Employer of Record in Singapore

How hiring through an employer of record works in Singapore

Employment runs under the Employment Act, which asks employers to give written key employment terms, and CPF applies according to the person's status. Toku's guide says the EOR service handles CPF contributions, the Skills Development Levy and the annual income statements for IRAS. Toku supports eligible hiring in Singapore once the role and the person's immigration status are confirmed, while you manage the work and the objectives.

Rules to plan for in Singapore

• Key employment terms: covered employees must receive them in writing within 14 days of starting. The duty applies to employees under the Employment Act hired on or after April 1, 2016 whose employment lasts at least 14 days.
• Immigration status: CPF applies only to citizens and permanent residents. Employment Pass, S Pass and other work pass holders are outside CPF, and other obligations, such as the Foreign Worker Levy for some pass types, apply to them instead.
• Sector wage floors: the Progressive Wage Model sets minimum wages in certain industries, including cleaning, security and food services, so check whether the role falls in one.

Employer costs and contributions in Singapore

For a citizen or permanent resident aged 55 or below, the CPF Board's rates from January 1, 2026 put the employer's share at 17% of wages and the employee's at 20%. Toku's guide describes the employer add-on as roughly 17% above gross pay for standard-age employees, with step-down rates for older workers. Employer CPF is worked out and paid in Singapore dollars.

Employers also pay the Skills Development Levy, 0.25% of monthly wages with a floor of S$2 and a ceiling of S$11.25 per employee a month, which supports training through SkillsFuture Singapore. For a work pass holder there is no CPF, so the cost is mainly salary, the levy and any pass-related charges.

After year end the employer files income statements (IR8A) for IRAS, which Toku's guide says it prepares as part of the service.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Singapore

Short answer: Not settled. The Employment Act requires a workman's salary to be paid entirely in legal tender (sections 54 and 56). For other employees the Ministry of Manpower's guidance is that wages should be paid in legal tender, and no official source says whether they can opt in to USDC. IRAS taxes wages paid in tokens at the value of the services.

What the law says about the form of pay

Sections 54 and 56 of the Employment Act require a workman's salary to be payable and paid in legal tender and make any other form illegal and void. For other employees the Ministry of Manpower's guidance is that wages should be paid in legal tender, and items such as meals or accommodation can only be given in addition to wages. Section 63 also allows payment into the workman's Singapore bank account or by cheque, and section 59 allows food or quarters only in addition to money salary.

What it means for employee salary

IRAS's e-Tax Guide of 30 January 2026 taxes wages paid in payment tokens on the value of the employment services when the income accrues, so a Singapore salary stays valued in Singapore dollars. No official source opened says whether an employee who is not a workman can opt in to USDC, and any stablecoin element is confirmed when Toku checks the arrangement.

Contractors

The wage rule covers employees. IRAS says a contractor paid in digital tokens is taxed on the value of the services performed: S$100 payable in Bitcoin is S$100 of income.

Tax on crypto and tokens

IRAS's guidance on digital tokens (2026) says wages paid in payment tokens are taxable in the employee's hands on the value of the employment services performed, and that a lock-up defers tax until it lifts. Buying tokens is not taxable, and a later sale is taxed only if the gain is revenue in nature.

How Toku handles it

Separately from what the law in Singapore allows, Toku offers stablecoin payroll, including USDC, in supported arrangements and pays contractors in USDC or USDT through contractor management. Token grants are a separate arrangement from salary, administered through token grant administration. This page does not say any of these is available for a hire in Singapore: that is confirmed before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Singapore

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Before a start date is agreed Toku confirms the person's immigration status, the role and the contract terms, because status decides whether CPF applies. Have identification, work pass details where relevant, bank details and the agreed salary ready, and expect the written key employment terms to follow within 14 days of the first day of work.

What an employer of record costs in Singapore

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Singapore is confirmed before an offer. See the published pricing.

More on hiring in Singapore

• Payroll and hiring in Singapore
• Singapore full-time hiring compliance guide
• Employer of record coverage in 100+ countries