Many steps go into hiring in Singapore, especially if you’re bringing in a worker from abroad. Photo by Freepik
With a highly skilled workforce and a well-regulated employment landscape, Singapore remains an attractive hub for talent seeking opportunities.
That said, every business needs its staff, no matter if you’re a startup founder, SME owner, or expanding enterprise. With that, every business owner should be clear about the steps and responsibilities that come with hiring in Singapore to build a compliant and productive team, from job types to legal obligations.
Here’s a step-by-step guide to get you started.
1. Choosing the right employment type
Before you start hiring, determine the employment arrangement that best suits your needs. Permanent and part-time make up the main types of employment in Singapore, and each comes with its own regulations.
Full-time employment
This arrangement is for permanent roles, where employees are hired under a contract of service with no fixed end date. As outlined in the Employment Act 1968, termination of service (be it by you or the employee) requires written notice.
Part-time employment
Part-time roles involve less than 35 working hours per week, but employees are covered by the Employment Act much like regular, full-time staff are. However, the difference is that contracts of service for part-time employees must include:
- Hourly rate of pay
- Working hours per day/week
- Number of working days
Term contract employment
Often used for project-based, seasonal, or temp work in Singapore, these are fixed-term roles where employees work on fixed-term contracts that terminate after the completion of a project or a specific period unless renewed.
Even so, employees engaged for more than 3 months are entitled to statutory leave benefits.
For additional guidance, read up on the Tripartite Standard on Term Contract Employees.
2. Registering for CPF contributions
Before making any hire, employers must register for a CPF Submission Number (CSN) to make monthly CPF contributions. This is a legal requirement for all Singapore Citizens and PRs under contract.
CPF contributions support employees’ retirement, housing, and healthcare needs—and are a key part of responsible and compliant hiring.
Registration can be done online via the CPF Board website, and should be completed before the employee’s first salary payment.
3. Recruiting employees
Posting job advertisements
Follow fair hiring guidelines when putting up your job ads—avoid discriminatory language based on age, gender, race, or marital status.
As part of governmental requirements introduced in July 2020 to prioritise local talent, if you’re hiring foreigners, you must first post the role on MyCareersFuture.sg for at least 14 calendar days before you can apply for an Employment Pass or S pass.
Shortlisting and interviewing
When you’ve shortlisted a potential candidate, assess them based solely on job-related criteria. Focus on their skills, experience, and how well they align with the role’s requirements and team dynamics.
On that note, interviews should also be conducted fairly and consistently, with questions focused on making objective evaluations—avoid digging into personal matters like age, religion and marital status that are not relevant to job performance.
4. Making an employment offer
If you have a promising candidate, it’s time to extend an offer. While verbal ones are allowed, it is strongly recommended to make written ones to keep everything clear-cut.
When creating your official offer, include Key Employment Terms (KETs) such as:
- Job title and responsibilities
- Salary and benefits
- Leave entitlements
- Probation and notice periods
Once you have a draft, use the KET verification tool to ensure that the document is legally compliant. You can then finalise the hire with a signed employment agreement.
5. Work Injury Compensation Insurance
Per the Work Injury Compensation Act (WICA), employers in Singapore are legally required to insure their employees, which covers:
- All manual workers, regardless of salary level
- Non-manual workers earning $2,600/month or less. This excludes any payments of overtime, bonuses, productivity incentives, annual wage supplements, and allowances
WICA applies to both local and foreign employees hired under a contract of service or apprenticeship, regardless of salary, age, or citizenship. Failing to provide adequate insurance coverage as an employer may result in a fine of up to $10,000, imprisonment of up to 12 months, or both.
Although not legally required, it’s highly recommended to insure all eligible employees—regardless of role or income—to help minimise legal and financial risks in the event of unforeseen workplace injuries.
6. Hiring foreign employees
Hiring foreign employees and workers in Singapore involves several regulatory steps to ensure compliance with the Ministry of Manpower’s (MOM) policies.
As an employer, you must adhere to specific quotas, levy payments, and pass requirements based on the role and industry. You’ll need to:
- Register a Work Pass Account
- Comply with dependency ratio ceilings and foreign worker levies
- Apply for the relevant pass (e.g. Employment Pass, S Pass, Work Permit)
7. Hiring remote employees
With flexible work becoming more common, hiring remote employees—both locally and globally—is now a viable option.
For local remote hires, standard employment regulations still apply—including CPF contributions, written employment contracts, and adherence to working hours under the Employment Act. When hiring from overseas, however, things get a little more complex. You’ll need to consider factors like international payroll, local tax obligations, and the employment laws in the worker’s home country.
As the process might not be so intuitive, you can streamline things by partnering with an Employer of Record (EOR)—a third-party service that hires and manages the employee on your behalf. Elitez is one such example.
Alternatively, for short-term, project-based, or temp work needs, you can opt for temporary staffing solutions, which provide access to vetted professionals without the need for a long-term commitment or local legal entity in Singapore.
8. Employer obligations
Even after you have onboarded employees, there will be obligations to uphold on your side throughout their time working, namely for payroll, contributions and tax filing.
Monthly
- Issue itemised payslips, which should cover detailed salary components such as basic pay, overtime, bonuses, and deductions.
- Contribute to the Skills Development Levy (SDL)
- Deduct contributions for Self-Help Groups (SHGs) based on ethnicity/religion (e.g. CDAC, MBMF, ECF, SINDA)
Yearly
- Report employee income to IRAS by 1 March
If you’re employing 5 or more staff, you’re required to file income data electronically via the Auto-Inclusion Scheme (AIS)
9. Seeking legal and HR assistance
Employment law and payroll compliance in Singapore can have quite some nuances, especially when dealing with issues like contract clauses, termination terms, cross-border hires, or multi-country payroll.
For employers unfamiliar with local regulations, it’s advisable to engage an employment lawyer to draft or review employment contracts, particularly when hiring senior-level roles, foreign workers, or remote staff. Legal professionals can ensure your contracts include the right terms—such as notice periods, probation clauses, confidentiality agreements, and non-compete provisions—while staying aligned with the Employment Act and MOM guidelines.
On the HR side, working with a staffing agency in Singapore (like Elitez!) that provides integrated payroll, compliance, and workforce management solutions can greatly help you save time and reduce risk. This is especially helpful for SMEs or growing businesses that may not have in-house HR or legal teams.
Hiring can be a long process, but doing it right pays off when you get to bring in the right talent. Photo by Freepik
Final thoughts
Singapore offers a transparent and structured framework for employment, but keeping up with regulatory requirements can be time-consuming. If you’re looking to simplify the process, Elitez provides trusted support for businesses of all sizes.
From permanent hires to contract roles and HR compliance, our staffing agency in Singapore delivers flexible workforce solutions tailored to your needs, helping you handle all the essential processes that go into hiring workers in Singapore, be it permanent or part-time.
What’s more, we’re experienced in and equipped to not just help employers, but also help any talent find their footing in a career through our WSG Career Conversion Programme. It’s the ideal programme for connecting employers with a wider talent pool.
Start hiring smarter with Elitez today by reaching out to us!