Hiring in Australia as a Singapore company

Singapore companies expanding to Australia move from one of Asia's most flexible employment systems to one of the most regulated. Here's what changes.

Last reviewed By the editorial team
On this page (7 sections)
  1. Overview
  2. Singapore and Australia at a glance
  3. The differences that matter most
  4. Common compliance traps
  5. How an EOR works for Singapore companies in Australia
  6. FAQs
  7. Sources
SGDLocal currency
SingaporeCapital
SGT (UTC+8), 2 to 3 hours behind SydneyTime difference

Overview and why companies expand from Singapore to Australia

  • Australia is a large, high-income market close to Singapore, with strong demand for financial, technology and logistics services.
  • Overlapping business hours make it easy to manage an Australian team from Singapore.
  • Australian talent in engineering, data and professional services helps regional teams scale.
  • Australia is a common next step for Singapore-headquartered regional businesses after South-East Asia.

Singapore's Employment Act gives employers a lot of flexibility: no general minimum wage, contractual notice and probation, and no employer withholding of income tax for residents. Australia is the opposite in many ways. Minimum pay and conditions are set by law and awards, super is a compulsory 12% employer cost, employers withhold income tax every payday and dismissal is closely regulated.

Singapore and Australia at a glance

Summary only. Figures were checked against the official sources listed below on 2026-10-08. Many rules depend on the employee's award, contract, state or province.
TopicSingaporeAustralia
Employment contractsEmployers 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.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.
ProbationNot regulated by statute. Probation of 3 to 6 months is common and is set by contract.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.
Working hoursFor 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.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.
Minimum wageNo 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.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.
Annual leave7 days paid annual leave in the first year after 3 months of service, rising by 1 day a year to 14 days.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.
Sick leaveAfter 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.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.
Parental leave16 weeks government-paid maternity leave and 4 weeks government-paid paternity leave for eligible parents of Singapore citizen children, plus shared 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.
Public holidays11 gazetted public holidays a year.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.
Retirement and social securityCentral 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.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.
Payroll taxesNo 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.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.
Notice periodsSet 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).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.
Dismissal protectionEmployees can bring wrongful dismissal claims through the Tripartite Alliance for Dispute Management. Dismissal on discriminatory grounds is not allowed.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.
SeveranceNo 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.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.
Mandatory benefitsCPF for citizens and permanent residents, work injury compensation insurance for covered employees and statutory leave.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.
IP and restraint clausesRestrictive covenants are enforceable only if they protect a legitimate interest and are reasonable. Tripartite guidelines discourage blanket restrictions.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.
Visas and right to workForeign 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.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.

The differences that matter most

Minimum pay is everywhere

Singapore uses Progressive Wage Models in specific sectors and a Local Qualifying Salary for firms employing foreigners. Australia has a National Minimum Wage and modern awards that cover most employees, including many in office roles. Check the award before setting pay.

Super applies to everyone

CPF only applies to Singapore citizens and permanent residents. Australian super applies to almost all employees regardless of nationality, at 12% of qualifying earnings, paid each payday since July 2026.

Employers withhold tax

Australian employers must register for PAYG withholding, deduct income tax from wages and report through Single Touch Payroll. This is a new process for many Singapore employers.

Leave entitlements are higher

Australian full-time employees get 4 weeks of annual leave from the first year, compared with Singapore's 7 days rising to 14. Australian personal leave is 10 days a year, with no service requirement beyond accrual.

Dismissal protection

Singapore employment can usually be ended with contractual notice. Australian employees gain unfair dismissal protection after 6 months (12 for small businesses) if covered by an award or agreement or earning under the high income threshold, and general protections from day one.

Common compliance traps

  • Assuming no minimum wage applies and setting pay below the award.
  • Leaving super out of the budget, or applying CPF-style eligibility rules.
  • Not registering for PAYG withholding and payroll tax where required.
  • Short notice periods that fall below the National Employment Standards.
  • Overlooking state-based workers' compensation insurance.
  • Copying a Singapore restrictive covenant, which may not survive an Australian reasonableness test.

How an EOR works for Singapore companies in Australia

An Australian EOR employs your hire, sets the award classification, runs payroll with PAYG withholding, pays super each payday and holds workers' compensation insurance. You direct the work and pay one invoice, often in SGD or USD. Once your Australian presence grows, you can register a subsidiary and transfer staff. See EOR vs setting up an Australian entity.

Frequently asked questions

Does Australia have a minimum wage?

Yes. The National Minimum Wage is $26.44 an hour from 1 July 2026, and most employees are covered by a modern award with higher minimum rates. Singapore has no general minimum wage, so this is a significant change.

Is superannuation like CPF?

Both are compulsory retirement savings schemes, but they work differently. Australian super is a 12% employer contribution that applies to all eligible employees regardless of citizenship. CPF applies only to Singapore citizens and permanent residents and includes significant employee contributions.

Do Australian employers withhold income tax?

Yes. Australian employers must withhold income tax from every payment of wages under PAYG and report it to the ATO each payday. Singapore employers generally don't withhold tax for resident employees.

How hard is it to dismiss an employee in Australia?

Harder than in Singapore. Employees who have served the minimum employment period can claim unfair dismissal if the dismissal is harsh, unjust or unreasonable, and general protections apply from day one. A valid reason and fair process are essential.

Can a Singapore company employ in Australia through an EOR?

Yes. An Australian EOR can employ your hire under a local contract and handle payroll, tax, super and insurance, without you registering an Australian entity.

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.

  1. Ministry of Manpower: Employment Act
  2. Ministry of Manpower: Key Employment Terms
  3. Ministry of Manpower: Hours of work and overtime
  4. Ministry of Manpower: Annual leave
  5. Ministry of Manpower: Sick leave
  6. Ministry of Manpower: Termination with notice
  7. Ministry of Manpower: Employment Pass
  8. CPF Board: Contribution changes from 1 January 2026
  9. Fair Work Ombudsman: National Employment Standards
  10. Fair Work Ombudsman: Annual Wage Review 2026
  11. Fair Work Ombudsman: Fair Work Information Statement
  12. Fair Work Ombudsman: Dismissal and notice
  13. Fair Work Ombudsman: Redundancy pay
  14. Fair Work Ombudsman: Unfair dismissal
  15. Fair Work Ombudsman: Right to disconnect
  16. ATO: Payday Super
  17. Services Australia: Parental Leave Pay
  18. Revenue NSW: Payroll tax
  19. State Revenue Office Victoria: Payroll tax
  20. 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.

Not sure which route fits?

Compare an EOR with setting up your own entity or engaging contractors, then check the rules for your target country.

EOR vs entityAsk a question