Employer of Record Singapore: Hire Compliantly Without an Entity in 2026
An Employer of Record Singapore is a locally incorporated Pte Ltd that legally employs your staff so you can hire in Singapore without setting up your own entity. The EOR runs payroll, handles CPF for citizens and PRs, pays the Skills Development Levy, files IRAS Auto-Inclusion Scheme returns, sponsors Employment Pass and ONE Pass, and ensures compliance with the Employment Act and Tripartite Guidelines.
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Introduction
An Employer of Record in Singapore is a locally incorporated Pte Ltd that legally employs your workers on your behalf. You direct the work, set the salary, and manage the team day-to-day. The EOR handles the Singapore employment contract, monthly payroll, Central Provident Fund (CPF) contributions for citizens and Permanent Residents, Skills Development Levy (SDL) on all employees, IRAS Auto-Inclusion Scheme reporting, work pass sponsorship through the Ministry of Manpower (MOM), and full compliance with the Employment Act and Tripartite Guidelines. You hire in Singapore in days, not the weeks it takes to incorporate your own Pte Ltd.
What's New in 2026
The CPF Ordinary Wage ceiling rose from SGD 7,400 to SGD 8,000 per month from 1 January 2026 — the final phase of a multi-year reform. Shared Parental Leave doubles to 10 weeks combined by April 2026. The Workplace Fairness Act passed January 2025 with phased implementation through 2026 and 2027. Platform workers continue to be phased into CPF coverage.
Hire in Singapore in 60 Seconds
Quick Facts: Hiring in Singapore (2026)
If you want to hire in Singapore, you have two real options: engage an Employer of Record Singapore partner, or register your own Pte Ltd. The right choice depends on how many people you plan to hire, how fast you need them onboarded, and whether you need a customer-facing entity for invoicing and contracts. The rest of this guide compares both routes, walks through every statutory obligation that applies in 2026 — including the CPF Ordinary Wage ceiling rise to SGD 8,000 from 1 January 2026 — and shows you exactly what an EOR partner takes off your plate.
Who Uses an EOR in Singapore?
Companies using an Employer of Record in Singapore typically fall into three groups. The first is overseas teams (US, UK, Australia, India) hiring their first APAC head, sales lead or country manager in Singapore. The second is regional teams already in Asia who want to add a Singapore presence — for example a Hong Kong fund moving to Singapore for regulatory reasons, or a Malaysia tech firm opening a regional sales office. The third is founders and scaleups testing the Singapore market for 12–24 months before incorporating their own Pte Ltd.
EOR Singapore vs. Setting Up a Local Entity
Key Industries Hiring Through EOR Singapore in 2026
Financial services and asset management — Banks, asset managers, hedge funds, family offices and crypto firms hiring relationship managers, portfolio managers, traders and compliance leads. Singapore is the dominant Asia-Pacific finance hub.
Technology and SaaS — Tech multinationals and scaleups hiring engineers, product managers, sales leads and country managers. The "Tech.Pass" and ONE Pass routes are designed for this segment.
Pharma, biotech and medical devices — Global pharma and medtech firms hiring regulatory, commercial and clinical leads for the ASEAN market.
Manufacturing and supply chain HQ — Singapore as regional HQ for manufacturers operating across ASEAN, hiring supply-chain, procurement and operations leads.
Energy, ESG and trading — Commodity traders, renewable energy firms and ESG advisors hiring sustainability leads, traders and project managers.
Employment Landscape
Market Overview (2026 Projections)
Singapore is Southeast Asia's primary financial and regional HQ hub, and home to the densest concentration of multinational APAC headquarters in Asia. The 2026 theme is HQ consolidation and tech investment, with continued growth in financial services, biotech and digital. GDP is projected at USD 555 billion in 2026, growing 2.5–3.5%. The SGD trades at SGD 1.30–1.40 per USD. Tech and finance wages sit at SGD 7,000–SGD 18,000 per month for mid-senior roles.
Where You'll Be Hiring
Central Business District (Raffles Place, Marina Bay, Tanjong Pagar) — The financial heart. Banks, asset managers, law firms, consulting and family offices.
One-North and Buona Vista — Tech and biotech corridor. Home to Biopolis, Fusionopolis and many SaaS scaleups.
Jurong and Tuas — Manufacturing and supply-chain hub. Petrochemicals, electronics and advanced manufacturing operations.
Changi Business Park and East — Aviation, aerospace, technology and shared services.
Why Use Singapore as Your APAC Hiring Hub
Singapore-headquartered regional structures are common across APAC. Companies use the Singapore Pte Ltd or an Employer of Record in Singapore as the anchor entity, then deploy people in-country across ASEAN. An EOR in Singapore lets you place senior regional roles (APAC sales head, ASEAN finance director, regional general counsel) in Singapore quickly, while using the same EOR partner to hire local staff in Malaysia, Indonesia, Vietnam, Thailand and the Philippines. One contract, one account team, one invoice across the region.
Laws & Compliance
Singapore employment is governed primarily by the Employment Act (1968), with separate provisions for managerial employees, foreign employees and platform workers. Statutory savings sit under the Central Provident Fund Act. Workplace fairness sits under the Tripartite Guidelines on Fair Employment Practices and the upcoming Workplace Fairness Act. Tax administration runs through the Income Tax Act, enforced by the Inland Revenue Authority of Singapore (IRAS). Labour policy is set by the Ministry of Manpower (MOM), with immigration and work passes administered by MOM and the Immigration & Checkpoints Authority (ICA).
Critical Compliance Framework (2026)
Common Mistakes Foreign Employers Make in Singapore
What an EOR Singapore Partner Is Legally Responsible For
When an Employer of Record is the legal employer in Singapore, the EOR carries direct responsibility for the Singapore employment contract, monthly CPF and SDL contributions, IRAS Auto-Inclusion Scheme (AIS) reporting of employee income, IR8A and IR21 (tax clearance for foreign employees) filings, work pass sponsorship and renewal, statutory leave administration, payslip issuance under the Employment Act, retention of employment records for the statutory period, response to any MOM or TAFEP inquiry, and conduct of any termination in line with the Employment Act and Tripartite Guidelines. Your company directs the work and pays the EOR a fee.
Payroll & Tax
Singapore payroll runs through three statutory bodies. The Central Provident Fund (CPF) Board administers CPF retirement, healthcare and housing contributions for Singapore Citizens and Permanent Residents, and collects the Skills Development Levy (SDL) on all employees including foreigners. The Inland Revenue Authority of Singapore (IRAS) administers personal income tax, including the Auto-Inclusion Scheme (AIS) under which the employer reports employee income directly to IRAS. The Ministry of Manpower (MOM) regulates work passes, the foreign worker quota, and the levy structure. An Employer of Record registers your workforce with all three on your behalf.
Employer Statutory Contributions (2026)
Singaporean Citizens vs. Permanent Residents vs. Foreigners
CPF applies only to Singapore Citizens and Permanent Residents. PRs go through a 3-year graduated rate structure on first becoming PR — both employer and employee rates step up over years 1, 2 and 3 to the full Citizen rate. Foreign employees on Employment Pass, S Pass or Work Permit do not contribute to CPF. The Skills Development Levy (SDL) applies to all employees regardless of citizenship, capped at SGD 11.25 per month (which kicks in at wages above SGD 4,500).
2026 CPF Ordinary Wage Ceiling Change
From 1 January 2026, the CPF Ordinary Wage (OW) ceiling rises to SGD 8,000 per month (up from SGD 7,400 in 2025). This is the final phase of a multi-year staged increase. The Annual Ordinary Wage ceiling rises correspondingly to SGD 96,000, with an Additional Wage (AW) ceiling that continues to apply on top. For a Singapore Citizen aged 55 or below earning above the ceiling, the change adds approximately SGD 102 per month in employer CPF (17% × SGD 600 differential) and SGD 120 per month in employee CPF (20% × SGD 600). An Employer of Record applies the new ceiling automatically from January 2026 payrolls.
Singapore personal income tax is administered by IRAS under the Income Tax Act. Tax rates are progressive for residents up to 24%, with the top bracket reached at SGD 1,000,000 of chargeable income. Non-residents are taxed at the higher of 15% on employment income or the resident progressive rates. Singapore does not operate a monthly withholding (PAYE) system for employees; instead, the employer reports employee income annually to IRAS via the Auto-Inclusion Scheme (AIS), and the employee receives an IRAS tax bill directly. For foreign employees leaving Singapore or changing employers, the employer must file an IR21 tax clearance and withhold the final salary until IRAS issues clearance. An Employer of Record manages AIS reporting and IR21 clearance on your behalf.
2026 PIT Bands (Resident)
Working Hours & Leave Entitlements
Working hours, overtime, leave entitlements and public holidays in Singapore are set by the Employment Act (1968). Part IV of the Act (working hours, overtime, rest days) applies to non-managerial workmen earning up to SGD 4,500 and non-workmen earning up to SGD 2,600 — managerial and higher-paid employees are largely outside Part IV. The Ministry of Manpower publishes the annual public holiday list and enforces minimum standards.
Working Hours and Overtime (2026)
The Employment Act standard work week is 44 hours for employees covered by Part IV. Daily working hours are capped at 8 hours, extendable to 9 hours over a 5-day week. Maximum overtime is 72 hours per month. Overtime pay is at 1.5× the hourly basic rate. Employees outside Part IV (managers, executives, employees above the salary threshold) are not entitled to statutory overtime — overtime arrangements are by contract.
Leave Entitlements
Public Holidays 2026
Singapore observes 11 paid public holidays in 2026: New Year's Day, Chinese New Year (two days), Good Friday, Hari Raya Puasa, Labour Day, Vesak Day, Hari Raya Haji, National Day (9 August), Deepavali, and Christmas Day. Where a holiday falls on a Sunday, the following Monday is a substitute holiday.
Work Permits & Visas
To hire a foreign national in Singapore, the employer sponsors a work pass through the Ministry of Manpower (MOM). The four main routes are the Employment Pass (EP) for managerial, executive and specialist roles, the S Pass for mid-skilled technical and supervisory roles, the Work Permit for semi-skilled foreign workers, and the Overseas Networks & Expertise (ONE) Pass for top-tier global talent. There is also the Tech.Pass for tech founders and senior executives. When you use an Employer of Record in Singapore, the EOR is the registered sponsor — your overseas company does not apply directly.
How EOR Singapore Handles Work Pass Sponsorship
The EOR is the registered employer with MOM, prepares and submits the work pass application via myMOM Portal, supplies the employer documents (ACRA Bizfile, audited accounts where required), and renews the pass on schedule. For S Pass and Work Permit holders, the EOR also pays the monthly Foreign Worker Levy. If the employee brings dependants, the EOR coordinates Dependant Pass and Long Term Visit Pass applications for spouse and children.
Work Pass Categories
The Local Qualifying Salary thresholds are reviewed by MOM annually and should be verified against the MOM website before any specific salary discussion. The COMPASS points framework applies to EP applications and considers salary, qualifications, diversity contribution, local employment support, and bonus criteria.
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Termination & Employee Exit
Termination in Singapore is more flexible than in most APAC markets but still requires adherence to notice periods and the Tripartite Guidelines on Fair Employment Practices. Disputes go through the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunal. Notice periods are set by the Employment Act where the contract is silent. The Ministry of Manpower (MOM) and TAFEP enforce fair employment practices. An Employer of Record absorbs this legal exposure on your behalf, manages the notice period, calculates final pay correctly, and documents the exit in line with the law.
Notice Period Requirements
If the contract specifies a notice period, that applies. If silent, the Employment Act statutory minimums apply.
In practice, most employment contracts specify 1 month notice as the standard. Either party may pay salary in lieu of notice.
Severance / Retrenchment Pay
Singapore has no statutory severance pay under the Employment Act for employees with less than 2 years of service. For employees with 2 or more years, retrenchment benefit norms apply per the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. The norm is 2 weeks to 1 month of salary per year of service, with the actual figure subject to negotiation, industry custom, and any retrenchment policy in place. Employers must notify MOM of any retrenchment exercise affecting 5 or more employees.
Legitimate Grounds for Termination
Singapore law allows summary dismissal (without notice or pay in lieu) for serious misconduct following a due-inquiry process. For all other dismissals, the employer must give the contractual or statutory notice period (or pay in lieu). The Tripartite Guidelines require fair reason and process, and the upcoming Workplace Fairness Act will codify protected attributes against discriminatory dismissal. An Employer of Record manages the documentation, the warning process, and the final-pay calculation end to end.
Why AYP
AYP Group is the Employer of Record partner of choice for companies hiring across Asia-Pacific. Our Singapore advantage rests on three things our clients tell us they don't get elsewhere.
Transparent, predictable pricing. EOR Singapore from $488 per employee per month, with no hidden setup fees and no surprise compliance charges. You see the full cost before you sign.
One partner, one contract, all of APAC. Our Singapore office is the regional hub. If you hire in Singapore today and Malaysia, Vietnam, Indonesia, Thailand, Hong Kong or the Philippines next quarter, it's the same contract, the same account team, and the same monthly invoice. No procurement loop for each new country.
Ready for the 2026 changes. We applied the SGD 8,000 CPF Ordinary Wage ceiling on day one of January 2026, file Auto-Inclusion Scheme returns with IRAS on every employee, are fully registered with the CPF Board and MOM for all current work pass categories including ONE Pass, and are tracking the phased implementation of the Workplace Fairness Act through 2026 and 2027. Compliance is not a feature — it's the whole product.
Glossary of Singapore Employment Terms
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Questions?
We're here to help
An Employer of Record in Singapore is a locally incorporated Pte Ltd that legally employs staff on your behalf. You direct the work and manage the team day-to-day. The EOR holds the Singapore employment contract, runs payroll, makes CPF and Skills Development Levy contributions, files Auto-Inclusion Scheme returns with IRAS, and ensures compliance with the Employment Act and Tripartite Guidelines. You hire in Singapore without registering your own Pte Ltd.
EOR Singapore from AYP starts at $488 per employee per month. The fee covers the local employment contract, monthly payroll, CPF and SDL contributions, IRAS Auto-Inclusion Scheme reporting, work pass sponsorship for foreign hires (Employment Pass, S Pass or ONE Pass), and ongoing compliance with the Employment Act. There are no separate setup fees and no per-filing surcharges.
From 1 January 2026, the CPF Ordinary Wage ceiling rose to SGD 8,000 per month, up from SGD 7,400 in 2025. The contribution rates stay the same (17 percent employer plus 20 percent employee for Singapore Citizens age 55 and below), but the cap on contributions increases. For a Citizen earning above the ceiling, the change adds about SGD 102 per month in employer CPF and SGD 120 per month in employee CPF. An Employer of Record applies the new ceiling automatically.
No. Singapore CPF applies only to Singapore Citizens and Permanent Residents. Foreign employees on Employment Pass, S Pass, Work Permit or ONE Pass do not contribute to CPF, and the employer does not contribute either. The only employer statutory contribution for foreign hires is the Skills Development Levy of 0.25 percent (capped at SGD 11.25 per month). For S Pass and Work Permit holders, the Foreign Worker Levy applies on top.
Singapore does not operate a monthly tax withholding system. Instead, the employer reports each employee's annual income to IRAS through the Auto-Inclusion Scheme (AIS) by 1 March each year. IRAS pre-fills the employee's tax return based on the employer's submission. The employee then receives a tax bill directly from IRAS. For foreign employees leaving Singapore or changing employers, the employer must also file an IR21 tax clearance and withhold the final salary until IRAS issues clearance. An Employer of Record manages all of this.
Yes. The EOR is the registered employer with the Ministry of Manpower and sponsors Employment Pass, S Pass, Work Permit, ONE Pass and Tech.Pass applications via myMOM Portal. The EOR provides the supporting employer documents (ACRA Bizfile, audited accounts, etc.), pays the Foreign Worker Levy where applicable, and renews passes on schedule. Dependant Pass and Long Term Visit Pass applications for spouse and children can also be coordinated.
The Employment Pass is for managerial, executive and specialist roles with a minimum salary from SGD 5,600 per month (higher in financial services), subject to the COMPASS points framework. The S Pass is for mid-skilled technical and supervisory roles with a minimum salary from SGD 3,150, subject to quota and levy. The ONE Pass is for top-tier global talent earning a fixed SGD 30,000 per month or with outstanding achievement, valid for 5 years and renewable, with spouse work rights and the ability to hold multiple concurrent jobs.
Overseas companies (US, UK, Australia, India and others) use an Employer of Record in Singapore to hire their first APAC head, sales lead or country manager without setting up a Pte Ltd. The EOR holds the local employment contract, sponsors Employment Pass or ONE Pass for non-Singaporean hires, manages CPF, SDL and IRAS Auto-Inclusion, and frees the parent company from the resident director, audit and ACRA filing obligations of running its own entity. Many companies start with an EOR, then incorporate a Pte Ltd once headcount and revenue justify it.
More questions?
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