Employer of Record (EOR) in Singapore

An EOR in Singapore allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment for workers who already have valid authorization to work in Singapore from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Singapore.

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Quick Overview of EOR in Singapore

Expanding into Singapore doesn’t have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Singapore’s labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like CPF contributions, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Singapore can cost anywhere from USD 7,700 to USD 15,400 (SGD 10,000 to SGD 20,000) plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.

Disclaimer: The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

What You'll Learn

  • Looking to hire in Singapore without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 300 to USD 600 (SGD 380 to SGD 770) per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

At Atlas HXM, we provide EOR services that ensure your business remains compliant with Singapore’s labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Singapore rules, and configuring payroll and statutory obligations correctly. EOR providers in Singapore, including Atlas HXM, do not sponsor work passes. Anyone hired via EOR must already hold valid work authorization or be sponsored by the client’s own entity.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with the Singapore Employment Act. Clearly outlines Key Employment Terms (KETs) to reduce risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in Singapore dollars (SGD), including:

  • Accurate tax withholdings and CPF contributions

  • Statutory benefits such as medical insurance

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Singapore’s laws.

Work Permit Compliance

In Singapore, EOR providers cannot apply for or sponsor work passes. Once a worker already has valid authorization, Atlas HXM manages compliant employment, payroll, CPF, and statutory obligations in alignment with MOM regulations.

Ongoing HR Support

Provides HR support, including: Leave management and performance tracking and employee relations and regulatory updates throughout the employee’s tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Singapore are typically billed as a platform/service fee in the range of USD 300–600 (EUR 270–540 / SGD 405–810) per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers who already hold valid work authorization. This service fee is separate from the employee’s salary, benefits, taxes, and pass-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Singapore entity, which can require USD 7,700–15,400 (SGD 10,395–20,790) upfront before any operational spend.

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What to choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR carries employer liability and handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee’s work. This model suits companies expanding into Singapore without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Singapore without setting up an entity and want a partner who absorbs employer risk.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Singapore

Singapore’s employment framework is designed to balance operational needs with employee protections. Here’s what you need to know:

Employment Types:

  • Permanent: Ongoing employment with full statutory benefits.

  • Fixed-Term: Hired for a specific project or defined duration.

  • Temporary: Short-term assignments; entitled to statutory benefits like leave and overtime.

Probation Periods: There is no explicit legal requirement but probation periods are typically 3 to 6 months and must be outlined in the employment contract. These periods allow employers to assess employee suitability before offering permanent employment. Notice periods during probation range from 1 day to 1 week, and the EOR ensures that all terms are compliant with the Employment Act.

Working Hours & Overtime: In Singapore, the standard workweek is 44 hours, with a maximum of 9 hours per day for a working schedule of 5 days or less a week (8 hours per day for a working schedule of more than 5 days a week). Employees must receive a break after working 6 consecutive hours. For eligible employees covered by the Employment Act, overtime is paid at 1.5x the basic hourly rate, and the EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

Starts at 7 days (1st year), increases to 14 days from 8th year

Paid by employer; accrual based on service length

Maternity Leave

16 weeks

First 8 weeks paid by employer, remaining 8 weeks by government

Paternity Leave

4 weeks

Paid leave for working fathers (starting April 1, 2025)

Sick Leave

After 3 months of service

14 days outpatient, up to 60 days hospitalization; certified by doctor

Public Holidays

All statutory holidays

Paid; handled by Atlas HXM

Vacation Leave

As per company policy / statutory minimum

Paid; unused leave typically paid out upon termination

Payroll & Benefits: Wages are calculated based on skills and local regulations, with progressive wage models applied in specific sectors. Atlas HXM manages payroll in SGD, CPF contributions (employer and employee), statutory benefits, bonuses, and private health insurance. Supplemental benefits can include dental, vision, wellness programs, and professional development options.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Singapore’s labor laws while businesses can focus on operations without administrative burdens.

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What to choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Singapore with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you’ll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Singapore operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly CPF contributions by the 14th of the following month, annual tax clearance forms for departing employees, and provide Form IR8A (Statement of Remuneration) by February 28. Corporate tax returns are due within three months of the company’s financial year-end, with estimated chargeable income forms submitted alongside.

Category

Details

Employer Payroll Tax

CPF contributions: 7.5%–17% (age-dependent)

Skills Development Fund: 0.25% on first SGD 4,500 (USD 3466)

Foreign worker levies: applicable to S Pass & Work Permit holders, rates vary by sector

Employee Payroll Tax

Residents: progressive income tax 0%–22%

Non-residents: flat 15% for employment income or higher resident rates

Employee CPF contributions: 5%–20% depending on age

Pension System (CPF)

Mandatory savings scheme for retirement, housing, and healthcare

Accounts: Ordinary (OA), Special (SA), Medisave (MA)

Withdrawals begin at age 55, monthly payouts from 65

Silver Support Scheme: quarterly payouts SGD 430–1,080 (USD 330-830) for eligible low-income seniors

GST & EOR Costs: Singapore applies a 9% Goods and Services Tax (up from 8% in 2024). EOR services are generally subject to GST, either included in quoted fees or added separately. Businesses may claim GST credits if registered and meeting turnover requirements.

Atlas HXM handles tax compliance, including progressive income tax calculations, CPF contributions, year-end filings, and expatriate tax equalization, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination, with statutory minimum notice periods ranging from 1 day to 4 weeks depending on length of service, subject to the Probationary employees typically having shorter notice periods. Severance pay isn’t legally required, but companies often provide retrenchment benefits of 2 weeks to 1 month of salary per year of service. The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.

5 Things to Look for in an EOR Provider in Singapore

  1. Local expertise and knowledge of labor laws, CPF contributions, and Ministry of Manpower requirements.

  2. Advanced technology for payroll, reporting, and HR system integration.

  3. Experience in your industry and handling work permit management.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

Speak to an Expert

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

Can an EOR in Singapore manage employees who already have valid work authorization?

Yes. Once authorization is already in place, Atlas HXM can employ and manage the worker under the EOR model, including payroll, CPF, benefits and compliant administration.

Are employers required to provide medical insurance?

Not legally mandated, but employers typically provide private insurance to supplement Medisave.

What is the typical probation period?

Usually 3-6 months and must be in the employment contract.

How much notice is required for termination?

Notice depends on length of service: 1 day (<26 weeks) to 4 weeks (5+ years), unless otherwise stated.

What are the CPF contribution rates for employers?

Rates vary by age: 17% (under 55), 12% (55–60), 9% (60–65), 7.5% (over 65).

Can employees work overtime without limits in Singapore?

Overtime is regulated with specific payment requirements at 1.5x the basic rate for eligible employees, and employees cannot be required to work more than 72 hours of overtime per month without Ministry of Manpower approval.

         

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