Hire in Singapore
Salary Currency
Singapore Dollar (SGD)
Capital
Singapore
Contract Language
English
Payroll Cycle
Monthly
Our quickstart guide to hiring in Singapore
Learn everything you need to know about hiring an employee in Singapore
Wage & Tax Obligations
Minimum Wage Requirements
Singapore does not have a universal minimum wage. However, the government has implemented the Progressive Wage Model (PWM) in certain sectors, particularly in the cleaning, security, and landscaping industries. The minimum wage varies based on the job classification and is set to increase progressively.
Individual Income Tax
Singapore uses a progressive tax system for individual income tax. The tax brackets as of 2024 are:
Up to SGD 20,000: 0%
SGD 20,001 to SGD 30,000: 2%
SGD 30,001 to SGD 40,000: 3.5%
SGD 40,001 to SGD 80,000: 7%
SGD 80,001 to SGD 120,000: 11.5%
SGD 120,001 to SGD 160,000: 15%
SGD 160,001 to SGD 200,000: 18%
SGD 200,001 to SGD 320,000: 19%
Above SGD 320,000: 22%
Employers are not required to withhold income tax from salaries, as employees file their tax returns directly with the Inland Revenue Authority of Singapore (IRAS).
Payroll Cost
Payroll costs in Singapore consist of gross salaries and mandatory contributions:
Central Provident Fund (CPF): Employers must contribute to the CPF, which is a mandatory savings plan. The employer’s contribution rate varies depending on the employee’s age and salary, with the maximum salary for the calculation of this contribution is SGD 6,800 for 2024 and SGD 7,400 for 2025.
For employees below 55 years: 17%
For employees aged 55 to 60 years: 13%
For employees aged 60 and above: 9%
Skill Development Fund: 0.25%
Overtime Pay & Maximum Hours
The standard working hours in Singapore are 44 hours per week (generally 8 hours per day for 5-day workweeks). Overtime pay is applicable for hours worked beyond the standard hours:
Overtime is paid at:
1.5 times the hourly basic rate for hours worked beyond the standard working hours on non-rest days.
2 times the hourly basic rate for hours worked on public holidays or rest days.
Leave Management
Maternity Leave
Eligible female employees are entitled to 16 weeks of paid maternity leave if they meet specific conditions (e.g., have worked for the employer for at least 3 months before the birth).
The employer bears the cost for the first 8 weeks, and the government reimburses for the remaining 8 weeks..
Paternity Leave
Eligible fathers are entitled to 2 weeks of paid paternity leave if they meet the eligibility criteria (e.g., the child must be a Singapore citizen and the father must be married to the mother).
The leave can be taken within the first 16 weeks after the child’s birth.
Parental Leave
In Vietnam, no law covers parental leave. However, employees may be entitled to maternity and paternity leave.
Employees who have worked for an employer for at least 3 months are entitled to paid sick leave.
The entitlement is as follows:
14 days of paid sick leave per year for employees who have been employed for at least 6 months.
5 days of paid outpatient sick leave for employees who have been employed for less than 6 months.
Medical Certification:
For sick leave to be paid, employees must provide a medical certificate (MC) issued by a registered medical practitioner.
If the employee is hospitalized, the sick leave entitlement extends to 60 days for that period.
Sick Leave
Termination Policy
Termination Requirements
Termination in Singapore must comply with the Employment Act:
Valid reasons for dismissal include misconduct, redundancy, or poor performance.
Employers must provide a clear reason for termination, especially if the employee requests it.
Notice Period
The notice period varies based on the length of employment:
Less than 26 weeks: 1 day notice.
26 weeks to less than 2 years: 1 week notice.
2 years to less than 5 years: 2 weeks notice.
5 years and above: 4 weeks notice.
Severance for Employees
Singapore does not have a statutory requirement for severance pay. However, employers may offer severance packages as part of company policy or contractual agreements, especially in cases of redundancy.
Statutory Time Off
Paid Time Off
Full-time employees are entitled to 7 days of paid time off (PTO) a year. PTO accrues monthly 0.58 days per month. Employees are eligible for annual leave after 3 months of work. Employees are entitled to one additional day for each year of service until reaching 14 days.
Public Holidays
Employees in Singapore are entitled to the following public holidays:
New Year’s Day
Chinese New Year
Good Friday
Hari Raya Puasa
Hari Raya Haji
National Day
Deepavali
Christmas Day
If a public holiday falls on a rest day, the following day is a public holiday.
Disclaimer
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. Anemone HR disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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