Employer of Record in Singapore: A Comprehensive Guide for 2026

Introduction

Planning to hire employees in Singapore? Establishing a local entity often involves company registration, payroll administration, CPF (Central Provident Fund) contributions, work pass requirements, and ongoing employment compliance obligations.

An Employer of Record in Singapore allows companies to hire employees without establishing a local entity. The EOR serves as the legal employer and manages employment contracts, payroll, statutory contributions, and compliance requirements.

For businesses considering this hiring model, Skuad supports employee onboarding, payroll administration, compliance management, and global workforce operations in Singapore through its Employer of Record solutions.

This guide explains how an Employer of Record in Singapore works and covers key aspects of hiring, payroll, taxes, compliance, work permits, and employee management in 2026.

Singapore at a glance‍

Population: 5.9 million

Languages: English, Malay, Mandarin, and Tamil

National language: Malay

GDP: USD 547.39 billion

Currency: Singapore Dollars (SGD/S$)

Hire employees in Singapore

Companies can hire employees in Singapore either through direct hiring or by partnering with an Employer of Record (EOR). Each approach offers a different way to build and manage a local workforce.

Direct hiring

Companies that choose direct hiring must first establish a legal presence in Singapore, such as a subsidiary or branch office. The employer is responsible for recruitment, employment contracts, payroll administration, statutory contributions, employee benefits, and compliance with local labor regulations.

Popular job portals in Singapore include:

• JobStreet
• JobsDB
• MyCareersFuture
• LinkedIn
• Foundit (formerly Monster Singapore)

While these platforms provide access to a large talent pool, employers remain responsible for all employment-related obligations and compliance requirements.

Hiring through an Employer of Record (EOR)

An EOR allows companies to hire employees in Singapore without establishing a local entity. The EOR acts as the legal employer while the company manages the employee's day-to-day work and responsibilities.

Skuad's EOR solutions support businesses throughout the employment lifecycle, enabling them to hire, onboard, pay, and manage employees while meeting local employment requirements.

Here is what Skuad helps with:

• Background verification covering identity, employment history, and education credentials before contracts are signed
• Employment contract generation aligned with local labor laws and statutory requirements across supported markets
• Statutory contribution administration in accordance with local provident fund and trust fund requirements
• Payroll processing in 70+ currencies with accurate tax withholding and statutory deductions

Book a demo to see how Skuad gets your first Singapore hire onboarded without entity setup.

Contractors and full-time employees

Choosing between contractors and full-time employees is an important consideration when expanding into Singapore. Contractors are commonly engaged for project-based work, specialized assignments, or short-term business requirements. They generally involve different employment obligations than full-time employees.

Full-time employees are typically hired for ongoing business operations and long-term workforce needs. The choice between the two models affects factors such as workforce management, payroll requirements, employment obligations, and compliance with local labor regulations.

Skuad supports both hiring models through a single platform:

EOR for full-time employees

• Acts as the legal employer across 160+ countries, allowing businesses to hire without establishing a local entity
• Supports employment contract generation aligned with local labor laws across supported markets
• Facilitates statutory contribution workflows and payroll compliance requirements
• Supports payroll processing in 70+ currencies with automated tax withholding and reporting
• Helps administer statutory benefits, paid leave, and parental entitlements in accordance with local regulations
• Assists with termination and offboarding processes, including notice periods and applicable severance requirements

Contractor management

• Helps onboard contractors with locally compliant agreements that reduce misclassification risk
• Supports invoice generation, approval workflows, and payment processing in local currency
• Helps identify classification risks through built-in worker classification assessments
• Facilitates multi-currency payouts across 70+ currencies without manual reconciliation
• Helps manage contractor records, contracts, and payment history from a single dashboard

Full-time or contractor? Skuad supports both. See pricing

Onboarding and agreements

When hiring employees from Singapore, the first step is to draft a formal employment agreement outlining the terms and conditions of the working relationship.

These include details such as

• Full name of employer and employee
• Job title, main responsibilities, and duties
• Duration of employment (if it is a fixed-term contract)
• Salary period
• Basic salary
• Fixed allowances and deductions
• Medical benefits
• Leave policies, and
• Notice period, among others.

Employee onboarding can be categorized into two main phases.

The various tasks that comprise this process differ depending on each stage.

Taxes

Let’s look at the Singapore income tax structure for both employees and employers.

Singapore taxation rate for employers

Singapore tax rate for employees

Compliance

Singapore is a leading destination for international companies seeking to establish or expand their presence in Asia.

Employers hiring in Singapore should have a clear understanding of local labor laws and employment regulations to meet statutory requirements and maintain compliance.

The key provisions of Singapore's Employment Act 1968 are outlined in the table below.

Central Provident Fund (CPF) penalties

If worker misclassification results in unpaid CPF contributions, employers may be liable for outstanding CPF contributions, late payment interest, and other penalties under the CPF Act.

Penalties may include:

• Late payment interest of 1.5% per month on outstanding CPF contributions, subject to a minimum charge of SGD 5
• A composition amount of up to SGD 1,000 per offence
• A court fine of between SGD 1,000 and SGD 5,000 per offence and/or imprisonment for up to six months for a first conviction
• A court fine of between SGD 2,000 and SGD 10,000 per offence and/or imprisonment for up to 12 months for subsequent convictions

IP protection

IP refers to the creation of the mind. This can be anything from inventions and works of art to computer programs and logos.

Mentioned below is a detailed overview of the various types of IP and their subsequent terms of protection under the IP laws of Singapore.

Types of visas in Singapore

Foreign nationals who wish to work and reside in Singapore must obtain the appropriate work pass before commencing employment. Singapore offers several visa categories based on an individual's qualifications, skills, salary level, and purpose of stay.

The documents required for a Singapore work pass application vary depending on the pass type. Commonly required documents may include:

• A valid passport
• Passport-size photographs
• Completed application forms
• Educational and professional qualification documents
• Employment contract or job offer letter
• Supporting documents from the sponsoring employer
• Additional documents requested by the Ministry of Manpower (MOM)

The process of applying for a work pass in Singapore generally involves the following steps:

1. The employer or sponsoring entity submits the work pass application to the Ministry of Manpower (MOM).
2. MOM reviews the application and supporting documents.
3. Upon approval, the applicant receives approval documentation and may enter Singapore if required.
4. The applicant completes any registration or issuance formalities and receives the relevant work pass before commencing employment.

Managing work pass requirements, eligibility criteria, and immigration compliance obligations can add complexity to international hiring in Singapore.

Skuad's global immigration support helps manage the work permit process on your behalf, including:

• Supporting work permit and visa applications for foreign employees joining your team
• Helping coordinate application documentation with relevant immigration authorities
• Assisting with work pass issuance, renewals, and related immigration requirements
• Helping track documentation requirements, permit validity, and key deadlines throughout the permit lifecycle
• Helping keep your workforce aligned with evolving immigration and compliance requirements

Work permits

Payroll

Paying employees in Singapore

Employers should use reliable and convenient payment methods, such as direct bank transfers, to pay employee salaries. Salary payments must comply with the Employment Act and be processed within the prescribed payment timelines.

Effective payroll management plays an important role in maintaining compliance and supporting day-to-day workforce operations. Many businesses rely on an employer of record in Singapore to help manage payroll administration and statutory obligations.

Payroll management in Singapore

Payroll best practices include:

• Using payroll software that integrates with HR and workforce management systems
• Maintaining accurate records of employee information, salary payments, and statutory deductions
• Calculating and withholding applicable taxes and mandatory contributions correctly
• Meeting payroll reporting requirements and retaining records for compliance purposes

Managing payroll in Singapore involves more than salary disbursement. Employers must administer CPF contributions for eligible employees, maintain accurate payroll records, and comply with applicable tax and employment regulations. Manual payroll processes can increase administrative workloads and the risk of compliance issues.

Skuad supports payroll, statutory deductions, and reporting through a single platform, helping businesses manage employee data and payroll operations from one centralized system.

Here is what Skuad helps with:

• Supports payroll processing in 70+ currencies with automated tax withholding and statutory deductions
• Facilitates statutory contribution workflows covering applicable CPF and other mandatory contribution requirements across supported markets
• Helps generate payslips and maintain payroll, earnings, and transaction records for compliance and audit purposes
• Assists with payroll reporting and filings aligned with local regulatory requirements across supported markets
• Supports payroll through a unified platform that brings employee, contract, and payment data together

Benefits and compensation in Singapore

Employers in Singapore are required to provide certain statutory benefits and compensation protections to eligible employees. The key statutory benefit schemes include the Central Provident Fund (CPF) and Work Injury Compensation coverage.

Central Provident Fund (CPF)

The Central Provident Fund (CPF) is Singapore's mandatory social security and savings scheme. Both employers and employees are required to make contributions to CPF, which helps employees build savings for retirement, housing, and healthcare needs.

Work injury compensation

Under the Work Injury Compensation Act (WICA), employees are entitled to compensation for work-related injuries and occupational diseases arising from their employment. Benefits may include medical leave wages, medical expenses, and lump-sum compensation in cases of permanent incapacity or death.

Worker rights

Salary

Singapore does not have a universal national minimum wage. However, minimum wage requirements apply to selected sectors under the Progressive Wage Model (PWM), and the Local Qualifying Salary (LQS) sets minimum salary thresholds for certain employees.

The median gross monthly income of full-time employed residents was SGD 5,775 in 2025, including employer CPF contributions.

Leave policy

Employees are entitled to certain leave benefits in addition to mandatory health benefits and other working conditions. Here is a detailed list of the leave policy in Singapore.

Medical leave

If an employee has worked for an organization for three months, they are entitled to claim paid outpatient sick leave and paid hospitalization leave.

An employee can take up to 14 days of paid outpatient sick leave and 60 days of paid hospitalization leave, which includes 14 days of paid outpatient sick leave.

If they have completed six months of service, they will receive full entitlement.

Annual paid leave

An employee is entitled to paid leave if they have worked for an employer for three months or more.

The number of paid annual leaves depends on the number of years the employee has served the organization.

Singapore maternity leave policy

Expectant mothers are allowed to take maternity leave in Singapore. The length of the leave depends on the child's nationality. If the child is a Singapore citizen, the mother is entitled to 16 weeks of maternity leave.

In other cases, according to the Employment Act, working women can claim maternity leave of 12 weeks from their employer, provided they have completed three months of service.

Public holidays

Employees in Singapore are entitled to paid public holidays under the Employment Act. The following table outlines the public holidays observed in Singapore for the year.

Background checks

An employment background check in Singapore is a crucial part of the hiring process. It not only helps mitigate risks but also ensures that your selected job candidates have all the necessary qualifications and skills to excel in their job roles.

Below, we have highlighted some of Singapore's most common types of background checks:

Credit report check

A credit report check involves evaluating an individual's credit payment history, compiled from different retail banks and financial institutions.

The main licensed credit bureau providing credit reports in Singapore is the Credit Bureau Singapore (CBS), regulated under the Credit Bureau Act 2016 by the Monetary Authority of Singapore (MAS). A credit report check is only permissible with proof of the individual's consent and authorization.

Employment history check

This type of background check in Singapore is conducted to verify an individual's work experience.

The employer may contact the job candidate’s previous employers directly to gather all necessary information related to their job title and responsibilities, employment dates, job performance, and work ethics.

Termination and offboarding

Termination

An employee can be offboarded according to the terms of the employment contract. After giving the required notice, an employer may terminate employment if there is sufficient cause for termination.

Notice period

If the notice period is not specified in the employment contract, the employer must follow the notice period requirements under the Employment Act.

Employment termination in Singapore should be managed carefully to comply with local employment laws and contractual obligations. Skuad helps support compliant offboarding processes, including notice period management, final payroll administration, and termination workflows aligned with local employment requirements.

Professional Employer Organization (PEO)

A professional employer organization (PEO) renders similar services offered by EOR solutions company. 

The key difference is that a PEO acts as a co-employer of your remote team and manages all human resources activities while you remain the legal employer, whereas an EOR besides handling all human resources operations becomes the legal employer of your employees and the liability of employees lies with them.

Skuad offers EOR solutions. You may opt for a PEO or an EOR depending on the level of involvement you prefer in human resources operations. 

Book a demo for comprehensive support and guidance.

Conclusion

Skuad has carved a niche in the EOR solutions industry with its highly professional and successful services. 

Skuad has the expertise and experience to help you amplify the scale of your business in Singapore. 

Learn more about Skuad’s synchronized approach to give an impetus to your business and widen its horizons.

‍Talk to us for enhanced support regarding HR management in Singapore with our holistic EOR solutions.

FAQs

What is an employer of record in Singapore?

Employer of Record companies in Singapore (EOR) helps you legally hire Singaporean talent without setting up a local entity. An EOR, like Skuad, legally hires your employees and handles payroll, taxes, and mandatory contributions to Singapore's social security system (CPF). EORs in Singapore ensure compliance with labor laws, minimizing legal risks associated with international recruitment.

What is an EOR agreement?

An Employer of Record agreement formalizes the partnership between an EOR service provider and your company. The agreement states the EOR's legal employment responsibilities for your global staff, which include tasks like payroll processing, tax withholding, and benefits administration.

What is the employer of record for international employees?

Employer of Record services help companies seeking to leverage international talent pools. They take up legal employer responsibilities in your target market, eliminating the need for a local entity.

What is the difference between employer of record and PEO?

Employer of record services in Singapore (EOR) legally employs individuals on behalf of another company and handles all compliance, payroll, and HR tasks. A professional employer organization (PEO) merely co-employs staff, sharing responsibilities with the client company but demanding the client to have a local entity.

Why use an EOR?

An EOR simplifies and speeds up global hiring costs effectively without needing a local entity. They act as the legal employer for your international talent, handling HR complexities like payroll, taxes, and compliance.

Is the employer of record legal in Singapore?

‍Yes, utilizing an Employer of Record (EOR) service is completely legal in Singapore. Singapore EOR services operate in compliance with local employment laws and regulations to provide businesses with a hassle-free way of employing staff in the country. It's a legitimate and widely recognized practice that ensures all legal and HR responsibilities are managed effectively.

How do I choose an employer of record in Singapore?

To select the right EOR provider in Singapore for your organization, you need to look at several factors, such as cost and flexibility, services offered, local expertise, and support for growth. 

How much does an EOR cost?

There is usually no fixed cost for hiring EOR solutions in Singapore. It can differ based on numerous parameters, such as the company itself, the kind of service you require, or the number of employees you wish to hire in a foreign land.

What is the difference between an employer of record and a staffing agency?

One of the main differences between an EOR in Singapore and a staffing agency is that the former acts as the legal employer on your behalf, meaning they will handle all administrative and legal responsibilities of international hiring. On the other hand, a staffing agency handles some legal aspects and usually does not cover all compliance requirements, especially in international hiring.

What are the benefits of EOR?

Partnering with EOR services in Singapore carries several benefits for an organization, such as on-time payment processing, guaranteed compliance, risk management, scalability, and reduced overhead costs.