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SINGAPORE PAYROLL OUTSOURCING

Payroll regulations in Singapore can be complicated and tricky, especially if you’re a foreign business owner – outsource your payroll function to trusted experts to pay your employees on time, every time, and stay compliant.

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Singapore Payroll Outsourcing2022-08-10T15:15:09+08:00

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.

infographic - Employee Central Provident Fund (CPF)

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.

infographic - Community Funds

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.

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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.

infographic - Employment Act Part IV

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.

Payroll Services in Singapore
  • Computation of gross and net salary
  • Partitioning of all contributions
  • Monthly & yearly reporting
  • CPF registration & GIRO setup
  • Payment of salaries and CPF with pay slips
  • Submission of Auto-Inclusion Scheme (AIS) with IRAS
  • Preparation of annual IR8A forms for tax submissions
  • Preparation of IR21, National Service Make-Up Pay (NS MUP), GML & CPF Refund
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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.

Salary to be paid within 7 days after the period of salaried work

Pay slips must be itemised to include date of payment, basic salary and allowances, overtime pay, and other details – fines will be issued for non-compliance.

Your employee’s salary covers basic pay and work-related allowances. Food, housing, travelling, transportation, pension, expenses incurred during course of work, and retrenchment benefits are not considered under salary.

Ensure that all overtime pay is calculated accurately, while noting that employees cannot work more than 72 overtime hours a month. The rate for overtime pay starts from 1.5 times the hourly basic rate and must be paid 14 days from the last salaried day.

If your employee does not fulfil their monthly obligations, the salary will be prorated for the period of work.

Singapore employers must keep at least 2 years of employment records for every employee and ex-employee’s records to be kept for 1 year after leaving their role.

REASONS TO OUTSOURCE PAYROLL IN SINGAPORE

  • Avoid complications and complexities of payroll in Singapore
  • Peace of mind with payroll services that are fully compliant with the regulations
  • Stay updated with the latest legislative changes to the Employment Act
  • Worry-free payment to employees according to the breakdown of CPF, funds, etc.
  • Save time settling payroll and focus on revenue-generating actions
  • Reduce long-term overheads of hiring a full time employee and training them
Reasons to Outsource Payroll in Singapore

Outsource your payroll to us today.

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Singapore Payroll Outsourcing FAQs

How much is payroll outsourcing in Singapore?2022-08-05T13:19:30+08:00

The cost for payroll outsourcing is dependent on the requirements by the employer and the number of employees under payroll. Get in touch today for a quote.

Can I do the payroll myself?2022-08-05T13:18:38+08:00

Yes, payroll can be done by yourself. However, it is recommended to outsource payroll to an expert to reduce the time spent and streamline processes.

Do employers pay taxes on payroll?2022-08-05T13:17:51+08:00

There is no need for employers to withhold taxes from an employee’s salary unless they are foreign workers. Employers must withhold at least one month if they stop working in Singapore or if they leave Singapore for more than 3 months.

Are pay slips mandatory in Singapore?2022-08-05T13:17:08+08:00

Yes, pay slips are mandatory as per the Employment Act.

What are the holiday and leave requirements for payroll in Singapore?2022-08-05T13:15:57+08:00

Here are the basic holiday and leave requirements for all employees:

  • Paid holidays (public holidays): 11 days
  • Annual leave: Min. 7 days, depending on length of service
  • Sick leave: 5-14 days of paid outpatient leave and 15-60 days of paid hospitalization leave
Undecided or got questions

Got questions for Singapore payroll outsourcing?

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PAYROLL IN SINGAPORE ARTICLES

Supplement your existing knowledge with additional insightful readings that we’ve crafted based on our 14 years of experience.

Singapore-Company-Registration-Guide-2022
Guide to Hiring Foreigners in Singapore
What are the functions of the Ministry of Manpower’s statutory boards?
Singapore Income Tax

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