Singapore
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Introduction
General Overview & Economic Facts
- Singapore, officially known as the Republic of Singapore, is a sovereign island city-state in Southeast Asia
- It covers a land area of 728,60 m2 (279,6 sq mi) and has a population of 5.69 million
- Singapore is the world’s most competitive economy, having overtaken the United States
- It ranks 11th on the Human Development Index (HDI)
- Singapore’s economy ranks 38th by nominal GDP (2020) and 37th by PPP (2020)
Why Employ In Singapore?
- The main exports from Singapore are machinery, petroleum and chemical products
- 15.01% of the population is between the ages of 15 and 24 years, with 50.73% of the population being between the ages of 25 and 54. With Singapore having a more mature population, the general population possess more work experience and skills, making it a great country to hire experts
Overview Of The Labour Law
- The Employment Act is the primary source of employment law in Singapore. It provides for the basic terms and working conditions for employees. Additional sources of employment law include the Employment of Foreign Manpower Act, the Work Injury Compensation Act, the Workplace Safety and Health Act and the Child Development Co-Savings Act
- Singapore’s employment law provides strong protection for employees. Temporary agencies are popular options in certain industries
Fun Country Facts
- Singapore held the world’s First Formula One night race
- The entire national anthem is printed on the back of the S$1000.00 note in microprint
- Singapore has the world’s highest percentage of millionaires
Why Use Playroll Services For Singapore?
- Employing in Singapore requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Singapore
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Skills Development Levy
Calculated on a maximum salary of SGD 4,500.00 per month
0.25%
Central Provident Fund
Calculated on sum of ordinary and additional earnings
Ordinary Wages (OW)
Calculated on a maximum salary of SGD 6,000.00 per month
55 and younger
17.00%
55 – 60
14.00%
60 – 65
10.00%
65 and older
8.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Central Provident Fund
Ordinary Wages (OW)
Calculated on a maximum salary of SGD 6,000.00
55 and younger
20.00%
55 – 60
13.00%
60 – 65
7.50%
65 and older
5.00%
Contributions to Self-Help Groups (SHGs) and SHARE Donations
Calculated on sum of ordinary and additional earnings
Fund CDAC
Earnings between 0.00 and 2000.00 per month
0.50%
Earnings between 2001.00 and 3500.00 per month
1.00%
Earnings between 3501.00 and 5000.00 per month
1.50%
Earnings between 5001.00 and 7500.00 per month
2.00%
Earnings 7501.00 per month or more
3.00%
Income Tax
Income bracket per annum
0.00 – 20,000.00
0.00%
20,000.00 – 30,000.00
2.00%
30,000.00 – 40,000.00
3.50%
40,000.00 – 80,000.00
7.00%
80,000.00 – 120,000.00
11.50%
120,000.00 – 160,000.00
15.00%
160,000.00 – 200,000.00
18.00%
200,000.00 – 240,000.00
19.00%
240,000.00 – 280,000.00
19.50%
280,000.00 – 320,000.00
20.00%
320,000.00 or more
22.00%
Employment Terms

General
Minimum Wage
- There is no statutory minimum wage
Working Hours
- Maximum of 9 hours per day for a 5-day work week
- Maximum of 8 hours per day if the work week is longer than 5 days
- Minimum 45-minute meal interval
- Typical working hours are 09h00 to 18h00 Monday to Friday
Overtime
- Employees may work a maximum of 72 hours per week
Notice Period
- Employed for 26 weeks or less- 1 days’ notice
- Employed for between 26 weeks and 24 months- 1 weeks’ notice
- Employed for between 24 months and 60 months- 2 weeks’ notice
- Employed for 60 months or more- 4 weeks’ notice
Severance Pay
- There is no statutory obligation to provide severance pay
- The amount given to the employee depends on what is agreed upon in the employment contract or collective agreement
- Retrenchment benefits are usually between 2 weeks to one month for every year the employee has served at the company
Probation Period
- There is no statutory probation period
- Employees can expect a probation period between 3 and 6 months.
Bonus
- There is no statutory bonus
- It is customary to pay a 13th cheque at the end of the year
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- February 1st to February 2nd – Chinese New Year
- April 15th – Good Friday
- May 1st – Labour Day
- May 2nd – Will be a public holiday if 1 May public holiday falls on employee’s rest day
- May 3rd –Hari Raya Puasa
- May 15th – Vesak Day
- May 16th – Will be a public holiday if 15 May public holiday falls on employee’s rest day
- July 10th – Hari Raya Haji
- July 11th – Will be a public holiday if 10 July public holiday falls on employee’s rest day
- August 9th – National Day
- October 24th – Deepavali
- December 25th – Christmas Day
- December 26th – Will be a public holiday if 25 December public holiday falls on employee’s rest day

Leave
Paid Leave / Vacation Days
- 7 days per year- after 3 months of employment
- 8 days per year – after 1 year of employment
- 9 days per year – after 2 years of employment
- 10 days per year – after 3 years of employment
- 11 days per year – after 4 years of employment
- 12 days per year – after 5 years of employment
- 13 days per year – after 6 years of employment
- 14 days per year – after 6 years of employment
Sick Leave
- Paid leave
- Paid by employer
- 5 days per year- after 3 months of employment
- 8 days per year – after 4 months of employment
- 11 days per year – after 5 months of employment
- 14 days per year – after 6 months or more of employment
Maternity Leave
- Paid leave
- Paid by the employer and Social Security
- 12 weeks per year if the child is not a Singaporean citizen
- 16 weeks per year if the child is a Singaporean citizen
Paternity Leave
- Paid leave
- Paid by employer
- 5 days per year
Parental Leave
- Paid leave
- Paid by Social Security
- 6 days per year
Study Leave
- There is no statutory obligation to provide study leave
- Employees can expect to be granted 2 days leave per subject
- Usually paid leave and paid by the employer
Marriage Leave
- There is no statutory obligation to provide marriage leave Employees can expect to be granted 3 days leave
- Usually paid leave and paid by the employer