Employment laws in Singapore: a complete guide for employers

Employment laws in Singapore establish minimum requirements for salaries, working hours, leave entitlements, termination and workplace protection. The Employment Act is the principal legislation, supported by regulations governing foreign workers, Central Provident Fund contributions and personal data. Employers must also comply with work-pass requirements when recruiting overseas talent.

Understanding the Employment Act in Singapore

The Employment Act 1968 is Singapore's primary employment legislation. It applies to most employees working under a contract of service, including local and foreign employees.

However, some provisions apply only to specific categories of workers:

• Part IV of the Employment Act, which regulates working hours, rest days and overtime, generally covers workmen earning a basic monthly salary of S$4,500 or less and non-workmen earning S$2,600 or less.
• Managers and executives are excluded from Part IV.

Understanding these distinctions matters when establishing employment contracts and calculating employee entitlements.

Recruitment and employment contracts

Employers must provide written key employment terms to Employment Act-covered employees who meet the applicable eligibility requirements.

These terms include job responsibilities, salary, working arrangements, leave entitlements and notice periods.

Employers should also issue itemised payslips and maintain accurate employment records.

Hiring foreign employees

Foreign professionals typically require an Employment Pass, S Pass or another applicable work pass issued by the Ministry of Manpower (MOM).

Employment Pass applicants currently need a minimum qualifying monthly salary of S$5,600, increasing with age. The minimum starts at S$6,200 for the financial services sector.

Most Employment Pass applicants must also satisfy the points-based Complementarity Assessment Framework, known as COMPASS.

Where employers claim educational qualifications for COMPASS points, qualification verification is required under MOM's rules.

Veremark's MOM education verification guide explains how employers can approach these checks.

Working conditions under Singapore employment law

Working hours and overtime

For employees covered by Part IV, normal working hours are generally limited to 44 hours per week.

The daily limit depends on the working arrangement.

• Employees working five days or fewer per week can generally work up to nine hours per day, while those working more than five days are usually limited to eight hours per day.
• Eligible employees must receive overtime pay of at least 1.5 times their hourly basic rate.
• Overtime is generally limited to 72 hours per month unless an exemption is granted.
• Employees covered by Part IV must also receive one rest day per week.

Minimum wage and salary payments

Singapore has no universal statutory minimum wage.

However, sector-specific wage requirements apply through the Progressive Wage Model. Employers must also consider Local Qualifying Salary requirements where applicable.

Under the Employment Act, salaries must generally be paid within seven days after the end of the salary period, while overtime payments are usually due within 14 days.

Employers should verify the applicable wage model before setting salaries for cleaning, security, retail or other covered sectors.

Annual leave and employee benefits

Paid annual and sick leave

Employees covered by the Employment Act become eligible for statutory paid annual leave after three months of service.

The annual leave entitlement starts at seven days in the first year and increases by one day for each additional year of service, reaching 14 days from the eighth year.

Employees who meet the eligibility conditions can receive up to 14 days of paid outpatient sick leave and 60 days of paid hospitalisation leave annually, with the latter entitlement including outpatient sick leave.

Singapore also recognises 11 paid public holidays each year.

MOM reported that in 2024, 68.2% of full-time resident employees aged 25 to 64 received more than 14 days of annual leave. Employers competing for experienced candidates may therefore need to offer more than the statutory minimum.

Maternity, paternity and parental leave

Eligible working mothers can receive 16 weeks of Government-Paid Maternity Leave when the relevant criteria are met. Other employees may qualify for 12 weeks of maternity leave under the Employment Act.

Eligible fathers can receive four weeks of Government-Paid Paternity Leave for qualifying births from 1 April 2025.

From 1 April 2026, eligible parents of Singapore citizen children can share 10 weeks of Government-Paid Shared Parental Leave.

Employers need to account for eligibility conditions, notice requirements and reimbursement arrangements when administering these benefits.

Central Provident Fund contributions

The Central Provident Fund (CPF) provides retirement, housing and healthcare savings for Singapore citizens and permanent residents.

For employees aged 55 and below earning monthly wages above S$750, the standard 2026 contribution rates are:

• Employer contribution: 17%.
• Employee contribution: 20%.
• Total contribution: 37%.

Different contribution rates apply to older employees and some permanent residents.

The CPF Ordinary Wage ceiling increased to S$8,000 per month from January 2026.

Employers should confirm contribution eligibility and rates before processing payroll.

Termination and workplace discrimination

Termination of employment

Both employers and employees must follow the notice period established in their employment contract.

Where no contractual notice period is stated, the Employment Act sets minimum periods based on length of service.

For example, an employee with at least five years of service generally requires four weeks' notice.

Termination notices must be provided in writing. Dismissals involving misconduct should follow an appropriate inquiry process.

Employers also need to distinguish between ordinary termination and wrongful dismissal.

Workplace fairness requirements

Singapore's Tripartite Guidelines on Fair Employment Practices guide employers on fair recruitment and workplace treatment.

The Workplace Fairness Act introduces further statutory protections against specified forms of discrimination, with implementation currently targeted for the end of 2027.

Employers should review recruitment criteria, complaint procedures and manager training before the new requirements take effect.

Data protection and background screening

Singapore's Personal Data Protection Act 2012 regulates how organisations collect, use and disclose personal information.

Background checks involving identity, qualifications, previous employment or financial information must comply with the relevant data protection obligations.

The PDPA provides an exception allowing personal data to be processed without consent when necessary for certain employment evaluation purposes. However, this does not remove an employer's other legal responsibilities.

Our guide to pre-employment background checks in Singapore explains how to select appropriate checks and handle candidate information.

Employers should verify information relevant to the position and apply screening standards consistently.

For foreign professionals, education verification can be especially significant when qualifications are used to support an Employment Pass application.

Supporting employment compliance in Singapore

Following employment laws in Singapore requires accurate classification of employees, correct payroll treatment and reliable recruitment records.

An incorrectly calculated CPF contribution or an unsupported qualification claim on a work-pass application can create avoidable compliance problems.

Veremark provides background screening in Singapore, including employment history checks, identity verification and MOM education verification.

FAQs

What is the main employment law in Singapore?

The Employment Act 1968 is the principal legislation governing employment conditions. Additional laws regulate foreign employment, CPF contributions and personal data.

Is there a statutory minimum wage in Singapore?

There is no universal minimum wage. However, Progressive Wage Model requirements apply to certain sectors and occupations.

Are background checks compulsory in Singapore?

There is no general legal requirement to screen every candidate. However, work-pass qualification verification and sector-specific screening obligations may apply, depending on the position and circumstances.