Home to international business opportunities, even more after the global pandemic when it stepped forward as one of the very first few countries in Asia to open its borders, Singapore boasts low tax rates, excellent legal framework and equally importantly, great infrastructure and a strategic location in Asia.
Looking to expand your business into Singapore? Links International has compiled a guide for you that includes labour laws and best practices in Singapore you are required to follow when operating a business in the Garden City.
Please note that all the information listed above are to be used as a general guideline. For more detailed accounts of Singapore employment laws and regulations, please visit the official governmental websites.
All foreigners who intend to work in Singapore must have a valid pass (commonly known as a working visa) before they start employment in Singapore. There are different passes for different types of workers who stand at different skill-levels:
Sector | Current minimum qualifying salary for new applications, and for renewals from 1 September 2023 | Minimum qualifying salary for renewals before 1 September 2023 |
All (except financial services) | At least S$5,000 (increases progressively with age from 23, up to S$10,500 at age 45 and above) | S$4,500 (increases progressively with age from 23, up to S$8,400 at age 45 and above) |
Financial services | At least S$5,500 (increases progressively with age from 23, up to S$11,500 at age 45 and above) | At least S$5,000 (increases progressively with age from 23, up to S$9,300 at age 45 and above) |
Source: Ministry of Manpower
Sector | Current minimum qualifying salary for new applications, and for renewals from 1 September 2023 | Minimum qualifying salary for new applications from 1 September 2023, and for renewals from 1 September 2024 | Minimum qualifying salary for new applications from 1 September 2025, and for renewals from 1 September 2025 |
All (except financial services) | S$3,000 (increases progressively with age from 23, up to S$4,500 at age 45 and above) | S$3,150 (increases progressively with age from 23, up to S$4,650 at age 45 and above) | At least S$3,300 (to be finalised) |
Financial services | S$3,500 (increases progressively with age from age 23, up to S$5,500 at age 45 and above) | S$3,650 (increases progressively with age from age 23, up to S$5,650 at age 45 and above) | At least S$3,800 (to be finalised) |
Source: Ministry of Manpower
Sectors | Current minimum qualifying salary | Revised minimum qualifying salary |
All (except financial services) | S$4,500 (Increases progressively with age, up to S$8,400 for candidate in mid-40s) | S$5,000 (Increases progressively with age, up to S$10,500 for candidate in mid-40s) |
Financial services | S$5,000 (Increases progressively with age, up to S$9,300 for candidate in mid-40s) | S$5,000 (Increases progressively with age, up to S$11,500 for candidate in mid-40s) |
Source: Ministry of Manpower
The Ministry of Manpower will take legal and punitive measures towards workplace discrimination. MOM refers to the TAFEP in the promotion of fair and responsible workplace practices.
For common work arrangements, the normal contractual hours of work are as follows:
No provision in Singapore specifies a probation period, however, standard practice is to have a 3-6 month probation period.
In this situation | Employees final salary must be paid |
Employee resigns and serves the required notice period | On the last day of employment |
Employee resigns without notice and doesn’t serve the notice period | Within 7 days of the last day of employment |
Dismissal on grounds of misconduct | On the last day of employment If this is not possible, then within 3 working days from the date of dismissal. |
Employer terminates the contract | On the last day of employment If this is not possible, then within 3 working days from the date of termination. |
Uses of CPF Savings | |
Ordinary Account (OA) | For housing, insurance, investment and education. |
Special Account (SA) | For old age and investment in retirement-related financial products. |
Medisave Account (MA) | For hospitalisation expenses and approved medical insurance. |
Retirement Account (RA) | On your 55th birthday, a fourth account, the Retirement Account (RA), is automatically created. |
In Singapore, the Retirement and Re-employment Act (RRA) states that the minimum retirement age is 63 years old. However, as of 1 July 2022, employers must offer re-employment to eligible employees who have turned 63 to continue their employment until they turn 68. The re-employment age was increased from 67 to 68 as of 1 July 2022.
Age | Retirement Age | Re-employment Age |
Born before 1 July 1955 (>67 years old on 1 July 2022) | 62 | 67 |
Born between 1 July 1995 and 30 June 1960 (between 62-67 years old on 1 July 2022) | 62 | 68 |
Born after 1 July 1960 (<62 years old on 1 July 2022) | 63 | 68 |
Tripartite Alliance for Dispute Management (TADM)
Year of Service | Days of Leave |
1st | 7 |
2nd | 8 |
3rd | 9 |
4th | 10 |
5th | 11 |
6th | 12 |
7th | 13 |
8th and thereafter | 14 |
Number of months of service completed | Paid outpatient non-hospitalisation leave (days) | Paid hospitalisation leave (days) |
3 | 5 | 15 |
4 | 8 | 30 |
5 | 11 | 45 |
6 and thereafter | 14 | 60 |
Employees are entitled to public holidays as follows:
Holiday | Date |
New Year’s Day | 2 January |
Chinese New Year | 23 January – 24 January |
Good Friday | 7 April |
Hari Raya Puasa | 22 April |
Labour Day | 1 May |
Vesak Day | 2 June |
Hari Raya Haji | 29 June |
National Day | 9 August |
Deepavali | 13 November |
Christmas Day | 25 December |
If PH falls on | The employer must compensate |
A working day | An extra day of basic salary Gross salary for the holiday Overtime pay if work beyond normal working hours |
A non working day | Overtime pay for extra hours on a non working day An extra day of gross salary or off-in-lieu for the holiday |
A rest day | Payment for work done on rest day Overtime pay if work beyond normal working hours Next working day will be paid holiday |
Employees are entitled to public holidays as follows:
Holiday | Date |
New Year’s Day | 1 January |
Chinese New Year | 10 February – 11 February* |
Good Friday | 29 March |
Hari Raya Puasa | 10 April |
Labour Day | 1 May |
Vesak Day | 22 May |
Hari Raya Haji | 17 June |
National Day | 9 August |
Deepavali | 31 October |
Christmas Day | 25 December |
* Monday, 12 Feb 2024, will be a public holiday.
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*Please note that all the information listed above are to be used as a general guideline. For more detailed accounts of Singapore employment laws and regulations, please visit the official governmental websites.
Links International is a leading payroll outsourcing provider across Asia Pacific and supports payroll in over 17 countries. Please do not hesitate to contact us.