Hiring Employees in Singapore: Employment Laws and Regulations for Malaysian Employers

Expanding your business operations into Singapore?

Whether you're hiring remote staff, setting up a branch office, or managing cross-border teams, understanding Singapore’s employment laws is crucial for smooth operations and full compliance.

Hiring employees in Singapore requires close attention to the Employment Act 1968, Singapore's main labour law that regulates employment contracts, working hours, salary payments, leave entitlements, and termination procedures.

This guide explains everything Malaysian employers need to know before hiring in Singapore, including salary requirements, CPF contributions, work permits, employment contracts, overtime rules, and more.

Singapore Employment Laws and Regulations

Singapore is known for its efficient regulatory framework, strong workforce, and business-friendly environment. However, employers must comply with strict employment standards governed by:

• Employment Act 1968

• Workplace Safety and Health Act (WSH)

• Central Provident Fund (CPF) Act

• Foreign Manpower Act (for foreign employees)

Understanding these regulations helps ensure fair hiring practices, avoid penalties, and maintain harmonious employer–employee relations.

Before hiring employees in Singapore, Malaysian employers should evaluate these key areas:

Singapore Employment Contract Requirements

Singapore law requires written employment contracts, commonly known as Key Employment Terms (KETs). These must be issued within 14 days of starting work.

The contract must include:

Job title & Job Scope

Clear responsibilities and expected duties.

Working Hours & Schedule

Standard hours, overtime rules, rest days.

Salary & Payment Details

Basic salary, allowances, deductions, bonuses.

Leave Entitlements

Annual leave, sick leave, maternity/paternity leave.

Probation Period

Usually 3–6 months, depending on company policy.

Notice Period for Termination

Must follow Employment Act minimums.

Benefits

CPF contributions, insurance, medical benefits.

Employment contracts in Singapore are very detailed because MOM (Ministry of Manpower) requires strict clarity to avoid labour disputes.

Salary Requirements & Payment Regulations in Singapore

Singapore does not have a universal minimum wage, but certain sectors (e.g., cleaning, security, landscape) follow Progressive Wage Model (PWM) minimum salaries.

Salary Payment Regulations (Employment Act)

• Must be paid at least once a month

• Must be paid within 7 days after salary period ends

• Itemised payslips are mandatory

• Only legal deductions are allowed (CPF, absence, company policy deductions)

Common Salary Components in Singapore

Basic Salary

The fixed monthly wage before allowances or bonuses. Typical Singapore salaries vary by skill level rather than regulation.

Allowances (Optional)

• Transport allowance

• Meal allowance

• Shift allowance

• Mobile/communication allowance

Companies may remove allowances anytime unless covered in contract.

Bonus Structures

While not mandatory, many Singapore employers offer bonuses such as:

• Annual Wage Supplement (AWS or “13th Month Bonus”)

• Performance bonus

• Sales incentive bonus

If AWS is stated in the contract, employers must pay it.

Payment Methods

• Bank transfer (most common)

• Cheque

• Cash (less common due to compliance risks)

Employers must issue an itemised payslip showing every earning and deduction.

CPF Contributions for Malaysian Employers Hiring Singaporeans

If you are a Malaysian employer hiring a Singaporean or Singapore Permanent Resident (SPR) to work in Singapore, you must contribute to the Central Provident Fund (CPF).

This rule applies regardless of where your company is registered. What matters is:

• The employee is a Singapore Citizen or PR, and

• The work is performed in Singapore under a valid employment relationship.

In short, CPF applies whenever work is done in Singapore, even if the employer is based in Malaysia.

CPF = Singapore’s Version of EPF/KWSP (Malaysia)

To help Malaysian employers understand the system better, CPF functions very similarly to Malaysia’s EPF/KWSP, where both the employer and employee contribute a percentage of the employee’s monthly wages.

CPF contributions support employees in areas such as:

• Retirement

• Housing

• Medical needs

• Insurance coverage

Like EPF, CPF deductions are not optional, employers must contribute accurately and on time to comply with Singapore law.

Types of Work Passes Required for Foreign Employees

Malaysian employers hiring foreign workers in Singapore must comply with the Foreign Manpower Act.

Employment Pass (EP)

For professionals, managers, executives.

• Minimum salary: S$5,600 (2025)

• Higher for financial sector

• Based on candidate qualifications & employer quota

S Pass

For mid-skilled workers.

• Minimum salary: S$3,300

• Subject to quota & levy

Work Permit

For low-skilled workers in sectors like construction, manufacturing, marine, etc.

• Subject to strict quotas

• Medical screening required

• Higher levies apply

Leave Entitlements Under Singapore Law

Annual Leave

Employees with at least 3 months of service are entitled to paid annual leave:

• 7 days minimum for first year

• +1 day each year

• Capped at 14 days minimum under law (Companies often offer 14–20 days)

Sick Leave

Requires medical certificate (MC).

• 14 days paid outpatient sick leave

• 60 days paid hospitalization leave (includes the 14 outpatient days)

Maternity & Paternity Leave

• 16 weeks paid maternity leave

• 2 weeks paid paternity leave

• Shared parental leave available

Childcare Leave

• 6 days per year (Singaporean children under 7)

Public Holidays

Singapore has 11 public holidays, including:

• Chinese New Year

• Hari Raya Puasa

• Deepavali

• National Day

• Christmas

If employees work on a public holiday, they must receive extra pay or a day off-in-lieu.

Additional Leave Entitlements in Singapore

Marriage Leave

Not mandated by law, but commonly provided (2–3 days).

Compassionate Leave

Also not required by law, but standard practice (3–5 days).

Shared Parental Leave

Up to 4 weeks, depending on eligibility.

Singapore Working Hours & Overtime Regulations

The Employment Act governs working hours, overtime, and rest days.

Standard Working Hours

• 44 hours per week

• Usually 8–9 hours per day

• 1 rest day per week (typically Sunday)

Overtime Pay

Compulsory for:

• Workmen earning ≤ S$4,500/month

• Non-workmen earning ≤ S$2,600/month

Overtime Rate

• At least 1.5x hourly basic rate

OT Limits

• Maximum 72 overtime hours per month

Termination Procedures & Notice Period

Termination rules in Singapore are transparent and highly regulated.

Notice Period

Based on contract terms or Employment Act minimums:

Notice can be waived if both parties agree.

Severance Pay

Under Singapore law:

• Severance pay is not mandatory

• Common practice: 2 weeks to 1 month per year of service

• Must follow contract or company policy

Wrongful Dismissal

Employees may file complaints with MOM for reasons such as:

• Discrimination

• Retaliation

• Unfair termination

• Forced resignation

Employers must provide documentation to justify dismissal.

Employer Obligations & Compliance Requirements in Singapore

Mandatory Requirements

• Issue Key Employment Terms (KETs)

• Provide itemised payslips

• Maintain attendance records

• Pay CPF contributions correctly

• Comply with work pass regulations

• Ensure workplace safety standards (WSH Act)

Penalties for Non-Compliance

• Heavy fines up to S$20,000

• Possible imprisonment for serious violations

• Company blacklist by MOM

• Rejection of future work pass applications

Cultural Considerations When Hiring in Singapore

Singapore’s workforce is multicultural:

• Chinese

• Malay

• Indian

• Expatriates

Employers should be aware of:

• Religious holidays

• Dietary restrictions

• Cultural communication styles

Respect for diversity contributes to better employee relations.

Key Differences Malaysian Employers Must Note

FAQ

1. Do Malaysian employers need to contribute CPF for foreign workers in Singapore?

No. CPF only applies to Singapore Citizens and Permanent Residents. 

Foreign employees (including Malaysians) do not receive CPF contributions.

2. Can Malaysian companies hire remote employees living in Singapore?

Yes, but employers must still comply with:

• Singapore tax regulations

• Singapore employment laws

• Possible work-from-home guidelines

If paying CPF, a local entity is required.

3. Is an employment contract mandatory in Singapore?

Yes. Employers must issue Key Employment Terms (KETs) in writing within 14 days of employment.

4. What happens if a company terminates an employee without valid reason?

Employees can file a wrongful dismissal claim with MOM. Companies may face:

• Orders to reinstate employee

• Compensation payouts

• Monitoring or penalties

5. Do Malaysian employers need a local office to hire in Singapore?

Yes, if:

• You want to hire Singapore citizens or PRs

• You must contribute CPF

• You need to apply for work passes

Alternatively, you can hire using an Employer of Record (EOR).

---

Find Talent that Grows with Your Business

AJobThing makes hiring easy, helping you reach the right candidates on Maukerja, Ricebowl, and Epicareer.

Post your job today.

Read More:

• Part Time vs Independent Contractor: Whats the Difference?

• Differences Between Seasonal vs. Part-Time Positions in Malaysia

• Are Part-time Employees Entitled to Benefits in Malaysia?

• Do Freelancers Get Overtime Pay and Bonuses?

• Do Part-Time Employees Qualify for Overtime Pay and Bonuses?

• Differences Between Freelance and Part-Time Positions in Malaysia

• How Many Hours Per Week Is Freelance in Malaysia

• How Many Hours Per Week Is Part-Time in Malaysia

• Hiring Qualified Freelancers in Malaysia? Make Sure You Do It Right

• Hiring Part-Time in Malaysia? Here's How to Find the Right People

• Warning Letter to Employee for Absence Without Leave

• Leave Application Form Explained: Templates, Examples, and HR Best Practices

• Part-Timers vs Casual Employees in Malaysia, Which Suits Your Company Best?