Singapore Employer Rates and Thresholds 2026

Singapore employers pay Central Provident Fund (CPF) contributions only for Singapore citizens and permanent residents, on ordinary wages up to S$8,000 a month. The 17% rate is for employees aged 55 and under; it falls with age. The Skills Development Levy applies to every employee, including foreigners.

Employer costs for a Singapore citizen or PR aged 55 or under (for a foreign employee, only the levy applies):

• Covers all local and foreign employees under a contract of service, except seafarers, domestic workers, statutory board employees and civil servants. 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, so it does not cover managers or executives.
• After 3 months' service: 7 days in the first year, rising by one day a year to 14 days from the eighth year. With 3 to 12 months' service (even on probation), leave is pro-rated by completed months.
• From 3 months' service, rising each month to the full entitlement after 6 months: 14 days of paid outpatient sick leave and 60 days of hospitalisation leave (the 60 include the 14). At 3, 4 and 5 months: 5/15, 8/30 and 11/45 days.
• Employees are entitled to 11 paid public holidays a year.
• Contractual hours are up to 44 a week: up to 9 hours a day for those working 5 days or fewer, or up to 8 hours a day for those working more than 5 days. Overtime can be claimed by non-workmen earning a basic salary of up to S$2,600 a month and workmen earning up to S$4,500.
• Overtime is paid at least 1.5× the hourly basic rate, within 14 days of the end of the salary period; for non-workmen the rate is capped at the S$2,600 salary level (S$13.60 an hour). No more than 12 hours of work a day and 72 overtime hours a month without an MOM exemption, and 1 unpaid rest day a week.

• As set in the contract, and the same length for employer and employee. If the contract is silent: 1 day (under 26 weeks' service), 1 week (26 weeks to under 2 years), 2 weeks (2 to under 5 years) or 4 weeks (5 years or more). Notice must be in writing; either side may pay salary in lieu of notice, or both may waive it in writing. No reason for termination is required. CPF is due on salary earned during the notice period but not on salary in lieu of notice.
• Employees with at least 2 years' service are eligible. The amount is whatever the contract or collective agreement provides, otherwise negotiated; the prevailing norm is 2 weeks to 1 month's salary per year of service (1 month in unionised companies). No CPF is payable on it. All salary, unused annual leave and notice pay are due on the last day. Applies to permanent staff and contract workers on terms of at least 6 months.
• Employers registered in Singapore with at least 10 employees must notify MOM within 5 working days after telling any employee of their retrenchment.
• 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.
• 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 at age 23, rising to S$10,700 at 45 and above; S$6,200 to S$11,800 in financial services) and, unless exempt, pass COMPASS.

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 January 2027: Singapore Employment Pass qualifying salary rises to S$6,000. New Employment Pass applications from 1 January 2027 need at least S$6,000 a month (up to S$11,500 at 45 and above), or S$6,600 (up to S$12,700) in financial services. Renewals follow for passes expiring from 1 January 2028.