The moment someone’s contract of service begins, a set of statutory obligations kicks in, whether you are a five person design studio or a two hundred person production house. Miss them and you risk penalties, back payments with interest, and disputes at MOM’s dispute tribunal. Here is what has to happen, in order.
Confirm Coverage And Work Pass
Singapore’s Employment Act covers almost everyone under a contract of service, local or foreign, full time or fixed term. The main exceptions are domestic workers, seafarers, and civil servants.
Hiring a foreigner? They cannot start until they hold the right pass for their role, salary, and sector. Employment Pass applications run through the COMPASS scoring framework, updated again in January 2026, so check current criteria before making the offer. You submit the application, and starting someone before it is approved is your breach, not theirs.
Issue Key Employment TermsÂ
Anyone covered by the Act must receive a written Key Employment Terms (KETs) statement within 14 days of their start date. MOM requires 18 specific items, including:
- Employer and employee names, job title, and main duties
- Start date (and end date, for fixed terms)
- Working hours, rest days, and salary period
- Basic salary, calculation method, and fixed allowances or deductions
- Overtime rate, where applicable
- Leave entitlements, medical benefits, probation, and notice period
Your employment contract can double as the KETs statement if it covers all applicable items. Skipping items because they seem obvious, or offering less than the Act’s minimums, carries a per-employee penalty, and it is one of the most commonly missed obligations.
Set Up CPF, SDL, and PayslipsÂ
Three duties start with the first salary payment.
CPF. Mandatory for Singapore Citizens and PRs. Late contributions draw 1.5% interest monthly. Foreign employees on an EP, S Pass, or Work Permit are not on CPF; the foreign worker levy covers them instead.
Skills Development Levy. Applies to every employee, local or foreign.
Itemised payslips. Required with every payment, or within three working days if issued separately. Must show payment date, basic salary, allowances, deductions, overtime, and net pay.
Compensation Insurance (Work Injuries)
WICA insurance is mandatory for all manual workers, regardless of salary, and for non-manual employees earning $2,600 or less a month. Above that, it is optional, but you remain liable for a valid claim either way.
Track Annual Filings
- Maintain an employee register and keep payroll records for at least two years
- File Form IR8A with IRAS by 1 March each year for the prior year’s earnings; larger employers file electronically under the Auto-Inclusion Scheme
None of this scales down for small teams. A two person studio carries the same statutory duties as a two hundred person agency, just with less HR bandwidth to manage them. A compliant HR software streamlines most of your operations and removes these exact headaches before you even realize the problem exists.
A reliable HRMS that stays ahead of legislative change and policy updates will save hundreds of hours in manpower and thousands in potentially incurred penalties. A local product like NeuHR is perfect for SME’s looking to solidify their operations with a system that ensures compliance at every turn. As long standing partners of our vision here at Cultjobs, NeuHR has continued to assist hundreds of local businesses ensure compliance over their years of service. Schedule a demo with a sales representative to discuss how NeuHR can improve your HR workflow today.
Compliance Is Your Employer Brand
How you handle the first two weeks shapes a new talents’ impression of your brand. This decides if they speak highly of your team amongst Singapore’s small creative circles and that reputation compounds.Â
The platforms you choose to post vacancies on matters too, and there’s no better place to find creative talent than at Cultjobs.
Find your next hire with us today!
