I. Core Primary Labour Statutes of Singapore
1. Employment Act (EA)
The cornerstone law governing employer-employee relations, regulating working hours, remuneration, leave and termination. It applies to two tiers of workers:
- Manual workers: Monthly salary ≤ SGD 4,500, fully protected by all EA provisions
- Non-managerial general staff: Monthly salary ≤ SGD 2,600, entitled to all statutory rights on working hours, overtime and leave
- Senior executives/managers with salaries exceeding the above thresholds: Exempt from working hour and overtime rules, but must comply with salary disbursement, Key Employment Terms (KET), CPF contributions and anti-discrimination regulations
- Excluded groups: Foreign domestic workers, seafarers and employees of statutory government bodies are not covered by this Act
Workplace Fairness Act (WFA)
This statute replaces the previous non-binding tripartite guidelines and enshrines anti-discrimination rules into formal law. Discrimination based on nationality, age, gender, marital status, pregnancy, race, religion, disability or mental health is prohibited throughout recruitment, promotion, transfer, dismissal and remuneration. Enterprises with 25 or more staff must establish internal grievance channels. Violations carry heavy fines and may result in cuts to foreign workforce quotas.
Retirement and Re-employment Act
New standards effective 1 July 2026: The statutory retirement age is raised to 64. Employers must offer re-employment to eligible employees up to age 69 and cannot dismiss staff purely on the grounds of age.
Mandatory Supporting Legislation
- Work Injury Compensation Act (WICA): Employers are obligated to purchase work injury insurance for all employees
- Central Provident Fund (CPF) Act: Mandatory social security contributions for Singapore Citizens and Permanent Residents (PRs). The CPF salary contribution ceiling rises to SGD 8,000 monthly in 2026
- Foreign Manpower Act: Governs EP/SP/WP work passes, foreign workforce quotas, foreign worker levies and bans on secondary employment
2. Major MOM Regulatory Updates for 2026
Raised Statutory Retirement Age
Minimum retirement age set at 64; eligible employees are entitled to re-employment until 69. MOM will penalise employers who refuse re-employment without valid grounds.
Full Implementation of the Workplace Fairness Act
11 categories of employment discrimination are outlawed. All labour disputes will be heard by the Employment Claims Tribunals (ECT), with drastically higher claim limits. Companies must retain recruitment and performance assessment records for inspection.
Updated CPF Contribution Ceiling
The maximum monthly salary eligible for CPF contributions increases from SGD 7,400 to SGD 8,000 for the full year 2026. Employer contribution rates for staff aged 55–65 are slightly raised, offset by government subsidies to ease corporate cost burdens.
Progressive Wage Model (PWM) New Benchmarks
Minimum monthly PWM salaries: SGD 2,170 for administrative roles, SGD 2,370 for drivers. Pay floors for cleaning, security, retail and other industries are also increased. Foreign work pass renewals will be rejected if PWM standards are not met, resulting in loss of foreign hiring eligibility.
Higher Salary Thresholds for Work Passes
Minimum qualifying salary: SGD 6,000 for EP holders, SGD 3,600 for SP holders. Expanded source nationalities and permitted job scopes for WP workers, with tiered adjustments to foreign worker levies.
Extended Shared Parental Leave
Effective April 2026, paid shared parental leave for parents is extended from 6 weeks to 10 weeks, with government subsidies covering up to SGD 2,500 weekly in salary costs.
II. Remuneration, Working Hours & Overtime (Non-Negotiable MOM Compliance Rules, Penalties for Breach)
1. Mandatory Salary Payment Rules
- Payment frequency: Salaries must be disbursed at least once monthly, within 7 calendar days after the end of the wage period; overtime pay must be settled within 14 days
- Itemised payslips required: A detailed breakdown stating basic salary, all allowances, overtime hours, overtime pay, CPF deductions, other deductions and net take-home pay must be issued with every payroll
- Unlawful salary deductions prohibited: Only CPF contributions, unpaid no-show leave and compensation for employee-caused damages may be legally deducted; post-deduction wages cannot fall below the statutory industry minimum wage
- WP/SP foreign workers: Salaries must be transferred via bank transfer; full cash salary disbursement is banned, with MOM auditing bank transaction records regularly
2. Standard Working Hours (Only applicable to EA-protected Tier 4 workers)
- Standard weekly working hour cap: 44 hours; daily core working hours capped at 8 hours
- Staff working 6 consecutive hours must be granted an unpaid rest break of no less than 45 minutes
- Combined daily working hours (including overtime) capped at 12 hours; violations carry a maximum fine of SGD 5,000 per offence
- Monthly overtime ceiling: 72 hours. Mandatory overtime is prohibited; employees have the right to refuse excessive overtime
3. Overtime & Rest Day Pay Rates
- Weekday overtime: 1.5 × basic hourly wage
- Work on weekly rest days: Minimum 2 × daily wage, or full compensatory leave of equal duration
- Work on Singapore’s 11 statutory public holidays: Full daily pay plus an extra day’s wage compensation, or compensatory leave plus one day’s additional pay
- Mandatory weekly rest: At least one full rest day per week; the interval between two rest days cannot exceed 12 days
III. Statutory Paid Leave Entitlements (Uniform MOM Standards)
1. Paid Annual Leave (Eligible after 3 months of service)
- 7 days for completion of 1 full year’s employment
- +1 additional day per subsequent year of service, capped at 14 days after 8 years of tenure
- Employers cannot force employees to forfeit annual leave. Staff dismissed without just cause must be compensated for unused accrued leave. Annual leave generally expires at year-end unless carry-over is stipulated in the employment contract.
2. Paid Sick Leave (Full entitlement after 6 months’ service)
- Outpatient sick leave: 14 paid days per annum
- Hospitalisation sick leave: Maximum 60 paid days yearly (including the 14 outpatient quota)
- Pro-rated entitlement for staff with 3–6 months’ service. Employers must reimburse consultation fees for valid medical certificates (MC) issued by registered clinics.
3. Marriage, Maternity & Family Leave (2026 Updated Policies)
- Maternity leave: Female employees with 180 days’ continuous service qualify for 16 weeks of paid maternity leave, cost-shared by employers and the government
- Paternity leave for fathers: 2 weeks of fully paid leave
- Shared parental leave: Raised to 10 weeks from April 2026, freely split between parents and to be taken within the child’s first year of birth
- Unpaid childcare & caregiving leave: Staff may apply for unpaid leave to care for minor children or ill family members; employers cannot unreasonably reject applications
IV. Mandatory Key Employment Terms (KET) for Contracts
Employers must issue a written KET document to all staff within 14 days of hire. Failure to do so constitutes a regulatory breach. Mandatory content includes:
Employee name, job title, employment start/end dates, probation period length
Basic salary, fixed allowances, payday and wage calculation methodology
Standard working hours, overtime policies and rest day arrangements
Annual leave, sick leave and all family leave entitlements
Notice periods for termination by either party and pay-in-lieu rules
CPF contribution arrangements, medical benefits and annual bonuses (if applicable)
Non-compete and confidentiality clauses (where applicable)
Non-Compete Clause Compliance Rules
- Maximum valid term: 1 year post-resignation
- Post-termination compensation must equal at least 50% of the employee’s original monthly salary; courts will invalidate clauses failing this requirement
- Restrictive business scope can only cover reasonable operations within Singapore
Employment Differences: Singapore Citizens/PRs vs Foreign Staff
1. CPF Contribution Rules
- Singapore Citizens & PRs: Mandatory CPF contributions for monthly salaries above SGD 50, covering full-time, part-time and probationary staff. Employers cover the employer portion, while employee contributions are deducted from payroll. The 2026 CPF salary ceiling is SGD 8,000.
- High-tier EP holders: Exempt from CPF contributions if meeting salary thresholds
- Regular SP/WP foreign workers: No CPF obligations, but employers must remit monthly foreign worker levies and purchase full work injury insurance.
2. Critical Compliance Bans for Foreign Staff (High MOM Audit Priority)
- WP/SP pass holders are strictly prohibited from secondary employment or private business operations. Violations incur fines up to SGD 20,000 or 2 years’ imprisonment, immediate pass cancellation and deportation.
- All roles offering monthly salaries below SGD 18,000 must be advertised on MyCareersFuture for a mandatory 28-day period to prioritise local candidates. Failure to comply is deemed discriminatory and may trigger tighter foreign workforce quota limits.
- Salaries, accommodation and working hours must fully match the commitments stated in the work pass application. MOM conducts unannounced on-site workplace audits regularly.
Gonex Singapore HR Solutions
Gonex delivers compliant, tailored localised human resource solutions for Chinese enterprises expanding into Singapore, enabling full regulatory control over local employment operations. We provide end-to-end compliant staffing support regardless of whether your company holds a registered Singapore entity, covering four core service lines: Employer of Record (EOR), Human Resource Outsourcing (HRO), Global Payroll and expatriate work visa processing.
Why Gonex?
Experienced Management Team: each member in the team has 10+ years experiences in Overseas Human Resources Management, composed of seasoned HR professionals.
Powerful connection: Gonex has established over 10 entities worldwide, along with more than 30 stable partners, together offering the most comprehensive overseas human resource services to our clients.
Strict compliance with laws and regulations: At every step in our service process, Gonex strictly adheres to local laws and regulations, ensuring our clients completely avoid any legal disputes.
Competitive price: Gonex’s services are 20% more affordable compared to other companies in the industry, allowing our clients to allocate more resources to their core business.
What Gonex offer?
Employment of Record: This service helps clients legally hire employees in countries or regions where they do not have a legal entity established.
Payroll BPO service: This includes payroll project implementation plan development, project deployment, payroll calculation, payment of funds, administration of statutory and supplementary benefits, customized reporting, and other comprehensive payroll services.
Global Mobility: Based on the company’s internationalization strategy, the company assigns employees to overseas branches/subsidiaries and handles visa and tax matters in accordance with local policies, while assisting in the compliance management of employees throughout their international assignment life cycle.
GONEX One-Stop Solution: Your strategic partner
Compliance and Legal Adherence: GONEX’s Employer of Record (EOR) service ensures legal compliance in employing local staff.
Cross-Border Payroll and Tax Management: Streamlined payroll services simplify cross-border management.
Flexible Employment Solutions: Adaptable employment services cater to changing business needs.
International Talent Dispatch: Support services facilitate the dispatch of key talent to overseas.
Digital HR Management Platform: Technology-driven solutions enhance management efficiency and cultural integration.
Who do we serve?
Gonex served 70+ clients to expand overseas. The incomes of our clients like Mengniu, Kuaishou and CHINT are up to 192.4 billion.
Let Gonex assist you and your company with handling such complex overseas hiring processes! To access more information on corporate international expansion cases, global employment guidelines, worldwide compensation management, regulations for various regional countries, and factory establishment manuals in different nations, you are welcome to visit the GONEX official website at www.letsgonex.com to download these resources or view our company’s business introduction in PDF format (https://letsgonex.com/in.pdf).
