Key Country Facts
Currency: Singapore Dong (SGD)
Time zone: UTC +8
Official language: Being a country that consists of multinational communities, Singapore has varieties of languages. English is the official language for business and education.
The Employment Act is Singapore’s main labour law. It provides the basic terms and working conditions for all types of employees, with some exceptions.
A contract of service defines the employer-employee relationship, including the terms and conditions of employment. The contract must include certain terms and essential clauses, such as hours of work and job scope.
The contract of service specifies the agreed upon terms and conditions of employment between the employer and employee. The contract includes both explicit and implied terms. If your employee is covered under the Act, the contract terms should abide by the minimum requirements under the Employment Act.
Employment contracts can be oral or written. If contracts are in the written form, it is mandatory for all employers to provide employees with a copy of the written employment contract. In addition, employers must obtain their employee’s consent before making any subsequent changes to the terms of the employment contract. It is not mandatory to have a written contract. Verbal contract would still refer to the Act; hence, workers are protected.
Employment contract contains these Key Employment Terms:
- Full name of employer,
- Full name of employee,
- Job title, main duties and responsibilities,
- Start date of employment,
- Duration of employment (if employee is on fixed-term contract),
- Working arrangements (daily working hours, number of working days/week, rest day)
- Salary period
- Basic salary
- Fixed allowances,
- Fixed deduction,
- Overtime payment period,
- Overtime rate of pay,
- Other salary-related components, such as bonus or incentives,
- Type of leaves,
- Other medical benefits,
- Probation period,
- Notice period, and
- Place of work.
There are 10 public holidays in Singapore:
- New Year’s Day – January 1
- Lunar New Year – February 12-13
- Good Friday – April 2
- International Labour Day – May 1
- Vesak Day – May 7
- Hari Raya Puasa – May 13 (subject to change)
- Vesak Day – May 26
- Hari Raya Haji – July 20 (subject to change)
- National Day – August 9
- Deepavali – November 4
- Christmas Day – December 25
The number of days of paid sick leave a new employee is entitled to depend on his/her service period:
No. of months of service completed of a new employee
|Paid outpatient non-hospitalization leave (days)||
Paid hospitalization leave (days)*
|6 months and thereafter||14||
* An employee is deemed to be hospitalized if he/she is certified by a doctor to be in need of hospitalization. He/she does not necessarily have to be warded in a hospital.
- The child is a Singapore citizen,
- The mother has served her employer for at least three months before the birth of the child, and
- The mother has given her employer at least one week’s notice before going on maternity leave.
- The child is a Singapore citizen born on or after January 1st, 2017,
- The father is or had been lawfully married to the child’s mother between conception and birth, and
- The father has served his employer for a continuous period of at least three months before the birth of the child.
Singapore Social Security
Central Provident Fund (CPF) is a comprehensive social security savings plan that provides working Singaporeans with a sense of security and confidence in their older age. The scope and benefits of CPF encompass the following:
- Home Ownership
- Family Protection
- Asset Enhancement
CPF contributions are based on several factors including age, residency status, and type of earnings. Foreigners are not eligible to participate in the Singapore CPF system. Most participants contribute 20% of salary with a maximum contribution of SGD 1,200. The employer contributes 17% of an employee’s salary with a maximum contribution of SGD1,020. The contribution rates are subject to change.
Singapore Health Insurance Law
This information does not constitute legal advice.