, fines (SGD 10,000-30,000), imprisonment, work pass debarment.
Best practices: Issue KETs within 14 days, maintain 2-year records, remit CPF by month-end, ensure valid work passes, conduct quarterly internal audits.
Employer flexibility with baseline protections: More flexible than Philippines, Japan, mainland China but provides clear protections for lower-wage workers.
CPF significant for local hires: 37% total (17% employer) for younger Singapore Citizens/PRs higher than Malaysia (~15%), Hong Kong (5% capped), comparable to mainland China (30-37%). Limited to SGD 6,000/month ceiling.
No universal minimum wage but sector-specific PWM: Progressive Wage Model creates sector-specific floors with ongoing expansion.
Clear work pass framework: Tiered system (EP, S Pass, Work Permit) with transparent eligibility and COMPASS assessment more straightforward than some markets.
Strong enforcement with business-friendly processes: Active enforcement but clear guidance and efficient dispute resolution.
Hiring in Singapore? Let AYP manage your employment compliance, HR documentation, and payroll — so you can scale without legal risk.
Explore AYP's EOR services across APAC markets, or learn about compliance challenges when hiring across Asia.
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