Hiring in Singapore

The terms set out role, salary in SGD, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language for commercial roles.

Fixed-term contracts are permitted, but repeated renewals invite scrutiny and most EORs default to indefinite terms.

Set probation from day one. An extension needs the employee's agreement and a documented reason.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.5 times the hourly basic rate for covered employees, with a monthly hours cap.

Most professional hires sit above the threshold, so overtime becomes a contractual matter rather than a statutory one. Put the position in writing either way.

Market practice for professional roles is 14 to 21 days, well above the statutory floor, so quote the market figure when you budget.

Paid sick leave splits into outpatient and hospitalisation entitlements. Parental leave is partly government funded and partly employer funded, so confirm which side the EOR carries.

Either side may terminate on notice or pay in lieu. Retrenchment benefits are largely a matter of contract and market practice rather than a fixed statutory formula.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Wrongful dismissal claims exist, so keep a documented reason.

Private medical cover, dental and group life are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 17.25% on top of gross salary for local hires. That is before the EOR fee.

Tax clearance is the trap. When a foreign employee leaves Singapore, the employer must withhold final pay pending clearance, so build that into the offboarding timeline.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and pass quotas and salary floors apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick, but the running cost is the point: a resident director, company secretary, accounting, audit thresholds and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.