Payroll management in Singapore is performed by the HR department and the finance department in a company. The HR department makes sure all the payroll documentation is correctly and accurately processed, while the finance department ensures all the payments are made within an appropriate time frame.
Payroll management in Singapore depends very much on the size of the company. While large companies in Singapore request the specialized services of experts, small and medium companies will hire personnel to handle these procedures.
The Singapore Employment Act is the main document referring to the remuneration employees have the right to receive for the work they have provided for a company according to an employment contract. Apart from the salary, Singapore employees are also entitled to other benefits among which:
All these types of incomes must be included in the payroll in Singapore. The salary is calculated for a full month’s rendered services.
Our Singapore lawyers may provide you with information about the Employment Law.
Both employees and employers in Singapore are required to pay contributions to certain funds. Singapore residents working within a company are required to contribute to the Central Provident Fund (CPF) according to the rates provided by the CPF Board. CPF wages in Singapore are classified as ordinary and additional wages. The ordinary wages are represented by salaries alone, while the additional wages are represented by other bonuses, incentives or allowances. The amount of money withheld for the CPF starts at a minimum wage of 5,000 SGD.
Singapore companies are required to contribute to the Skills Development Levy for all their employees, no matter if they are locals or foreigners, or if they have a part-time or full-time work contract. Any amount resulting from the Levy is transformed into grants for employers and may be used for employment trainings. Singapore companies employing foreign individuals with S permits are also applied a Foreign Workers Levy by the Ministry of Manpower.
For complete information about all the taxes applied to employers and employees you may contact our Singapore law firm.
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