Singapore Labor Law Guide for Hiring Employees and Contractors
This labor law guide for Singapore has important information for businesses looking to hire employees or contractors in the country. Singapore is a country in Southeast Asia.
Singapore, often heralded as one of the most dynamic economies, reported robust economic performance for the full year 2023. The city-state’s GDP continues to thrive, bolstered by its pivotal sectors including finance, manufacturing, electronics, biotechnology, and logistics.
As one of the world’s leading financial hubs, it attracts investments from across the globe. Additionally, Singapore’s strategic location and open trade policies make it an essential player in the global supply chain. With its highly skilled workforce and business-friendly environment, hiring in Singapore provides numerous opportunities.
The official currency is the Singapore Dollar (SGD).
Minimum Wage
Not mandated
Overtime Wage
1.5 times the hourly basic rate
Meal Breaks
45 minutes after 6 hours of work
Rest Breaks
Not mandated
Working hours
8 hours/ day; 44 hours/ week
Salary Payment Cycle
Typically monthly
Payroll Taxes
Central Provident Fund (CPF) contributions
Paid Vacation
Minimum of 7 days increasing with years of service
Overtime Hours
Over 44 hours per week
Night Shift Hours
Not mandated
Holidays
11 public holidays
No Work Days
Saturday and Sunday
Employment agreements in Singapore must be in writing and include the following clauses: job title and descriptions, salary details, working hours, benefits, leave entitlement, termination grounds, and notice periods.
Contracts must clearly distinguish between employees and contractors, as labor laws treat them differently. Employees are entitled to statutory benefits, while contractors are not.
Night shift regulations do not mandate additional pay, but companies often provide allowances as a policy.
The minimum legal age for employment in Singapore is 13 years, and there are stringent laws against child labor, ensuring that children are not employed in hazardous jobs.
| Income Level | (SGD) | Tax Rate (%) |
|---|---|
| 0 – 20,000 | 0 |
| 20,001 – 30,000 | 2 |
| 30,001 – 40,000 | 3.5 |
| 40,001 – 80,000 | 7 |
| 80,001 – 120,000 | 11.5 |
| 120,001 – 160,000 | 15 |
| 160,001 – 320,000 | 18 |
| 320,001 and above | 22 |
- Paid/Unpaid Vacation Leave: Starts at 7 days.
- Maternity Leave: 16 weeks, applicable after 3 months of employment.
- Paternity Leave: 2 weeks.
- Sick Leave: 14 days with a medical certificate.
- Adoption Leave: 12 weeks.
| Holiday Name | Date |
|---|---|
| New Year’s Day | January 1 |
| Chinese New Year | Varies (typically February) |
| Good Friday | Varies |
| Labour Day | May 1 |
| Hari Raya Puasa | Varies (Islamic calendar) |
| Vesak Day | Varies (Buddhist calendar) |
| Hari Raya Haji | Varies |
| National Day | August 9 |
| Deepavali | Varies (Hindu calendar) |
| Christmas Day | December 25 |
- Retirement Benefits: CPF contributions.
- Healthcare Benefits: MediSave account under CPF for medical expenses.
- Annual Bonuses: Commonly a 13th-month bonus (Annual Wage Supplement).
- Gratuity: Not mandated but given at employer’s discretion.
- Notice Period: Typically ranges from 1 day to 4 weeks based on the length of service.
- Termination Benefits: Severance pay is not mandated but is common in redundant roles.
- Legal Challenges: Employees can challenge wrongful dismissal through the Ministry of Manpower or the Employment Claims Tribunals.
Employees can be terminated on the following grounds:
- Employee misconduct.
- Performance issues.
- Company redundancy/restructuring.
Employers must ensure fair practice during the termination process to avoid potential legal disputes.
By understanding and adhering to Singapore’s labor laws, businesses can ensure smooth operations and maintain positive employer-employee relationships.