Singapore requires foreign professionals to hold an Employment Pass (EP), which has minimum salary thresholds (currently S$5,600 for most sectors, higher for financial services). Employers contribute to the Central Provident Fund (CPF) at ~17% for Singaporean/PR employees. An EOR sponsors the EP and handles CPF compliance, enabling hiring within 2–4 weeks.
Employment Pass and work visas
Singapore's Employment Pass (EP) is required for foreign professionals earning above the minimum threshold. Applications are submitted online through MOM (Ministry of Manpower) and are assessed on salary, qualifications, and the COMPASS framework (a points-based system considering salary benchmarks, diversity, and local employment support).
Processing typically takes 2–3 weeks. The EP is tied to the sponsoring employer, so the EOR's entity is the sponsor. If the employee changes to your own entity later, a new EP application is required.
For lower-salary roles, S Pass or Work Permit categories may apply, each with their own quota restrictions and foreign worker levy. The EOR advises on the appropriate visa category based on salary and role.
CPF and employer costs
CPF contributions apply only to Singaporean citizens and permanent residents — not to EP holders. For qualifying employees, the employer contributes ~17% and the employee ~20% of ordinary wages (up to the current ceiling).
For foreign workers on EP, there are no CPF obligations. However, Skills Development Levy (SDL) applies at 0.25% of salary (minimum S$2). Foreign Worker Levy applies to S Pass and Work Permit holders, not EP holders.
Singapore has no capital gains tax and a progressive personal income tax rate (0–22%). This makes it an attractive location for both employers and employees, with relatively low total employer costs compared to European jurisdictions.
Employment law essentials
Singapore's Employment Act covers most employees, providing minimum standards for: working hours (44 hours/week), overtime pay, annual leave (7 days minimum, increasing with tenure), sick leave, and maternity/paternity leave.
Notice periods are contractual — typically 1–3 months for professional roles. There is no statutory severance in Singapore, making terminations more straightforward than in many European countries, though unfair dismissal claims are possible through the Employment Claims Tribunals.
The relative flexibility of Singapore employment law, combined with a business-friendly environment and strong rule of law, makes it one of the most popular EOR destinations in APAC.