Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
SGD $ (Singapore Dollar)
Employer contributions
17% employer CPF (for residents under 55)
Minimum wage
No statutory minimum wage (Progressive Wage Model by sector)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Singapore
Timezone
SGT (GMT+8)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~SGD 9,360 total
/month
For a gross salary of
SGD 8,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
17% employer CPF (for residents under 55)
Mandatory extras
Annual Bonus (AWS)
Monthly admin
Monthly payroll - CPF by 14th - IRAS auto-inclusion - SDL levy monthly
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~SGD 9,360 total
Example gross salary
SGD 8,000 gross/month
~SGD 5,040 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~SGD 1,360 CPF
Employer contributions on that salary
Employer contributions
17% employer CPF (for residents under 55)
Employee contributions
20% employee CPF (reduces with age)
Total cost above gross
~17% above gross (CPF employer)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~SGD 6,000
Per month
Singapore CBD
SGD 7,000 - 20,000
~35%
Marina Bay / Orchard
SGD 8,000 - 22,000
~40%
Monthly gross. National average salary per year:
~SGD 72,000
Minimum wage
No statutory minimum wage (Progressive Wage Model by sector)
Paid:
Set by sector (Progressive Wage Model)
Extra pay
Annual Bonus (AWS)
Annual Wage Supplement (AWS) - 1 month common; variable bonus on top
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to SGD 20,000 / 2% / 3.5% / 7% / 11.5% / 15% / 18% / 19% / 22%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly CPF by 14th of following month
Social security payments
April 18 (online individual tax return)
Income tax
By March 1
Employee tax certificate
IR8A / Auto-Inclusion Scheme
April 18 (online)
Annual return
Income Tax Return (Form B/B1)
Late payment penalties
Late CPF: 18% annual; late income tax: 5% penalty + 1% monthly
Who collects what
IRAS (Inland Revenue Authority)
Income tax
CPF Board
CPF contributions
Ministry of Manpower (MOM)
Employment Act enforcement and EP/S-Pass
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
7 days (year 1) to 14 days (year 8+)
Public holidays
~11 public holidays
Sick leave
Sick Leave (Outpatient + Hospitalization)
14 days outpatient + 60 days hospitalization per year (employer paid)
Maternity leave
16 weeks (government-paid) + 2 weeks paternity
Government-Paid Maternity Leave (GPML) via MOM
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contract of Service (Permanent)
Fixed term
Fixed-Term Contract
Independent contractor
Contract for Service (Freelancer)
Collective agreements
Collective Agreement (under NTUC)
Ending employment
No statutory severance (beyond notice period)
How it is calculated
Retrenchment benefit negotiated; MOM guideline: 2 weeks per year of service
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
EP / S-Pass Quota Non-Compliance
Risk Level: HIGH
Singapore's Fair Consideration Framework (FCF) requires companies to advertise jobs on MyCareersFuture for 14 days before applying for an Employment Pass. S-Pass holders are subject to sector quotas (10-15% of headcount). Violations result in EP/S-Pass application rejections and MOM audits of the entire workforce.
CPF Contribution on Ad-Hoc Payments
Risk Level: HIGH
CPF is due on all wages including overtime, commissions, and allowances that are regular in nature. One-time payments like retrenchment benefits are excluded. Misclassifying regular incentive payments as one-time to avoid CPF contributions is a CPF Board audit focus.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.