# Hiring in Singapore: employment costs, payroll and compliance

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> Canonical page: https://eoroverview.com/hiring-guides/singapore/
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> Statutory data last updated: 2026-07-12. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | SGD |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Statutory work week | 44 hours/week | 2024 |
| Payroll cycle | monthly | 2026 |
| 13th-month salary | customary | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 17% | 2024 |
| Employee social security | 20% | 2024 |
| Corporate tax rate | 17% | 2026 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 3 weeks | 2019 |
| Severance pay | 0 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Paid annual leave | 7 days | 2026 |
| Public holidays | 11 days | 2026 |
| Maternity leave | 16 weeks | 2026 |
| Paternity leave | 4 weeks | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Unemployment rate | 2.8% | 2025 |
| GDP per capita | $90,674 | 2024 |
| Union density | 22.2% | 2019 |
| Collective bargaining coverage | 18.1% | 2012 |

## Overview

The most common mistake foreign employers make in Singapore is assuming the Central Provident Fund (CPF) applies to everyone on payroll. It does not. CPF contributions only apply to Singapore citizens and permanent residents, so if you are hiring expatriates, your employer cost picture looks quite different from what the headline 17% employer contribution suggests. Getting that distinction wrong early leads to either over-budgeting or, worse, under-withholding for local staff. An Employer of Record (EOR) handles that split automatically, which is one of the clearest practical reasons to use one here.

Beyond CPF, Singapore is a genuinely employer-friendly market. The unemployment rate sits at around 2.8%, so competition for skilled workers is real, and the labour force numbers just under 3.7 million. Annual leave starts at 7 days by statute, the payroll cycle is monthly, and there is no statutory severance obligation. The 17% corporate tax rate and the overall regulatory environment make Singapore one of the more straightforward places in Asia-Pacific to hire compliantly, provided you get the CPF eligibility question right from day one.

## Cost context

The main addition on top of gross salary in Singapore is the CPF employer contribution, set at 17% for eligible employees (citizens and permanent residents). Expatriate hires carry no CPF obligation on the employer side, which means your total employment cost depends heavily on the residency mix of your team. There are no other broad-based statutory employer social charges layered on top of that, making the cost structure relatively straightforward once you know which employees the contribution applies to.

## Things to watch

A few specifics in Singapore's employment rules are easy to overlook and worth keeping front of mind before you hire.

- CPF applies by residency status, not just salary level. The employer contribution is 17% of gross wages, but only for citizens and permanent residents. Expatriates on employment passes are excluded entirely, so your actual employer cost varies significantly depending on who you are hiring.

- The 13th-month salary is customary. It is not legislated, but it is widely expected across the market. Candidates will factor it into their compensation expectations, and skipping it can hurt your ability to attract and retain staff.

- Annual leave starts low. The statutory minimum is 7 days, which is on the lower end by regional standards. Most competitive offers go above that, so budget accordingly if you want to hire experienced professionals.

- Notice periods are short by default. The statutory notice period is 3 weeks, which means employees can exit quickly. Build that into your workforce planning, especially for roles where knowledge transfer takes time.

Providers ranked for Singapore: https://eoroverview.com/best/singapore/