On this page (7 sections)
Overview and why companies expand from Australia to Singapore
- Singapore is a regional headquarters hub with strong connections to South-East Asian markets.
- It has a business-friendly regulatory environment, English as a working language and a stable legal system.
- Overlapping time zones make it easy to manage a Singapore team from Australia.
- Singapore offers deep talent in finance, technology, logistics and regional sales.
Singapore's employment system is lighter-touch than Australia's. There is no general minimum wage, notice and probation are largely contractual and employers don't withhold income tax for residents. The complexity sits elsewhere: CPF rules for citizens and permanent residents, and the work pass system for foreign hires.
Australia and Singapore at a glance
| Topic | Australia | Singapore |
|---|---|---|
| Employment contracts | A written contract is not legally required but is standard practice. Employers must give every new employee the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant. A modern award or enterprise agreement usually sets minimum terms. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts. | Employers must issue Key Employment Terms in writing within 14 days of starting to employees covered by the Employment Act on contracts of 14 days or more, and provide itemised payslips. |
| Probation | No statutory probation. In practice the unfair dismissal "minimum employment period" works as one: 6 months, or 12 months for small businesses with fewer than 15 employees. | Not regulated by statute. Probation of 3 to 6 months is common and is set by contract. |
| Working hours | Maximum 38 ordinary hours a week plus reasonable additional hours under the National Employment Standards. Awards set overtime rates. Employees have a right to disconnect outside working hours unless refusing is unreasonable. | For employees covered by Part 4 of the Employment Act, normal hours are capped at 44 a week, with overtime at 1.5 times the hourly rate up to 72 hours a month. Part 4 covers workmen earning up to S$4,500 and other employees up to S$2,600 a month. |
| Minimum wage | National Minimum Wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026. Most employees are covered by a modern award with higher minimum rates for their classification. | No general minimum wage. Progressive Wage Model rates apply in specific sectors, and firms hiring foreign workers must pay locals at least the Local Qualifying Salary. |
| Annual leave | 4 weeks paid annual leave a year for full-time employees (5 weeks for some shift workers), accruing progressively. Untaken leave is paid out on termination. Many awards add a 17.5% leave loading. | 7 days paid annual leave in the first year after 3 months of service, rising by 1 day a year to 14 days. |
| Sick leave | 10 days paid personal/carer's leave a year for full-time employees, plus 2 days unpaid carer's leave and 2 days paid compassionate leave per occasion. All employees can also take 10 days paid family and domestic violence leave a year. | After 6 months of service, up to 14 days paid outpatient sick leave and up to 60 days hospitalisation leave (including the 14 days) a year. |
| Parental leave | Up to 12 months unpaid parental leave after 12 months of service, with the right to request 12 more. The government funds up to 26 weeks of Parental Leave Pay at the national minimum wage from 1 July 2026, paid through Services Australia rather than the employer. | 16 weeks government-paid maternity leave and 4 weeks government-paid paternity leave for eligible parents of Singapore citizen children, plus shared parental leave. |
| Public holidays | National public holidays such as New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day and Boxing Day, plus state and territory holidays. Employees who work on a public holiday are usually paid penalty rates under their award. | 11 gazetted public holidays a year. |
| Retirement and social security | Superannuation Guarantee of 12% of qualifying earnings, paid by the employer on top of wages. Since 1 July 2026 super must be paid each payday and reach the fund within 7 business days (Payday Super). There is no separate employer social security levy. | Central Provident Fund (CPF) contributions for citizens and permanent residents: 17% employer and 20% employee for those aged 55 and under, on ordinary wages up to S$8,000 a month from 1 January 2026. |
| Payroll taxes | Employers withhold PAYG income tax from wages. Each state and territory charges payroll tax once total Australian wages pass a threshold, for example 5.45% above $1.2 million in NSW and 4.85% above $1 million in Victoria. Workers' compensation premiums are also payable. | No payroll tax and no monthly income tax withholding for resident employees, who file their own returns. Employers pay the Skills Development Levy and, for Work Permit holders, the Foreign Worker Levy. |
| Notice periods | Employer notice under the National Employment Standards: 1 week (up to 1 year of service) rising to 4 weeks (over 5 years), plus 1 week if the employee is over 45 with at least 2 years of service. Pay in lieu is allowed. Awards set employee notice. | Set by contract. If the contract is silent, statutory notice runs from 1 day (under 26 weeks of service) to 4 weeks (5 years or more). |
| Dismissal protection | Unfair dismissal protection applies after the minimum employment period to employees covered by an award or agreement, or earning under the high income threshold of $190,100 (from 1 July 2026). General protections against adverse action apply from day one. Small businesses can follow the Small Business Fair Dismissal Code. | Employees can bring wrongful dismissal claims through the Tripartite Alliance for Dispute Management. Dismissal on discriminatory grounds is not allowed. |
| Severance | Statutory redundancy pay of 4 weeks (1 to 2 years of service) rising to 16 weeks (9 to 10 years), then 12 weeks at 10 years or more, when long service leave usually takes over. Small businesses with fewer than 15 employees are generally exempt. | No statutory retrenchment benefit. Tripartite guidance treats 2 weeks to 1 month's salary per year of service as the norm for employees with 2 or more years of service. |
| Mandatory benefits | Superannuation, workers' compensation insurance (state-based and compulsory), paid leave under the National Employment Standards and long service leave under state and territory laws, usually after 7 to 10 years of service. | CPF for citizens and permanent residents, work injury compensation insurance for covered employees and statutory leave. |
| IP and restraint clauses | Post-employment restraints are only enforceable if reasonable to protect a legitimate business interest. Employers generally own IP that employees create in the course of employment. The federal government has proposed banning non-compete clauses for employees under the high income threshold from 2027; this was not law at the last review. | Restrictive covenants are enforceable only if they protect a legitimate interest and are reasonable. Tripartite guidelines discourage blanket restrictions. |
| Visas and right to work | Every worker needs Australian work rights, which employers can check through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor. Some EORs can sponsor, many cannot. | Foreign professionals need an Employment Pass, which has a minimum qualifying salary and is assessed under the COMPASS framework. The employer or an EOR must apply on the worker's behalf. |
The differences that matter most
Coverage of the Employment Act
The Employment Act covers most employees, but some protections, such as overtime and hours limits in Part 4, only apply to lower-paid workers. Senior professionals often rely mainly on their contract.
CPF instead of super
CPF is mandatory for Singapore citizens and permanent residents. For those aged 55 and under earning more than S$750 a month, employers contribute 17% and employees 20% of ordinary wages up to S$8,000 a month from 1 January 2026. Rates step down for older workers.
Work passes for foreign staff
If your hire is not a citizen or permanent resident, they need a work pass. Employment Pass applications are assessed against a minimum salary and the COMPASS framework, which scores factors such as salary, qualifications and the diversity of the employer's workforce. An EOR applies as the employer.
Leave starts lower
Annual leave starts at 7 days in the first year and builds to 14, compared with 4 weeks in Australia. Many employers offer more to compete for talent.
Dismissal
Employment can generally be ended by notice under the contract. Employees can bring wrongful dismissal claims, and new workplace fairness laws are expanding protection against discrimination.
Common compliance traps
- Late Key Employment Terms. These must be issued in writing within 14 days of the start date for covered employees.
- Wrong CPF treatment, for example missing contributions after an employee becomes a permanent resident.
- Work pass non-compliance, such as letting a pass holder change roles without notifying MOM.
- Overtime for Part 4 employees, which is capped and must be paid at 1.5 times.
- Missing tax clearance when a foreign employee leaves Singapore.
How an EOR works in Singapore
A Singapore EOR employs your hire through its local company, issues Key Employment Terms, runs payroll, makes CPF contributions for eligible employees and applies for work passes where needed. You manage the work. Many Australian companies set up a Singapore entity once a regional team forms, but an EOR is a fast way to put the first people on the ground.
Frequently asked questions
Do I have to pay CPF for all Singapore employees?
CPF contributions apply to Singapore citizens and permanent residents. Foreign employees on work passes are not covered by CPF, although other obligations such as medical insurance for some pass holders may apply.
Is there a minimum wage in Singapore?
There is no general minimum wage. Progressive Wage Model rates apply in certain sectors, such as cleaning and security, and firms hiring foreign workers must pay local employees at least the Local Qualifying Salary.
How do I hire a foreign professional in Singapore?
Most foreign professionals need an Employment Pass. The employer, or an EOR acting as employer, applies to the Ministry of Manpower. Candidates must meet a minimum qualifying salary and pass the COMPASS points framework.
Do employers withhold income tax in Singapore?
Not for most resident employees, who file their own tax returns. Employers report income to the tax authority. For foreign employees leaving Singapore, employers must seek tax clearance and may need to withhold money.
What notice is required to end employment?
Notice is set by the contract. If the contract is silent, the Employment Act sets minimum notice from 1 day to 4 weeks depending on length of service.
Sources
Last reviewed:
Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.
- Ministry of Manpower: COMPASS framework
- Ministry of Manpower: Employment Act
- Ministry of Manpower: Key Employment Terms
- Ministry of Manpower: Hours of work and overtime
- Ministry of Manpower: Annual leave
- Ministry of Manpower: Sick leave
- Ministry of Manpower: Termination with notice
- Ministry of Manpower: Employment Pass
- CPF Board: Contribution changes from 1 January 2026
- Fair Work Ombudsman: National Employment Standards
- Fair Work Ombudsman: Annual Wage Review 2026
- Fair Work Ombudsman: Fair Work Information Statement
- Fair Work Ombudsman: Dismissal and notice
- Fair Work Ombudsman: Redundancy pay
- Fair Work Ombudsman: Unfair dismissal
- Fair Work Ombudsman: Right to disconnect
- ATO: Payday Super
- Services Australia: Parental Leave Pay
- Revenue NSW: Payroll tax
- State Revenue Office Victoria: Payroll tax
- Department of Home Affairs: Skills in Demand visa (subclass 482)
Related guides
New to the model? Start with what an Employer of Record is, then compareEOR costs and pricing models.