EP holders who work in Singapore for 183+ days in a calendar year are taxed as tax residents. Non-residents are taxed at a flat 15% or the resident rate — whichever is higher. No capital gains tax, no inheritance tax.
Banking in Singapore on an Employment Pass
Singapore has one of the world's most sophisticated banking systems. Open an account as soon as your EP is approved — you'll need it to receive your salary.
| Bank | Account | Min Balance | Best For |
|---|---|---|---|
| DBS/POSB | Multiplier / Everyday | SGD 0–3,000 | Highest interest rates |
| OCBC | 360 Account | SGD 0–3,000 | Bonus interest on salary credit |
| UOB | One Account | SGD 0 | Simple bonus structure |
| Wise | Multi-currency | SGD 0 | International transfers |
Taxes in Singapore on an Employment Pass
Singapore has one of the lowest income tax rates among developed nations — a major attraction for international professionals.
Singapore Income Tax Rates 2026
| Chargeable Income | Tax Rate |
|---|---|
| First SGD 20,000 | 0% |
| Next SGD 10,000 (20,001–30,000) | 2% |
| Next SGD 10,000 (30,001–40,000) | 3.5% |
| Next SGD 40,000 (40,001–80,000) | 7% |
| Next SGD 40,000 (80,001–120,000) | 11.5% |
| Next SGD 40,000 (120,001–160,000) | 15% |
| Above SGD 320,000 | 22%–24% |
EP holders who work in Singapore for 183+ days in a calendar year are taxed as tax residents. Non-residents are taxed at a flat 15% or the resident rate — whichever is higher. No capital gains tax, no inheritance tax.
CPF for Employment Pass Holders
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EP holders do NOT contribute to CPF (Central Provident Fund) — CPF is only for Singapore Citizens and PRs. This means your gross salary equals your pre-tax take-home before income tax only.
- No CPF deductions = higher take-home pay than equivalent salary in Australia, UK, or Canada
- If you obtain Singapore PR, you'll start CPF contributions (employee: 20%, employer: 17%)
- Consider investing the CPF equivalent yourself — max out a Singapore brokerage account (Syfe, StashAway, or Endowus) for retirement savings
Cost of Living in Singapore on an Employment Pass
Singapore is expensive, but high salaries and low taxes offset the cost. Most EP holders are well-compensated relative to local living costs.
| Expense | Monthly Cost (SGD) | Notes |
|---|---|---|
| Rent (1-bed, central) | SGD 3,000–5,000 | Lower in suburbs: SGD 2,000–3,000 |
| Groceries | SGD 400–700 | Hawker centres save significantly |
| Transport (MRT) | SGD 80–150 | Excellent public transit |
| Utilities | SGD 150–250 | High A/C usage |
| Total | SGD 4,000–6,500 | Before eating out/entertainment |
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Download Free →Frequently Asked Questions
What is the minimum salary for a Singapore Employment Pass?
The minimum qualifying salary for a Singapore EP is SGD 5,600/month for most sectors (from September 2023). Financial services roles require SGD 6,200/month. Older candidates need higher salaries.
Do Employment Pass holders pay CPF in Singapore?
No. CPF (Central Provident Fund) contributions are only required for Singapore Citizens and Permanent Residents. EP holders pay income tax only, which gives them a higher effective take-home pay.
What is the income tax rate for Singapore EP holders?
EP holders taxed as residents pay 0–24% on a progressive scale. Effective tax rate for SGD 100,000 salary is approximately 11.5–15%. Singapore has no capital gains tax or inheritance tax.
Can Employment Pass holders invest in Singapore?
Yes. EP holders can open brokerage accounts (Syfe, StashAway, Endowus, Interactive Brokers Singapore) and invest in SGX-listed stocks, ETFs, and REITs. No capital gains tax on investments.