Singapore PEO Services

Hiring in Singapore

For the Singapore PEO Services, The Employment Act is Singapore’s primary labour law. It provides for the basic terms and conditions at work for employees covered by the Act.  It covers all local and foreign employees under a contract of service with an employer.  Besides, it does not matter whether the employee is under temporary, contract, daily-rated or tenured employment.

Exceptions are provisions on rest days, work hours and other service conditions, which do not cover managers or executives.  Managers and executives are employees with executive and supervisory functions.  They also include professionals with tertiary education and specialised knowledge or skills with employment terms similar to managers or executives.  Examples include advocates and solicitors, chartered accountants, practising doctors and dentists.  Specifically, such provisions shall apply to a workman with a basic monthly salary of not more than $4,500.  For a non-workman, the provisions also apply where the basic monthly salary is not more than $2,600.

Singapore work visa

Work Hours

The Employment Act regulates the hours of work in a contract of service under common work arrangements.

Working days in a week

Allowed hours of work

5 or less

Up to 9 hours a day or 44 hours a week

More than 5

Up to 8 hours a day or 44 hours a week

An employee may claim overtime pay if he/she is a non-workman earning up to $2,600 or a workman earning up to $4,500. The hourly rate shall be at least 1.5 times the basic hourly rate of pay.  However, for non-workmen, the overtime rate is capped at the salary level of $2,600 or an hourly rate of $13.60.

These requirements on work hours and overtime pay do not apply to managers and executives.

Leave Days

Employees are entitled to 11 paid public holidays a year in accordance with the Employment Act.

  • New Year’s Day
  • Chinese New Year – first day
  • Chinese New Year – second day
  • Hari Raya Puasa
  • Hari Raya Haji
  • Good Friday
  • Labour Day
  • Vesak Day
  • National Day
  • Deepavali
  • Christmas Day

If required to work on a public holiday, an employee shall be entitled to an extra day’s salary or a day off in lieu. 

Employees are also entitled to paid annual leave after working for an employer for 3 months.  Annual leave entitlement depends on the years of service with the employer.

Year(s) of Service

Entitled Annual Leave Days















8 and more


Other types of paid leave are also stipulated in the Employment Act.

Adoption Leave

(capped at $10,000 per every 4-week leave taken)

First & Second Birth:

  • First 4 weeks paid by employer
  • Subsequent 8 weeks reimbursed by government

Third & Subsequent :

  • All 12 weeks reimbursed by government

Childcare Leave

(capped at 42 for each parent)

6 days per year until the year the child turns 7 years old, regardless of number of children

Extended Childcare Leave

2 days for employees after 3 months if the youngest child is between 7 and 12 years old and in primary school

Maternity Leave

First & Second Birth:

  • First 8 weeks paid by employer
  • Subsequent 8 weeks reimbursed by government

Third & Subsequent :

  • All 16 weeks reimbursed by government

Paternity Leave

2 weeks paid by government

Marriage Leave

No statutory entitlement

Compassionate Leave

No statutory entitlement

Entitlement to paid sick leave depends on an employee’s period of service.  He/She will get full entitlement after 6 months.  In such case, there will be 14 days for paid outpatient sick leave and 60 days for paid hospitalisation leave. Note however that the 60 days of paid hospitalisation leave includes the 14 days of paid outpatient sick leave entitlement.

For new hires from 3 to 6 months, paid sick leave is pro-rated according to the length of service.

Months of Service

Paid Outpatient Sick Leave Days

Paid Hospitalised Leave Days










6 and more



Note : The total number of paid outpatient sick leave days and paid hospitalisation leave days taken is capped at the paid hospitalisation leave days entitlement.

e.g. If an employee has already taken 14 days of paid outpatient sick leave in a year, the number of days of paid hospitalisation leave that he/she can take is 46.

Central Provident Fund

Employers are required to pay both the employer’s and employee’s share of CPF contributions every month.  They are then entitled to recover the employee’s share from the employee’s wages.  Contributions are compulsory for Singapore citizens and Singapore permanent residents who are working in Singapore under a contract of service as well as on a permanent, part-time or casual basis.  Contributions are not mandatory if the employee is a citizen or permanent resident working overseas.

Contributions are computed based on an employee’s wages.  Wages will cover all basic wages, overtime pay, bonus, allowance, commissions, cash incentive etc.  However, termination benefit, reimbursement and non-cash benefit or gift are not considered wages.  For example, per diem payments given as a lump sum allowance are considered wages.  However, per diem payments for reimbursements of expenses incurred for official purposes are not wages.

A number of factors determine both the employer’s and employee’s share of CPF contribution.  They include the employee’s age, wages, and citizenship or permanent resident status.  The normal rate of employer’s contribution for employees of up to 55 years of age is around 17%.


The minimum retirement age in Singapore is 63. If an employee, who is a Singapore citizen or Singapore permanent resident, joins the employer before turning 55, the employer cannot ask him/her to retire before 63.  Employers must offer re-employment to eligible employees who turn 63 to continue their employment, up to 68. Here are the criteria for eligibility.

  • If hired at the age of 55 or above, having served the employer for 2 years before turning 63
  • Satisfactory work performance as assessed by the employer
  • Medically fit to continue working

if the employer is unable to offer a position for re-employment, they must transfer the re-employment obligation to another employer or offer the employee a one-off employment assistance payment.  It will be equivalent to 3.5 months’ salary, subject to a minimum of $6,250 and a maximum of $14,750.


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