Employer of Record in Singapore: 2026 Cost and Compliance Guide

Singapore is Asia's main regional hub for finance, technology and headquarters roles, with an English-speaking workforce and a straightforward employment framework. Employer costs are low by international standards: the main one is the Central Provident Fund (CPF), which applies only to Singapore citizens and permanent residents.

An Employer of Record (EOR) can employ your hire under a Singapore contract, run payroll and CPF, and, for foreign hires, apply for an Employment Pass as the sponsoring employer, so you don't need to register a Singapore company first.

This guide covers costs, the Employment Act, work passes, provider comparison and when to set up your own Pte Ltd. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record is a company with a Singapore entity that employs staff on behalf of foreign businesses. It issues the employment contract, pays salary, makes CPF contributions for citizens and permanent residents, pays the Skills Development Levy, and handles leave and termination under the Employment Act.

You direct the employee's work; the EOR carries the formal employer obligations and invoices you monthly.

For a foreign hire, a work pass is needed, and it must be applied for by a Singapore-registered employer. An EOR can act as that employer, which is often the main reason companies use one in Singapore.

Singapore employment cost has three layers: gross salary, employer contributions (CPF for citizens and permanent residents, plus the Skills Development Levy for everyone) and the EOR fee.

CPF depends on the employee's citizenship status and age. Employers don't pay CPF for foreign employees on an Employment Pass, so their on-costs are much lower. Choose the employee type in the estimator.

Annual cost at example salaries

What these figures include and exclude

• CPF is shown for a citizen or permanent resident aged 55 and under. For a foreign employee on an Employment Pass, employer costs are just the SDL.
• CPF applies to ordinary wages up to S$8,000 a month. Bonuses and other additional wages are subject to a separate annual ceiling of S$102,000 less the year's ordinary wages.
• Employee CPF (20% for those aged 55 and under) and income tax are deducted from the employee's pay and are not employer costs.
• Work injury compensation insurance is mandatory for some employees (such as manual workers); most professional roles are optional. Ask your provider what it includes.
• Singapore has no statutory severance. Retrenchment benefits are set by contract or custom.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive.

The Employment Act covers all employees under a contract of service, with some exceptions. Part 4 (hours, rest days and overtime) applies only to lower-paid employees, so most professional hires are outside it. Key rules below.

Employment Act coverage

Covers all employees under a contract of service, with exceptions. Part 4 (rest days, hours and overtime) applies only to workmen earning up to S$4,500 a month and other employees earning up to S$2,600 a month in basic salary.[5]Verify

Annual leave

After 3 months' service: 7 days in the first year, rising by one day a year to 14 days from the eighth year.[6]Verify

Sick leave

After 3 months' service; full entitlement after 6 months: 14 days of paid outpatient sick leave and 60 days of hospitalisation leave (the 60 include the 14).[7]Verify

Working hours (Part 4 employees)

Up to 44 contractual hours a week, overtime at least 1.5× the hourly basic rate, and no more than 72 overtime hours a month.[8]Verify

Public holidays

Employees are entitled to 11 paid public holidays a year.[10]

Notice of termination

As set in the contract. If the contract is silent: 1 day (under 26 weeks' service), 1 week (26 weeks to 2 years), 2 weeks (2 to 5 years) or 4 weeks (5 years or more).[9]Verify

Retrenchment

No statutory severance. Retrenchment benefits are set by contract or collective agreement; employers must follow MOM's retrenchment guidelines and notification rules.[11]Verify

CPF coverage

Employers pay CPF for Singapore citizens and permanent residents earning more than S$50 a month; not for foreign employees. Permanent residents in their first two years pay lower graduated rates unless they opt into full rates.[1]

Employment Pass

Foreign professionals need an Employment Pass, applied for by a Singapore employer. Candidates must earn at least the qualifying salary for their age (from S$5,600 a month; S$6,200 in financial services) and, unless exempt, pass COMPASS.[4]Verify

These EOR providers publish information about employing in Singapore. Prices are their own published starting rates in USD, from our pricing tracker. Quote-only providers are marked.

In Singapore, ask whether the provider employs through its own Singapore entity, whether it sponsors Employment Passes, and what benefits it offers locally.

For each provider's products, pricing model and fit signals, see the EOR provider directory.

The usual alternative is a private limited company (Pte Ltd) registered with ACRA. It needs at least one director who is ordinarily resident in Singapore, a company secretary and a registered office address.

Ongoing costs include accounting, annual filings with ACRA and IRAS, payroll, and a local resident director if you don't have one. Singapore's corporate income tax rate is 17%.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role and salaryDay 0

   Agree a monthly salary and check whether the hire is a citizen, permanent resident or will need an Employment Pass.

2. 2

   Check Employment Pass eligibilityDay 0–2

   For foreign hires, compare the salary with the qualifying salary for the candidate's age and check COMPASS. Use MOM's self-assessment tool.

3. 3

   Compare itemised quotes1–3 days

   Request Singapore quotes covering the fee, deposit, Employment Pass sponsorship, CPF and SDL, insurance and offboarding. Use the estimator to sanity-check totals.

4. 4

   Sign the service agreement

   Review liability for termination costs, IP assignment, data protection (PDPA) terms and work pass responsibilities.

5. 5

   Work pass and contract1–4 weeks for a pass

   The EOR applies for the Employment Pass if needed, then issues a Singapore employment contract.

6. 6

   Ongoing administrationMonthly

   Monthly payroll, CPF and SDL payments, and annual income tax reporting for employees.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   How much CPF contributions to pay

   CPF Board

   CPF rate tables from 1 January 2026: employer 17% (55 and under) down to 7.5% (above 70), Ordinary Wage ceiling S$8,000, and who CPF applies to.

2. 2
   What constitutes wages for CPF contributions

   CPF Board

   Ordinary Wage ceiling and the Additional Wage ceiling (S$102,000 less ordinary wages).

3. 3
   Skills Development Levy

   CPF Board

   0.25% of monthly wages for all employees, minimum S$2, maximum S$11.25.

4. 4
   Employment Pass eligibility

   Ministry of Manpower

   Qualifying salary by age, COMPASS and the 2027 changes.

5. 5
   Employment Act: who it covers

   Ministry of Manpower

   Who the Employment Act and its Part 4 cover.

6. 6
   Annual leave eligibility and entitlement

   Ministry of Manpower

   7 to 14 days of annual leave by year of service.

7. 7
   Sick leave eligibility and entitlement

   Ministry of Manpower

   14 days outpatient and 60 days hospitalisation leave.

8. 8
   Hours of work, overtime and rest days

   Ministry of Manpower

   44-hour week, overtime pay and the 72-hour monthly cap for Part 4 employees.

9. 9
   Termination with notice

   Ministry of Manpower

   Notice periods when the contract doesn't specify one.

10. 10
    Public holidays

    Ministry of Manpower

    Entitlement to 11 paid public holidays a year.

11. 11
    Retrenchment

    Ministry of Manpower

    Retrenchment benefits and employer obligations.

12. 12
    Corporate income tax

    Inland Revenue Authority of Singapore

    Corporate income tax rate and filing.

13. 13
    Accounting and Corporate Regulatory Authority

    ACRA

    Registering and maintaining a Singapore company.

Singapore is one of the cheapest developed markets to employ in: for a local hire, employer costs are mainly 17% CPF up to the wage ceiling, and for a foreign hire on an Employment Pass they are close to zero. Through an EOR, plan for roughly 1.1–1.3× gross salary in total, depending on the employee type.

The Singapore-specific issues are about people, not cost: whether your hire needs an Employment Pass, whether they meet the qualifying salary and COMPASS, and whether your provider sponsors passes.

If you're building a regional team or headquarters, compare an EOR against a Pte Ltd early with our EOR vs local entity guide. For the region, see Australia, the Philippines and India.