The Employment Act covers local and foreign employees, but the rules on hours and overtime apply only to lower-paid staff. Employers pay CPF contributions for citizens and permanent residents and Skills Development Levy for everyone. Foreign hires need a work pass with salary floors and, for Employment Pass and S Pass, a prior job advertisement in Singapore.
Employment terms
The Employment Act applies to employees under a contract of service, local and foreign, except seafarers, domestic workers and public servants. Part 4, which governs hours, overtime and rest days, does not apply to managers and executives and covers only workmen earning up to S$4,500 and other employees earning up to S$2,600 a month.
Covered employees are generally limited to 44 contractual hours a week, receive at least 1.5 times the hourly rate for overtime, and cannot work more than 72 overtime hours a month without an exemption. Paid annual leave starts after three months of service. Where the contract is silent, notice runs from one day to four weeks depending on length of service.12345
Payroll contributions
For Singapore citizens and permanent residents, the employer pays CPF at 17% and deducts 20% from employees aged 55 and below, on ordinary wages up to S$8,000 a month from 1 January 2026. CPF Board has announced increases for senior employees from 1 January 2027. Skills Development Levy of 0.25% of wages, capped at S$11.25 per employee, is payable for all employees including foreigners.678
Hiring foreign staff
Employment Pass candidates must earn at least S$5,600 a month and pass the COMPASS points framework; S Pass candidates need at least S$3,300 and count against a quota. Before applying for either, employers must advertise on MyCareersFuture for at least 14 consecutive days and must not make an offer during that time. Work Permit holders attract a monthly levy and industry quotas.
The minimum retirement age is 64 and the re-employment age 69 from 1 July 2026, for citizens and permanent residents.910111213
| Pass | For | Minimum monthly salary | Other conditions |
|---|---|---|---|
| Employment Pass | Professionals, managers, executives | S$5,600 (higher for older candidates and financial services) | COMPASS; job advertising unless exempt |
| S Pass | Skilled staff | S$3,300 (higher for older candidates and financial services) | Quota; job advertising unless exempt |
| Work Permit | Skilled and semi-skilled workers in specified sectors | Not stated | Levy and industry quota |
How it works, step by step
- Advertise the role on MyCareersFuture for at least 14 consecutive days unless exempt11MOM (Fair Consideration Framework)
- Check the candidate's salary against the pass threshold and COMPASS before applying910MOM
- Issue written key employment terms and register for CPF and Skills Development Levy payments68MOM; CPF Board
No timings or fees are shown unless an official source states them.
Documents usually needed
- Written contract and key employment terms
- Job advertisement record from MyCareersFuture
- Work pass application and supporting qualifications
- Monthly CPF and Skills Development Levy submissions
- Itemised payslips and employment records
Common mistakes
- Assuming managers are outside the Employment Act entirely; only the hours and overtime part excludes them.
- Making a job offer to a foreign candidate during the 14-day advertising period.
- Using the general Employment Pass salary floor for older candidates or financial services roles, where higher figures apply.
- Forgetting Skills Development Levy for foreign employees.
- Not planning for the 1 January 2027 CPF changes for senior employees in payroll budgets.
When the business crosses borders
- Foreign employees on work passes do not contribute to CPF, so home-country social security positions need checking.
- Seconded staff must still hold a valid Singapore work pass for work performed in Singapore.
- Equity and bonus plans run from overseas still feed into Singapore payroll obligations for local staff.
Questions businesses ask
Do foreign employees pay CPF?
No. CPF contributions are payable for Singapore citizens and permanent residents, but Skills Development Levy applies to all employees.68
Is there statutory overtime for managers?
No. Part 4 of the Employment Act on hours and overtime does not cover managers and executives.2
How long must a job be advertised before an Employment Pass application?
At least 14 consecutive days on MyCareersFuture, unless an exemption applies.11
What this guide does not yet confirm
These points need checking with a qualified local professional in Singapore before you rely on them.
- Higher Employment Pass and S Pass salary thresholds for older candidates and financial services, COMPASS scoring and S Pass levy amounts were not confirmed.
- The annual leave scale beyond eligibility, sick leave and parental leave entitlements were not confirmed.
- The CPF rate changes from 1 January 2027 were announced but the new rates were not confirmed.
- The Workplace Fairness Act 2025 and its commencement date were not researched.
- Job advertising exemptions and the deadline for issuing key employment terms were not confirmed.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The Employment Act covers local and foreign employees working under a contract of service, but not seafarers, domestic workers, statutory board employees or civil servants. Some parts (notably Part 4 on hours and overtime) apply only to lower-paid employees.
Part 4 of the Employment Act on hours of work and overtime does not cover managers and executives; it covers workmen earning a basic monthly salary of S$4,500 or less and other employees earning S$2,600 or less. Common arrangements are capped at 44 contractual hours a week.
Employees covered by Part 4 must be paid at least 1.5 times the hourly basic rate for overtime and may work no more than 72 overtime hours a month unless an exemption is granted. Overtime pay must be paid within 14 days after the end of the salary period; one unpaid rest day a week is required.
Employees are entitled to paid annual leave once they have worked for their employer for at least three months. Statutory day counts rise with service; the exact scale was not confirmed on the page opened.
Where the employment contract is silent, the notice period is one day for service under 26 weeks, one week for 26 weeks to under two years, two weeks for two to under five years, and four weeks for five years or more. Contractual notice periods apply where stated.
Employers must make CPF contributions for employees who are Singapore citizens or permanent residents; from 1 January 2026 the rates for employees aged 55 and below earning over S$750 a month are 17% (employer) and 20% (employee). Foreign employees on work passes are not covered. Rates for older employees are lower; CPF Board has announced further rate increases for senior employees from 1 January 2027.
Eligibility (citizens and PRs) confirmed on MOM's CPF contributions page:
The CPF Ordinary Wage ceiling is S$8,000 a month from 1 January 2026. Contributions are not payable on ordinary wages above the ceiling; a separate Additional Wage ceiling applies to bonuses.
Employers must pay Skills Development Levy of 0.25% of monthly total wages for every employee working in Singapore, including foreign employees, subject to a minimum of S$2 and a maximum of S$11.25 per employee. Maximum applies to employees earning more than S$4,500 a month.
Employment Pass candidates must earn at least S$5,600 a month and pass the COMPASS points framework. Higher qualifying salaries apply to older candidates and the financial services sector; those figures were not confirmed on the page opened.
Page last updated 27 August 2026.
New S Pass candidates must earn at least S$3,300 a month, and S Pass holders are subject to a quota. Higher thresholds apply to older candidates and financial services; levy amounts were not confirmed.
Page last updated 18 September 2026.
Before applying for an Employment Pass or S Pass, employers must advertise the job on MyCareersFuture for at least 14 consecutive days and must not make a job offer during that period. Advertising exemptions exist (for example for some intra-corporate transferees and higher salaries) but were not confirmed on the page opened.
From 1 July 2026 the minimum retirement age is 64 and the re-employment age is 69. Applies to Singapore citizens and permanent residents.
Re-employment age confirmed
Employers must pay a monthly foreign worker levy for each Work Permit holder and are limited by a quota set for their industry. Levy rates depend on sector, skill level and the proportion of foreign workers.
Questions on this topic
13 statements on employment, payroll and mobility in Singapore
