PEO vs EOR in Singapore: How to Choose the Right Hiring Model in 2026?
PEO vs EOR in Singapore: Learn the key differences, compliance rules, payroll impact, and work pass options to choose the right hiring model in 2025.
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Hiring in Singapore is getting more competitive in 2026. With higher salary thresholds, harmonized levies, and stricter quota rules, employers face more compliance pressure than ever. This guide explains the main work visas, including the Employment Pass, S Pass, and Work Permit, along with the latest MOM updates, so you can stay compliant while focusing on business growth.However, while Singapore is business-friendly, navigating its work visa system when you have a diverse team can be challenging for employers due to strict eligibility criteria, quota limits, and regulatory compliance.
In this article, we’re going to provide an overview of the primary Singapore work visas, employers’ responsibilities for compliance, common questions, and how using HRIS solutions like Slasify can help simplify and manage this complexity without building a full in-house HR team.

According to the Ministry of Manpower (MOM), Singapore offers multiple types of work passes tailored for different categories of foreign professionals and workers. Here are the main visa types employers should focus on:
The majority of professionals fall under this category and won’t take up headcounts for the foreign worker quota. Many companies would prioritize the Singapore Employment Pass for senior or critical roles to avoid paying unnecessary levies. The primary pass types include:
Singapore S Pass and Work Permit are designed for entry and medium-skilled foreign workers. A dependency ratio ceiling (DRC), or quota, will be applied, and the employers need to pay certain levies.
There are also work visas for trainees and students, as employers might hire interns. The Training Employment Pass (TEP) accepts students who are studying at acceptable institutions or earning a fixed monthly salary of at least S$3,000. The Work Holiday Pass is designed for students and graduates aged 18 to 25 who want to work and holiday in Singapore for 6 months. The quotas and Foreign Worker Levy don’t apply here, but employers are obligated to comply with general work condition rules.
The Ministry of Manpower (MOM) has introduced several updates to Singapore’s work pass framework effective in 2026:

Employers are responsible for more than just submitting visa applications. Key obligations of employers include the following:
Many companies struggle with these responsibilities because compliance demands both time and local HR expertise. Even small mistakes such as miscalculating quotas or missing renewal deadlines can result in rejected applications, financial penalties, or suspension of hiring privileges.
Under the new rules, companies are required to meet stricter qualifications when applying for work visas for foreign employees. The minimum salary threshold for employment passes has been raised, and companies are being asked to demonstrate a greater commitment to local hiring. While the intention behind these regulations is to improve opportunities for Singaporeans, many businesses are feeling the strain.
— Vahid Haghzare, Director Silicon Valley Associates Recruitment Singapore
That’s why many foreign companies turn to HRIS solutions like Employer of Record (EOR) to outsource work visa application and payroll services in Singapore. This ensures that quota monitoring, renewals, and the latest compliance can be met at all times.
4. Setting Up a Local Entity vs. Using an EOR in Singapore

When hiring in Singapore, businesses generally have two options:
Gives companies full control but requires registering a legal entity and managing payroll and compliance in-house. This process can be expensive and time-consuming, especially for companies that are testing the water before investing heavily in a new market.
Enables companies to legally employ staff in Singapore without setting up a local entity. The EOR becomes the legal employer and handles visas, payroll, CPF contributions, and compliance, while the client focuses on business operations.
In most cases, for businesses that want to test the market and stay flexible, the EOR model for HR management often proves more efficient and less risky.

By acting as a fully compliant and trusted Employer of Record (EOR), Slasify offers the best HR software solution in Singapore to help global companies simplify and streamline key HR operations with services such as:
If you are looking to enter the Singapore market or in the process of hiring, we encourage you to book a free consultation with our HR expert today to help you assess hiring options and visa eligibility.

For global businesses and top-tier professionals looking to establish a foothold in Asia, the decision often narrows down to two powerhouse cities: Singapore and Hong Kong. Both offer world-class infrastructure and dynamic business environments, but their approach to welcoming foreign talent diverges in critical ways.
Understanding the nuances between Singapore's Employment Pass and Hong Kong's General Employment Policy (GEP) can be the deciding factor in your expansion strategy. Let's break down how these two premier visa pathways compare.
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Singapore Employment Pass (EP) |
Hong Kong General Employment Policy (GEP) |
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Who it's for |
Foreign professionals, managers, and executives. |
Professionals with a special skill, knowledge, or experience not readily available in the local workforce. |
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Minimum salary |
S$5,000 (non-financial sectors), S$5,500 (financial sectors). Higher for older, more experienced applicants. |
No official minimum, but the proposed compensation package must be commensurate with Hong Kong's market standards. |
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Quota system |
No quota. However, applications are assessed under the COMPASS framework. |
No quota. |
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Assessment method |
Points-based (COMPASS). Scores factors like salary, qualifications, company diversity, and support for local jobs. |
Case-by-case meritocracy. Relies on proving the role cannot be filled locally and the applicant's unique suitability. |
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Path to permanent residency |
Eligible to apply for Permanent Residence (PR) after holding an EP for 2 years. |
Eligibility to apply for Permanent Residence after 7 years of continuous ordinary residence. |
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Dependent passes |
Can be applied for spouses and children under 21 if the applicant earns at least S$6,000 per month. |
Can be applied for spouses and unmarried dependent children under 18. Usually granted upon primary application approval. |
The choice isn't about which city is "better," but which system aligns with your company's timeline and your employees' career goals.
There is no one-size-fits-all answer. The optimal choice hinges on a strategic fit. We help our clients navigate these complex decisions by weighing the specific profile of the employee, the nature of the role, and the long-term geographic goals of the business. Let us handle the compliance complexity so you can focus on your strategic growth.
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The timeline varies by visa type:
Note: For foreign companies without a legal entity in Singapore, applying for EP and S Pass could take up to 8 weeks.
Besides base salary, employers must cover mandatory taxes and contributions, including:
Quotas cap how many Work Permit and S Pass of Singapore you can have. We’d recommend prioritizing EP for senior and critical roles as they don’t have quota limitations. Always keep tabs on the current quota headcounts to avoid exceeding the limit. Lastly, since the S Pass levy is S$650 per headcount, you should always budget the levies into cost planning and balance between local hires and foreign workers.
Employers can appeal within MOM’s framework, but approval depends on meeting all eligibility criteria. Using an Employer of Record (EOR) can help manage appeals and ensure documentation is correctly prepared to avoid delays to your business expansion.
PEO vs EOR in Singapore: Learn the key differences, compliance rules, payroll impact, and work pass options to choose the right hiring model in 2025.
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