Singapore Payroll and Human Resources

Human resource management in Singapore has evolved in tandem with the dynamic and competitive market environment. The Singaporean government has long supported a centralized system for managing its human resources, and foreign investment continues to have an impact.

Contributing Advisor

David Stepat

Country Director, Operations

Laws impacting human resource management in Singapore

• The Employment Act (1968);
• Employment of Foreign Manpower Act (1990);
• Retirement and Re-employment Act (1993);
• Child Development Co-savings Act (2001);
• Workplace Safety and Health Act (2006); 
• Work Injury Compensation Act (2019);
• Platform Workers Act (2024);
• The Workplace Fairness Act (WFA) (2025).

Additionally, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), which includes the Ministry of Manpower (MOM), National Trades Union Congress, and the Singapore National Employers Federation, issues guidelines and advisories. Although these guidelines are not legally binding, non-compliance can lead to scrutiny and potential restrictions on work pass privileges.

Singapore’s new Workplace Fairness Law

Singapore’s Law and Home Affairs introduced a new workplace fairness legislation (WFL) to parliament aimed at creating a more equitable and inclusive employment practice.

The law will ensure that employers do not discriminate against employees based on protected characteristics. This move highlights the government’s commitment to maintaining racial and religious harmony and equality in the workplace.

What are the key provisions of the workplace fairness legislation?

The new WFL outlines several key reforms to employment practices.

Prohibition of discrimination

The WFL explicitly bans employment discrimination based on factors like age, race, gender, religion, marital status, disability, and family responsibilities. This approach goes beyond previous guidelines, which primarily addressed broad categories such as race and nationality.

Employers must ensure that hiring, promotions, and remuneration decisions are merit-based, rather than influenced by irrelevant personal characteristics, creating a more equitable and inclusive workplace environment.

Proper grievance handling processes

The WFL establishes a formal grievance procedure for employees to report instances of workplace discrimination. This will create a clearer and more defined process for handling complaints, addressing the current ambiguity in resolving such issues. Employees who believe they have been discriminated against will benefit from a more transparent and efficient investigation process, with established timelines for employer responses to ensure timely resolutions.

Further, employers will be prohibited from retaliating against workers who report workplace discrimination and harassment. The WFL will define retaliatory actions to include:

• Wrongful dismissal;
• Harassment;
• Unauthorized salary deduction;
• Unreasonable denial of re-employment; and
• Any other action aimed to victimize the employee.

Protection for vulnerable workers

The new legislation also focuses on safeguarding vulnerable workers, such as older employees, women with caregiving duties, and individuals with disabilities. Employers are mandated to foster a more inclusive workplace by adopting policies that support these groups, including flexible work arrangements and reasonable accommodations for employees with special needs, promoting equity and inclusion across all workforce levels.

Enforcement and sanctions

Employers that breach the WFL can be sanctioned. The sanctions will be based on the severity of the breach.

Low severity

Corrective orders issued by the Ministry of Manpower (MoM) will punish low-severity breaches. Firms must review their hiring process, and individuals can be asked to attend corrective workshops.

Moderate severity

The Ministry of Manpower is expected to impose administrative sanctions for breaches of the WFL deemed moderate. The MoM can also impose work pass curtailment.

High severity

For breaches of the WFL deemed as highly severe, employers could be subject to prosecution in court where the company’s decision-makers could face significant penalties.

The Employment Act (EA)

The Employment Act (EA) is the main labor law in Singapore. The Act regulates employment terms and conditions for all employees under a work contract with an employer. The EA covers the following:

• Minimum days for giving notice of termination of contract;
• Actions employers are entitled to upon misconduct of employees;
• Salary periods, time of payment;
• Maternity protection and benefits, and childcare leave for parents and
• Public Holiday, leave and sick leave entitlements.

The Employment Act encompasses most employees in Singapore, but there are notable exclusions:

• Seafarers;
• Domestic Workers; and,
• Statutory Board Employees and Civil Servants.

Part IV of the EA, which details provisions for rest days, working hours, and other conditions of service, applies specifically to:

• Workmen: Employees engaged in manual labor, earning a basic monthly salary not exceeding SG$4,500 (US$ 3,339).
• Non-workmen: Employees not engaged in manual labor, earning a basic monthly salary not exceeding SG$2,600 (US$ 1,929).

Managers and executives, regardless of their salary levels, are not covered under Part IV.

Part IV: Specific provisions for workmen and non-workmen

Part IV of the EA stipulates critical working conditions, including:

• Rest days: Employees are entitled to a minimum number of rest days.
• Hours of work: Defines maximum working hours and overtime regulations.
• Overtime pay: Ensures minimum compensation for overtime work.

These provisions are designed to protect lower-income employees from exploitation and ensure fair treatment in terms of working hours and rest periods.

Rights and responsibilities of employers and employees

Under the EA, both employers and employees have defined rights and responsibilities to maintain a fair and productive working environment:

• Employers' responsibilities:
• Provide written employment contracts, detailing key employment terms (KETs).
• Ensure compliance with EA provisions regarding rest days, working hours, and overtime pay.
• Maintain workplace safety and health standards as per WSHA.
• Employees' rights:
• Receive fair wages and timely payment.
• Work in a safe and healthy environment.
• Be entitled to leave benefits, including annual leave, sick leave, and maternity leave.

The EA also emphasizes the mutual duty of trust and confidence, encouraging respectful and fair treatment in the workplace. This includes addressing grievances, preventing discrimination, and ensuring a civil working environment.

Employment contracts

Understanding the distinction between a contract of service and a contract for service is fundamental in Singapore's employment landscape. This differentiation impacts the application of labor laws and the rights and obligations of the involved parties.

• Contract of service: This agreement is between an employer and an employee, establishing an employment relationship. Employees under a contract of service are entitled to benefits and protections outlined in the Employment Act (EA), including:
• Rights to leave;
• Medical benefits; and
• Working hours regulation.

For example, they are covered by mandatory provisions such as the issuance of Key Employment Terms (KETs) within 14 days of employment commencement.

• Contract for service: This agreement is between a client and an independent contractor or freelancer. Individuals engaged under a contract for service are not considered employees and therefore do not receive the same statutory protections as those under a contract of service. The terms are typically negotiated on a project basis and may include specifics on deliverables, deadlines, and payment terms. For instance, the contractor often provides their tools and operates independently.

Determining the nature of the contract involves assessing various factors, such as who controls the work process, who provides the tools and equipment, and whether the work is integral to the business operations.

Legal requirements for Employment Contracts

Employment contracts can be verbal, written, expressed, or implied. However, the Ministry of Manpower (MOM) strongly recommends having written contracts to minimize disputes and ensure clarity on terms and conditions.

Key Employment Terms (KETs)

For employees covered under the EA, employers must provide a written record of KETs within 14 days of the start of employment. The KETs must include the following details:

• Commencement of employment, full name of employer and employee;
• Appointment - job titles, main duties and responsibilities;
• Working arrangements (hours of work, number of working days per week, rest day);
• Probation period (if any);
• Remuneration (Salary period, basic period, fixed allowances/deduction, overtime rate of pay, bonus and incentives, etc.);
• Employee benefits (sick leave, annual leave, maternity leave, etc.), other medical benefits;
• Termination of contract - notice period; and
• Code of conduct.

Implied terms

Even if not explicitly stated in the contract, certain terms are implied by the EA. Any term less favorable than those prescribed by the EA is null and void.

Implied duties, recognized by common law, include:

• The duty of mutual trust and confidence,
• Prohibiting actions such as unjustified unilateral changes to contract terms; or,
• Failure to address workplace grievances like discrimination or harassment.

Working hours and overtime

For employees covered under Part IV of the EA, contractual working hours cannot exceed 8 hours per day or 44 hours per week. Overtime work, defined as hours worked beyond these limits, must be compensated at 1.5 times the hourly basic rate of pay.

Additionally, employees cannot work more than 12 hours per day, inclusive of overtime, except under specific circumstances such as national security requirements.

Probation and employment duration

Probation periods typically range from three to six months, during which either party can terminate the employment with notice as stated in the contract. Post-probation, the employee transitions to regular employment, subject to performance reviews.

Employment contracts can be either fixed-term or indefinite-term, with the latter being more common and offering greater job security.

Salary, wages, and payment deadlines

Employers are required to pay their employees at least once a month, and the payment must be made within seven days after the end of the salary period.

Salaries include the basic wage and any additional payments such as allowances, bonuses, and overtime pay. If an employee resigns or is terminated, their final salary must be paid within seven days of their last working day.

Providing itemized pay slips to employees is mandatory, detailing the breakdown of their wages.

Rest days

Employees are entitled to one rest day per week. If work is performed on a rest day, compensation varies depending on whether the request came from the employer or the employee:

• At the employer's request: One day’s salary for up to half of the normal working hours, two days’ salary for more than half, and two days’ salary plus overtime for work beyond normal hours.
• At the employee's request: Half a day’s salary for up to half of the normal working hours, one day’s salary for more than half, and one day’s salary plus overtime for work beyond normal hours.

Statutory holidays

Employees covered under the EA are entitled to 11 paid public holidays each year. If an employee is required to work on a public holiday, they must be compensated with an extra day’s salary or a day off in lieu.

The President of Singapore can declare any day to be a public holiday, although every major race and religion usually receive two public holidays each.

If a public holiday falls on a Sunday, the following day is usually declared a public holiday, unless the Monday itself is already a public holiday. If a public holiday falls on a Saturday, the government will declare a holiday the following Monday.

Employees who have to work on a public holiday will be entitled to an extra day’s salary at the basic rate. Alternatively, employers, with the consent of the employee, can substitute the employee’s day off with another working day.

Further, the employer can also grant time-off-in-lieu, based on the number of hours the employee has worked on the public holiday. This option only applies to:

• Workmen earning more than S$4,500 per month (US$3,364);
• Non-workmen earning more than S$2,600 per month (US$1,943); and
• All managers and executives.

Sick leave

In addition to public holidays, the employee is entitled to paid sick leave if:

• The employee is covered under the Employment Act;
• The employee has served the employer for at least 3 months; and
• The employee has tried to inform the employer within 48 hours of their absence.

The number of days of paid sick leave and paid hospitalization leave depends on how long the employee has worked in the company.

Medical certificates (MC) issued by doctors and dentists registered under the Medical Registration Act, 1997 and the Dental Registration Act, 1999 are now recognized. This provides employees with the convenience to visit doctors closer to home.

However, this policy does not impact the reimbursement of medical consultation fees. Employers are only required to reimburse fees from government doctors or company-approved doctors.

Annual leave

Annual leave entitlements are also prescribed by law, starting at seven days for the first year of service and increasing progressively with each additional year of service.

Maternity and paternity leave

Only Singaporean residents are entitled to paid maternity leave. The length is usually 12 weeks but if the child is a Singaporean citizen, then 16 weeks of maternity is provided.

There are other conditions that must be fulfilled to receive maternity leave:

• The mother must be legally married to the father;
• Employment must have begun at least three months before the birth of the child; and
• The first eight weeks of maternity leave are paid by the employer, and the next eight weeks by the government.

Fathers are also entitled to paternity leave, with eligible fathers receiving four weeks of government-paid paternity leave. This leave must be taken within 16 weeks of the child’s birth.

Parental and childcare leave

In addition to maternity and paternity leave, working parents are entitled to various forms of parental and childcare leave. Shared Parental Leave schemes are expanding gradually from 6 weeks in 2025 to 10 weeks in 2026.

For instance, parents of Singapore citizen children under the age of seven are entitled to six days of paid childcare leave annually. Parents with children aged between seven and 12 are entitled to two days of paid extended childcare leave each year.

Retirement and re-employment age

The retirement age is currently set at 63 years. However, employers are obligated to offer re-employment to eligible employees up to the age of 68. 

These age limits will gradually rise to 65 and 70 by 2030 as part of the government’s broader strategy to address workforce ageing. With one in four Singaporeans expected to be aged 65 or older by 2030, the policy aims to mitigate talent shortages and maintain economic competitiveness. Employers are encouraged to adopt the higher limits earlier to retain skilled older workers and strengthen workforce sustainability.

Hiring foreign employees

Permits

The Ministry of Manpower (MoM) issues a wide range of employment permits to expatriates planning to work in Singapore. Each employment permit differs across various categories of employees and is based on their professional skills and monthly salaries.

It is important for applicants to note that most work permits are applied through the employer or an employment agent, via the MoM’s online platform. Therefore, it is mandatory for skilled professionals to first obtain a job offer in the country before applying. 

Employers must ensure they comply with the regulations set by the Ministry of Manpower (MOM), including providing necessary documents, paying the required fees, and meeting the conditions attached to each type of work pass.

Rights of foreign workers

Foreign workers in Singapore are entitled to a range of rights designed to protect their well-being and ensure fair treatment. These rights are enshrined in the Employment Act and other relevant legislation.

Wages and work conditions

Foreign workers are entitled to receive their salaries on time, and the wages must meet or exceed the minimum requirements specified by their work pass. They must be provided with itemized pay slips and a clear breakdown of their wages, including any deductions.

Working hours and overtime

Similar to local employees, foreign workers are protected by regulations governing working hours and overtime pay. They are entitled to rest days and must receive overtime pay if they work beyond the standard working hours.

Accommodation

Employers are responsible for providing safe and acceptable housing for their foreign workers. The accommodation must meet the standards set by the MOM, and employers must cover the cost of housing, including utilities and maintenance.

Healthcare

Employers must ensure that foreign workers have access to medical care. This includes purchasing medical insurance that meets the minimum coverage requirements set by the MOM. Workers must also be provided with paid sick leave if they fall ill or get injured.

Protection against abuse

Singapore law provides robust protection against abuse and exploitation. Employers who mistreat or abuse their foreign workers can face severe penalties, including fines, imprisonment, and a ban on hiring foreign workers in the future.

A practical guide to hiring foreign workers

Hiring foreign workers in Singapore involves several practical steps and considerations to ensure a smooth and compliant process.

Step 1: Determine manpower needs

Assess your manpower needs and decide which roles can be filled by foreign workers. Ensure that these positions meet the eligibility criteria for the relevant work passes.

Step 2: Understand quota and levy requirements

Different sectors have specific quotas and levy requirements for hiring foreign workers. Ensure you understand and comply with these regulations to avoid penalties.

Step 3: Apply for Work Passes

Submit applications for the appropriate work passes through the MOM’s online portal. Ensure that all required documents are complete and accurate to avoid delays.

Step 4: Prepare for Arrival

Once the work pass is approved, make necessary arrangements for the worker’s arrival in Singapore. This includes booking flights, arranging accommodation, and preparing for medical examinations if required.

Step 5: Orientation and training

Provide a comprehensive orientation and training program for your foreign workers. This helps them understand their roles, the company culture, and their rights and responsibilities.

Step 6: Compliance and record-keeping

Maintain accurate records of your foreign workers’ employment, including copies of work passes, pay slips, and leave records. Regularly review your practices to ensure ongoing compliance with MOM regulations.

Employer obligations and employee rights

Central Provident Fund (CPF)

The Central Provident Fund (CPF) is a mandatory social security savings scheme designed to provide Singaporeans and Permanent Residents with financial security in their retirement, healthcare needs, and housing requirements.

Employers are obligated to make CPF contributions on behalf of their employees who are Singapore citizens or Permanent Residents.

The CPF contribution rates vary based on the employee's age and wages. For employees under the age of 55, both the employer and the employee contribute a percentage of the employee’s monthly salary to the CPF.

The current total contribution rate is 37 percent, with 17 percent contributed by the employer and 20 percent by the employee. These contributions are allocated into three accounts:

• The Ordinary Account;
• The Special Account; and,
• The MediSave Account.

Each serves specific purposes such as housing, retirement, and medical expenses.

The key components of social insurance and health benefits include the MediSave Account and MediShield Life.

MediSave

Part of the CPF contributions is allocated to the MediSave Account, which employees can use to cover hospitalization expenses, day surgeries, and certain outpatient treatments. This ensures that employees have funds set aside to meet their healthcare needs without financial strain.

MediShield Life

This is a universal health insurance scheme that provides lifetime protection against large hospital bills and selected costly outpatient treatments. MediShield Life coverage is automatic and mandatory for all Singaporeans and Permanent Residents. Premiums for MediShield Life can be paid using the funds in the MediSave Account.

Protection from workplace discrimination

Singapore's commitment to a fair and inclusive workplace is reflected in its stringent laws against workplace discrimination. The Tripartite Guidelines on Fair Employment Practices, established by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), outline the expectations for employers in ensuring non-discriminatory employment practices.

Equal opportunities

Employers must provide equal employment opportunities based on merit, regardless of age, race, gender, religion, marital status, or disability. This applies to all aspects of employment, including hiring, promotion, training, and remuneration.

Grievance handling

Employers are required to establish clear grievance-handling procedures to address complaints of discrimination. Employees who believe they have been subjected to unfair treatment can seek assistance from TAFEP or file a complaint with the Ministry of Manpower (MOM).

Harassment policies

Employers must implement policies to prevent workplace harassment, including sexual harassment. These policies should outline the behaviors that constitute harassment, the procedures for reporting incidents, and the consequences for perpetrators.

Inclusive culture

Promoting an inclusive workplace culture involves training and educating employees about diversity and inclusion. Employers are encouraged to conduct regular training sessions and workshops to raise awareness about the importance of a respectful and inclusive work environment.

Terminating employees

The termination of employment in Singapore can be implemented by either the employee or the employer and both parties must follow the terms and conditions for termination stated in the contract of service. Employees are generally hired with a probation of three to six months and will be hired as permanent employees after the probation period ends.

The employment contract will usually set out the terms of termination and what notice is required, if any.

It is vital for all employees to be sure exactly what their employment contract says so that they can proceed accordingly. The termination of the contract of service can occur in the case of:

• Employee resignation;
• Employer dismissal; or
• Expiration of the contract terms./