Planning to hire employees in Singapore? Here’s a quick guide

Singapore has built a strong reputation as a leading financial and technology hub in Asia, thanks to its stable political climate, skilled workforce, and pro-business regulatory environment.

International businesses, like U.S. companies, expanding their market often consider Singapore a strategic location for hiring new talent.

The country’s multilingual and multicultural workforce, competitive tax structure, and transparent legal framework make it an attractive destination.

In this guide, we outline how to hire employees in Singapore compliantly and efficiently.

Whether you plan to set up a local entity, hire contractors, or partner with an Employer of Record (EOR), this article covers the essential information you need to hire in Singapore, including legal requirements, employment contracts, onboarding, benefits, and tax obligations.

How to hire employees in Singapore

U.S. companies have several options when looking to hire employees in Singapore. 

You can establish a legal entity, work with independent contractors, or partner with an Employer of Record (EOR).

Each approach has its own advantages, risks, and regulatory considerations.

1) Set up a legal entity in Singapore

Setting up a legal entity is a common approach for companies with long-term expansion plans. This gives you full control over hiring and managing employees. However, establishing a legal entity in Singapore is time-consuming and costly. 

You’ll need to register with the Accounting and Corporate Regulatory Authority (ACRA), open a corporate bank account, and appoint directors, one of whom must be a resident of Singapore.

Companies must also comply with annual filing requirements, including audited financial statements (for larger entities), corporate income tax submissions to the Inland Revenue Authority of Singapore (IRAS), and routine employee tax reporting. Non-compliance can result in penalties or suspension of business operations.

While it provides full operational control and credibility, this approach also requires local knowledge of tax reporting, labor regulations, and compliance obligations.

2) Hire contractors in Singapore

Another option is hiring individual contractors. This approach offers flexibility and is ideal for short-term or project-based work. However, misclassifying employees as contractors can lead to fines, backdated taxes, and reputational damage.

The Ministry of Manpower (MOM) evaluates factors such as degree of control, exclusivity, and dependence on the employer to determine true employment status, regardless of contract labels.

Be sure to clearly define the scope of work, project timelines, and payment terms in a written agreement.

To better understand the nuances of this hiring method, read our guide on hiring contractors in Singapore.

3) Use an Employer of Record (EOR)

An EOR is a third-party service provider that legally employs your workers on your behalf while you retain day-to-day oversight. This approach is ideal for companies that want to hire employees in Singapore without establishing a local entity.

EORs help handle:

• Employee onboarding & offboarding
• Employment contracts
• Payroll & Taxes
• Benefits administration (Localized insurance etc.,)
• Legal compliance
• Work visas & permits
• Talent discovery
• Background checks
• Device procurement
• Office space facilitation

Important update: Due to regulatory changes, non-Singaporean companies can only hire Singapore nationals and permanent residents through an EOR. If you wish to hire a foreign national who will be based in Singapore, you must establish a legal entity.

Existing foreign employees hired via EORs before July 2024 may continue under current terms, but any new foreign national hires after this date will require a legal entity setup.

Read the full statement on the MoM website.

Where to find employees in Singapore

Singapore’s workforce is known for its high education standards and strong English proficiency.

With a large pool of university graduates and professionals from sectors like finance, life sciences, and tech, the talent pipeline remains strong despite a competitive hiring landscape.

Finding the right talent in Singapore starts with knowing where to look. Employers can access a wide pool of qualified candidates through popular job boards, local recruitment agencies, or by partnering with an Employer of Record that offers recruitment support.

1) Popular job boards in Singapore

Job boards are a popular and effective way for employers to find and attract talent in Singapore. These platforms offer access to a broad and diverse candidate pool, making them a go-to resource for companies hiring across various industries. Commonly used job boards include:

• MyCareersFuture, a government-supported portal ideal for reaching local candidates
• JobsDB, widely used in Southeast Asia to fill professional roles
• Jobstreet, one of the region’s largest platforms for full-time and contract positions
• Indeed Singapore, popular for both entry-level and experienced roles across industries

These platforms are actively used by job seekers in various sectors, including finance, technology, logistics, healthcare, and more. Employers can post listings and filter candidates by experience or skills.

2) Work with local recruitment agencies

Local recruitment firms offer professional hiring services, including sourcing, screening, and interviewing candidates. They are especially useful when hiring for specialized roles or navigating cultural or language differences.

They often have established talent networks and a strong understanding of Singapore’s employment landscape, allowing you to fill roles more efficiently and with greater confidence.

While working with a recruiter can speed up your hiring timeline, it is important to consider the associated agency fees, which are typically calculated as a percentage of the new hire’s annual salary. Make sure to account for these costs when planning your recruitment budget.

3) Recruit through an EOR in Singapore

For companies looking to expand into Singapore without navigating the complexities of local employment laws and administrative setup, partnering with an Employer of Record (EOR) can be a practical and strategic solution.

Many EOR providers include recruitment support as part of their broader employment services, helping you hire employees in Singapore efficiently and in compliance with local regulations.

With this approach, your team leads the recruitment process. You evaluate candidates, conduct interviews, and make final hiring decisions.

The EOR takes care of the rest, including issuing legally compliant contracts, managing onboarding, handling benefits, setting up payroll, and aligning with Singapore’s labor laws.

This model is especially valuable for U.S. companies that want to hire in Singapore without establishing a local legal entity. It also helps mitigate compliance risks and reduces the time-to-hire.

Onboarding employees in Singapore

A smooth onboarding process helps new hires feel welcomed and engaged. Below are key steps to consider:

• Collect required documents: Identification, proof of address, academic, and work certificates
• Develop bilingual onboarding materials: Especially useful in a multilingual workforce
• Train on local workplace norms: Singaporean work culture emphasizes punctuality, hierarchy, and professionalism.
• Set up payroll and benefits: Ensure timely salary processing and proper benefit enrollment
• Prepare digital access and equipment: Including laptops, email accounts, and software credentials
• Assign an onboarding buddy or manager: To provide support during the transition

Managing these steps across borders can be challenging for international companies.

An Employer of Record can streamline the onboarding process by handling the local paperwork, benefits setup, and payroll logistics as per Singapore’s employment regulations.

Key employment laws and requirements in Singapore

Understanding key employment laws and requirements is essential when hiring in Singapore. This section covers employment contracts, employee benefits, working hours, tax obligations, and termination rules to help ensure your hiring process aligns with local regulations.

1) Employment contracts

Employment contracts must be issued before the employee starts. Contracts should include:

• Job title and duties
• Salary and payment frequency
• Working hours
• Leave entitlements
• Termination and notice terms

2) Employee benefits

Employers in Singapore are required to provide certain statutory benefits:

• Vacation leave: Minimum of 7 days per year, increasing with service
• Sick leave: Up to 14 days for outpatient care and 60 days with hospitalization
• Maternity leave: 16 weeks for eligible employees
• Paternity leave: 2 weeks
• Public holidays: 11 paid days per year
• Medical benefits: As specified in the contract

3) Working hours and holidays

Working hours in Singapore are typically capped at 44 hours per week, usually spread over 5 days. The daily limit is 9 hours, or 8 hours if the employee works more than 5 days per week.

Eligible employees must receive overtime pay, at least 1.5 times their hourly rate, for hours worked beyond this limit.

Singapore also recognizes 11 official public holidays, and additional leave may be offered based on company policy.

Most full-time employees are entitled to 7 to 14 days of paid vacation, depending on their length of service and employer policies.

4) Tax obligations

Employers must handle the following statutory contributions:

• Central Provident Fund (CPF): This is a compulsory social security savings plan for Singapore nationals and permanent residents. Contributions are calculated based on salary tiers and shared between the employer and employee to cover retirement, healthcare, and housing needs.
• Foreign Worker Levy (FWL): This levy applies to employers hiring foreign workers on work permits. It is a monthly fee meant to regulate the number of foreign workers and encourage the hiring of local talent.
• Skills Development Levy (SDL): A small monthly contribution on all employees’ wages that funds government-supported training and skills development programs to enhance workforce capabilities.

Employers in Singapore do not withhold income tax. Employees are responsible for their income tax filings. However, employers must submit annual income information (IR8A and related forms) for each employee to IRAS by March 1st of the following year. Accurate and timely reporting is critical for compliance.

5) Termination and severance

Termination of employment in Singapore must follow local laws and the terms outlined in the employment contract. Important details include:

• With notice: Employers are generally required to provide notice of termination according to the employment contract or the Employment Act, usually at least a month in advance. This notice period allows both parties to prepare for the end of employment.
• Without notice: Termination without notice, or summary dismissal, is permitted only in cases of serious misconduct such as theft, fraud, or gross negligence. Proper documentation and evidence are essential to support such actions.
• Severance pay: There is no legal obligation to provide severance pay unless specified in the employment contract, company policy, or a collective agreement. Severance terms should be communicated to avoid disputes.

While not legally required, conducting structured exit interviews and a clear offboarding process helps preserve the company’s reputation, gather valuable feedback, and ensure the return of company assets and the revocation of data access.

Payoneer Workforce Management makes it easy to hire employees in Singapore

Hiring Singaporean nationals can be challenging for global businesses, like U.S. companies, unfamiliar with local regulations and employment requirements.

Payoneer Workforce Management simplifies this process by acting as your local employment partner, so you can focus on growing your business without setting up a legal entity.

With our unified platform, you can:

• Hire Singapore nationals without establishing a local entity
• Pay team members in Singapore Dollars (SGD)
• Manage taxes, benefits, and employment documentation
• Onboard new hires with region-specific workflows
• Reduce risks by staying aligned with Singapore’s labor laws

From onboarding to multi-currency payroll, we offer a flexible and scalable solution for managing your international workforce.

FAQs about how to hire employees in Singapore 

1) How to hire employees in Singapore?

To employ Singaporean nationals, foreign businesses can establish a local legal entity, work with independent contractors, or use an Employer of Record (EOR) like Payoneer Workforce Management.

2) Are you allowed to employ foreigners in Singapore?

Today, EORs can only employ Singaporean nationals and permanent residents. To hire foreign nationals based in Singapore, your company must register as a legal entity. See our work permit in Singapore guide for more information.

3) How can an EOR help U.S. companies hire in Singapore?

An EOR can offer recruitment support, prepare compliant contracts, handle payroll and statutory contributions, and onboard new employees according to local laws, without the need for a local entity.