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Singapore

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Singapore
Everything you need to know about payroll, benefits & hiring top talent in Singapore

Currency

Singapore Dollar (SGD)

Salary payment frequency

Monthly

Capital

Singapore

Time Zone

GMT +7:00

Official Languages

English, Malay, Mandarin Chinese and Tamil

Is English spoken?

Yes
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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
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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%

Additional Wages (AW)
Calculated on SDG 8,500 less amount of OW (capped at SGD 6,000.00)

55 and younger
17.00%

55 – 60
14.00%

60 – 65
10.00%

65 and older
8.00%

Overall Income
Calculated on a maximum salary of SGD 8,500.00

55 and younger
17.00%

55 – 60
14.00%

60 – 65
10.00%

65 and older
8.00%

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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
Calculated on sum of ordinary and additional earnings 

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%

Additional Wages (AW)
Calculated on SDG 8,500 less amount of OW (capped at SGD 6,000.00) 

55 and younger
20.00%

55 – 60
13.00%

60 – 65
7.50%

65 and older
5.00%

Overall Income
Calculated on a maximum salary of SGD 8,500.00

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%

Fund ECF 

Earnings between 0.00 and 1000.00 per month
2.00%

Earnings between 1001.00 and 1500.00 per month
4.00%

Earnings between 1501.00 and 2500.00 per month
6.00%

Earnings between 2501.00 and 4000.00 per month
9.00%

Earnings between 4001.00 and 7000.00 per month
12.00%

Earnings between 7001.00 and 10000.00 per month
16.00%

Earning 10001.00 per month or more
20.00%

Fund MBMF 

Earnings between 0.00 and 1000.00 per month
3.00%

Earnings between 1001.00 and 2000.00 per month
4.50 %

Earnings between 2001.00 and 3000.00 per month
6.50 %

Earnings between 3001.00 and 4000.00 per month
15.00%

Earnings between 4001.00 and 6000.00 per month
19.50 %

Earnings between 6001.00 and 8000.00 per month
22.00%

Earnings between 8001.00 and 10000.00 per month
24.00%

Earning 10001.00 per month or more
26.00%

Fund SINDA 

Earnings between 0.00 and 1000.00 per month
1.00%

Earnings between 1001.00 and 1500.00 per month
3.00%

Earnings between 1501.00 and 2500.00 per month
5.00%

Earnings between 2501.00 and 4500.00 per month
7.00%

Earnings between 4501.00 and 7500.00 per month
9.00%

Earnings between 7501.00 and 10000.00 per month
12.00%

Earnings between 10001.00 and 15000.00 per month
18.00%

Earning 15001.00 per month or more
30.00%

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%

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Employment Terms

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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
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Leave

Paid Leave / Vacation Days
Paid by the employer

  • 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

It is common for employees to be given between 14 and 20 days leave

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
Start hiring in Singapore today!