Employing in Singapore from Australia

Updated 29 October 2026 · Capital Singapore · SGT (UTC+8), 2 to 3 hours behind Sydney

Employing in Singapore

Singapore is where many Australian businesses put their first Asian team. It is stable, English-speaking and well connected, and only 2 to 3 hours behind Sydney, which makes it easy to run alongside an Australian office.

Employment law is relatively light compared with Australia, but immigration rules are not. Foreign professionals need an Employment Pass assessed under the COMPASS framework, and firms hiring foreigners must also meet local hiring expectations. An EOR can employ locals quickly and, in many cases, apply for passes on your behalf.

Hiring and contracts

Employment contracts

Under the Employment Act, staff on contracts of 14 days or longer must get their Key Employment Terms in writing no later than 14 days after starting. Payslips must also be itemised.

Probation

No statute governs probation. Contracts commonly set 3 to 6 months.

Working hours

Employees under Part 4 of the Employment Act have normal hours capped at 44 a week, with overtime paid at 1.5 times the hourly rate and limited to 72 hours a month. Part 4 applies to workmen earning up to S$4,500 a month and other employees earning up to S$2,600.

Minimum wage

Singapore has no general minimum wage. Progressive Wage Model rates cover certain sectors, and companies employing foreign workers must pay local staff at least the Local Qualifying Salary.

Leave and holidays

Annual leave

After 3 months of service, employees get 7 days of paid annual leave in their first year, increasing by 1 day each year to a maximum of 14.

Sick leave

Once an employee has 6 months of service, they can take up to 14 days of paid outpatient sick leave and up to 60 days of hospitalisation leave a year, with the 14 days counted inside the 60.

Parental leave

Eligible parents of Singapore citizen children receive 16 weeks of government-paid maternity leave and 4 weeks of government-paid paternity leave, plus shared parental leave.

Public holidays

There are 11 gazetted public holidays each year.

Employer costs

Retirement and social security

Citizens and permanent residents contribute to the Central Provident Fund (CPF). For those aged 55 and under the rates are 17% from the employer and 20% from the employee, on ordinary wages up to S$8,000 a month from 1 January 2026.

Payroll taxes

There is no payroll tax, and resident employees file their own returns rather than having tax withheld each month. Employers pay the Skills Development Levy, plus the Foreign Worker Levy for Work Permit holders.

Mandatory benefits

Statutory leave applies to all employees. Citizens and permanent residents also receive CPF contributions, and covered employees must be insured for work injury compensation.

Ending employment

Notice periods

The contract sets the notice period. Where it says nothing, statutory notice ranges from 1 day for under 26 weeks of service to 4 weeks for 5 years or more.

Dismissal protection

Wrongful dismissal claims go through the Tripartite Alliance for Dispute Management. Dismissing someone on discriminatory grounds is prohibited.

Severance

The law does not require a retrenchment benefit. Tripartite guidance sets the norm at 2 weeks to 1 month of salary for each year of service for employees with 2 or more years.

Contract terms and visas

IP and restraint clauses

Restrictive covenants are enforced only where they protect a legitimate interest and are reasonable, and tripartite guidelines discourage blanket restrictions.

Visas and right to work

Foreign professionals need an Employment Pass, which carries a minimum qualifying salary and is assessed under the COMPASS framework. The application is made by the employer or an EOR for the worker.

Compared with Australia

Frequently asked questions