White expand arrow icon
Back to TalentWiki

Singapore

Basic Economic Summary

Overview

Singapore dominates the world with its tech innovations and stable economy over the years. They remain to have the freest economy in the world, with a freedom score of 89.7. Their business-friendly regulatory environment has provided their people with jobs, resulting in a very low unemployment rate. 

Despite the lack of natural resources and a small domestic market, Singapore managed to stay on top of its economic success through exports in electronics, manufacturing, financial services, and tourism. This has driven a high demand for tech and digital professionals to explore opportunities within the country. 

Basic Information

  • Local Languages: English (Official), Chinese, Malay, Tamil
  • Major Economic Hubs: Singapore
  • Currency: Singapore Dollar (SGD)
  • Population: 5.82 million (2022)
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 69,129.04 (2022)
  • Exchange Rate (SGD/USD): 0.74
  • PISA Ranking: 2 *

Number of University Graduates (2020):17,534 *

Local Universities

University Rankings
National University of Singapore World University Ranking: 95 ; Local Ranking: 1
Nanyang Technological University World University Ranking: 154 ; Local Ranking : 2
Singapore Management University World University Ranking: 731 ; Local Ranking : 3
Singapore University of Technology and Design World University Ranking: 1960 ; Local Ranking : 4
Singapore University of Social Sciences World University Ranking: 2870 ; Local Ranking : 5

Salary Data

Job Title Average Salary Range (SGD) Average Salary Range (USD)
Management Accounting Manager 6,290 -19,500 4,639.28 - 14,382.49
Sales Manager 6,990 - 20,000 5,155.57 - 14,751.27
Marketing Manager 7,080 - 23,100 5,221.95 - 17,037.72
Developer 3,660 - 12,600 2,699.48 - 9,293.30
Product Owner 6,360 - 20,800 4,690.91- 15,341.33
Data Scientist 6,300 - 21,200 4,646.65 - 15,636.35

*Links to CPF contribution, Skills Development Levy and Worker’s Injury Compensation Insurance.

Talent Sourcing Tips

More information about job portals in Singapore can be found here.

More information about recruitment agencies in Singapore can be found here.

Taxes

Employer Payroll Tax

Type of TaxContribution (%)Notes
CPF Contribution (Pension) Payable for monthly salary ≥ SGD$750
Employee Age  
55 & Below17% 
Above 55 to 6013% 
Above 60 to 659% 
Above 657.50% 
   
Skills Development Levy$2 or 0.25%Whichever is highest, capped at SGD$11.25
Worker’s Injury Compensation Insurance3.2%All employees doing manual work, regardless of salary level.
All employees doing non-manual work, earning a salary of $2,100 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance.

*Links to CPF contribution, Skills Development Levy and Worker’s Injury Compensation Insurance.

for local hires, employer payroll taxes are capped at $1,020 for salaries above $6000.

Employee Payroll Tax

Type of TaxContribution (%)
CPF Contribution (Pension) 
Employee Age 
55 & below20%
Above 55 to 6013%
Above 60 to 657.50%
Above 655.00%
  
Community Contribution$0.50 – $30.00

*Links to CPF contribution and Community Contribution.

For CPF, the maximum amount of wage charged for cpf is $6000, and then 30k on additional wage (i.e 12*monthly salary – 6000*12, remaining is now the cap for bonus contribution to cpf contribution.)

Employee Monthly Income Tax

Income Group (SGD)Contribution (%)
< 1,666.670%
1,666.67 – 2,5002%
2,500 – 3,333.333.5%
3,333.33 – 6,666.677%
6,666.67 – 10,00011.5%
10,000 – 13,333.3315%
13,333.33 – 18,333.3318%
18,333.33 – 20,00019%
20,000 – 23,333.3319.5%
23,333.33 – 26,666.6720%
> 26,666.6722%

Singapore follows a progressive income tax model. Link to income tax.

An employee has to pay compulsory Medisave contribution (health insurance) if their monthly net trade income is more than $500.

Monthly Net Trade IncomeBelow 35 years35-45 years45-50 years50 years
Above $500 to $1,0004%4.5%5%5.25%
Above $1,000 to $1,5004%-8%4.5%-9%5%-10%5.25%-10.5%
Above $1,5008%9%10%10.5%
Maximum (SGD)$5,760$6,480$7,200$7,560

Minimum Wage & Payroll

Minimum Wage

Singapore has no minimum wage policy.

Payroll Cycle

Employees are paid monthly, within 7 days of the end of salary period.

Bonus

13th month salary

A 13th month bonus is not mandatory.

Working Hours & Statutory Leave

Maximum working hours

For 5 days or less a week: Up to 9 hours per day or 44 hours a week

More than 5 days a week: Up to 8 hours a day or 44 hours a week

Not allowed to work more than 12 hours a day unless:

  1. An accident or threat of accident
  2. Work that is essential to the life of community, national defence or securit
  3. Urgent work to be done to machinery or plan
  4. Interruption of work that was impossible to foresee

Maximum overtime hours

Up to 72 overtime hours, otherwise apply for exemption.

Overtime pay

Payable within 14 days and capped at SGD$13.50/hr:

For non-workman (white collar worker) earning up to $2600: 1.5x of hourly wage

For workman (blue collar worker) earning up to $4500: 1.5x of hourly wage

Work-on-rest-day pay

At employer’s request:

Work HoursPay
Up to half of normal daily working hours1 day salary
More than half of normal daily working hours2 day salary
Beyond normal daily working hours2 day salary + overtime pay

At employee’s request:

Work HoursPay
Up to half of normal daily working hours0.5 day salary
More than half of normal daily working hours1 day salary
Beyond normal daily working hours1 day salary + overtime pay

Public Holidays

There are 11 public holidays in Singapore. A list can be found here.

Annual Leave

Years of EmploymentNumber of Annual Leave
17
28
39
410
511
612
713
>714

Sick Leave

Months of Service CompletedPaid Outpatient Sick Leave (Certified Unfit for work)Paid Hospitalisation Leave
3515
4830
51145
>51460

Parental Leave

Child’s CitizenshipLeave
Singaporean Citizen (1st or 2nd child)8 weeks (paid by government) + 8 weeks (paid by company)
Singaporean Citizen (3rd child onwards)16 weeks (paid by government)
Non-Singaporean Citizen8 weeks (paid by company) + 4 weeks (unpaid)

Offboarding & Termination

Termination Process

Employee resigns and serves the notice period:On the last day of employment
Resignation without notice & no notice period servedWithin 7 days of the last day of employment
Termination due to misconductOn the last day of employment if possible,
else within 3 business days
Employer terminates the employment contractOn the last day of employment if possible,
else within 3 business days

Notice Period

Specified in contract. Number of days include Public Holidays, rest, and non-working days.

If not specified:
Length of Service in CompanyNotice Period
< 26 weeks1 day
26 weeks – 2 years1 week
2 – 5 years2 weeks
≥ 5 years4 weeks

Severance Pay

Severance pay is not mandatory, unless specified in contract and employed for at least 2 years.

Probation period

A Probation period is not mandatory for employees.

 

Employee Benefits

Insurance

In Singapore, Work injury compensation becomes mandatory for employees who are engaged in a particular industry or nature of work. Employers are obligated to provide this insurance which covers the employees’ medical expenses when injured at work,at least 14 days of outpatient leave or 60 days of hospitalisation leave. According to the Work Injury Compensation Act (WICA), the following types of workers must be given this benefit:

  • All employees doing manual work, regardless of salary level.
  • All employees doing non-manual work, earning a salary of $2,600 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance.

Under Singapore’s employment act, employers are not mandated to provide healthcare insurance for their constituents. Singapore citizens and foreigners with permanent residency working in the country are automatically provided with a low-cost insurance called Medishield. Funds for this insurance are taken from the Central Provident Fund that Singapore employees are contributing monthly. Each employee is to contribute a total of 37% of their wage: 20% will come from the employee and 17% from the employer. For more information regarding this fund scheme, you may refer here. 

Employee Share Option Plan

Singapore offers an Employee Share Ownership, a type of ESOP that allows employees to own or buy shares from their company and its sister companies. But unlike most ESOP, ESOW does not include phantom shares (receiving company shares or its cash equivalent) and share appreciation rights (receiving cash payments that are relative to the price of shares in the company). To know more about this employee benefit, you may click through this link.

VAT

The Goods and Services Tax/ VAT in Singapore if 7%.

Any queries or suggestions?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.