How to Hire in Singapore: Complete Employer Guide (2026)

Singapore ranks 2nd globally in the World Bank's Ease of Doing Business index. The city-state has 3.9 million employed residents and 1.4 million foreign workers as of Q3 2025. Employers must comply with the Employment Act, Tripartite Guidelines on Fair Employment Practices (Ministry of Manpower (MOM) regulations for foreign workers.TAFEP), and

What Are the Steps to Hire an Employee in Singapore?

Hiring in Singapore follows seven steps. Step 1: Define the role and post on MyCareersFuture for 14 days (mandatory for roles requiring work passes). Step 2: Screen and interview candidates following TAFEP fair hiring guidelines. Step 3: Select the candidate and issue a written offer. Step 4: Apply for a work pass if the candidate is a foreign national. Step 5: Issue Key Employment Terms (KETs) within 14 days of employment start. Step 6: Register the employee for CPF (Singapore citizens and PRs only). Step 7: Begin payroll.outsourced payroll in Singapore

The entire process takes 2-4 weeks for local hires. Foreign worker hiring adds 3-8 weeks for work pass processing. Companies without a Singapore entity can hire through an EOR: Aniday's EOR Singapore service (Aniday EOR Singapore) enables hiring in 3-5 business days.

What Is the MyCareersFuture Posting Requirement?

Employers with 10+ employees must post job vacancies on MyCareersFuture.gov.sg for at least 14 calendar days before submitting an Employment Pass (EP) application. This Fair Consideration Framework (FCF) requirement ensures Singaporean candidates are considered. The job posting must include salary range, qualifications, and experience requirements.

Exemptions exist for: companies with fewer than 10 employees, roles paying S$22,500/month or above, short-term roles (under 1 month), intra-corporate transfers, and positions covered by free trade agreements. Non-compliance results in EP application rejection and potential debarment from hiring foreign workers.

What Are TAFEP Fair Employment Practices?

The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) sets five principles. Recruit based on merit (skills, experience, ability). Respect employees regardless of age, race, gender, religion, marital status, family responsibilities, or disability. Provide fair opportunities for training and development. Reward fairly based on performance. Comply with labor laws.

TAFEP guidelines prohibit discriminatory job advertisements. Employers cannot state preferences for age, race, gender, language, or marital status in job postings. Interview questions must relate to job requirements. Violations result in warnings, mandatory corrective action, and potential work pass privilege curtailment.

What Employment Laws Apply in Singapore?

The Employment Act (Chapter 91) covers all employees except domestic workers, seafarers, and statutory board/government employees. Key provisions include: salary must be paid within 7 days of the salary period, maximum 44 working hours per week, overtime capped at 72 hours per month, minimum 7 days annual leave increasing to 14 days by the 8th year.

Part IV of the Employment Act provides additional protections for employees earning up to S$2,600/month: rest day provisions, hours of work limits, overtime pay at 1.5x hourly rate, and retrenchment benefits. Managers and executives earning above S$2,600/month are covered by the Employment Act but excluded from Part IV overtime provisions.

The Retirement and Re-employment Act sets minimum retirement age at 63 (increased from 62 in July 2022) and re-employment age at 68. Employers must offer re-employment to eligible employees. The Employment Claims Tribunal handles salary disputes and wrongful dismissal claims. Aniday's EOR Singapore (Aniday EOR Singapore) ensures full Employment Act compliance.

What Work Passes Are Required for Foreign Hires in Singapore?

Singapore has four main work pass categories. Employment Pass (EP): for professionals earning at least S$5,600/month (S$10,700 for financial services). S Pass: for mid-skilled workers earning at least S$3,150/month (S$3,650 for financial services). Work Permit (WP): for semi-skilled workers in specific sectors. ONE Pass: for top talent earning S$30,000/month or previously earning S$30,000 in the past year.

The COMPASS framework (introduced September 2023) scores EP applications on 6 criteria: salary (C1), qualifications (C2), diversity (C3), support for local employment (C4), and two bonus criteria for skills shortage and strategic economic priorities. A minimum of 40 points is required. Aniday's executive search in Singapore service (Aniday Executive Search Singapore) helps identify candidates who meet work pass requirements.

What Are the Employer Costs in Singapore?

Singapore employer costs are lower than most Southeast Asian countries. CPF contribution (17% for employees under 55) is the primary statutory cost. Skills Development Levy (SDL) adds 0.25% of gross wages (minimum S$2, maximum S$11.25/month). Foreign Worker Levy (FWL) applies to S Pass and Work Permit holders only.

Singapore has no mandatory health insurance contribution from employers. MediSave (part of CPF) covers basic hospitalization. Many employers provide supplementary group health insurance as a benefit. Aniday's PEO services in APAC in Singapore (Aniday PEO Singapore) manages all statutory contributions and benefits administration.

How Does Probation Work in Singapore?

Singapore has no statutory probation period. Probation is a contractual arrangement between employer and employee. Market practice is 3-6 months. During probation, shorter notice periods commonly apply (1-2 weeks instead of 1-4 weeks). The employer must issue Key Employment Terms within 14 days of employment start, including probation terms.

An employer can terminate during probation with the contractually agreed notice period. If no notice period is specified, Section 10 of the Employment Act applies: 1 day (employed <26 weeks), 1 week (26 weeks-2 years), 2 weeks (2-5 years), 4 weeks (5+ years). Probation termination does not require reasons but must not be discriminatory.

Do I need a Singapore entity to hire in Singapore?

Yes, to directly employ workers. Without a Singapore entity, companies can use an EOR. Aniday's EOR Singapore (Aniday EOR Singapore) enables hiring without entity setup. Entity incorporation in Singapore costs S$15,000-S$25,000 and takes 1-4 weeks for the company registration, plus additional time for bank account and CPF registration.

Is the 13th month bonus mandatory in Singapore?

No. Singapore has no statutory requirement for a 13th month bonus. The Annual Wage Supplement (AWS) is a common market practice but not legally mandated unless specified in the employment contract or collective bargaining agreement. Approximately 60-70% of companies in Singapore provide some form of year-end bonus.

What is the notice period for termination in Singapore?

Notice periods follow contractual terms or Employment Act defaults: 1 day (employed <26 weeks), 1 week (26 weeks-2 years), 2 weeks (2-5 years), 4 weeks (5+ years). Either party can pay salary in lieu of notice. Notice must be in writing. During notice, the employee is entitled to time off for job interviews (if terminated by employer).

Can I hire foreign interns in Singapore?

Yes. Foreign interns require a Training Employment Pass (TEP) for professional-level internships (minimum monthly allowance S$3,000) or a Work Holiday Pass for students from eligible countries (6-month validity). Training Work Permits are available for semi-skilled trainees. Processing time is 3-4 weeks.

What are the penalties for hiring foreign workers without a valid work pass?

Employing a foreign worker without a valid work pass is a criminal offense under the Employment of Foreign Manpower Act. Penalties include: fine of S$5,000-S$30,000 per illegal worker and/or imprisonment up to 12 months. Repeat offenders face mandatory imprisonment. Both the employer and the foreign worker are liable.

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