For most companies hiring their first Singapore employee: use an EOR. The Pte. Ltd. setup is straightforward by Asian standards, but it carries ongoing compliance costs — annual filing, corporate tax, GST registration above SGD 1M, accounting — that only make sense once you have 10+ employees and plan to stay for 3+ years.
Here’s what each path looks like.
Two Paths: EOR or Your Own Singapore Entity
| Approach | Setup Time | Fixed Cost | Best For |
|---|---|---|---|
| Employer of Record (EOR) | 3–7 days | ~$400–599/mo | First 1–8 employees |
| Singapore Pte. Ltd | 1–2 weeks | SGD 5,000–15,000/yr (compliance) | 10+ employees, long-term operations |
Path 1: Hiring via EOR in Singapore
Step 1: Choose an EOR Provider
| Provider | Singapore Entity | CPF Expertise | Monthly Fee | Onboarding Time |
|---|---|---|---|---|
| Multiplier | Owned | Full | $400/mo | 3–5 days |
| Deel | Owned | Full | $599/mo | 3–5 days |
| Remote | Owned | Full | $599/mo | 3–5 days |
| Rippling | Owned | Full | ~$500/mo+ | 3–5 days |
For a first Singapore hire, Multiplier offers the best value. Deel is the pick if speed is the constraint.
Step 2: Determine Employment Pass Requirements
If you are hiring a non-Singaporean/non-PR:
Employment Pass (EP) is required for professionals, managers, and executives earning SGD 5,600+/month (2025 threshold; reviewed annually under the COMPASS framework).
COMPASS criteria — each scored 0–20 points, 40 points minimum to pass:
- Salary: Benchmarked against Singapore’s 20th, 40th, 60th, and 80th percentile for the same role/sector
- Qualifications: Recognised degree from a good-tier institution
- Diversity: Nationality mix of the company’s PMET workforce
- Local employment support: Proportion of Singaporean/PR PMETs at the firm
Your EOR advises on EP eligibility and sponsors the application as the local employer.
Step 3: Prepare the Employment Contract
Your EOR provides a compliant Singapore employment contract. Confirm it covers:
- Start date, job title, reporting structure
- Salary in SGD, payment date (monthly is standard)
- CPF deduction acknowledgement
- Annual leave entitlement (7–14 days under EA, but market standard is 14–21)
- Notice period (1–3 months for senior roles)
- Probation period (typically 3–6 months)
- IP assignment clause (non-negotiable if the role involves product or technical work)
- Confidentiality obligations
Step 4: Register for CPF
CPF applies to Singapore Citizens and Permanent Residents only. EP holders do not require CPF contributions.
| CPF Contribution Rates (2025) | Employer | Employee |
|---|---|---|
| Employee age ≤ 55 | 17% | 20% |
| Employee age 55–60 | 15% | 15% |
| Employee age 60–65 | 11.5% | 9.5% |
| Employee age 65–70 | 9% | 7% |
| Employee age > 70 | 7.5% | 5% |
Your EOR registers the employee and handles all CPF contributions from month one.
Step 5: Complete IRAS Notifications
As an overseas company using an EOR, you have no direct IRAS obligations. The EOR is the legal employer and files everything: AIS submission annually, Form IR21 if employment terminates, IR8A equivalent data where required.
Step 6: Set Up Benefits
| Benefit | Statutory Minimum | Market Standard |
|---|---|---|
| Annual leave | 7–14 days | 14–21 days |
| Sick leave | 14 days outpatient, 60 days hospitalisation | Same |
| Maternity leave | 16 weeks | 16 weeks |
| Paternity leave | 4 weeks (for eligible fathers) | 4 weeks |
| Public holidays | 11 days | 11 days |
| Health insurance | Not mandatory | Employer-funded hospitalisation + GP |
| CPF | Mandatory for SC/PR | — |
For competitive hiring in Singapore’s tech and professional services market, add hospitalisation + GP + dental. The employee expects it. Your EOR’s benefits marketplace covers this.
Step 7: Onboard the Employee
Your EOR’s portal handles digital onboarding: personal details (NRIC, bank account, CPF), electronic contract signature, document uploads (NRIC, education certificates, EP if applicable). First payslip and CPF contribution statement arrive on first payroll run.
Path 2: Hiring via Your Own Singapore Pte. Ltd
Registration Steps
-
Incorporate via ACRA (Accounting and Corporate Regulatory Authority)
- Online via Bizfile+
- SGD 315 incorporation fee
- Requires local company name, at least one Singapore-resident director, and company secretary
- Time: 1–3 business days for straightforward applications
-
Open a corporate bank account
- DBS, OCBC, UOB are the main options
- Fintechs (Wise Business, Airwallex) for international transfers
- Timeline: 1–3 weeks for traditional banks
-
Register as a CPF employer
- Via CPF employer portal
- Required before first payroll
-
IRAS registration (automatic upon ACRA incorporation)
-
GST registration only if annual revenue exceeds SGD 1 million — not required initially
Employment Act Obligations
- Provide itemised payslips (mandatory for all employees under EA)
- Keep employment records for at least 2 years
- Follow EA Part IV protections for employees earning under SGD 4,500/mo (overtime, rest days)
Cost Comparison: EOR vs Own Entity for Singapore Hiring
| Cost Component | EOR (Multiplier) | Own Pte. Ltd |
|---|---|---|
| First year setup cost | ~SGD 0 | ~SGD 8,000–15,000 |
| Per-employee monthly fee | SGD 0 | |
| CPF employer contribution | Included | 17% of salary |
| Annual compliance (audit, filing) | Included | SGD 3,000–8,000 |
| HR software | Included | SGD 50–200/employee/mo |
| Break-even employees | — | ~8–12 |
Own entity becomes cost-competitive at approximately 10+ Singapore employees over a sustained period.
Frequently Asked Questions
Do I need a Singapore company to hire in Singapore? No. An EOR lets you hire a Singapore-based employee without incorporating. The EOR is the legal employer on your behalf.
What is the Employment Pass minimum salary in 2026? SGD 5,600/month for most sectors; SGD 6,200/month for financial services. Reviewed annually by MOM. Your EOR advises on current thresholds and COMPASS assessment.
How long does it take to hire via EOR in Singapore? Singapore Citizens or PRs: 3–5 business days from signed contract to first working day. Employment Pass holders: 4–8 weeks from application to start date.
What are the main CPF pitfalls to avoid? Incorrect CPF rate for employee age, late remittance (MOM levies interest), and missing contributions for SC/PR employees. A good EOR handles all of these automatically.
Can I sponsor an Employment Pass as an EOR client? Yes — the EOR (as the Singapore-based employer) sponsors the EP on your behalf. Standard service from Multiplier, Deel, Remote, and other top providers.
When should I convert from EOR to my own entity? At 10+ Singapore employees with a 3+ year commitment. Also consider converting if you need a Singapore bank account for local invoicing, want to apply for government grants (Enterprise Development Grant), or need a Pte. Ltd. to qualify for specific government contracts.
