Employment laws in Singapore

When hiring talent in Singapore, it’s important to understand the country’s key employment laws and stay compliant. The Employment Act outlines all labor laws in Singapore, setting out how employees should be contracted, managed, and paid.

Hiring through an Employer of Record (EOR), like Payoneer Workforce Management, helps you build a global team without setting up a local entity, simplifying onboarding, payroll, and benefits with compliance support.

Ready to find out more? Here’s an overview of employment laws in Singapore.

Key labor laws in Singapore

The main labor laws in Singapore typically cover everything from contracts, pay, and working hours to rest periods and annual leave entitlement.

Contract employment laws in Singapore

Employment contracts are mandatory in Singapore, so a complete understanding of employment contract laws is critical when hiring remote employees.

Typically, the types of employment contracts in Singapore are definite, indefinite, or part-time.

Essential contract elements

Before hiring an employee in Singapore, it’s important to have a firm contract in place. As per local employment laws, the following key employment terms (KET) may have to be included:

• Full name of employer and employee
• Job title and main responsibilities
• Start date and duration (if the employee is on a fixed-term contract)
• Working arrangements, including working hours and rest days
• Basic salary, salary period, bonuses, and incentives
• Fixed allowance and deductions
• Overtime payment and rate of pay
• Allocated leave, including annual, sick, and maternity leave
• Medical benefits
• Probation period
• Notice period

Statutory employment rights in Singapore

Working hours and overtime

Under common work arrangements, employees work up to 5 days a week, for up to 44 hours a week.

It’s also important to know that any non-workman earning a monthly basic salary of $2,600 or less is entitled to overtime pay, paid at 1.5 times the hourly basic rate. 

Rest days and vacation

You must legally provide your employee with at least 2 rest days per week in Singapore, typically Saturday and Sunday. 

Labor laws in Singapore also state that every employee is entitled to 11 paid public holidays a year. These are in addition to vacation days, which are at least 7 days and vary depending on how long an employee has worked for a company.

Find out more about the leave policy in Singapore.

Minimum wages

Employment laws in Singapore don’t specify a legal minimum wage for employees. 

Mandatory benefits

Before hiring employees in Singapore, there are a couple of other mandatory benefits to be aware of. 

First, the employer has to contribute to the Central Provident Fund (applicable only to Singapore citizens and permanent residents), which is a mandatory social security savings scheme funded through monthly contributions from both employers and employees, and its allocations are made into three accounts: the Ordinary Account, Special Account, and Medisave Account. 

Foreign employees are not eligible for CPF contributions. 

Second, employees in Singapore are entitled to more than just vacation days. They also get paid sick leave, paid maternity leave, and paid childcare leave.

Learn more about the leave policy in Singapore.

Termination employment laws in Singapore

When terminating an employee’s contract, there are several rules and regulations to keep in mind. These include:

• Termination with notice: If a notice period is specified within an employee’s contract, they must serve this notice period when they resign.
• Termination without notice: If you terminate an employee’s contract without waiting for their notice period to end, may lead to legal consequences.
• Termination due to employee misconduct: Termination by the employer due to misconduct, performance issues, absence without leave, etc.

Navigate employment laws in Singapore with trusted support

Understanding labor laws in Singapore can be difficult, but it is key for your business to stay compliant.

If you’re looking to onboard local talent but are worried about navigating employment laws in Singapore, Payoneer Workforce Management can help. Our unified EOR services assist you in onboarding, paying, and managing global talent, without setting up a local entity. 

Book a demo today!

FAQs

1) What statutory employment rules apply to workers in Singapore?

Singapore has several statutory employment rules covering areas such as working hours (44 hours per week), overtime limits, leave entitlements, and notice‑period requirements. These requirements apply based on the employee’s role, tenure, and contract terms.

2) What types of employment entitlements do employees receive in Singapore?

Employees are entitled to statutory benefits such as annual leave (minimum 7 days, increasing with tenure), paid sick leave (outpatient and hospitalisation, based on length of service), paid maternity leave, paternity leave, and childcare leave for eligible parents.

3) What are the rules around ending employment in Singapore?

Termination rules in Singapore require both employers and employees to follow the notice period stated in the employment contract. If no notice period is specified, statutory notice periods apply based on the employee’s tenure. Termination can occur due to resignation, mutual agreement, probationary reasons, or employer‑initiated reasons such as misconduct or performance issues.