PAYROLL IN SINGAPORE: WHAT FOREIGN EMPLOYERS NEED TO KNOW
If you’re a foreign business owner in Singapore, there are 3 key things that you’ll need to know when it comes to payroll in Singapore.
1. Employee Central Provident Fund (CPF)
The CPF is one of Singapore’s mandatory social security savings scheme where both employees and employers contribute based on the salary. The employee is expected to contribute 20% of its gross salary, while the employer will contribute 17% of the employee’s gross salary.
2. Community Funds
Aside from the CPF contributions, every employee is required to donate a small amount based on their monthly total wages to self-help groups in Singapore, unless they withdraw.
3. Tax Clearances
It is also Singapore employers’ obligation to do income tax clearance for all employees via Form IR8A. The Auto Inclusion Scheme (AIS) is also mandatory for all companies with 5 or more employees – all employers must submit their employee’s employment income for each year.
As such, employers need to know about income tax in Singapore. The current personal income progressive tax rate on employment income is from 0% to 24% for tax residents. For non-tax residents, it is a high flat rate of 15% or the progressive rate, whichever is higher.
IMPORTANCE OF SINGAPORE EMPLOYMENT CONTRACT
The Singapore Employment Contract is a critical aspect when hiring local or foreign employees in your company as the Employment Act does not fully cover every employee. For instance, if you are utilising payroll services for both your in-house and outsourced workforce, the policies will be different for each type of worker. Thus, you will need to understand the Singapore Employment Contract to know your rights as an employer and what you should provide your employees.
PAYROLL SERVICES IN SINGAPORE
We cover end-to-end payroll services in Singapore, including consulting and drafting of your employment contract to ensure all parties are well-covered. Whether you are a startup company or an established one that is in the midst of expansion, our payroll outsourcing can unburden your workforce with administrative tasks. Get to know more about our payroll services today!
SINGAPORE PAYROLL MANAGEMENT: KEY THINGS TO NOTE
To ensure that employees are well-protected, employers in Singapore have to fulfil these 6 requirements for a successful payroll management and avoid facing penalties from non-compliance.
REASONS TO OUTSOURCE PAYROLL IN SINGAPORE
Singapore Payroll Outsourcing FAQs
PAYROLL IN SINGAPORE ARTICLES
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