Employment laws in Singapore set out the minimum rights of employees and the legal responsibilities of employers. They cover employment contracts, salary payments, working hours, leave entitlements, workplace safety and termination. The Employment Act is the main legislation, supported by other laws governing CPF contributions, foreign workers and fair employment practices.

Whether you are hiring your first employee or managing an established workforce, understanding these requirements helps you meet your legal obligations and avoid employment disputes.

1. Understanding Singapore’s Employment Act

The Employment Act is the foundation of employment laws in Singapore. It establishes basic employment standards for most employees working under a contract of service, regardless of nationality.

It generally covers full-time, part-time, temporary and contract employees, including managers and executives.

However, certain groups are excluded:

• Seafarers
• Domestic workers
• Civil servants and statutory board employees

There is also an important distinction within the Act. Part 4, which regulates working hours, rest days and overtime, applies only to:

• Workmen earning a basic monthly salary of S$4,500 or less.
• Non-workmen earning a basic monthly salary of S$2,600 or less, excluding managers and executives.

Employees outside Part 4 may still be entitled to other protections under the Employment Act.

Employers should establish which provisions apply to each employee before setting employment conditions.

2. Employment contracts and key employment terms

Employers must provide written key employment terms (KETs) to employees covered by the Employment Act who are employed for at least 14 days. These must generally be issued within 14 days of the employee’s start date.

The terms should explain the employee’s role, salary, working arrangements, leave entitlements and notice period.

For example, an employment contract should specify whether an employee works five or six days a week, their agreed salary and how much notice either party must give to terminate employment.

Employers must also maintain employment records and issue itemised payslips.

Clearly documented terms reduce disagreements over entitlements and establish what both parties have agreed to.

3. Salary payments and CPF contributions

Singapore has no universal statutory minimum wage. However, Progressive Wage Model requirements apply to specified sectors and occupations, while other wage requirements may apply to businesses employing foreign workers.

Under the Employment Act, employers must pay salaries at least once a month and within seven days after the end of the salary period. Overtime payments must generally be made within 14 days.

For Singapore citizens and permanent residents, employers must also make applicable Central Provident Fund (CPF) contributions.

As of 2026, the standard CPF contribution rates for employees aged 55 and below earning monthly wages above S$750 are:

• Employer contribution: 17%
• Employee contribution: 20%
• Total contribution: 37%

These percentages are subject to CPF wage ceilings and other applicable rules. Rates differ for older employees and certain permanent residents.

Employers should refer to the CPF Board’s contribution guidance when calculating payroll obligations.

4. Working hours, overtime and rest days

For employees covered under Part 4 of the Employment Act, normal working hours are generally limited to 44 hours per week, with daily limits depending on the work schedule.

Eligible employees must receive overtime pay of at least 1.5 times their hourly basic rate.

They are also entitled to one rest day each week. Overtime is generally limited to 72 hours per month unless an exemption applies.

Consider an employee who is required to work beyond their contractual hours during a busy period. If the employee qualifies for statutory overtime protection, the employer must calculate and pay the additional hours at the prescribed rate.

Companies should maintain accurate attendance records and make sure managers understand which employees qualify for overtime.

5. Annual leave, sick leave and parental leave

Leave entitlements are another major part of employment laws in Singapore.

Employees covered by the Employment Act become eligible for paid annual leave after completing three months of service.

The statutory minimum begins at seven days in the first year and increases by one day for each additional year of service, reaching 14 days from the eighth year onwards.

Eligible employees are also entitled to 11 paid public holidays annually.

For sick leave, employees who have completed at least six months of service may receive up to:

• 14 days of paid outpatient sick leave.
• 60 days of paid hospitalisation leave, including the 14 days of outpatient sick leave.

Parental leave is governed by additional eligibility requirements. Qualifying working mothers may receive 16 weeks of Government-Paid Maternity Leave, while eligible fathers can receive four weeks of Government-Paid Paternity Leave.

For children born from 1 April 2026, eligible parents can also share 10 weeks of paid shared parental leave.

Employers should consult the Ministry of Manpower’s leave guidance when developing or updating their leave policies.

6. Hiring foreign employees legally

Employers hiring foreign nationals must comply with the Employment of Foreign Manpower Act and the requirements of the relevant work pass.

Common work passes include the Employment Pass (EP), S Pass and Work Permit.

Each has different eligibility conditions. Employment Pass applications, for example, are assessed against qualifying salary requirements and, unless exempted, the Complementarity Assessment Framework (COMPASS).

Employers must also meet applicable recruitment and advertising requirements.

Candidates considering employment in Singapore can refer to RMI’s guide to working in Singapore as a foreigner for more information about Employment Pass eligibility.

Where educational qualifications are used to claim COMPASS points, employers may need acceptable verification evidence before submitting an application.

This makes qualification verification an important part of the hiring process for certain foreign professionals.

7. Fair hiring and employee background checks

Singapore’s employment framework also addresses discrimination and responsible recruitment.

Under the Fair Consideration Framework, employers must assess candidates fairly. Where required, vacancies must be advertised on MyCareersFuture for at least 14 consecutive days before an Employment Pass or S Pass application can be submitted.

Recruitment decisions should be based on relevant qualifications, skills and job requirements.

Employers conducting background checks must also comply with Singapore’s Personal Data Protection Act (PDPA).

This includes explaining the purposes for collecting personal information and obtaining consent where legally required.

Background screening should be proportionate to the responsibilities of the position. For example, verifying an applicant’s educational qualifications may be relevant to professional eligibility, while a financial background check should have a legitimate employment-related purpose.

RMI explains the methods commonly used in its article on how employers conduct background checks in Singapore.

8. Termination, dismissal and retirement

Employment laws also regulate how an employment relationship ends.

Employers and employees must follow the notice period stated in their employment contract or make the applicable payment in lieu of notice.

Where the contract does not specify a notice period, the Employment Act provides minimum notice periods based on the employee’s length of service.

Terminations must also comply with protections against wrongful dismissal.

For example, dismissing an employee because of a discriminatory reason may expose an employer to a wrongful dismissal claim.

Singapore’s retirement rules have also changed.

From 1 July 2026, the statutory retirement age increased to 64, while the re-employment age increased to 69.

Employers must offer re-employment to eligible employees up to the applicable re-employment age.

These changes mean employers should review retirement policies and plan discussions with eligible older employees in advance.

9. Workplace safety and flexible working arrangements

Employers have legal duties to provide a safe working environment under the Workplace Safety and Health Act.

The Work Injury Compensation Act also provides a route for employees to claim compensation for qualifying work-related injuries and occupational diseases.

Separate insurance requirements apply to specified groups of employees.

Flexible working arrangements are another area employers should address.

Under Singapore’s Tripartite Guidelines on Flexible Work Arrangement Requests, employers must properly consider formal requests and provide a written response within two months.

Employers may reject requests on reasonable business grounds but should explain their decision.

10. Preparing for changes to Singapore’s employment laws

Employment legislation continues to develop.

The Workplace Fairness Act, enacted in 2025 and currently targeted for implementation towards the end of 2027, will introduce further statutory protections against workplace discrimination and requirements for handling grievances.

Employers should review recruitment procedures and internal complaint processes before the new requirements take effect.

RMI’s practical guide to the Workplace Fairness Act discusses how employers can prepare for these changes.

What should employers prioritise?

Understanding employment laws in Singapore requires regular attention to contractual terms, statutory benefits and recruitment practices.

Employers should review employment policies whenever regulations change, maintain accurate employee records and apply statutory requirements consistently.

For businesses recruiting local or foreign talent, fair hiring procedures and appropriate background verification should form part of that review.

The starting point is straightforward: establish which laws apply to each employee, document the agreed terms and make sure day-to-day employment practices meet the legal requirements.