Introduction: Hiring in Singapore Made Easy
Once you’ve set up your company in Singapore, your next big task is to create your team. When you hire employees — both local and foreign — you need to follow a set of legal steps that MOM oversees.
This guide takes you through each crucial step to make sure your hiring in Singapore stays legal, smooth, and mistake-free.
Get to Know Singapore’s Main Job Laws
Two key laws shape how jobs work in Singapore:
a) The Employment Act 1968 (Updated 2024)
The Employment Act is the big job law in Singapore. It spells out what employers and employees must do. This law covers all employees — from Singapore or other countries full-time part-time short-term, or on contract — except:
- House helpers
- Ship employees
- People working for the government
Key Point: When the Act covers your employee, your job contract can’t give worse terms than the Act states.
The Act controls:
- Work hours and extra pay
- Paid holidays and yearly time off
- Leave for illness and new parents
- When to pay wages and clear pay slips
- Ending jobs and notice times
b) Employment of Foreign Manpower Act (EFMA)
If you want to hire employees from other countries, the EFMA tells you what employers must do about work passes, fees, and keeping records.
This law applies to employers who hire people from abroad with valid work passes such as:
- Employment Pass (EP) – professionals and executives use this
- S Pass – mid-skilled employees use this
- Work Permit (WP) – semi-skilled and unskilled employees use this
Employers need to make sure all foreign employees have valid work passes and follow MOM’s Fair Consideration Framework (FCF) when hiring.
Create a Contract That Follows the Rules
Every employee should get a written Contract of Service that states their job duties, pay, and benefits.
Key Employment Terms (KETs)
From 1 April 2016, employers must give KETs to all employees who:
- Are protected by the Employment Act, and
- Have worked for 14 days or longer.
Your KET needs to include:
- Job title and responsibilities
- Employment start date
- Working hours and days off
- Pay extra money, and rewards
- Time off you can take
- How long before you have to tell about quitting
- CPF payment details (for Singaporeans/PRs)
Check Out: Ministry of Manpower – Key Employment Terms (KETs)
Get CPF Contributions Ready (for Singaporeans & PRs)
Companies that hire Singapore Citizens or Permanent Residents (PRs) must get a CPF Submission Number (CSN) and pay into the Central Provident Fund (CPF) each month.
| Age Group | Employer CPF Contribution (2025) | Employee CPF Contribution | Total CPF Contribution |
| Below 55 years | 17% | 20% | 37% |
| 55–60 years | 14.5% | 15% | 29.5% |
| 60–70 years | 11% | 9% | 20% |
| Above 70 years | 7.5% | 5% | 12.5% |
CPF Contribution Deadline: The last day of each month. Payments made after the 14th of the next month have a 1.5% monthly interest added to amounts not paid on time.
Tip: Make CPF submission automatic with Info-Tech’s Payroll Software, which links to CPF e-submission to prevent mistakes.
Get Work Injury Compensation (WIC) Insurance
Every employer needs to have Work Injury Compensation (WIC) insurance for:
- All employees who do manual labor (no matter how much they earn), and
- Employees not doing manual work who earn $2,600/month or less.
While not required for employees with higher salaries, MOM advises coverage for all staff members. Buy insurance from MOM-approved insurance companies.
Purpose: Safeguards both employer and employee against medical costs and compensation claims for injuries or diseases related to work.
Pay the Skills Development Levy (SDL)
The Skills Development Levy Act requires employers to pay SDL for all employees, including staff from other countries.
- SDL Rate: 0.25% of total monthly wages
- Minimum: $2/month (for wages < $800)
- Maximum: $11.25/month (for wages > $4,500)
Where it goes: SDL payments support SkillsFuture Singapore (SSG) programs — helping companies improve their staff’s skills through training funds and classes.
Use: SDL calculator
Give Out MOM-Approved Detailed Pay Statements
From April 1, 2016, all employers must provide detailed pay statements for each paycheck. These statements can be on paper or digital, but need to show:
- Company and employee names
- Pay period and date of payment
- Base pay and extra money
- Extra hours pay, rewards, and money taken out
- CPF payments (employee & company)
- Take-home pay
Best Practice: Use a digital payroll system that creates and delivers payslips to employees — making sure they’re accurate and follow the rules.
Related: Comprehensive Guidelines Provided By MOM
Extra Steps When Hiring Foreign Employees
If you’re bringing on non-resident employee, you’ll need to follow more MOM steps:
a) Get a Valid Work Pass
Based on the employees’ skills and job, apply for:
- Employment Pass (EP) — for skilled employees making $5,000 or more monthly (starting 2025)
- S Pass — for mid-level staff earning at least $3,150 each month
- Work Permit (WP) — for employees with some skills in building making things, or helping people
See If You Qualify: MOM Work Pass Framework 2025
b) Pay the Foreign Employee Levy (FWL)
Companies that hire Work Permit or S Pass holders need to pay a monthly fee based on:
- How skilled the employee is
- What kind of work they do
- How many foreign employees the company can have (Dependency Ratio Ceiling)
Example:
- Service industry fees range from $300–$700/month for each employee.
- Factory sector fees range from $350–$650/month, based on employee expertise.
Fee payment deadline: By the 14th of every month. Late fees can cause work permit suspension.
Maintain Precise HR & Payroll Files
MOM and IRAS rules require employers to keep employee files for at least two years after job ends. Files should contain:
- Job contracts
- Pay stubs and CPF reports
- Time off and work logs
- IR8A, IR8S, and IR21 tax documents
A digital HRMS like Info-Tech’s HRMS Software makes sure companies follow rules and can find information during checks.
Digital Transformation: Make the Hiring Process Automatic
Doing HR tasks by hand can lead to breaking rules and wasting time. Companies in 2025 are starting to use digital HR and payroll systems to handle:
- Getting new employees started & online contracts
- CPF & SDL paperwork
- Keeping track of time off & when people work
- Paying employees & telling IRAS
Why Pick Info-Tech’s HRMS:
- Creates compliant KETs and payslips
- Links CPF, IRAS, and MOM submissions
- Stores data safely in the cloud following PDPA rules
- Offers a self-service portal for staff to access leave and payslips
Employer’s Quick Guide to Hiring in Singapore (2025)
| Task | Requirement / Law |
| Draft Employment Contract | Employment Act 1968 |
| Register for CPF Contributions | CPF Act |
| Purchase WIC Insurance | Work Injury Compensation Act |
| Pay SDL for All Employees | Skills Development Levy Act |
| Issue Itemised Payslips | Employment Act (Section 96) |
| Apply for Work Pass (if foreign hire) | EFMA |
| Pay Foreign Employee Levy | EFMA |
| Keep Records (min. 2 years) | MOM / IRAS Guidelines |
Conclusion
Hiring in Singapore goes beyond just filling job openings — it’s about building a workforce that follows the law and runs. When you stick to MOM’s hiring guidelines and use tech for your HR tasks, you can cut down on paperwork, avoid mistakes, and put more energy into growing your business.
Info-Tech’s HRMS and Payroll Software makes sure you follow all the rules set by MOM, CPF, and IRAS — turning the hiring process into something easy and worry-free.
Begin your journey to follow the rules today. Set up a free demo to learn how Info-Tech can help your company hire, welcome, and look after employees without breaking a sweat.
Schedule a Demo: Call +65 6297 3398 or write to sales@info-tech.com.sg to make your HR compliance easier.
Frequently Asked Questions
What are the legal steps to hire an employee in Singapore?
To hire an employee in Singapore, employers need to create an employment contract, sign up for CPF contributions, buy WIC insurance, pay SDL, and give itemised payslips.
How much is the CPF contribution rate in 2025?
The CPF contribution rate stays up to 37% (17% employer + 20% employee) for employees under 55 years old.
Is work injury compensation insurance mandatory?
Yes. The law requires it for all manual employees and employees who earn ≤ $2,600/month.
What is the SDL rate in Singapore?
Singapore’s SDL rate is 0.25% of monthly wages, with a limit of $11.25. This applies to all local and foreign employees.
How do I hire foreign employees in Singapore?
To employ foreign employees in Singapore, you need to get a valid work pass (EP, S Pass, or WP) through MOM. You also have to pay a monthly levy for foreign employees.
