A Short Guide to Payroll in Singapore

1
(No Transcript)
2
A Short Guide to Payroll in Singapore
Bestar Services Pte. Ltd
3
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore

• In order to own, manage, and financially support
  a working team in Singapore, you need to be
  compliant with the states payroll processing
  requirements. As an employee too, you need to be
  well-versed in the payroll clauses so that you
  know your rights, eligibility for financial
  benefits, and perks while you work for a
  Singapore-based organisation.
• This quick guide will help you get familiar with
  Singapores payroll management practices.

4
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore
1. Monthly Salary Distribution System

• Employers of Singapore-based companies are under
  obligation to disburse staff payments at least
  once a month within a stipulated time frame. They
  can even opt to pay remunerations at shorter
  intervals. Withholding salary is a punishable
  offence.

5
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore
2. Itemised Pay Slips

• As of April 2016, all employers must mandatorily
  issue payslips to their workers who are covered
  by the Employment Act. The payslip must include
  details like payment date, basic salary,
  allowances, overtime pay, the reason for
  deductions (if any), and salary period. Failure
  to comply with this will result in a fine.

6
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore
3. Maintaining Employment Records

• All employers are expected to keep at least two
  years of salary and employment records of all
  their working employees, and up to 1 year of
  records of all their ex-employees.

7
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore
4. Leave Policy

• All employees who have consistently worked at the
  same organisation for at least 3 months are
  entitled to annual paid leaves which is
  comparable with the amount of service given to
  the organisation. It is 7 days for 1 year of
  service, and 14 paid leaves in a year for those
  who have served for more than 8 years with the
  same company. Employees are eligible for paid
  maternity, paternity, sick, and hospital leave if
  they have served for more than 3 months in the
  same organisation. Those who have worked for less
  than three months are not eligible for paid
  leaves though.

8
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore
5. Making Correct Overtime Calculations

• When an employee works beyond normal working
  hours, the company is under obligation to make
  compensatory payments to them. This is called
  overtime pay. Singapore directs all employers to
  not impose overtime beyond 72 hours in a month on
  their employees. The expected overtime pay is 1.5
  times the hourly basic rate of pay, and this
  should be cleared within 14 days of the last day
  of the salary period.

9
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore
6. Central Provident Fund

• The CPF is social security savings that call for
  mandatory fund contributions by employers and
  employees in Singapore to meet the employees
  post-retirement healthcare and housing needs.

7. Statutory Reporting Requirements

• All companies that have 6 or more workers in
  their employment, must submit their remuneration
  information and report electronically to the IRAS
  by the 1st of March every year.

10
A Short Guide to Payroll in Singapore
Tax Planning While Being In Singapore

• Small-sized businesses grow over time as they
  extend their services and engage more manpower.
  Managing payroll can be a complicated process for
  larger organisations.
• As a professional payroll service provider,
  Bestar offers effective and affordable payroll
  solutions that cut out the stress of in-house
  management. Reach out to us with your
  requirements and our team will be glad to help.

11
Follow us