Putting a salesperson on the ground in Singapore is harder than its easy-business reputation suggests. Since July 2024 an Employer of Record (EoR) can no longer sponsor a work pass for someone who really works for an overseas company, the Employment Pass salary bar rises again on 1 January 2027, and once someone is on your payroll there are around a dozen employer duties to meet every month.
Singapore is the natural first stop for Asia. It is stable, English-speaking, well connected and genuinely easy to do business in. That reputation leads many companies to assume that putting one salesperson on the ground will be just as easy.
It usually isn't. The Ministry of Manpower (MOM) runs a tight, well-enforced system, and the rules have tightened in the last two years. Here is what we see companies run into most often, and a checklist of every hoop involved.
1. The shortcut that closed
For years, the standard move was to use an Employer of Record (EoR) firm. The EoR hired your person, sponsored their work visa, ran payroll, and sent you an invoice. No local company needed.
In July 2024, MOM closed that door for foreign hires. Its official guidance now says work passes are for foreigners working for Singapore-based companies, and that an EoR applying for one for someone who really works for an overseas company "would be committing an offence." [1][2][3]
A Singapore Law Gazette feature points out that the legal basis for this position is debated, but also that company officers can be personally liable, that the overseas client could be treated as an abettor, and that the sensible course for now is to fall in line with what MOM expects. [1] MOM's suggested alternatives are setting up a representative office or a local company. A Short-Term Visit Pass only covers things like meetings, for up to 90 days a year. It is not a way to run a sales role. [2]
2. The salary bar keeps rising
Even with your own Singapore company, a foreign hire needs an Employment Pass (EP), and the minimum salary is going up. Today a new EP needs at least S$5,600 a month, rising with age to S$10,700 for candidates aged 45 and over. From 1 January 2027 that becomes S$6,000, and S$11,500 at 45+ (higher again in financial services). [4][5]
Here is the part that catches sales teams out: MOM looks at fixed monthly salary. A classic sales package of a modest base plus generous commission can fail the test even when the person's total earnings are well above the line.
Clearing the salary bar is only step one. The application must then score 40 points on MOM's COMPASS framework, which weighs the candidate's salary against local peers, their qualifications, and your company's own mix of local and foreign staff. [4] And unless you have fewer than 10 employees or the role pays S$22,500 a month or more, the job must first be advertised to locals on MyCareersFuture for at least 14 days. [6]
3. Then the everyday employer duties start
Once someone is on your payroll, you are on the hook for written terms, CPF, levies, leave, insurance, fair-hiring rules, tax reporting and data protection, and for doing them on time, every month. None of it is unreasonable. All of it takes time, local know-how and someone who owns it.
The Singapore hiring checklist, in plain English
Every hoop a company typically jumps through to put a salesperson on the ground in Singapore.
| # | The hoop | What it means | Watch out for |
|---|---|---|---|
| 1 | Set up a local company | Register a Singapore company with ACRA. You need at least one director who lives in Singapore, a local registered address and a company secretary. Then file an annual return and accounts every year. | Allow roughly 1 to 3 weeks to set up, plus ongoing yearly costs. [7] |
| 2 | Don't use an EoR for a visa | A work pass is only for someone working for a Singapore-based company. An EoR can't sponsor one for a person who really works for your overseas business. | MOM calls this an offence. A visit pass only covers meetings, up to 90 days a year. [2][3][8] |
| 3 | Advertise locally first | Post the job on MyCareersFuture for at least 14 days before applying for an Employment Pass, and consider local candidates fairly. | Exempt if you have fewer than 10 staff or pay S$22,500+ a month. Biased ads get the EP rejected. [6] |
| 4 | Meet the salary bar | New EPs need at least S$5,600 a month (S$10,700 at age 45+). From 1 Jan 2027: S$6,000 (S$11,500 at 45+). | Only fixed monthly salary counts. Commission doesn't help you qualify. [4][5] |
| 5 | Pass the points test | The EP must score 40 points on COMPASS: salary vs locals, qualifications, and your company's nationality mix and local hiring. | Your company is scored, not just the candidate. [4] |
| 6 | Put it in writing | Give written Key Employment Terms within 14 days of the start date, issue itemised payslips, and pay salary within 7 days of the end of each pay period. | Records must be kept and shown to MOM on request. |
| 7 | Pay CPF | For citizens and permanent residents, pay into their CPF pension: 17% from you and 20% from them (age 55 and under), on wages up to S$8,000 a month, plus on commissions and bonuses. | Rates change with age, and commission is included. [7] |
| 8 | Pay the skills levy | Pay the Skills Development Levy (SDL) for every employee, foreigners included: 0.25% of pay, capped at S$11.25 a month. | Small, but easy to forget. [7] |
| 9 | Give leave and holidays | 7 to 14 days' annual leave depending on service, 14 days' sick leave (up to 60 in hospital), 11 public holidays, plus maternity (16 weeks) and paternity (4 weeks) leave for eligible staff. | You can't let someone go because they are pregnant or on statutory leave. [7] |
| 10 | Insure your people | Hold work injury compensation insurance, and medical insurance for S Pass holders. | Required by law, not optional. |
| 11 | Hire and treat people fairly | Make decisions on merit, not on age, nationality, gender, race, religion or family situation. Follow the fair employment guidelines and the new Workplace Fairness Act. | Applies to who you hire, promote and let go. [6] |
| 12 | Report pay to the tax office | Report each employee's income to IRAS every year (by 1 March). When a foreign employee leaves, file for tax clearance at least a month before their last day and hold back their final pay until it is cleared. | Missing tax clearance makes you liable for their tax. [7] |
| 13 | Protect personal data | Follow the PDPA for employee and customer data, and check the Do Not Call Registry before cold calling. | Applies to your sales outreach too. |
| 14 | End employment properly | Give contractual or statutory notice, pay out unused leave, and expect a retrenchment payment (2 weeks to 1 month's pay per year) after 2 years' service. Retirement age is now 64, with re-employment offers up to 69. | Ending a role costs more than many expect. [7] |
| 15 | Watch your tax footprint | A salesperson who regularly negotiates or signs deals for you could create a taxable presence (and GST duties) for your company in Singapore. | Take tax advice early. |
Numbers in brackets refer to the sources listed at the end of the article. General information, not legal advice. Correct as of October 2026.
Where a standard EoR stops
A good EoR takes payroll and paperwork off your plate, and for a local hire it can be a sensible step. But it still leaves two problems unsolved.
First, you are paying for a full-time hire: full salary, CPF, leave, notice and exit costs, before you know whether Singapore will pay off. Second, since 2024 it can't solve the visa question if the person you want isn't a local.
For most companies testing Singapore, the real question isn't "how do I employ someone here?" It is "how do I get a good salesperson in front of Singapore buyers without betting a full headcount on it?"
A different way in
That is the question we built Repserve around. Our Singapore company, Repserve Pte. Ltd., employs its own experienced, Singapore-based sales Reps. We are their real employer: we hire them, manage their employment and handle every row of the checklist above.
Because they are our people, a Rep can work part-time across a small number of non-competing clients. So you pay for the share of a Rep's time you actually need, a quarter or half of their week for example, rather than a full salary and everything that comes with it. You get local market coverage from day one, and when the pipeline justifies your own team, you can build it on your own timeline.
Before applying for any work pass, we first obtain a legal opinion from a Singapore-qualified lawyer confirming that the application complies with Singapore law, including the Employment of Foreign Manpower Act 1990 and MOM's published guidance, and we will not apply if that opinion advises otherwise.
If Singapore is on your roadmap for 2027, the time to plan is before the new salary thresholds land. Post a free request or book a consultation to compare notes with our Singapore team.
This article is general information, not legal or tax advice. Rules change, so please check the current position with MOM, IRAS or a Singapore adviser before you act.
Sources
- Nicole Evangeline Poh, "Employers of Record in Singapore: A Critical Overview", The Singapore Law Gazette, July 2025.
- Ministry of Manpower, FAQ: "Can an EOR in Singapore apply for a work pass for a foreigner to be based in Singapore while working for overseas companies?", updated 9 July 2024.
- Christopher V. Anderson, "Singapore: Employers of Record Can No Longer Sponsor Employment Passes for Foreign Entities' Workers", Jackson Lewis P.C., 5 August 2024.
- Ministry of Manpower, "Eligibility for Employment Pass" (qualifying salary and COMPASS).
- "Singapore Announces Major Increases to Work Visa Salary Thresholds Beginning January 2027", EIG Law, 19 February 2026; and "Budget 2026: Salary threshold for new Employment Pass applicants to be raised to $6,000 from 2027", British Chamber of Commerce Singapore, 16 February 2026.
- Ministry of Manpower, "Consider all candidates fairly" (Fair Consideration Framework job advertising requirement).
- AYP Group, "Employer of Record Singapore: Complete 2026 Guide for Global Companies" (CPF, SDL, leave, notice, IRAS reporting, entity set-up).
- Asanify, "Can You Use an Employer of Record to Hire Foreign Nationals in Singapore? (2026 MOM Update)".
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