Expanding Your Business: Payroll in Singapore

If you're looking to hire in Singapore, leverage Paylocity's integrated global payroll solution with real-time access to aggregated payroll data.

Doing Business in Singapore 


Singapore is a unique independent city-state with low tax rates, high incomes, and very low unemployment. Singapore has very few barriers to entry and attracts companies from all over the world looking to expand. 

As with any expansion, there are several challenges to managing payroll and operations in Singapore. Trading across borders and costs associated with exports, as well as registering property, setting up mandatory employee funds and procuring worker compensation insurance can be challenging.

Getting Started in Singapore


Entity Registration 

To support hiring activities in Singapore, businesses can establish a registered entity, secure the necessary regulatory numbers, and complete employer‑related setup processes. Available business structures include sole proprietorships, partnerships, and companies.

Employers can begin their setup process by registering a business entity through the Accounting and Corporate Regulatory Authority’s (ACRA) BizFile+ online portal.

Tax, Pension & Social Insurance 

Once a business name has been reserved and the registration is confirmed, the business will receive a Unique Entity Number (UEN), required for tax, hiring, banking, and other business activities. 

Companies may be required to complete additional employer-specific registrations, such as:

Banking Requirements

Singapore’s business registration requirements do not mandate having a local bank account in order to incorporate or legally exist as a business entity. Businesses can register a Singapore company without opening a bank account first. 

While a local bank account is not a legal prerequisite to incorporate, GoBusiness recommends opening a corporate account to segregate business funds and facilitate payroll and tax processes.

Singapore Payroll Requirements


What is the Minimum Wage in Singapore?

There is no set minimum wage for workers in Singapore. The law states employers should pay their employees based on their skills, capabilities, and market supply and demand. 

However, Singapore uses a Progressive Wage Model (PWM), which sets sector specific minimum basic wage floors for specified roles; however, it is not a universal minimum wage. specific 

Central Provident Fund (CPF)

The Central Provident Fund (CPF) is Singapore’s mandatory social security savings system. It is designed to help employed Singapore citizens and permanent residents save for retirement, healthcare, and housing through monthly contributions from both employees and employers.

More information on contribution rates, eligibility, and other important considerations for employers can be found on the Ministry of Manpower website.

Pay Frequency 

Salary and overtime pay must be paid to employees at least once a month and according to the established timeline below:

Payment Type

Deadline

Salary

Within 7 days after the end of the salary period

Overtime Pay

Within 14 days after the end of the salary period

These timelines are prescribed under the Employment Act and apply to all covered employees.

Overtime Laws

For employees covered under Part IV of the Employment Act (e.g., non-managers and non-executives within salary thresholds), contractual hours should not exceed 44 hours per week. Overtime is payable at 1.5 times the basic hourly rate, and any overtime wages must be paid within 14 days after the salary period.

Additional guidance with example computations on hourly calculations for overtime is provided by the Ministry of Manpower to support employers with compliance under the Employment Act.

Payroll Taxes

The Singaporean tax year runs from January 1 to December 31. Singapore uses a progressive tax system, meaning higher income is taxed at higher rates. Resident tax rates range from 2-24%, while non-residents pay flat tax rates which vary based on type of income. 

Common tax types include:

Unlike many other countries, Singaporean residents and permanent residents file and pay their own income tax with IRAS, as such employers do not withhold and remit these taxes on behalf of their employees.

Singapore Labor Laws and HR Statutory Requirements


Maternity and Paternity Leave

Statutory parental leave entitlements are provided under the Child Development Co Savings Act and administered by the Ministry of Manpower schemes, subject to eligibility.

Maternity leave entitlements are either 16 weeks of Government Paid Maternity Leave (for eligible mothers of Singapore citizen children who have worked at least three continuous months) or 12 weeks of maternity leave under the Employment Act for noneligible cases. 

Working fathers can take up to four weeks of paternity leave if the child is a Singaporean citizen, the employee is or has been married to the child’s mother, and the employee has worked for at least three continuous months.

Annual Leave Requirements

All employees are entitled to paid annual leave if they have worked for at least 3 months for an employer. The annual leave statutory minimum is:

Years of Continuous Service

Annual Leave Days

1

7

2

8

3 9
4 10
5 11
6 12
7 13
8 or more 14

As of January 1, 2026, employees remain entitled to the below paid sick leave allotments:

Months of Completed Service

Paid Outpatient Non-Hospitalization Leave Days

Paid Hospitilzation Leave Days

3 months

5

15

4 months

8

30
5 months 11 45
6 months or more 14 60

Under the Employment Act, full-time employees who have not completed a full year of service or those employees who work part-time (under 35 hours per week) are still entitled to annual and sick leave, though the allotment should be prorated based on number of hours worked.

Additional guidance with proration examples can be found in the Guide on Employment Laws brochure provided by the Ministry of Manpower.

Retirement Requirements

Under the Retirement and Re employment Act (RRA), employers cannot dismiss an employee on the basis of age before the employee reaches 63. 

Effective July 1, 2026, retirement age increases to 64. Employers must also offer reemployment to eligible employees up to age 69. Reemployment contracts must be at least 1 year and renewable annually up to the reemployment age; however, terms may be adjusted to suit both parties.

The Ministry of Manpower provides additional resources for employers and employees, including reemployment and retirement details on their website.

Termination Requirements

Regular terminations (i.e., not due to redundancy) are governed mainly by the Employment Act and must comply with:

If no notice period is provided in the employment contract, the notice period will depend on the length of service as set forth by the Ministry of Manpower termination with notice:

Length of Service Notice Period

Less than 26 weeks

1 day

26 weeks to less than 2 years 

1 week
2 years to less than 5 years 2 weeks
5 years or more 4 weeks

Redundancies

Redundancies, known as retrenchments in Singapore, are defined as dismissal on the ground of redundancy or by reason of any reorganization of the employer's profession, business, trade or work.

Severance (retrenchment benefit) is not mandated by statute; however, the Tripartite Advisory strongly encourages paying a fair benefit, commonly 2 weeks to 1 month per year of service where no contractual term exists, subject to the business’s circumstances.

Employers may still be required to provide eligible employees with notice or payment in lieu of notice and pay all unused annual leave on the last day of work.

Public and Bank Holidays

The Ministry of Manpower publishes the official list of public holidays which includes an entitlement of 11 days. When planning to hire in Singapore, it's crucial to be aware of the official holidays when employees may not be available for work. 

For those employees required to work on a public holiday, they must be provided with an extra day’s salary or a replacement day off.

For more information about public holidays, please visit the Public Holidays for 2026. 

Easily Hire and Pay Employees in Singapore


Is Singapore in your hiring or expansion plans? Paylocity can help. Our cloud-based platform helps you navigate the waters of international payroll.

And don’t sweat complicated compliance — our hybrid service model includes a U.S.-based team and in-country experts in Ireland to help when you have questions.

Want to learn more? Request a demo today!

The above information was last updated February 17, 2026. It is not intended as legal or tax advice.

Pay Employees in Singapore, Simply and Seamlessly

Establish a Presence

Easily set up business entities and simplify compliance with local requirements. Hire in-country and manage your expat employees.

All Payroll in One Place

Reduce manual processes and compliance issues by creating, managing, and paying domestic and global employees in a single place.

Tap into Local Experts

A U.S.-based service team and direct access to in-country professionals relieve the headaches of paying an international workforce.