In Singapore, there is no universal minimum wage for most industries. Instead, wages depend on the job market, an individual’s skills, and their work experience. Employers must pay salaries in Singapore Dollars (SGD) and ensure payments are made on time, usually within seven days after the pay period ends. If employees work overtime, employers must pay them within 14 days.

As of 2025, the average monthly salary in Singapore is about S$7,310, though this can vary significantly by industry.

Singapore uses a progressive tax system for residents, where tax rates increase with income levels, ranging from 0% to 22%. Non-residents pay either a flat 15% on their employment income or the progressive rates, whichever results in a higher amount. Other earnings, such as director’s fees or rental income, are taxed at 24%. 

The standard working week in Singapore is 44 hours, employees typically work eight hours per day, with five or six working days depending on the industry. Work beyond these limits qualifies as overtime, compensated as follows:

• 1.5 times the hourly basic rate for overtime on regular working days.

• 2 times the hourly basic rate for work on rest days.

• 3 times the hourly basic rate for work on public holidays.

Employers are also required to provide one rest day per week, which is unpaid unless the employee works on that day, in which case overtime rates apply. Overtime hours are capped at 72 hours per month to safeguard employee health and well-being.

Annual Leave

Employees in Singapore are entitled to paid annual leave based on their length of service:

• 1st year of service: 7 days.

• 2nd year onwards: 1 additional day per year of service, capped at 14 days.

Sick Leave

Employees are entitled to paid sick leave after at least three months of service:

• Outpatient sick leave: Up to 14 days per year.

• Hospitalization leave: Up to 60 days per year (inclusive of outpatient sick leave).

Maternity Leave

Eligible female employees are entitled to 16 weeks of paid maternity leave if the child is a Singapore citizen, and the mother has been employed for at least three months prior to delivery. This applies for the first two births, with 12 weeks of paid leave for subsequent confinements.

Paternity Leave

Fathers who meet the eligibility criteria are entitled to two weeks of paid paternity leave, provided they are legally married to the child’s mother.

Childcare Leave

Parents of children below 7 years old are entitled to 6 days of paid childcare leave annually, while parents with children aged 7 to 12 years can take 2 days of extended childcare leave annually.

Other Leave Types

Additional leave types include shared parental leave, adoption leave, and unpaid infant care leave, depending on the employee’s circumstances and eligibility.

Employment agreements in Singapore fall into two main types:

• Indefinite-Term Contracts: These contracts have no specific end date and remain valid until terminated by either party. They are applicable to both full-time and part-time roles and offer employees legal protections under the Employment Act.

• Fixed-Term Contracts: These are agreements that last for a set duration or until a particular project is completed. Such contracts conclude automatically unless renewed. Terms and benefits must be explicitly stated to avoid disputes.

Notice Period

Notice periods in Singapore depend on the length of employment and are typically outlined in the employment contract. If unspecified, the default notice periods under the Employment Act are:

• Less than 26 weeks of service: 1 day.

• 26 weeks to 2 years of service: 1 week.

• 2 to 5 years of service: 2 weeks.

• More than 5 years of service: 4 weeks.

Dismissal

Employers must provide valid reasons for termination, such as misconduct, redundancy, or poor performance. Dismissal due to misconduct requires a proper inquiry to ensure fairness.

Severance Pay

Severance pay is not mandated under the Employment Act but is typically provided in redundancy cases based on mutual agreement or company policy. Employers are encouraged to follow industry norms to maintain fair practices.

Resignation

Employees who wish to resign must adhere to the notice period specified in their contract or compensate the employer in lieu of notice. Employers and employees should ensure mutual understanding to facilitate a smooth transition.