HR & Employment Guide
Hiring and Managing Employees in Singapore
As your business grows, managing human resources effectively is key. Singapore’s employment laws ensure fairness, structure, and protection for both employers and employees.
1. Employment Contracts
All employees should receive a written employment contract that outlines:
- Job title and scope
- Salary and working hours
- Probation period, notice period, and termination terms
We provide compliant templates aligned with the Employment Act.
Key Terms to Include
Salary: Basic salary, allowances, and bonus structure
Working Hours: Standard hours, overtime arrangements
Probation: Typically 3-6 months with shorter notice period
Notice Period: Usually 1-3 months depending on seniority
Benefits: Medical leave, annual leave, other perks
Confidentiality: Non-disclosure and IP protection clauses
Employment Act Coverage
The Employment Act covers most employees earning up to S$2,600/month (or S$4,500 for managers/executives). It provides minimum terms for:
Rest days and working hours
Leave entitlements
Salary payment timing
Termination notice
Overtime pay
2. CPF Contributions
Both employers and Singaporean/Permanent Resident employees contribute to the Central Provident Fund (CPF).
Our payroll services ensure accurate CPF calculations, submissions, and e-filing through CPF Board.
CPF Contribution Rates (2024)
For employees aged 55 and below:
- Employee contribution: 20% of wages
- Employer contribution: 17% of wages
- Total: 37% of wages
Rates vary for older employees. CPF contributions must be paid by the 14th of each month.
CPF Submission Requirements
- Submit contributions via CPF e-submission portal
- Maintain accurate employee records
- Issue CPF contribution statements to employees
- Handle CPF corrections and refunds promptly
Our Payroll Services Include
3. Work Passes
For foreign employees, we manage the application of:
- Employment Pass (EP): For professionals earning at least S$5,000/month
- S Pass: For mid-skilled workers earning at least S$3,150/month
- Work Permit: For semi-skilled workers in specific sectors
We ensure eligibility checks, documentation, and submission to the Ministry of Manpower (MOM).
Employment Pass (EP) Requirements
- Minimum salary: S$5,000/month (higher for older candidates)
- Acceptable qualifications and relevant experience
- Company meets Financial soundness criteria
- Valid for up to 2 years, renewable
S Pass Requirements
- Minimum salary: S$3,150/month
- Diploma or equivalent qualifications
- Subject to quota and levy (industry-dependent)
- Must meet COMPASS points system
Work Pass Application Process
- Assess candidate eligibility
- Prepare and submit online application to MOM
- Respond to queries or requests for additional documents
- Receive In-Principle Approval (IPA)
- Complete medical examination and issuance formalities
- Collect work pass card
4. Leave Entitlements
We help you understand statutory leave entitlements such as annual leave, medical leave, maternity/paternity leave, and childcare leave — ensuring compliance with MOM regulations.
Annual Leave
First year: 7 days minimum
Second year: 8 days minimum
Third-fourth year: 9-10 days minimum
Fifth-sixth year: 11-12 days minimum
Seventh year onwards: 13-14 days minimum
Many employers provide more generous leave as a benefit.
Medical Leave
- Outpatient sick leave: 14 days per year
- Hospitalization leave: 60 days per year
- Total: Maximum 14 days outpatient + 60 days hospitalization
Medical certificates from registered doctors are required.
Maternity Leave
- Government-Paid Maternity Leave (GPML): 16 weeks for citizens
- Applies to first 4 children
- Employer pays first 8 weeks, government reimburses weeks 9-16
- Must have worked for employer 3 months before delivery
Paternity Leave
- 2 weeks of Government-Paid Paternity Leave (GPPL)
- Applies to first 4 children who are Singapore citizens
- Must be taken within 12 months of birth
Childcare Leave
- 6 days per year for parents with children below 7 years old
- Applies to first 2 children who are Singapore citizens
- Each parent entitled to their own childcare leave
Employee Benefits Beyond Statutory Requirements
Competitive employers often provide:
Medical and dental insurance
Performance bonuses (AWS, 13th month)
Training and development allowances
Flexible work arrangements
Transportation and meal allowances
Gym memberships or wellness programs
Termination and Retrenchment
Proper procedures must be followed when terminating employment:
Notice Period
- Must provide notice as per employment contract
- If no contract, follow Employment Act minimums
- Employer can pay salary in lieu of notice
- Shorter notice during probation period
Retrenchment Best Practices
- Provide reasonable notice (typically 1-3 months)
- Offer retrenchment benefits if possible
- Notify MOM within 5 days for Employment Pass holders
- Provide employment references and support
Workplace Safety and Health
Employers must:
Provide a safe working environment
Conduct risk assessments
Implement safety management systems
Report workplace accidents to MOM
Maintain work injury compensation insurance
Common HR Compliance Mistakes
❌ Not providing written employment contracts
❌ Failing to pay CPF contributions on time
❌ Incorrectly calculating overtime or leave
❌ Not maintaining proper employee records
❌ Ignoring workplace safety requirements
❌ Discriminatory hiring or termination practices
How Halynce Can Help
Our HR advisory services include:
Your trusted partner for Singapore business incorporation and corporate services.
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#06-28 Paya Lebar Square
Singapore 409051
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Information on this website is general guidance. Government fees are billed separately.