Hiring practices in Singapore

Requirement for Foreign Employees to Work

All foreign employees working in Singapore are required to have a valid work pass before commencing work in Singapore. The most common work passes are Employment Passes, S Passes and Work Permits. When applying for work visas for foreign employees to work in Singapore, the type of work and the individual employee’s general skillset determine which work pass is most suitable.

Employment Passes are for foreign professionals, managers and executives earning at least S$5,600 a month (or S$6,200 a month for applicants in the financial services sector) and have acceptable qualifications (more experienced candidates would require a higher monthly salary). Additionally, employment pass applications are also required to earn 40 points in COMPASS, a points based system  that gives businesses greater clarity and certainty for manpower planning.

From 1 January 2027, Employment Pass applicants will require a minimum salary of S$6,00 a month (or S$6,600 a month for applicants in the financial services sector) (more experienced candidates would require a higher monthly salary).

S Passes are for mid-level skilled staff earning at least S$3,300 a month (or S$3,800 a month for applicants in the financial services sector) and meet the assessment criteria, such as holding a degree, diploma or acceptable technical certificates and have relevant work experience (more experienced candidates would require a higher monthly salary). Employers of S Pass holders are limited by a quota for their sector and have to pay a monthly levy for each worker holding an S Pass.

From 1 January 2027, S Pass applicants will require a minimum salary of S$3,600 a month (or S$4,000 a month for applicants in the financial services sector) (more experienced candidates would require a higher monthly salary).Work Permits are for semi-skilled foreign workers from approved countries working in the construction, manufacturing, marine shipyard, process or services sector. Depending on the sector, employers of Work Permit holders are limited by a quota for their sector and have to pay a monthly levy for each worker holding a Work Permit.

Does a Foreign Employer need to Establish or Work through a Local Entity to Hire an Employee?

In respect of Employment Passes, a foreign employer that does not have a registered office in Singapore would need to get a Singapore-registered company to act as a local sponsor and apply for an Employment Pass on their behalf. In respect of S Passes and Work Permits, the employing entity must be a company registered with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. Please note that foreign employers which carry on business in Singapore are generally required to register a presence in Singapore with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.

Limitations on Background Checks

There are currently generally no legal restrictions on an employer (or third party) conducting a background check on a job applicant. Credit checks are in practice conducted for candidates and employees employed in certain regulated roles, where they have access to the employer’s assets or deal with financial matters. It is customary practice to ask candidates to sign a self-declaration or statutory declaration that they have or do not have a criminal record. For Singapore citizens, a certificate of clearance may be issued by the Singapore Police Force upon application, which will certify that the individual has no prior criminal convictions in Singapore.

Restrictions on Application/Interview Questions

Employers should avoid discriminatory practices in recruitment, including questions asked in application forms and during interviews. While there is currently no general anti-discrimination legislation in place, a workplace fairness legislation is expected to be implemented by end 2024. Amongst other measures, the new workplace fairness legislation would prohibit workplace discrimination on a number of protected characteristics, including age; nationality; sex; marital status; pregnancy status; caregiving responsibilities; race, religion, language; and disability and mental health conditions covering all stages of employment, which will include the recruitment stage.