The Cost of Hiring a Full-Time Employee in Singapore

1. Introduction

Hiring in Singapore offers access to a world-class workforce in a highly developed business environment. But beyond the headline salary, the true cost of employing someone in Singapore involves statutory contributions, hidden costs, and market expectations. This guide breaks down all key cost components to help you make informed hiring decisions.

2. Average Gross Monthly Salaries

Base salaries in Singapore vary depending on seniority and industry:

• Admin or entry-level: SGD 2,200 – SGD 3,000
• Mid-level professionals: SGD 4,000 – SGD 6,500
• Technical roles: SGD 5,000 – SGD 9,000
• Senior managers: SGD 10,000 – SGD 20,000+

Salaries are typically paid monthly and negotiated on a gross basis. While Singapore lacks a general minimum wage, specific sectors (like cleaning and security) have regulated rates.

3. Statutory Contributions and Employer Taxes

Employers must contribute to the Central Provident Fund (CPF), Singapore’s mandatory social security scheme:

CPF contributions are calculated on monthly wages up to SGD 6,800. Employers must also contribute to the Skills Development Levy (SDL) monthly.

4. Other Mandatory Costs

• Annual Leave: 7 to 14 days depending on tenure
• Maternity Leave: 16 weeks, partially government-funded
• Sick Leave: 14 days (or 60 with hospitalization)
• SDL: Min SGD 2, max SGD 11.25 per employee per month

Employers should accrue for leave liabilities and manage claims reimbursement for government-supported leave programs.

5. Optional & Market-Driven Benefits

Common benefits include:

• Outpatient and inpatient insurance
• 13th-month bonuses or AWS
• Transportation, phone, and wellness allowances
• Remote work support (laptops, Wi-Fi stipends)

These help retain talent in Singapore’s competitive hiring landscape.

6. Hidden & Overlooked Costs

• Recruitment: Job ads, agency fees, screening time
• Onboarding: Training, HR setup, induction
• Equipment: Laptop, software, email setup
• Non-compliance: Penalties for CPF, SDL, or Employment Law breaches

Termination costs may increase if notice requirements or leave payouts are mishandled.

7. Advisory Notes for Employers

Budgeting should cover both predictable (CPF, leave) and variable (bonuses, attrition) costs. Implement HR systems to manage contributions and entitlements efficiently, and stay updated on CPF changes and MOM guidelines.

8. How AYP Helps You Manage Cost Efficiently

AYP acts as your legal employer in Singapore, managing payroll, CPF, SDL, and employment contracts. We help you remain compliant and competitive while giving you full visibility into all hiring costs.

9. Contact Us

Hiring in Singapore? Let AYP help you manage employment costs transparently.
👉 Contact us today.