How much does it cost to employ someone in Singapore through an EOR?
A citizen aged 55 or below on S$6,000 monthly costs S$7,031.25 per month before EOR fees in this example: salary + S$1,020 employer CPF + S$11.25 SDL allocation.
The annual planning budget is S$96,506.25 after an assumed S$800 monthly service fee and a 3% FX/extras allowance. The salary is paid evenly without a bonus; optional benefits are excluded.
Annual salary is S$72,000, paid evenly without a bonus. Employer CPF adds S$1,020 a month. SDL is allocated at S$11.25 per month for this employee; the employer rounds its aggregate SDL payment down to a whole dollar. The allocation may therefore slightly exceed the actual payment.
Employee CPF is deducted from gross salary, not added again as an employer expense. Paid leave is already funded in salary.
Singapore cost example · one citizen aged 55 or below · 2026 · all amounts in SGD
Scroll across for the calculation and annual amounts →
Singapore cost example · one citizen aged 55 or below · 2026 · all amounts in SGD| Cost | Calculation | Annual amount |
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| Gross salary | S$6,000 × 12 | S$72,000.00 |
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| Employer CPF | 17% × S$6,000 × 12 | S$12,240.00 |
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| SDL allocation | S$11.25 × 12 | S$135.00 |
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| Employment subtotal | Salary + employer CPF + SDL | S$84,375.00 |
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| Management fee assumption | S$800 × 12 | S$9,600.00 |
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| FX and extras allowance | 3% × S$84,375 | S$2,531.25 |
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| Total annual budget | S$84,375 + S$9,600 + S$2,531.25 | S$96,506.25 |
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Sources: CPF Board: contribution rates for 2026 · CPF Board: Skills Development Levy · SDL statutory framework
Is an employer of record legal in Singapore?
Yes. An EOR can employ eligible Singapore citizens and permanent residents. It cannot obtain work passes for foreigners based in Singapore while working for an overseas company.
For a citizen or permanent resident, confirm the Singapore employer, employment contract, payroll and CPF responsibilities under the Employment Act 1968 and Central Provident Fund rules. The provider’s presence alone does not establish that every proposed arrangement is suitable.
The Employment of Foreign Manpower Act 1990 governs foreign-worker permissions. The work-pass answer below explains the restriction and the available routes.
Sources: Employment Act 1968 · Employment of Foreign Manpower Act 1990 · MOM: EOR work-pass restriction for overseas companies
Can a Singapore EOR sponsor an Employment Pass for a foreign hire?
No. A Singapore EOR cannot obtain an Employment Pass for a foreign employee based in Singapore while working for an overseas company. The Ministry of Manpower expressly prohibits that arrangement. Buying an EOR package does not create an exception to the work-pass rules.
This restriction does not prevent EOR employment of Singapore citizens or permanent residents. For a foreign hire, assess a suitable local business setup or another eligible employer before committing to the hire. The actual employer, duties and working arrangement must qualify; a provider’s advertised visa service is not sufficient.
Sources: Singapore Ministry of Manpower · Jackson Lewis (commentary) · DLA Piper (commentary)
Compare the routes for a foreign hire →
How do you hire a foreigner in Singapore if an EOR cannot sponsor them?
Use a genuine Singapore employer that can apply for the appropriate work pass, or employ the person in another country where they can legally work. A licensed agency may handle recruitment and the application; its licence does not make labour supply lawful.
Incorporate and employ directly
ACRA’s government fees total S$315: S$15 for the name and S$300 for registration. Resident-director, corporate-service and address costs are additional. A corporate-owned subsidiary normally uses a private company limited by shares; exempt-private-company status has shareholder restrictions.
The company needs a locally resident director. Its employer or appointed agency applies for the Employment Pass, subject to salary, COMPASS and any advertising requirements. Company registration and pass approval are separate decisions. Incorporation does not guarantee approval.
Most ACRA registrations clear soon after payment; complex cases can take 15 working days and referrals 14–60 days. Allowing one to three weeks for setup is a planning assumption, not an EP timeline.
Commission a genuine outsourced service
MOM permits work at client premises where the duties match the pass occupation, sector and employer’s declared business, and the employer supervises and pays the worker. The arrangement must be a qualifying service, not simply someone supplied to supplement your workforce.
Employ the person outside Singapore
If the job can be performed abroad, hire where the person actually works and has work rights. The employment arrangement must be lawful in that country. An overseas EOR contract does not give permission to work from Singapore.
Sources: ACRA: registering a local company and processing times · ACRA: business name application fee · ACRA: choosing a company type · MOM: applying for an Employment Pass · MOM: Employment Pass eligibility · MOM: work-pass holders at client premises
How does an employer of record in Singapore handle CPF for citizens and permanent residents?
The Singapore employing company calculates and pays CPF for eligible citizens and permanent residents, recovering the employee share through payroll. The rate depends on age, wages and PR year.
At full rates for an employee aged 55 or below earning above S$750 monthly, the employer contributes 17% and the employee 20%, subject to ceilings. First- and second-year PRs normally use graduated rates unless an approved higher-rate arrangement applies.
Sources: CPF Board: contribution rates for 2026 · MOM: CPF entitlement
What should the Singapore employment contract cover?
Agree salary, duties, hours, leave, probation, notice and the identity of the employing company before the start date.
The Employment Act 1968 sets minimum protections for covered employees. A contract of service creates employment; a contract for service is a different relationship. Do not assume a probation label removes employment rights. Include benefits, intellectual property, payroll dates and the person responsible for employment decisions, then reconcile those terms with the provider’s commercial agreement.
Sources: Employment Act 1968 · MOM: contract of service
Does the 44-hour working week apply to every hire?
No. The statutory hours and overtime rules apply to employees covered by Part IV of the Employment Act.
Managers and executives are outside Part IV. Coverage also depends on duties and basic salary: the cited MOM guidance distinguishes workmen from non-workmen. For covered employees, the usual weekly limit is 44 hours and overtime attracts at least 1.5 times the hourly basic rate, subject to the relevant arrangement and limits. For other employees, agree hours and overtime terms in the contract.
Sources: MOM: hours of work, overtime and rest days
When should I incorporate a Singapore Pte Ltd instead of using an EOR?
Incorporate when the operation needs a genuine Singapore employer for work-pass sponsorship or sustained local activity, or when direct administration becomes economical.
In this page’s stated planning model, the cost crossover is seven employees in year one or six over two years. Those are model results, not legal thresholds. Incorporation does not guarantee a work pass, and salary and statutory employment costs remain under either route.
The EOR cost is S$12,131.25 per employee per year: S$9,600 management plus S$2,531.25 allowances from the worked example. Entity administration assumes S$6,000 total setup (including, not in addition to, the S$315 ACRA fees), S$9,600 annual accounting, S$48,000 for half of an internal role, S$4,800 for address, banking and incidentals, and S$1,200 payroll/HR per employee per year.
These are publisher assumptions, not supplier quotations or statutory charges. The half-role includes capacity to manage English-language filings and local employment administration; add specialist or other language support where needed. Both routes retain salary and statutory employment costs. Include any extra benefits, required director services, setup taxes, transition overlap and closure costs in an actual decision. Immigration needs can determine the route before price does.
People Ops Buyer planning model · SGD · same salary and benefits excluded from both sides
Scroll across for the calculation and annual amounts →
People Ops Buyer planning model · SGD · same salary and benefits excluded from both sides| Employees | EOR, 1 year | Entity, 1 year | EOR, 2 years | Entity, 2 years |
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| 1 | S$12,131.25 | S$69,600.00 | S$24,262.50 | S$133,200.00 |
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| 3 | S$36,393.75 | S$72,000.00 | S$72,787.50 | S$138,000.00 |
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| 6 | S$72,787.50 | S$75,600.00 | S$145,575.00 | S$145,200.00 |
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| 7 | S$84,918.75 | S$76,800.00 | S$169,837.50 | S$147,600.00 |
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| 10 | S$121,312.50 | S$80,400.00 | S$242,625.00 | S$154,800.00 |
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Sources: ACRA: company registration · MOM: Employment Pass eligibility
What should you budget when employment ends?
Budget for notice or pay in lieu, outstanding salary and leave, any retrenchment benefit, and the provider’s exit charges.
Follow the agreed notice period; where the contract is silent, the statutory schedule in the facts box applies. Retrenchment benefits depend on the contract or collective agreement and the circumstances; do not treat a market norm as a universal fixed severance entitlement. The EOR’s service cancellation and the employee’s dismissal are separate processes. Agree final-pay timing and deposit reconciliation before giving notice.
Sources: MOM: termination with notice · MOM: responsible retrenchment · MOM: paying salary
Does switching EOR providers automatically transfer employment?
No. A provider switch does not automatically qualify as a statutory transfer of employment.
Employment Act transfer protections concern qualifying business restructuring. MOM specifically distinguishes replacement service providers during competitive tendering from such transfers. Assess the actual transaction, then agree continuity of service, accrued leave, benefits, payroll cutover and employee communications. Do not tell the employee to resign until the employment route and any required consent are resolved.
Sources: MOM: transfer of employment · Employment Act 1968
Can you move a contractor to an EOR in Singapore?
Yes, if the worker is eligible for the proposed employment and the new arrangement reflects the real working relationship.
Compare the contractor invoice with gross salary, employee deductions, benefits and employer costs before agreeing a package. The label on an agreement does not settle whether the earlier relationship was employment. Review past classification and payment obligations separately; a new EOR contract does not erase them. The work-pass restriction also applies when a foreign contractor is being converted.
Sources: MOM: contract of service · MOM: EOR work-pass restriction for overseas companies
How does the COMPASS framework affect EOR Employment Pass applications?
COMPASS does not override the EOR work-pass restriction. For a legitimate Employment Pass application, the candidate must first meet the age- and sector-based salary threshold and then achieve forty COMPASS points unless exempt. Candidate attributes and the employing firm’s workforce profile both matter.
Sources: MOM: Employment Pass eligibility · MOM: EOR work-pass restriction · MOM: COMPASS framework
Does a Singapore EOR need an MOM employment agency licence?
Not merely because it employs its own staff. MOM says a licence is not required to recruit for your own business or outsource your own staff to customers’ premises. Placing jobseekers with other employers generally requires an employment agency licence. Assess the activities actually performed.
Sources: MOM: who needs an agency licence · MOM: agency eligibility and requirements · MOM: EOR work-pass restriction
Work-pass eligibility for an overseas client →
What are the 2026 Employment Pass salary thresholds?
In 2026, the Employment Pass salary floor starts at S$5,600 monthly outside financial services and S$6,200 in financial services for candidates aged 23 or below.
It rises with age, reaching S$10,700 and S$11,800 respectively from age 45. Meeting salary alone is insufficient: COMPASS and the legitimate employment arrangement still matter. Higher floors start for new applications on 1 January 2027.
Sources: MOM: Employment Pass eligibility · MOM: March 2026 workforce announcement
Do foreigners on an Employment Pass get CPF contributions through an EOR?
No. Foreign employees who are neither Singapore citizens nor permanent residents do not receive CPF contributions, including Employment Pass holders. CPF begins under the applicable rules if the employee becomes a permanent resident.
SDL is a separate employer obligation and generally applies to foreign employees working in Singapore.
Sources: CPF Board: foreign employees · MOM: CPF and Employment Pass holders · CPF Board: Skills Development Levy · MOM: EOR work-pass restriction
Work-pass eligibility for an overseas client →
What leave and notice rules apply under the Employment Act for Singapore EOR employees?
Covered employees qualify for paid annual leave after three months: seven days in the first service year, rising to fourteen from year eight, with prorating where applicable.
Notice follows the employment contract and must be the same for both sides. If the contract is silent, statutory notice ranges from one day to four weeks according to service. EOR service cancellation terms do not replace employee notice rights.
Sources: MOM: annual leave entitlement · MOM: termination with notice · MOM: Workright employment guide
How does an EOR handle IR21 tax clearance when a foreign employee leaves Singapore?
The employing company generally files Form IR21 at least one month before a non-citizen employee stops work, goes on an overseas posting or leaves Singapore for more than three months.
It must withhold monies due from the point it knows about the departure or cessation, pending IRAS clearance. Exemptions exist, so apply the IRAS checklist rather than assume every departing foreign or PR employee needs clearance.
Sources: IRAS: tax clearance · IRAS: completing IR21
Sources and cost assumptions
Checked 29 September 2026. These are planning examples, not Singapore quotations.
Provider comparison
The comparison uses global starting management fees and the existing fee model: monthly payroll of USD 6,000, with 2% FX and a 1% extras allowance unless confirmed terms differ. Missing estimates use that same allowance.
Currency conversion
SGD equivalents use the ECB’s 28 September 2026 rates: EUR 1 = USD 1.1378 = SGD 1.4538, rounded up to whole Singapore dollars.
Papaya’s assumed currency
Papaya’s published $499 starting price is assumed to be USD for this illustration, not confirmed as USD by the source. Its estimated monthly provider bill adds USD 180 under the same model; both figures are converted to Singapore dollars and labelled as assumptions.
Worked example and calculator
The worked example separately assumes S$800 monthly management and a 3% allowance on employment cost. Remove the 2% FX element if no conversion occurs. Benefits, taxes on service fees and exit charges are additional where applicable. The calculator shows an illustrative S$6,000 refundable deposit and zero setup fee; replace these with your quote. Monthly rounding makes its annual total three cents higher than the annual example.
Employing entities
“Not disclosed” means local employing-entity ownership was not established in the reviewed sources. Provider coverage is not permission to obtain a work pass.
