The short answer: Singapore is Asia’s leading energy and marine hub and one of the most business-friendly places in the world to work. Income tax is low and progressive (0% to 24% for residents), there is no capital gains tax, and the system is territorial. The Employment Act sets clear minimums for leave, hours and notice. The key point for international hires: CPF, Singapore’s mandatory savings scheme, applies only to citizens and permanent residents, not to Employment Pass holders. The detail below matters whether you are hiring into Singapore or relocating for a role.
Singapore is one of the world’s great energy and maritime centres. Home to a vast bunkering port, major shipyards, offshore and marine engineering, and the regional headquarters of countless energy companies, it is a natural hub for the disciplines WRS recruits. It is also consistently ranked among the most efficient and tax-efficient places in the world to do business, which is a large part of its appeal to internationally mobile professionals. This guide sets out what employers and candidates need to know across hiring, pay, tax, leave and termination.
Figures reflect Singapore law and tax rates as of 2026. Employment is governed by the Employment Act, administered by the Ministry of Manpower (MOM), with tax run by the Inland Revenue Authority of Singapore (IRAS). This guide is informational and does not constitute legal advice.
How does employment work in Singapore?
Employment is governed by the Employment Act, which since the 2019 amendments covers all employees including professionals, managers and executives (PMEs), with some provisions (Part IV, on hours and overtime) limited to workmen and lower-wage employees. Written contracts and key employment terms are required. Probation is common, typically three to six months, though it is a matter of contract rather than a strict statutory period.
Foreign professionals work under a work pass, most commonly the Employment Pass (EP) for managerial, executive and specialist roles, with eligibility tied to a minimum qualifying salary and a points-based assessment. Securing the right pass is the gateway to working in Singapore, and is an area where employer sponsorship and experienced support matter.
What are the standard working hours?
For employees covered by Part IV of the Employment Act, working hours are capped at 44 per week, typically eight hours a day (or nine on a five-day week). Overtime is paid at 1.5 times the basic hourly rate and is capped at 72 hours a month. Many PME and salaried professional roles fall outside these hour limits and are governed by contract instead. Offshore and marine rotational roles follow their own shift and rotation patterns set out in the contract.
How is pay and tax structured in Singapore?
Singapore’s tax system is a major draw. It is territorial, meaning only income earned in Singapore is generally taxable, and the rates are low by international standards. The 2026 picture, administered by IRAS:
- Resident income tax: progressive from 0% to a top rate of 24%, applied to income earned in Singapore.
- Non-resident income tax: employment income is taxed at a flat 15% or the resident rates if higher. Residency turns on the 183-day rule: work in Singapore for 183 days or more in a calendar year, and you are taxed at resident rates for that year.
- No capital gains tax: Singapore levies no tax on capital gains, no dividend tax and no inheritance tax.
- GST: Goods and Services Tax of 9% applies to most goods and services.
CPF, and why it matters for foreign hires: the Central Provident Fund is Singapore’s mandatory social security and retirement savings scheme, but it applies only to Singapore citizens and permanent residents, not to Employment Pass or other work pass holders. For citizens and PRs, contributions are substantial and split between employer and employee, calculated on monthly wages up to the Ordinary Wage ceiling, which rose to S$8,000 a month from January 2026. For the foreign professionals, WRS most often places, CPF does not apply, which significantly simplifies their net pay position.
What benefits and leave are employees entitled to?
Annual leave and public holidays
Under the Employment Act, employees with at least three months’ service are entitled to paid annual leave starting at seven days after the first year and rising by one day per additional year of service to a maximum of 14 days. These are statutory minimums, and energy and professional employers commonly offer more. Singapore observes 11 gazetted public holidays a year.
Sick leave
Employees are entitled to paid outpatient sick leave of up to 14 days a year, and up to 60 days of paid hospitalisation leave (inclusive of the 14), once they have completed at least three months of service, subject to medical certification.
Maternity, paternity and shared parental leave
Mothers of Singaporean children receive 16 weeks of government-paid maternity leave. Fathers receive four weeks of government-paid paternity leave, mandated in full from 2025. A new Shared Parental Leave scheme provides a separate, transferable pool of paid leave rising to 10 weeks for children born from April 2026. Entitlements differ for non-citizen children, where the Employment Act provides a shorter maternity entitlement, so this is worth checking for international families.
How does termination and notice work?
Either party may end employment by giving the notice set out in the contract, and payment in lieu of notice is permitted on either side. Where a contract is silent, the Employment Act sets statutory notice by length of service, ranging from one day for very short service up to four weeks for longer-serving employees. There is no statutory severance or retrenchment payment under the Act, though retrenchment benefits are common practice and may be set by contract or collective agreement, with MOM guidelines encouraging payment for employees with at least two years’ service.
Dismissal must be with just cause or proper notice, and wrongful dismissal claims can be brought to the Tripartite Alliance for Dispute Management. As elsewhere, clear documentation and fair process are the employer’s best protection.
What should employers and candidates know before hiring or relocating?
For employers, the key points are that work pass eligibility and qualifying salaries govern who can be hired from overseas, that CPF is a significant cost for citizen and PR hires but not for foreign pass holders, and that while the statutory framework is light-touch and efficient, fair process on termination still matters. Singapore rewards good planning with one of the smoothest hiring environments anywhere.
For candidates, Singapore offers low personal tax, no capital gains tax, a high standard of living and a genuine regional hub for energy and marine careers. Understand your work pass and the 183-day residency rule, note that CPF will not apply to you as an EP holder, and assess the full package. For many internationally mobile professionals, the combination of low tax and career access makes Singapore one of the most attractive postings in the sector.
How WRS supports hiring and working in Singapore
Singapore sits at the heart of the Asian energy and marine market, and WRS recruits across exactly the disciplines it demands. We have spent over 24 years placing offshore, marine and energy professionals worldwide, with candidates mobilised in more than 90 countries. For employers, our recruitment solutions and contractor services cover compliant hiring, work pass support, mobilisation and payroll. For candidates, our consultants and candidate information hub guide you through work passes, relocation and what to expect from a Singapore package.
Explore our latest oil and gas, maritime and contract roles, submit your CV or get in touch to discuss hiring into or relocating to Singapore.
FAQs
Do you pay income tax in Singapore?
Yes, but at low rates. Residents pay progressive income tax from 0% to 24%, and there is no capital gains tax, dividend tax or inheritance tax. Non-residents are taxed at a flat 15% on employment income or at resident rates if higher. See IRAS for current bands.
Do foreigners pay CPF in Singapore?
No. CPF applies only to Singapore citizens and permanent residents. Employment Pass and other work pass holders do not contribute to CPF, which simplifies net pay for most international hires.
How much annual leave do employees get in Singapore?
Statutory annual leave starts at seven days after one year of service and rises by one day per year to a maximum of 14 days, for employees with at least three months’ service. Many employers offer more than the statutory minimum.
What work pass do I need to work in Singapore?
Most foreign professionals, managers and specialists need an Employment Pass (EP), which requires a minimum qualifying salary and meeting a points-based assessment. The employer sponsors the application. Other pass types exist for different roles and salary levels.
Is there severance pay in Singapore?
There is no statutory severance under the Employment Act. Retrenchment benefits are common practice and may be set by contract or collective agreement, with government guidelines encouraging payment for employees with at least two years’ service.
How can WRS help me work in or hire in Singapore?
WRS is a global energy and marine recruiter active in the Singapore market, offering compliant hiring, work pass support and payroll for employers and full relocation support for candidates. Visit worldwide-rs.com or contact us to start.
