TL;DR — Hiring in Singapore
- Fully-loaded employer cost: ~17% for Singapore citizens/PRs (CPF)
- Foreign work pass holders: 0% CPF — only Skills Development Levy (~0.25%)
- CPF contributions taper down with age (full 17% only up to age 55)
- 13th month (AWS) is contractual market norm, not statutory
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Statutory employer costs in Singapore
In Singapore, the central employer cost is CPF (Central Provident Fund) at 17% on Ordinary Wages up to the Wage Ceiling (SGD 6,800/month in 2024, rising to SGD 8,000 by 2026) — but only for Singapore citizens and Permanent Residents. Foreign Employment Pass holders pay 0% CPF. All employers pay the Skills Development Levy (0.25% capped at SGD 11.25/month per employee).
| Contribution | Employer rate | Notes |
|---|---|---|
| CPF (citizens / PR, age ≤55) | 17.0% | Ordinary Wages capped at SGD 6,800/month (2024) |
| CPF (age 55–60) | 15.0% | Lower employer rate |
| Skills Development Levy (SDL) | 0.25% | All employees; capped at SGD 11.25/month |
| CPF (foreigners on EP/SP) | 0% | Foreign work pass holders are CPF-exempt |
Mandatory employee benefits
Beyond statutory contributions, Singapore law requires the following benefits the employer must fund.
- Annual leave
- 7 days year 1, +1 per year up to 14 days minimum.
- AWS (13th month)
- Annual Wage Supplement — not statutory but standard in many offers.
- Maternity leave
- 16 weeks paid (govt-reimbursed beyond week 8 for first 2 children).
Termination, notice and severance
Probation
Typically 3–6 months by contract; no statutory cap.
Notice period
1 day (<26 weeks), 1 week (<2 years), 2 weeks (<5 years), 4 weeks (>5 years).
Severance
Not statutory; retrenchment benefit at MoM guidelines: 2 weeks–1 month per year of service.
Common compliance pitfalls
- Foreign hires need an Employment Pass (SGD 5,000+/month minimum salary, rising) or S Pass.
- Tripartite Guidelines (MoM, NTUC, SNEF) carry significant weight even when not law.
- Tax clearance (IR21) required before a foreign employee leaves — employer must withhold final pay.
Frequently asked questions
Do I pay CPF for a foreign employee in Singapore?
No. CPF applies only to Singapore citizens and Permanent Residents. Foreign Employment Pass or S Pass holders are CPF-exempt — your only statutory employer cost is the Skills Development Levy (~SGD 11.25/month).
What's the minimum salary for an Employment Pass?
SGD 5,000/month for new applications as of 2023 (SGD 5,500 for financial services), with COMPASS framework adding sector-specific minimums. Older applicants face higher minimums.
Is the 13th-month AWS mandatory?
No. It's a market norm, not a statutory entitlement. Most full-time offers include it; gig and contract roles often don't.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.