Basic Information

Minimum Wage

There is no uniform standard; the existing PWM (Progressive Wage) sets the minimum wage standard for low-paid workers in the industry.

Social Contribution

Central Provident Fund (CPF)

In Singapore, the Central Provident Fund (CPF) is a mandatory savings scheme designed to help citizens and permanent residents save for retirement, medical, and housing needs. Employers must contribute to CPF for employees aged 16 and above, regardless of whether they are full-time or part-time.

CPF contribution rates vary by age group, with a contribution ceiling of 6,000 SGD: 

55 and below: Employer 17%, Employee 20%  

55 to 60: Employer 13%, Employee 13%  

60 to 65: Employer 9%, Employee 7.5%  

65 and above: Employer 7.5%, Employee 5%

Skills Development Levy (SDL)

The Skills Development Levy (SDL) rate is 0.25% of the employee's monthly salary. The calculation is as follows:

If the monthly salary is below 800 SGD, SDL is 2 SGD.  

If the monthly salary is between 800 SGD and 4,500 SGD, SDL is 0.25% of the salary.  

If the monthly salary exceeds 4,500 SGD, SDL is 11.25 SGD.

Personal Income Tax

It is based on the employee's pre-tax salary, with rates ranging from 0% to 22%.

Payroll

Payroll Cycle

Typically paid on a monthly basis.

13 Salary

Not legally required, but a 13th-month salary is commonly practiced locally.

Working Time

Standard Working Hours (full time)

Locally, the standard is Monday to Friday, 8 hours per day, with a maximum of 44 hours per week.

Overtime

Hours worked beyond the standard are paid at 150% of the regular rate, while public holiday work is paid at 200%.

Holidays

Public Holidays

Singapore has 11 public holidays.

Annual Leave

Employees are entitled to paid annual leave if they have worked for the employer for at least 3 months. Leave entitlements are based on years of service:

1 year: 7 days

2 years: 8 days

3 years: 9 days

4 years: 10 days

5 years: 11 days

6 years: 12 days

7 years: 13 days

8 years and above: 14 days

Sick Leave

Outpatient and inpatient sick leave: Full salary paid.

Eligibility: Employed for at least 3 months, notify the employer within 48 hours of absence, and provide a doctor's certificate.

For 3 months of service: 5 days outpatient leave (increasing by 3 days per additional month), 15 days inpatient leave (increasing by 15 days per additional month). After 6 months, outpatient leave is 14 days, and inpatient leave is 60 days.

Maternity Leave

Female employees are entitled to 16 weeks of paid maternity leave if:

The child is a Singapore citizen (otherwise, 12 weeks of leave).  

The employee has worked continuously for at least 3 months before pregnancy.  

Self-employed individuals have worked continuously for at least 3 months and experience income loss during leave.  

Notice of at least one week is given before the leave; otherwise, pay is halved unless there is a valid reason.  

Foreigners and Permanent Residents (PR) are entitled to 12 weeks of maternity leave.

Paternity Leave

Eligible working fathers, including self-employed individuals, are entitled to 4 weeks of paid paternity leave if:

The child is a Singapore citizen.  

They are legally married to or have been married to the child’s mother.  

They have worked continuously for at least 3 months before the pregnancy.  

Self-employed individuals have worked continuously for at least 3 months and experience income loss during the leave.

Parental Leave

Working parents are entitled to:

6 days of unpaid child care leave per year if the child is a Singapore citizen and under 2 years old, and the parent has worked at least 3 months.

6 days of paid child care leave per year, prorated, if the child is a Singapore citizen and under 7 years old, and the parent has worked at least 3 months. Self-employed parents must experience income loss during this leave. Non-citizen parents get 2 days of child care leave.

Child care leave must be used within the year and cannot be carried over. The maximum leave is 42 days per year.

Parents with children between 7 and 12 years old are eligible for an additional 2 days of extended child care leave per year.

If parents have children in both age groups, the total paid child care leave is capped at 6 days per year.

Labor Contract

Labor Contract Type

Labor contracts are divided into fixed-term contracts and permanent contracts.

Currently, most employment contracts in Singapore are indefinite. However, initial contracts can also be fixed-term, such as 1 or 2 years.

Probation Period 

Typically set at 3 months, but can be extended to 6 months with employee consent.

Termination

Notice Period

During the probation period, dismissal requires 1-2 weeks' notice. After probation, 1 month's notice or payment in lieu of notice is required.

If the contract does not specify a notice period, it is based on length of service:

Less than 26 weeks: 1 day  

26 weeks to less than 2 years: 1 week  

2 to less than 5 years: 2 weeks  

5 years and above: 4 weeks

Severance Pay

Severance pay typically ranges from 2 weeks to 1 month's salary per year of service, depending on the company's financial situation and industry.