Monthly Minimum Wage：There is no minimum wage requirement in Singapore. However, there will be a minimum salary requirement if applying for a work visa.
Probation Period：The probation period is not mandatory. The shortest probation period is 3 months, and the longest is 6 months.
Employer Costs：Employer costs are usually 17.25% of the employee’s salary.
Pension fund (Central Provident Fund or CPF) – 17%
Skills Development Fund – 0.25%
Update in 2025: Please note that 17% is the maximum contribution rate, and the amount will vary according to the employee’s citizenship, age, and salary. The maximum salary used to calculate this contribution is SGD 7,400. The maximum of the Skills Development Fund is SGD 11.25.
1.3 Salary Payment and Statutory Holiday Responsibilities
Personal Income Tax
Personal income tax rates range from 0% to 22%. Income tax is calculated on a progressive basis. Many other factors, such as family status and the number of children, may affect the overall tax rate.
Overtime Pay and Maximum Working Hours
The standard working hours are no more than 9 hours per day or 44 hours per week. The standard working week is from Monday to Friday.
Overtime pay is not mandatory and is assumed to be included in the employee’s salary.
Statutory Holidays：Full – time employees are entitled to 7 days of paid annual leave. Paid leave accumulates at a rate of 0.58 days per month. Employees are eligible for annual leave after working for 3 months. Employees will receive an additional 1 day of leave for each year of service, up to a maximum of 14 days.
Treatment or Conversion Logic for Unused Annual Leave at the End of the Year：There is no standard. It is subject to the contract.
Statutory Public Holidays：There are 10 national public holidays in Singapore, lasting a total of 11 days. National public holidays include: New Year’s Day, Chinese New Year (2 days), Good Friday, Labour Day, Hari Raya Puasa, Vesak Day, Hari Raya Haji, National Day, Deepavali, Christmas Day.
Other Holidays
Maternity Leave：Pregnant women who have worked continuously for 3 months are entitled to 16 weeks of paid maternity leave. They must take 4 weeks of leave before the child is born and 8 weeks after the child is born. The remaining 4 weeks can be used at the employee’s discretion. During this period, the employee will receive 100% of their average salary. The employer is responsible for the first 8 weeks, and social security is responsible for the last 8 weeks.
Paternity Leave：Employees who have worked continuously for 3 months are entitled to 2 weeks of paid paternity leave. These 2 weeks must be taken continuously within the 16 – week maternity leave period. The employee will receive their normal salary, with a maximum of USD 2,500 per week, and social security is responsible for paying this amount.
Parental Leave：In Singapore, there is no legal coverage for parental leave. However, fathers are entitled to share 4 weeks of the mother’s 16 – week maternity leave. The employee will receive their normal salary, with a maximum of USD 2,500 per week.
Sick Leave：After working for 3 months, employees are entitled to up to 14 days of paid sick leave. The number of sick leave days depends on the length of service. Employees will receive 100% of their salary during sick leave, which is paid by the employer. Employees are also entitled to up to 60 days of paid hospital sick leave, provided they have worked for at least 3 months. The number of sick leave days depends on the length of service. Employees will receive 100% of their salary during sick leave, which is paid by the employer.
Calculation Logic for Partial – attendance Salary (including Absence or Unpaid Leave)：Prorated Salary = Monthly salary x (Actual working day/Total workday for that month)
Expatriate Employees
Local Minimum Wage Required for Split Payroll Work Visa
Salary requirements: The salary is relatively high, and the specific amount is adjusted according to the regulations of the Ministry of Manpower in Singapore.
S Pass work visa requirements: Generally speaking, if in the non – financial sector, the monthly salary needs to be at least SGD 3,150; if working in the financial sector, it needs to be at least SGD 3,650.
EP work visa requirements: Generally speaking, if in the non – financial sector, the monthly salary needs to be at least SGD 5,600; if working in the financial sector, it needs to be at least SGD 6,200.
Whether Local Social Welfare can be Withdrawn (e.g., Provident Fund)：It can only be withdrawn when reaching the age of 55.
Dismissal (Legal Requirements and Best Practices)
Notice Period
If the service period is less than 26 weeks, it is 1 day.
If the service period is between 26 weeks and 2 years, it is 1 week.
If the service period is between 2 and 5 years, it is 2 weeks.
If the service period exceeds 5 years, it is 4 weeks.
Voluntary Resignation
Employees are allowed to resign at any time.
Compliance requirements: Employees must provide a resignation letter signed in ink or a resignation letter with a digital/electronic signature via email.
Statutory notice period: As stipulated in the employment agreement.
Dismissal during Probation
Employers or employees are allowed to terminate the employment relationship at any time during the probation period.
Reason: There is no legal requirement.
Compliance requirements: If the employer seeks to immediately dismiss an employee during the probation period without notice, they must comply with the requirements for dismissal with just cause.
Statutory notice period: As stated in the employment agreement.
Negotiated Dismissal
Employers and employees are allowed to agree to terminate the employee’s employment relationship for any reason.
Common reasons: The employee may be involved in disputes or litigation; employees cannot be dismissed without just cause; the employee has negotiated the termination of the labor contract with the client.
Statutory notice period: Agreed by both parties.
Dismissal with Just Cause
Employers are allowed to immediately terminate the employment relationship without notice due to misconduct or serious performance issues.
Reasons: Serious performance issues, attendance issues, theft (including money or property), misconduct (e.g., violation of the employment agreement, policies, or laws), forgery of records, harassment, violence.
Compliance requirements:
A fair investigation must be conducted into the misconduct allegations, and the burden of proof lies with the employer.
Every step of the process and any communication with the employee must be recorded.
Conversion of Annual Leave for Departing Employees：Leave encashment = [(Gross Salary x 12) / (52 weeks x Average number of workdays in a week)] x Number of leaves to encash
1.5 Analysis of Local Government Incentives and Policies for Starting Companies and Hiring Local Employees
Unemployment Rate：In the second quarter of 2024, the unemployment rate was 2.0%, showing an overall downward trend. The long – term unemployment rate for residents was 0.8%.
Average Salary Trend
In 2023, the median monthly total income (including employer CPF contributions) of full – time employed residents was SGD 5,197, a year – on – year increase of 2.5%. However, this increase was lower than the annual average growth rate from 2013 to 2023 (3.4% per year).
In 2023, the nominal total wages of full – time local employees continued to grow, but the growth rate slowed down from 6.5% in 2022 to 5.2% in 2023. After considering inflation, the real wages increased by 0.4% in 2023.
In 2023, wages in all industries continued to grow. However, the magnitude of wage changes in each industry was generally lower than in 2022. Above – average wage growth was observed in growing industries such as financial services (7.6%) and information and communication (6.2%). Wage increases in manufacturing (4.0%) and construction (4.2%) continued to be below the average.
Employment Suggestions
Although the Ministry of Manpower (MOM) specifies that employers must give at least 7 days of annual leave per year, in fact, few employers give that little. Generally, it is 10 to 15 days of annual leave.
Generally, employers in Singapore pay salaries at the end of the month. MOM only stipulates that salaries must be paid by the 7th of the next month at the latest.
Commercial insurance is not mandatory for employees. It is usually used as an additional benefit to attract candidates.
1.7 Local Cultural Adaptation
Language：The official languages of Singapore are Malay, Chinese, Tamil, and English. Malay is the national language, and English is the administrative language.
Religious Customs
Religion：Singapore promotes the spirit of mutual tolerance and inclusion between religions and ethnic groups and implements a policy of religious freedom. Singapore is truly a melting pot of multiple religions. There are various religious buildings here. Many ancient temples have been listed as national monuments, and there are different celebration activities every year. Singaporeans believe in religions such as Buddhism, Taoism, Islam, Hinduism, and Christianity. Buddhism is the largest religion in the country, with Buddhist believers accounting for 33% of the population, Christianity 18%, Islam 15%, Taoism 10%, and Hinduism 5%.
Customs：Singapore is a multi – ethnic city – state dominated by the Chinese. Although the ethnic groups such as the Chinese, Malays, and Indians have different customs, they get along well and are united and harmonious. The traditional education of the Chinese is relatively strict, with strong ethical and moral concepts. They attach importance to family ancestors and still retain the habit of celebrating traditional Chinese festivals such as the Spring Festival, the Dragon Boat Festival, and the Mid – Autumn Festival. The Malays have strong religious beliefs, and their customs are closely related to religion. Islamic laws and the sultanate system maintain their lives and unity. As a religious taboo, Malays do not eat pork, do not drink alcoholic beverages, and mostly use their right hands when dealing with others. The heads of children are considered sacred, and others cannot touch them except for their parents. The Indians have a relatively simple life, and their culture is also closely related to religion. They pay great attention to temple architecture, and most Indian families have an altar or prayer room. Indians regard cows as sacred animals, do not eat beef, and cannot give gifts made of cowhide.
Business Culture
Taboos：Singaporeans do not like the number “4” because it is considered an unlucky number; it sounds similar to “death”. On the first day of the Lunar New Year, all brooms must be put away, and sweeping is not allowed. They believe that sweeping on this day will sweep away good luck.
Dress Code：For business activities, wearing a white shirt, long pants, and a tie is usually sufficient. When visiting government offices, one should still wear a suit and a coat.
Greeting Etiquette：When meeting guests in social settings, Singaporeans generally practice the handshake etiquette.
Visiting and Appointment：Singaporeans have a strong sense of time and have a good habit of being punctual for appointments. They believe that being punctual for appointments is a sign of respect and courtesy to guests. Visiting activities generally need to be made in advance.
Hospitality and Gifts：When giving gifts, avoid choosing clocks or handkerchiefs because in Chinese culture, these items may have negative meanings. When presenting or receiving business cards or gifts, please use both hands to show respect. During the Spring Festival, Chinese people usually give oranges as New Year gifts, symbolizing “good luck”. Do not use your left hand to eat when dining with Malays or Indians.
Speech and Behavior：Avoid topics related to religion and politics. Suitable topics for conversation include travel experiences, what one has seen in other countries, and Singapore’s economic development. They dislike people swearing and believe that no matter how swear words appear, they will have a bad influence on the next generation. At events, please considerately provide halal food, vegetarian food, or other suitable catering options.
