Employer of record in Singapore: the real cost in 2026

EOR, own company or contractor?

There are three ways to work with someone in Singapore. Each one fits a different case.

Employer of record

The EOR employs the person for you and runs the payroll. You need no Singapore company. This works for citizens and permanent residents, but not for foreigners who need a work pass (see the next section).MOM, can EORs apply for work passes (FAQ, 9 Jul 2024)Checked 2 Oct 2026

Your own Singapore company

A private limited company needs at least S$1 of share capital and at least 1 director who is ordinarily resident in Singapore. It appoints a company secretary within 6 months. ACRA charges S$15 for the name and S$300 for the registration. Foreigners must use a corporate service provider to register.ACRA, share capital, Companies Act 1967, section 145, ACRA, company directors and other officers, ACRA, service and transaction fees, ACRA, requirements and eligibilityChecked 2 Oct 2026

Contractor

MOM says that no single test decides between an employee and a contractor. It looks at control (who hires, pays and directs the person), at who owns the tools and the workplace, and at the economic facts, such as who takes the profit or the loss.MOM, contract of serviceChecked 2 Oct 2026

Foreign employees and work passes

An EOR in Singapore can employ citizens and permanent residents for you. It cannot bring in a foreigner to work for an overseas company.

The MOM rule

MOM says that work passes are for foreigners who work for companies based in Singapore. An EOR cannot apply for a work pass for a foreigner who will work in Singapore for an overseas company. MOM says that an EOR that does this commits an offence.MOM, can EORs apply for work passes (FAQ, 9 Jul 2024)Checked 2 Oct 2026

The options

For an overseas company with no presence in Singapore, MOM names 3 options. The company can set up a representative office under the Representative Office scheme of Enterprise Singapore. It can register a company with ACRA. Or the foreigner can come on a Short-Term Visit Pass to explore business, for up to 90 days a year.MOM, can EORs apply for work passes (FAQ, 9 Jul 2024)Checked 2 Oct 2026

CPF

CPF applies only to citizens and permanent residents. Foreigners on a work pass do not get CPF.CPF Board, who should receive CPF contributionsChecked 2 Oct 2026

If a provider offers a work pass for your foreign hire, ask it how the offer fits this MOM rule.

The employment agency licence

In Singapore, an employment agency needs a licence from MOM. An EOR is the legal employer, but the person works for you. So the question is whether the EOR's service counts as agency work.

Who needs a licence

MOM requires a licence to process job applications, to collect CVs, to submit work pass applications for an employer or a jobseeker, or to help place a jobseeker with an employer.MOM, who needs an employment agency licence, Employment Agencies Act 1958, sections 2 and 6Checked 2 Oct 2026

When no licence is needed

MOM says that you need no licence to recruit people for your own business, or to outsource your own staff to your customers' premises or offices.MOM, who needs an employment agency licenceChecked 2 Oct 2026

Employers of record

MOM's licence page does not name employers of record. We found no MOM rule that is written for them.MOM, who needs an employment agency licenceChecked 2 Oct 2026

Ask each provider these questions before you sign:

• Does your Singapore company, or your partner, hold an employment agency licence? Can we see the licence number?
• If not, why does your service not need one?

These rules are complex. Ask a Singapore lawyer how they apply to your case.

Employment rules

Minimum wage

Singapore has no general minimum wage. Under the Progressive Wage Model, some sectors, such as cleaning, security and food services, have minimum wages for each job level. Since 1 July 2026, a firm that hires foreign workers must pay its local employees at least the Local Qualifying Salary of S$1,800 a month.MOM, is there a minimum wage (FAQ), MOM, Progressive Wage Model, MOM, Local Qualifying SalaryChecked 2 Oct 2026

Who the Employment Act covers

The Employment Act covers all employees under a contract of service, with some exceptions, such as domestic workers and seafarers. The rules on hours and overtime (Part 4) cover only workmen who earn S$4,500 a month or less, and other employees who earn S$2,600 a month or less.MOM, who the Employment Act coversChecked 2 Oct 2026

Working hours

Under Part 4, the normal hours are up to 9 a day or 44 a week, for a week of 5 days or fewer. Overtime pays at least 1.5 times the hourly basic rate.MOM, hours of work, overtime and rest daysChecked 2 Oct 2026

Annual leave

7 days of paid leave in the 1st year of service, plus 1 day for each more year, up to 14 days from the 8th year. The employee can take leave after 3 months of service.MOM, annual leaveChecked 2 Oct 2026

Sick leave

Up to 14 days of paid outpatient sick leave and up to 60 days of paid hospitalisation leave a year. The 60 days include the 14 days. The full amount applies after 6 months of service.MOM, sick leaveChecked 2 Oct 2026

Public holidays

11 paid public holidays a year.MOM, public holidaysChecked 2 Oct 2026

Maternity, paternity and shared parental leave

For a citizen child, the mother gets 16 weeks of maternity leave. For the 1st and the 2nd child, the employer pays the first 8 weeks, and the government pays back the last 8 weeks, up to S$10,000 for each 4 weeks. The father gets 4 weeks of paternity leave. Parents of a child born from 1 April 2026 share 10 weeks of shared parental leave. The government pays back these weeks, up to S$2,500 a week.MOM, maternity leave, MOM, paternity leave, MOM, shared parental leaveChecked 2 Oct 2026

Childcare leave

6 days a year for a parent of a citizen child under 7. The employer pays the first 3 days, and the government pays back the other 3 days, up to S$500 a day.MOM, childcare leaveChecked 2 Oct 2026

Probation and written terms

The Employment Act has no rules on probation, so the contract sets it. The employer gives the key employment terms in writing within 14 days after the start of the employment.MOM, contract of serviceChecked 2 Oct 2026

Salary payment

The employer pays the salary at least once a month, within 7 days after the end of the salary period, with an itemised payslip.MOM, paying salaryChecked 2 Oct 2026

Notice

The contract sets the notice period. If it has none, the notice is 1 day for less than 26 weeks of service, 1 week up to 2 years, 2 weeks up to 5 years, and 4 weeks for 5 years or more. Either party can pay salary instead of notice.MOM, termination with noticeChecked 2 Oct 2026

Retrenchment

An employee with at least 2 years of service can get a retrenchment benefit. The contract sets the amount. MOM says that the usual amount is 2 weeks to 1 month of salary for each year of service. An employer with 10 or more employees tells MOM within 5 working days.MOM, responsible retrenchmentChecked 2 Oct 2026

Workplace fairness

Parliament passed new workplace fairness laws against discrimination at work. MOM targets the end of 2027 for the start.MOM, Workplace Fairness bill, second reading (4 Nov 2025)Checked 2 Oct 2026

Payroll and taxes

The employer, or the EOR, pays CPF for each employee who is a citizen or a permanent resident. It pays the employer's share and the employee's share, and it takes the employee's share out of the salary. CPF for a month is due on the last day of that month. The CPF Board takes action if the payment is not made by the 14th of the next month, and it charges interest of 1.5% a month on late payments.

The employee's share is 20% at age 55 and below, on the same pay up to S$8,000 a month. For all wages in a year, including bonuses, CPF stops at S$102,000.

From 1 January 2027, the employer's CPF rate rises to 16.5% for ages above 55 to 60, and to 13% for ages above 60 to 65. The other rates and the ceiling of S$8,000 a month stay the same.

The CPF Board also collects the Skills Development Levy, for all employees, including foreigners. The employer also takes the contributions to the self-help groups (CDAC, ECF, MBMF and SINDA) out of the employees' wages.

The employer reports the yearly pay of each employee to the Inland Revenue Authority of Singapore (IRAS) on Form IR8A, by 1 March of the next year. An employer with 5 or more employees must send this data to IRAS electronically, under the Auto-Inclusion Scheme (AIS).

When a permanent resident leaves, the employer files Form IR21 at least 1 month before the last day of work. It holds back all money that it owes to the employee until IRAS gives tax clearance.

Sources: CPF Board, enforcement and penalties, CPF Board, how much CPF contributions to pay, CPF Board, what payments attract CPF contributions, CPF Board, contribution changes from 1 Jan 2027, CPF Board, Skills Development Levy, CPF Board, contributions to self-help groups, IRAS, filing employee earnings (IR8A), IRAS, Auto-Inclusion Scheme (AIS), IRAS, tax clearance for foreign and PR employees (IR21)Checked 2 Oct 2026

Payroll in Singapore: an EOR or a local payroll company?

A local payroll company calculates the pay and the CPF, and it files the returns. It does not employ the person. Your company stays the legal employer, with all the duties of an employer under Singapore law.

CPF registration

Every employer needs a CPF Submission Number (CSN). A CSN is made of the employer's Unique Entity Number (UEN) and a payment code. We found no official route to a CSN for a foreign company without a UEN.CPF Board, CPF Submission Number (CSN)Checked 2 Oct 2026

An overseas employer

CPF is due on the wages of a citizen or a permanent resident who works in Singapore, even if the contract is signed overseas. The CPF Board says that its enforcement would not be effective against an overseas employer with no presence in Singapore.CPF Board, working in Singapore for an overseas employer (FAQ)Checked 2 Oct 2026

Tax reporting

To join the Auto-Inclusion Scheme, IRAS asks a foreign entity without a tax reference number for proof of its establishment in Singapore.IRAS, joining the Auto-Inclusion SchemeChecked 2 Oct 2026

A payroll company is enough when your company already has a Singapore entity with a UEN. Without one, an EOR is the usual choice. The CPF Board says that, with an EOR, the EOR is the employer and pays the CPF. Ask a tax adviser if an employee in Singapore creates a taxable presence (a permanent establishment) for your company.

Sources: CPF Board, CPF Submission Number (CSN), CPF Board, working in Singapore for an overseas employer (FAQ), IRAS, joining the Auto-Inclusion SchemeChecked 2 Oct 2026

Benefits

The law requires CPF for citizens and permanent residents, the Skills Development Levy, and the leave that this guide describes.

Work injury compensation insurance is required for all employees who do manual work, and for other employees who earn S$2,600 a month or less. The premium depends on the insurer, so the calculator leaves it out.

Other benefits, such as a yearly bonus or private medical insurance, depend on the contract. CPF applies to a bonus too, up to the yearly ceiling of S$102,000 for all wages.

Sources: CPF Board, who should receive CPF contributions, CPF Board, Skills Development Levy, MOM, work injury compensation insurance, CPF Board, what payments attract CPF contributionsChecked 2 Oct 2026

How hiring through an EOR works

1. Compare providers and ask for quotesAsk for the monthly fee in Singapore, the deposit, the exchange rate and the notice period of the EOR contract. Ask about the employment agency licence.
2. Check the status of the candidateMake sure that the candidate is a citizen or a permanent resident. An EOR cannot get a work pass for a foreigner who works for your overseas company.
3. Agree the employment termsAgree the salary, the start date, the leave and the probation period with the candidate.
4. The EOR signs the contractThe EOR becomes the legal employer. It gives the key employment terms in writing within 14 days.
5. The EOR runs the payrollEach month, the EOR pays the salary and takes out the employee's CPF. It pays the CPF and the Skills Development Levy to the CPF Board. Each year, it reports the pay to IRAS.
6. You manage the daily workYou set the tasks and the goals. The EOR handles the employment administration.

Sources: MOM, can EORs apply for work passes (FAQ, 9 Jul 2024), MOM, contract of service, CPF Board, enforcement and penalties, IRAS, filing employee earnings (IR8A)Checked 2 Oct 2026