EOR Singapore: A Detailed Guide on Employer of Record 2025

If you are planning to branch out your business overseas, handling diverse compliances in countries where you wish to employ talent may be quite a difficult task to handle. Having proper knowledge of compliances and tax rules prevailing in the new territory is crucial. To gain unparalleled peace of mind while at work, using the services of a third-party platform is going to be a prudent decision. Partnering with an EOR service provider can create wonders for your business. In that way, not only will you be able to free up your resources but also keep compliance violations at bay. Keep reading this blog to know about Employer of Record Services Singapore and how an EOR partner can benefit you in cutting down costs while you embark on the journey of the expansion of your business.

Table of Contents

• Overview about Singapore
• What is an Employer of Record in Singapore
• Employer of Record vs Legal Entity
• Use Cases for Employer of Record Singapore
• Laws and Compliance Best Practices
• Best EOR Companies in Singapore
• What are EOR Services in Singapore
• How to Hire Employees Through an EOR Singapore Partner
• Taxes in Singapore
• Total Compensation Calculator
• Key Considerations While Hiring Employees
• Employee Benefits in Singapore
• Terminations in Singapore
• How to Choose the Right EOR Singapore Services
• Benefits of Working With an EOR in Singapore
• Visa Types in Singapore
• Risks or Drawbacks of EOR Singapore
• Cost of EOR Services in Singapore
• Conclusion: EOR Singapore
• FAQs

Overview about Singapore

Singapore, with its strategic location, robust economy, and pro-business environment, is a preferred destination for companies seeking to expand into Asia. It features a highly skilled workforce, strong intellectual property protection, and efficient regulatory frameworks. However, navigating employment laws, CPF contributions, and other statutory requirements can be complex, making Employer of Record (EOR) services a valuable solution.

What is an Employer of Record in Singapore

An Employer of Record (EOR) in Singapore is a third-party entity that legally employs workers on behalf of a company looking to hire in the country. The EOR takes on employment responsibilities such as onboarding, payroll processing, tax contributions, and ensuring adherence to Singapore’s Employment Act and MOM (Ministry of Manpower) regulations. This enables companies to compliantly expand in Singapore without incorporating a local entity.

Employer of Record vs Legal Entity

Criteria	Legal Entity	Employer of Record (EOR)
Definition	A legal entity is a company registered with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) that operates and hires directly.	An Employer of Record (EOR) is a third-party provider that hires and manages employees on behalf of another business.
Ownership	Owned and managed by the parent company or shareholders.	EOR is the legal employer while operational control stays with the client company.
Employment Contracts	Employees are hired directly under the company’s name with in-house drafted contracts.	EOR drafts and signs employment contracts in line with Singapore laws.
Compliance Responsibility	The legal entity must manage MOM regulations, CPF payments, and labor law compliance.	The EOR handles all legal and compliance obligations related to employment.
Payroll & Benefits Management	Managed by the internal HR or outsourced to local payroll vendors.	The EOR processes payroll, CPF contributions, and statutory benefits administration.
Tax Liabilities	The legal entity is responsible for accurate income tax withholding and reporting to IRAS.	The EOR assumes tax responsibilities and ensures all filings comply with IRAS standards.
Time to Set Up	Can take weeks to incorporate, open a corporate bank account, and set up operations.	EOR hiring can begin in days, leveraging existing structures and compliance readiness.
Employee Onboarding	Requires setup of HR systems and compliance training.	EOR handles contracts, onboarding documentation, and policy adherence.
Employment Law Expertise	Needs dedicated legal or HR team to understand Singapore’s Employment Act.	EOR brings legal expertise to minimize risk and ensure proper procedures.
Risk & Liability	Full responsibility for compliance, disputes, and penalties lies with the company.	The EOR absorbs legal and employment-related risks.
Control Over Workforce	The company controls recruitment, operations, and employment terms.	The client company controls day-to-day work, while the EOR is the official employer.
Flexibility	Less agile, especially for short-term projects or small teams.	Highly agile, ideal for fast hiring and scaling without setting up a company.
Cost & Investment	High initial investment for incorporation, office space, and ongoing costs.	Lower cost alternative as infrastructure and compliance tools are already in place.
Global Expansion	Requires registering a new entity and maintaining statutory filings per country.	Enables rapid global growth without entity setup, managing compliance locally.

Suggested Read: EOR- A Detailed Guide on Employer of Record 2024

Choose Between an EOR Singapore Partner and a Legal Entity

Legal Entity in Singapore
Setting up a legal entity in Singapore involves registering with the Accounting and Corporate Regulatory Authority (ACRA), acquiring the necessary business licenses, and ensuring compliance with local employment and tax regulations. While this approach grants full operational control, it demands considerable investment in infrastructure, payroll systems, and a thorough understanding of Singapore’s legal requirements.

On the other hand, partnering with an EOR Singapore provider ensures a seamless entry into the Singaporean market with reduced risks and administrative complexities. Businesses can leverage EOR services in Singapore to streamline hiring, payroll, and compliance processes.

What are the Use Cases for Availing of Services Under Employer of Record Singapore?

1. Business Expansion Without a Legal Entity

Expanding into Singapore can be a strategic move for foreign companies looking to tap into the Southeast Asian market. However, setting up a local entity involves considerable regulatory overhead. An Employer of Record (EOR) in Singapore enables businesses to operate in the country without incorporating a local subsidiary. The EOR becomes the legal employer, handling employment contracts, payroll, compliance, and HR operations on behalf of the company.

This is especially beneficial for:

• Startups piloting market entry in Southeast Asia.
  
• Enterprises conducting time-bound or trial projects in Singapore.
  
• Companies aiming for a low-risk, low-cost regional expansion.
  

2. Offering Full-time Employment to Contractors or Freelancers

Global firms often engage Singaporean professionals as freelancers or contractors for short-term tasks. Over time, as these relationships evolve, converting them into full-time employment becomes necessary. An EOR streamlines this transition by issuing compliant contracts, extending statutory benefits, and adhering to local labor laws such as CPF (Central Provident Fund) contributions.

3. Recruiting Talent Globally

Singapore boasts a diverse, multilingual, and skilled workforce, especially in finance, biotechnology, and digital services. Hiring talent from Singapore provides a competitive edge. An EOR acts as a local hiring partner, ensuring that employment is compliant with Singapore’s Ministry of Manpower (MOM) regulations, without the need for establishing a legal entity in the country.

Laws and Compliance Best Practices to Hire Employees in Singapore

Singapore’s labor laws are clear yet require diligent adherence to avoid penalties. Here are the essential laws and best practices for businesses hiring locally:

• Understanding Singapore Employment Laws: Comply with acts such as the Employment Act, CPF Act, and Workplace Safety and Health Act, which govern wages, benefits, and employee protections.
  
• Taxation in Singapore: Employers must register for and manage tax deductions like IRAS submissions and CPF contributions. EORs streamline these financial and statutory responsibilities.
  
• Employee Benefits in Singapore: Ensure compliance with benefits like annual leave, sick leave, maternity benefits, CPF, and medical coverage.
  
• Contract Structuring: Employers must align contracts with local labor statutes and clearly define job scope, probation terms, and termination clauses.
  

Best practices include:

• Regular legal reviews and audits.
  
• Staying updated on MOM guidelines.
  
• Partnering with experienced EOR providers to ensure continuous compliance and local expertise.
  

Best EOR Companies in Singapore

Selecting a reliable EOR in Singapore is crucial for smooth operations. Top EOR providers offer a full suite of services—from legal compliance to HR management—designed to support your global workforce strategy. Check out the Best EOR Companies in Singapore to identify partners that match your scale, needs, and industry.

What are EOR Services in Singapore?

Payroll Management

Payroll Management is one of the most valuable EOR services in Singapore. It includes calculating wages, CPF contributions, tax deductions, and managing bonuses and leave encashments. The EOR ensures accurate monthly salary disbursements while filing necessary tax documents with the Inland Revenue Authority of Singapore (IRAS).

Employee Onboarding

Employee Onboarding involves seamless integration of new hires into the company. EORs in Singapore manage documentation, offer letters, background checks, and ensure contracts comply with MOM regulations. This fast-tracks employment processes for foreign firms unfamiliar with local norms.

HR Administration

HR Administration encompasses day-to-day HR support such as leave tracking, employee records management, and policy enforcement. Many Singapore-based EORs offer digital HR portals, enabling real-time access for employees to manage their records, enhancing transparency and engagement.

Equipment Procurement and Management

For remote-first companies or tech roles requiring specialized tools, EORs in Singapore facilitate the procurement, shipping, and lifecycle management of employee equipment. This ensures employees have the necessary infrastructure to perform efficiently from day one.

Compliance and Legal Support

With Singapore’s strict regulatory environment, EORs provide Compliance and Legal Support to ensure adherence to the Employment Act, MOM guidelines, and workplace regulations. This includes handling employee grievances, audits, and employment disputes, shielding foreign companies from compliance risks.

Taxation and Statutory Compliance

EORs manage monthly and annual filings related to tax (IRAS) and CPF obligations, relieving businesses from the complexities of Singapore’s tax ecosystem. Timely contributions and transparent documentation help build employee trust and avoid statutory penalties.

Employee Insurance and Benefits Administration

Employee Insurance and Benefits Administration includes managing mandatory health insurance (e.g., MediShield Life), private insurance coverage, and leave entitlements. EORs tailor benefits packages in compliance with legal and cultural expectations, promoting long-term employee retention.

Risk Management and Insurance

EORs in Singapore offer Risk Management and Insurance services that mitigate legal exposure in case of workplace incidents, wrongful terminations, or employment-related claims. These services are especially crucial for overseas firms operating without an in-house legal presence.

Self-Serve Employee Portal

A Self-Serve Employee Portal empowers employees with access to digital HR services. Through this portal, employees can view payslips, submit leave requests, update personal data, and monitor benefits. It simplifies HR functions and enhances employee satisfaction.

Employee Tax Optimization

Employee Tax Optimization helps individuals legally structure their salary components—such as allowances and benefits—to maximize take-home income while complying with Singaporean tax laws. EORs guide both employers and employees through optimized tax frameworks.

Employee Retirement

EOR services also manage Employee Retirement obligations, especially CPF contributions and planning. This includes timely deductions, proper classification of employment type, and adherence to age-based CPF rates, contributing to employee security and employer compliance.

Offboarding & Recovery

Offboarding and Recovery services include processing final payments, recovering issued equipment, conducting structured exit interviews, and complying with MOM’s termination guidelines. EORs ensure that exits are smooth, respectful, and fully compliant with labor laws.

How to Hire Employees Through an EOR Singapore Partner

Hiring employees through an EOR Singapore Partner offers companies a seamless and compliant way to build a workforce in Singapore without setting up a local subsidiary. This approach allows organizations to quickly enter the Singaporean market while navigating regulatory and administrative hurdles with ease.

EOR Singapore Partner

An EOR Singapore Partner is a specialized third-party organization that officially employs staff on your behalf in Singapore. The EOR takes care of all employment responsibilities such as adhering to local labor laws, managing monthly payroll, handling tax submissions to the Inland Revenue Authority of Singapore (IRAS), and providing statutory benefits. This partnership enables foreign businesses to focus on core operations and talent acquisition while staying compliant with Singapore’s Employment Act. The EOR also safeguards businesses from legal risks by ensuring that employment contracts and practices align with national regulations.

Select the Best EOR Service Provider in Singapore for Your Business

Choosing a capable EOR partner in Singapore is key to successfully managing local talent. The ideal provider should demonstrate deep knowledge of Singaporean employment law, have operational experience with regional workforce requirements, and deliver full-spectrum HR services. Businesses should evaluate EORs based on their strength in payroll management, labor law compliance, employee support systems, and tax expertise. It’s equally important to assess flexibility in service offerings, ensuring that your EOR partner can accommodate business size, industry needs, and scalability requirements.

Hire & Onboard Your New Employees

Once the EOR Singapore partner is selected, the hiring process begins. The EOR will assist in sourcing and interviewing talent as well as preparing compliant employment agreements. They will oversee the onboarding process, ensuring that new hires understand their contractual terms, benefits, and responsibilities. With proper documentation and alignment with the Ministry of Manpower (MOM) standards, onboarding becomes streamlined, reducing delays and ensuring a smooth start for both employees and employers.

Remote EOR Employee Onboarding Checklist for Singapore

Onboarding Step	Responsibility	Details
Before Offer Letter
Collect Employee Details	Company	Gather name, NRIC/work pass, address, contact info, previous employment docs, etc.
After Offer Letter
Draft Employment Contract	EOR	Draft MOM-compliant employment agreements, outlining terms and statutory obligations.
Background Verification	EOR	Perform checks with consent, validating academic, professional, and legal history.
Welcome Email	Company & EOR	Company shares welcome note; EOR arranges onboarding and contract formalities.
On Joining Day
Employment Documentation	EOR	Secure signatures on contracts, NDAs, tax declarations, and other employment forms.
Payroll Setup	EOR	Set up GIRO/bank accounts, salary components, and contributions (e.g., CPF).
Policy Briefing	Company	Orient employee on company rules, ethics, work culture, and leave policies.
Account Setup	EOR	Facilitate bank and HRMS account setups for salary and internal access.
Introduction to Systems	EOR	Provide access to payroll portals and HR self-service tools.
IT Setup	Company/EOR	Deliver laptops, software tools, and conduct IT orientation for remote roles.
Mentor Assignment	Company	Assign internal mentor or buddy to help the new hire integrate smoothly.
Post-Onboarding
Payroll Explanation (First Paycheck)	EOR	Break down components like CPF, tax deductions, allowances, and net pay.
Ongoing Support	Company	Arrange feedback sessions and onboarding surveys for continuous support.
HR Operations	EOR	Handle routine HR tasks like payroll, insurance, and statutory submissions.

Processing Payroll

Processing payroll in Singapore requires attention to statutory requirements and employee-centric benefits. An EOR takes full charge of payroll processing, ensuring both employer and employee remain fully compliant with regulations under the Ministry of Manpower and IRAS.

Key components of payroll management in Singapore include:

• Salary and Wages: Salaries are structured to include base pay, allowances (transport, mobile, etc.), and potential bonuses as per contract.
  
• Statutory Deductions: Contributions to the Central Provident Fund (CPF) are compulsory for Singapore citizens and PRs, calculated based on salary brackets and employee age.
  
• Tax Deductions at Source (Auto-Inclusion Scheme): Employers are required to file employee income data via AIS for tax purposes. The EOR ensures timely, accurate tax declarations and submissions.
  
• Other Benefits: Employee benefits like health insurance, annual bonuses, and statutory leaves are also incorporated into payroll systems.
  

The payroll process in Singapore typically involves three stages:

• Payroll Calculation: This includes computing gross salary, CPF contributions, and applicable deductions, ensuring alignment with the Employment Act and IRAS norms.
  
• Tax Compliance: The EOR calculates and files income declarations under Singapore’s Auto-Inclusion Scheme and submits CPF contributions accurately.
  
• Salary Disbursement: Net salaries are credited to employee accounts after all statutory deductions. EORs ensure prompt and compliant disbursements, maintaining transparency and trust.

Suggested Read: Hire Employees in India Through EOR

Taxes in Singapore

Taxes play a vital role in Singapore’s economic framework, and employees working in Singapore must comply with several tax obligations. The key taxes employees should understand include personal income tax, employer reporting under the Auto-Inclusion Scheme (AIS), and contributions to the Central Provident Fund (CPF). Knowledge of tax brackets and contribution limits is essential for financial management and regulatory compliance.

Resident Tax Rates in Singapore (YA 2025)

Chargeable Income	Tax Rate
First $20,000	0%
$20,001 to $30,000	2%
$30,001 to $40,000	3.5%
$40,001 to $80,000	7%
$80,001 to $120,000	11.5%
$120,001 to $160,000	15%
$160,001 to $200,000	18%
$200,001 to $240,000	19%
$240,001 to $280,000	19.5%
$280,001 to $320,000	20%
Above $320,000	22%

Tax Due Dates in Singapore

Timely compliance with tax due dates is essential for both employers and employees in Singapore. Individual income tax returns must be filed by April 15th (paper) or April 18th (e-filing) of the following year. Employers are required to submit employee income information to the IRAS through the Auto-Inclusion Scheme (AIS) by March 1st each year. CPF contributions are due by the 14th of the following month. Failure to meet these deadlines may result in fines, late payment interest, and non-compliance penalties.

Tax Thresholds in Singapore

Singapore uses a progressive tax structure for resident individuals. Those earning under S$20,000 annually are exempt from income tax, with rising rates up to 22% for high earners. Non-resident individuals are typically taxed at a flat rate of 15% or the resident rate, whichever is higher. Businesses must comply with corporate income tax rates, which are generally capped at 17%. Understanding these thresholds ensures proper planning for both employee and employer tax liabilities.

Auto-Inclusion Scheme (AIS)

Under the Auto-Inclusion Scheme (AIS), employers must report employees’ income directly to IRAS. This covers all full-time, part-time, and contract staff. The AIS replaces the need for employees to manually declare employment income and ensures real-time accuracy. Employers must ensure timely and accurate reporting, and failure to comply may lead to audit triggers or penalties.

Central Provident Fund (CPF)

CPF is a compulsory savings and social security scheme for Singapore Citizens and Permanent Residents. Both employers and employees contribute a percentage of wages towards retirement, healthcare, and housing. The standard total CPF contribution is up to 37%, split between employer (up to 17%) and employee (up to 20%), based on age and salary. It is a cornerstone of Singapore’s retirement system, and employers must ensure contributions are made promptly and correctly.

Deductions and Reliefs

Singapore’s tax system provides various personal reliefs and rebates to reduce taxable income. Some common ones include:

• Earned Income Relief: Granted based on age and employment status.
  
• NSman Relief: For individuals who have completed National Service or supported a family member who did.
  
• Parent/Spouse Relief: For supporting dependent family members.
  

Employers can help by informing staff of available reliefs and assisting with documentation during onboarding and tax filing season.

Supplementary Retirement Scheme (SRS)

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme that provides tax relief for contributions. Contributions are capped annually (S$15,300 for Singapore Citizens/PRs and S$35,700 for foreigners) and are eligible for income tax deductions. Withdrawals are taxable, but only 50% of the withdrawn amount is taxed at retirement. Employers can encourage participation as part of broader employee tax optimization strategies.

MediSave Contributions

MediSave is part of the CPF framework and is used to pay for approved medical expenses and insurance premiums. A portion of CPF contributions automatically goes into the employee’s MediSave account. It ensures that employees have access to essential healthcare without out-of-pocket expenses and promotes long-term well-being. Employers must ensure accurate allocation of MediSave contributions.

Asanify’s Support For Employee Tax Optimization

Asanify, a leading EOR provider in Singapore, offers complete employee tax optimization services. The platform supports businesses in navigating Singapore’s tax and social security regulations, including CPF, AIS reporting, and personal tax relief planning. Asanify ensures accurate payroll processing, compliance with IRAS and CPF regulations, and maximized employee tax savings. By partnering with Asanify, companies can ensure efficient tax handling and enhanced employee satisfaction.

Total Compensation Calculator for Hiring Employees in Singapore

When hiring employees in Singapore, understanding the Total Compensation is essential for employers and employees alike. This includes not just the gross monthly salary, but also statutory contributions, allowances, bonuses, and other employee-related costs. The Total Compensation reflects the full financial commitment a company makes towards an employee annually. To make the process transparent, businesses can use a Total Compensation Calculator to itemize each component of the salary package. This helps both employers and employees assess take-home pay after CPF deductions, taxes, and benefits. For more insights on Singapore salary structures and compensation planning, check out our blog!

Key Considerations While Hiring Employees through EOR in Singapore

Employee Agreements in Singapore

Employee agreements are a fundamental part of hiring talent in Singapore. An EOR partner ensures all employment contracts are compliant with the Singapore Employment Act and reflect industry standards. These agreements include crucial clauses such as job scope, salary structure, confidentiality terms, termination conditions, and restrictive covenants like non-compete clauses. Employment agreements are legally binding documents that safeguard the rights of both the employer and the employee. It is essential that these agreements are carefully drafted to comply with MOM guidelines to avoid future disputes or regulatory issues.

Work Hours and Probation

Standard work arrangements in Singapore typically follow a 44-hour workweek, with a maximum of 9 hours per day and 6 working days per week. Some companies may implement flexible or reduced-hour policies, depending on the nature of the role. EOR providers ensure that these terms are reflected accurately in the employment contract. Probation periods in Singapore generally last between 3 to 6 months, during which either party may terminate the agreement with a shorter notice period. Clearly defining this period helps set mutual expectations and offers both sides an opportunity to evaluate long-term fit.

Leave Policies

Singapore mandates specific leave entitlements that must be granted to employees. These leave policies should be outlined in employment contracts and must comply with the Employment Act. EORs assist businesses in establishing compliant leave structures that also align with organizational goals and employee well-being.

Standard Leave Policy in Singapore

Leave Type	Description	Duration
Annual Leave	Paid vacation leave based on service duration	7–14 days (after 3 months of service)
Sick Leave	Paid leave with medical certificate	14 days outpatient, 60 days hospitalization
Childcare Leave	Paid leave for parents of young children	6 days (for children under 7 years)
Maternity Leave	Paid leave for childbirth and recovery	Up to 16 weeks
Paternity Leave	Paid leave for fathers	2 weeks
Bereavement Leave	Leave to grieve the loss of a family member	Typically 2–5 days (company policy)

The leave entitlements in Singapore are regulated by law, with mandatory provisions for annual, sick, maternity, and paternity leave. EORs ensure that employment contracts reflect these entitlements accurately and may help companies offer enhanced leave benefits to remain competitive in the talent market.

Types of Leaves in Singapore Employment Laws

Annual Leave

Annual Leave is a statutory benefit under the Employment Act in Singapore, granted to employees for personal time off. Employees are entitled to a minimum of 7 days of paid annual leave after one year of service, increasing by one day each additional year, up to a cap of 14 days, unless company policy provides more.

Sick Leave

Sick Leave is mandated under the Employment Act and includes both outpatient and hospitalization leave. Employees who have worked at least 3 months are entitled to 14 days of outpatient and 60 days of hospitalization leave annually, provided they are certified unfit by a government or company-approved doctor.

Childcare Leave

Childcare Leave allows working parents with children under 7 years to take up to 6 days of paid leave annually. This is covered under the Child Development Co-Savings Act and is applicable if the child is a Singapore citizen. The first 3 days are employer-paid, and the rest by the government.

Maternity Leave

Female employees are entitled to 16 weeks of paid Maternity Leave if the child is a Singapore citizen. For non-citizens, 12 weeks of leave may apply. Employers pay the first 8 weeks (for the first two births), with the government covering the rest. This leave helps ensure postnatal recovery and care.

Paternity Leave

Eligible working fathers are granted 2 weeks of paid Paternity Leave if the child is a Singapore citizen and the father is legally married to the mother. This statutory benefit allows them to support their spouse and spend early bonding time with their newborn, and it is fully funded by the government.

Bereavement Leave

Bereavement Leave is not mandated by law but is commonly granted by employers as part of compassionate leave benefits. Employees may receive 2 to 5 days of leave in the event of the death of immediate family members. This allows time to grieve and manage funeral responsibilities.

Marriage Leave

Marriage Leave is not compulsory in Singapore law but is often offered as a company-specific benefit. Typically, employers grant 1 to 3 days of paid leave for employees who are getting married. It gives employees time to manage and celebrate their wedding ceremonies and related functions.

Sabbatical Leave

Sabbatical Leave is a non-statutory and voluntary benefit offered by companies to allow employees extended time off for study, travel, or personal growth. Generally unpaid, this leave is usually granted to long-serving employees to promote loyalty, rest, and innovation, especially in tech and academia.

List of General Public Holidays in Singapore 2025

Date	Occasion	Category
1 January 2025	New Year’s Day	General Public Holiday
29 January 2025	Chinese New Year (Day 1)	General Public Holiday
30 January 2025	Chinese New Year (Day 2)	General Public Holiday
7 April 2025	Hari Raya Puasa	General Public Holiday
18 April 2025	Good Friday	General Public Holiday
1 May 2025	Labour Day	General Public Holiday
26 May 2025	Vesak Day	General Public Holiday
15 June 2025	Hari Raya Haji	General Public Holiday
9 August 2025	National Day	General Public Holiday
29 October 2025	Deepavali	General Public Holiday
25 December 2025	Christmas Day	General Public Holiday
14 February 2025	Valentine’s Day	Optional Holiday
31 October 2025	Halloween	Optional Holiday
24 December 2025	Christmas Eve	Optional Holiday
31 December 2025	New Year’s Eve	Optional Holiday

Gratuity Equivalent (Retirement Benefits)

In Singapore, there is no statutory Gratuity system like in India. However, the Central Provident Fund (CPF) serves a similar long-term savings purpose. Employers and employees contribute monthly to CPF, which supports retirement, housing, and healthcare. Employers must contribute up to 17% of an employee’s wage, depending on age group. For EOR employees, the EOR is responsible for administering CPF contributions correctly as per statutory guidelines.

Termination Policies

Termination Policies in Singapore are governed by the Employment Act and emphasize procedural fairness. Employees may be terminated due to redundancy, performance, or misconduct. A written notice or payment in lieu of notice is required, ranging from one day to four weeks, depending on the length of service.

Employers must provide a reasonable explanation for termination, and wrongful dismissal claims can be filed with the Tripartite Alliance for Dispute Management. For EOR-hired staff in Singapore, the EOR ensures all terminations are conducted lawfully, with clear documentation and compliance with MOM regulations.

Bonus Payments in Singapore

Bonus Payments in Singapore are discretionary unless contractually guaranteed. The most common form is the Annual Wage Supplement (AWS), also known as the 13th-month bonus, usually paid at year-end. Employers may also provide performance-based bonuses depending on individual or company performance.

There is no mandatory bonus requirement under Singapore law, except what’s agreed upon in the employment contract. When employees are hired through an EOR in Singapore, the EOR ensures that bonus terms comply with local regulations and are included in the employment contract where applicable.

Health Insurance in Singapore

While not mandated under the Employment Act, Health Insurance is typically provided by employers as part of a group insurance plan. Coverage often includes inpatient, outpatient, dental, and accident insurance. Foreign employees on Employment Passes must have adequate medical insurance, especially for S Pass and Work Permit holders.

For companies using an EOR in Singapore, the EOR includes health insurance provisions as part of the onboarding package, ensuring legal compliance and competitive benefits, thereby enhancing employee well-being and satisfaction.

Suggested Read: PEO vs EOR Differences- All That You Need to Know 

Employee Benefits in Singapore

Employee benefits are a crucial aspect of the compensation package offered by companies in Singapore. These benefits not only help attract and retain top talent but also contribute to employee well-being and job satisfaction. In Singapore, employee benefits can be broadly categorized into statutory and supplementary benefits.

Statutory Benefits in Singapore

Statutory Benefits are benefits that are mandated by Singaporean labor laws and regulations. These benefits ensure that employees are given their legal entitlements, and employers are compliant with national employment standards. Some of the key statutory benefits in Singapore include:

Central Provident Fund (CPF): Employees and employers make mandatory contributions to CPF, a savings scheme that supports retirement, healthcare, and housing needs. Contribution rates vary by age and income bracket.
Paid Leave Entitlements: Employees are entitled to statutory paid annual leave, sick leave, maternity/paternity leave, and childcare leave under the Employment Act.
Maternity and Paternity Leave: Eligible working mothers are entitled to 16 weeks of paid maternity leave, and fathers get 2 weeks of paternity leave if the child is a Singapore citizen.

Supplementary Benefits in Singapore

Employers offer supplementary benefits to enhance the overall compensation package and boost employee satisfaction. These benefits go beyond statutory requirements and aim to improve employees’ quality of life. Some of the common supplementary benefits in Singapore include:

Private Health Insurance: Employers often provide additional medical coverage, including hospitalization, dental, and outpatient treatment beyond statutory obligations.
Performance Bonuses: Employers frequently offer performance-based bonuses or incentives tied to KPIs or company performance.
Employee Share Option Plans (ESOPs): Some companies offer stock options or equity plans to align long-term employee interests with company growth.

Asanify’s Flexible Benefits Plan for EOR Employees

Asanify provides a robust Flexible Benefits Plan (FBP) designed to empower employees to customize their salary structure for maximum tax efficiency. The plan offers benefits such as meal cards, fuel allowances, gift wallets, and reimbursements for telecom, attire, and books, enabling employees to save up to S$800 annually in taxes. With Asanify’s user-friendly payroll system, managing these benefits is seamless, ensuring compliance and satisfaction for both employees and employers.

For employers, Asanify’s FBP is a strategic tool to boost employee satisfaction and retention without increasing the cost-to-company (CTC). By offering flexibility and simplicity, Asanify ensures a win-win for all.

Flexible Benefits Components	IT Section	Old Tax Regime	New Tax Regime	Annual Maximum Amount (S$)
Meal or Food Allowance	Section 10	Applicable	Not Applicable	360
Transport Reimbursement	Section 17	Applicable	Not Applicable	300
Mobile and Internet	Section 17	Applicable	Not Applicable	240
Gift Wallet	Section 17	Applicable	Not Applicable	50
Professional Development	Section 10	Applicable	Not Applicable	600
Books and Periodicals	Section 10	Applicable	Not Applicable	450
Total				2,000

Terminations in Singapore

Terminating employment in Singapore involves different processes for contract staff and full-time employees. While contract staff often have more flexible termination clauses, full-time employees are protected by the Employment Act and contractual terms that define notice periods, termination reasons, and final payments.

Notice Periods in Singapore

In Singapore, the notice period refers to the time an employee or employer must give before ending the employment contract. Under the Employment Act, the minimum notice period is one day to four weeks depending on the duration of service, unless otherwise stated in the employment contract.

Severance Pay in Singapore

In Singapore, severance pay is not a statutory requirement unless specified by the employment contract or collective agreement. However, in cases of retrenchment, employers are encouraged to provide retrenchment benefits, commonly equivalent to between 2 weeks and 1 month of salary per year of service. Employers should consult the Tripartite Guidelines when determining severance pay.

Key points:

Legal Compliance: Termination policies must comply with MOM regulations and employment contract terms.
Documentation: Employers should maintain full documentation outlining the grounds for termination, mutual agreements, and legal filings.
Employment Contracts: Written contracts should specify the notice period, severance terms, and exit procedures clearly.
Employee Rights: Employers must honor rights such as CPF contributions, leave encashment, and final salary payments.

Types of Termination

Termination for Cause

Termination for Cause refers to the dismissal of an employee due to serious misconduct or policy violations. This includes actions like theft, harassment, or fraudulent behavior. Employers must conduct an inquiry and provide the employee a chance to respond. No notice is required if the cause is substantiated.

Termination Without Cause

Termination Without Cause occurs when an employer dismisses an employee for reasons unrelated to misconduct, such as redundancy or role changes. In such cases, the employee must be provided with a notice period or salary in lieu of notice as per the contract. A respectful and lawful process must be followed.

Collective Termination

Collective Termination occurs when a company retrenches multiple employees due to downsizing or closures. While not legally defined, employers are advised to notify MOM if more than 5 employees are retrenched within 6 months. Affected employees should be given fair compensation and adequate notice.

Voluntary Termination (Resignation)

Voluntary Termination, or resignation, happens when an employee chooses to end their employment. Employees must submit a resignation letter and serve the contractual notice period. Upon departure, employees are entitled to final salary, any accrued leave, and CPF payments.

What are the key steps involved in terminating employees in Singapore?

1. Serve Notice Period

The notice period is the time either party must serve before terminating employment. It ranges from one day to four weeks under the Employment Act, unless otherwise agreed upon. The party terminating employment must either serve this period or pay salary in lieu.

2. Termination for Cause

Termination for Cause applies when serious misconduct occurs. Employers must conduct due inquiry and give the employee an opportunity to present their case. If proven, no notice is needed. Documentation of the inquiry and evidence is essential for legal compliance.

3. Full and Final Settlement

After termination, employers must conduct a full and final settlement, which includes:

• Outstanding salary
  
• Encashment for unused annual leave
  
• CPF contributions
  
• Bonus (if applicable)
  
• Other financial dues
  

All payments should be processed promptly and documented clearly.

4. Documentation

Proper documentation is critical in any termination process. It should include:

• Formal termination or resignation letter
  
• Settlement breakdown and receipts
  
• Exit interview notes (if applicable)
  
• Legal confirmations of compliance with contract and MOM guidelines
  

This protects both employer and employee from future disputes.

Recommended Read: How to Hire in India Easily- 10 Key Considerations

How to Choose the Right EOR Singapore Services?

Expertise and Local Knowledge

When selecting an EOR Singapore Partner, it’s vital to choose a provider with deep expertise in the Singaporean market. The provider should understand the complexities of Singapore’s employment regulations, payroll, taxation, and statutory contributions. This expertise ensures that your business remains fully compliant and avoids costly legal issues.

Comprehensive Service Offerings

The ideal EOR service provider should offer a broad range of services, such as payroll processing, CPF contributions, employee onboarding, HR compliance, and statutory reporting. A full-service provider can take over the entire employment lifecycle in Singapore, freeing your company to focus on core operations without administrative distractions.

Scalability and Flexibility

Your workforce needs may evolve as your business grows. A reliable EOR Singapore provider should offer scalable services to accommodate one employee or a full team. Whether expanding operations or testing new markets, your EOR should deliver flexible solutions to meet shifting business requirements.

Technology and Data Security

Technology plays a crucial role in HR management. Choose an EOR Singapore provider that offers secure and integrated digital platforms for managing payroll, leave, employee records, and benefits. Their systems should comply with Singapore’s data protection laws and ensure end-to-end data encryption and privacy.

Compliance and Risk Management

A strong EOR partner helps mitigate compliance risks with Singapore’s labor laws and regulations. Ensure the provider has a solid track record with statutory filings, tax deductions, and employment contracts. This minimizes potential liabilities and ensures your operations remain lawful in Singapore.

Reputation and Client References

Check the background of the EOR provider by evaluating client testimonials and industry reviews. A reputable partner will have proven success with global firms and be transparent about their service delivery. Request case studies or references to understand how they support clients in Singapore.

Expertise in Singapore Employment Regulations

Your EOR should have extensive knowledge of Singapore’s employment landscape, including CPF contributions, leave entitlements, medical insurance, and payroll taxes. This helps ensure employees are hired, managed, and terminated according to local laws and best practices.

Service Offerings and Scalability

Confirm that the EOR provides the services your business needs, from statutory compliance to employee benefits and HR support. The provider must also scale services as you grow, providing a long-term solution to manage your workforce in Singapore.

Reputation and Client References

Evaluate the EOR’s reliability by reviewing client case studies, testimonials, and online ratings. A well-regarded provider will offer consistent service quality, efficient support, and smooth processes for hiring and managing employees in Singapore.

Data Security and Privacy Compliance

Singapore has strict data protection standards under the Personal Data Protection Act (PDPA). Your EOR Singapore partner should ensure data is securely stored, transmitted, and processed, including payroll, identity, and health records, aligning with all PDPA guidelines.

Transparent Pricing and Contractual Agreements

Before finalizing your EOR partner, review their pricing structure and service agreement thoroughly. The contract should clearly outline services provided, cost breakdowns, and SLAs. Transparency in terms and pricing ensures alignment and minimizes future disputes.

Local Network and Support

A strong EOR Singapore provider should have local HR and legal support, enabling them to handle on-the-ground concerns efficiently. Their connections with MOM (Ministry of Manpower), tax consultants, and legal professionals help ensure seamless compliance and dispute resolution.

Benefits of Working With an Employer of Record Service Provider in Singapore

Compliance and Legal Expertise

Partnering with an EOR gives you direct access to Singapore’s employment compliance experts. The EOR ensures your company adheres to employment laws such as CPF contributions, fair dismissal procedures, and leave entitlements—helping you avoid non-compliance fines and regulatory issues.

Time and Cost Efficiency

Hiring through an EOR eliminates the need to set up a local entity, significantly reducing time and legal costs. The EOR handles all HR and payroll tasks, letting you deploy talent quickly and reduce fixed overhead costs, enabling greater efficiency in market entry.

Swift Market Entry

With an EOR, you can onboard employees and begin operations in Singapore without incorporating a company. The EOR acts as the legal employer, enabling you to enter the market almost instantly. This is especially useful for businesses testing or expanding into Southeast Asia.

Local HR Support

An EOR provides dedicated HR support, including onboarding, resolving employee concerns, managing local compliance, and ensuring cultural fit. Their familiarity with Singaporean HR norms helps foster positive employee relations and improves retention across your remote teams.

Flexibility and Scalability

EORs enable flexible workforce management by supporting both rapid scaling and downsizing. Whether expanding your sales team or restructuring your regional operations, the EOR manages the full employee lifecycle—ensuring smooth transitions with no administrative burden on your business.

Risk Mitigation

An EOR helps shield your business from legal risks related to employment disputes or non-compliance. As the official employer, they handle employment contracts, statutory requirements, and labor issues—providing legal protection and peace of mind for international companies.

Cost Efficiency

EOR services consolidate HR, compliance, and legal support into a single solution—reducing the need for multiple local hires. This saves on overhead and professional fees, making workforce management in Singapore more affordable for companies without local infrastructure.

Mitigating Cultural and Language Barriers

The EOR’s local presence helps bridge any cultural or language gaps when working with Singaporean employees. They understand work ethics, communication styles, and labor expectations—helping you build a stronger local team and minimizing misunderstandings.

Focus on Core Business Activities

By outsourcing employee management, HR, and compliance to an EOR, your leadership can focus on core business activities such as sales, product development, and growth. The EOR ensures seamless back-office operations, allowing you to drive results and scalability.

Visa Types in Singapore

Asanify simplifies this process by providing comprehensive support for obtaining the necessary visas and work passes for your employees. Our experienced team guides you through the entire process, ensuring compliance with Singapore’s immigration laws and regulations. We handle the paperwork, document verification, and liaising with relevant authorities, allowing you to focus on your core business objectives.

If you prefer to handle the visa and work pass process independently, here’s a step-by-step guide:

Visa Application Process:

The visa application process for foreign nationals wishing to work in Singapore involves several key steps. It begins with securing a job offer from a Singapore-based company. After this, the employer must apply for a valid work pass—typically the Employment Pass (EP) or S Pass—through the Ministry of Manpower (MOM) in Singapore. The application requires submitting employment details, academic qualifications, passport copies, and other supporting documents. Once approved, the employee receives an In-Principle Approval (IPA) letter and may enter Singapore to begin work.

Work Permit (Employment Pass) Requirements:

An Employment Pass is required for foreign professionals who wish to work in Singapore. The key requirements for obtaining an Employment Pass include:

• A valid passport with at least six months of validity.
  
• A confirmed job offer from a Singapore-registered company.
  
• A minimum qualifying salary of S$5,000 (as per current MOM regulations).
  
• Educational qualifications and work experience relevant to the job.
  
• Submission of supporting documents by the employer to MOM, including job description, contract, and company profile.
  

The Employment Pass is typically issued for 1 to 2 years and can be renewed based on continued employment, employer compliance, and role relevance. The process is streamlined and handled digitally through the MOM portal.

Foreigner Registration:

Singapore does not require foreign employees to register separately with a regional office after arrival. Instead, foreign professionals receive their official work pass card upon arrival and completion of entry procedures. The Ministry of Manpower issues this card, which serves as both employment authorization and identification. Foreigners must keep their address and employment records updated with MOM. Any failure to comply with work pass conditions may result in revocation, fines, or deportation.

Risks or Drawbacks of EOR Singapore

1. Limited Control

One of the main drawbacks of using an EOR in Singapore is the limited control over employees’ daily activities. Since the EOR acts as the legal employer, it manages payroll, compliance, and HR administration. This may limit your company’s ability to directly influence employee behavior and culture, which can pose challenges in maintaining operational alignment with your organization’s values.

2. Potential Cultural Differences

Singapore’s multicultural business environment may differ from that of the company’s home country. While EORs help bridge cultural gaps, businesses unfamiliar with local customs may face difficulties understanding workplace norms, hierarchy, or communication styles. Misalignment in expectations and cultural practices may affect team collaboration and integration.

3. Cost

Though an EOR Singapore partner eliminates the need to incorporate a local entity, the services come with associated fees. Depending on the service level and provider, costs may be higher than managing a local team independently. Companies should analyze whether the value of compliance, support, and convenience outweighs the additional expense.

4. Data Security and Confidentiality

With an EOR managing sensitive data—such as payroll records, identity documentation, and benefits—data privacy is a valid concern. Businesses must ensure their EOR provider follows Singapore’s Personal Data Protection Act (PDPA) and international standards like GDPR to protect confidential employee and corporate data.

5. Scalability Challenges

While EOR services support business growth, they may struggle to keep pace with rapid expansions. Adding a high volume of employees within tight timeframes can sometimes lead to delays in onboarding, payroll errors, or compliance risks. It’s important to confirm that the EOR has the infrastructure to support scale effectively.

6. Communication Challenges

EOR communication may be affected by operational or geographic separation from your core team. Even in a well-regulated market like Singapore, differing business hours or communication styles can result in delays or misinterpretations. Clear SLAs and regular check-ins are necessary to maintain seamless coordination with your EOR partner.

How Does Employer of Record Singapore (EOR) Services Differ From Usual HR Software?

1. Employer of Record (EOR)

An Employer of Record (EOR) in Singapore provides end-to-end employment solutions for businesses looking to hire without setting up a local legal entity. The EOR becomes the legal employer on record and assumes responsibility for payroll, tax filing, CPF contributions, and statutory benefits. This model is ideal for global businesses seeking local compliance, efficient hiring, and administrative relief.

Key responsibilities of an EOR include:

• Payroll processing and CPF contributions
  
• Drafting employment contracts and administering benefits
  
• Ensuring legal compliance with MOM and labor laws
  
• Managing employment risks and regulatory exposure
  

A Singapore EOR acts as both a legal and HR framework, simplifying hiring and managing local employees while ensuring full legal compliance.

2. HR Software

HR software, by contrast, is a digital tool used to manage HR workflows like attendance, leave tracking, recruitment, and employee records. While it improves internal efficiency, it does not fulfill legal responsibilities, such as acting as the employer, filing statutory contributions, or maintaining labor compliance.

Key features of HR software include:

• Centralized employee records and payroll automation
  
• Tracking employee performance and development
  
• Recruitment and onboarding tools
  
• Attendance and leave management
  

HR software enhances HR operations but lacks the legal standing and compliance features that an EOR Singapore service provides. It’s best suited for companies already operating within Singapore through a legal entity.

How Much Does it Cost to Avail Services Under EOR Singapore?

Scope of Services

Pricing for EOR Singapore services varies based on the breadth of support needed. While basic services include payroll and tax compliance, full-service packages may cover benefits administration, onboarding, and legal advisory—affecting overall costs.

Employee Strength

The number of employees significantly influences EOR pricing. Providers generally charge a per-employee-per-month fee. Larger teams may qualify for volume discounts, while smaller businesses might find fees relatively higher per head, depending on the provider’s pricing model.

Complexity of Employment Regulations

Although Singapore has a business-friendly environment, compliance with MOM regulations, CPF contributions, and work pass management can increase costs for regulated industries. Additional due diligence, audits, or sector-specific rules may require more EOR effort, thus impacting service fees.

Customization and Additional Services

Many EORs offer tailored solutions including expat onboarding, customized reporting, or flexible benefits. These value-added services enhance employee satisfaction but may also raise total cost. Businesses must assess whether custom offerings align with their HR strategy and ROI expectations.

Technology Infrastructure

Some EORs in Singapore leverage advanced HR platforms with analytics, automation, and employee self-service features. These tools provide added efficiency and compliance support. However, providers with high-end tech infrastructure may charge premium rates to reflect the added digital value.

Pricing Models and Contract Terms

Singapore EORs typically offer different pricing structures such as fixed monthly fees, per-employee pricing, or tiered packages. Long-term contracts may be more cost-effective, while short-term or flexible plans could come with higher rates. Setup fees and service-specific surcharges should be clarified in advance.

Conclusion: EOR Singapore

The Employer of Record (EOR) Singapore model offers a strategic pathway for businesses to hire talent in Singapore without the burdens of entity setup. It ensures compliance with employment regulations, streamlines HR operations, and simplifies cross-border hiring. EOR services are especially useful for fast-growing or trial-stage market entries.

For companies expanding into Singapore or managing a remote workforce, EOR solutions provide legal, payroll, and benefits coverage—all while reducing overhead and risk. By leveraging a Singapore EOR, businesses gain operational agility and regulatory assurance, allowing them to focus on core functions and growth strategies.

FAQs

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.