What is salary?
In Singapore, salary refers to basic pay and fixed allowances paid to your employees as work performed under a contract of service.
It does not include:
Pension or retrenchment benefits
Reimbursements for travel, food or housing expenses
Other work-related expenses incurred by the employee
When should salary be paid?
Under Singapore’s Employment Act, salaries must be paid at least once a month. Employers may also choose to pay at shorter intervals if preferred.
Salaries are to be paid:
Regular pay: Within 7 days after the end of the salary period
Overtime pay: Within 14 days after the end of the salary period
Via a payment method as agreed with your employee, eg. bank transfers from your Aspire account
Failure to pay salaries on time is considered an offence and may result in penalties.
However, exceptions may apply in cases such as overtime work, resignation without notice, and or other special circumstances.
Employer contributions and levies
As an employer, you’re required to make mandatory contributions and pay levies for all eligible employees in Singapore.
Below is a breakdown of key contributions:
Type | Who is this for? | How much to pay? | Who to pay? | When to pay? |
Central Provident Fund (CPF) | Singapore Citizens and Permanent Residents (PR) | Employer and employee contribution, varies by employee age | CPF Board | By the last calendar day of month |
Skills Development Levy (SDL) | All employees in Singapore, including foreign workers | 0.25% of total monthly wages, max. $11.25 per employee | CPF Board | Monthly, with CPF contribution |
Self-Help Groups (SHG) | Singapore Citizens and PR, and applicable foreign workers | Varies by organisation (eg. CDAC, SINDA, MENDAKI, ECF) | CPF Board | Monthly, with CPF contribution |
Notes:
CPF contributions: required for Singaporean and PR employees earning more than $50 per month
SDL contributions: Applies to all employees, including part-time, temporary and foreign workers
SHG contributions: Voluntary but automatically deducted unless employees opt out
Central Provident Fund (CPF) Contributions
The CPF is a mandatory social security savings scheme for Singaporeans, supporting retirement, healthcare and housing needs.
Key requirements:
CPF contributions apply to Singapore Citizens or Permanent Residents earning more than $50 per month.
Employers must pay both employer and employee share to the CPF Board by the last day of the month
The employee’s share is deducted from their wages
For employees earning $50 to $500 per month, only the employer’s share is required
For full details on eligibility and exemptions, visit the CPF website.
Skill Development Levy (SDL)
The SDL is a mandatory levy for all employees in Singapore, including foreign employees. Funds collected are used to support workforce training and development under the National Continuing Education Training (CET) system.
Key details:
Rate: 0.25% of the total monthly wages, capped at $11.25 per month per employee
Payment: Paid together with CPF contributions
Foreign-only workforce: If you employ only foreign workers, SDL must be paid directly to SkillsFuture Singapore (SSG).
For more details, visit the SkillsFuture Singapore website.
Contributions to Self-Help Groups (SHG)
Employers must deduct SHG contributions from the wages of Singapore Citizens, Permanent Residents and certain foreign employees.
These contributions support various community funds:
CDAC Fund (Chinese Development Assistance Council)
ECF (Eurasian Community Fund)
MBMF (Mendaki & Mosque Building Fund)
SINDA Fund (Singapore Indian Development Association)
Payment details:
Deducted from employee’s wages
Paid to the CPF Board together with CPF contributions.
For contribution rates and eligibility, visit the CPF website
Itemised payslip requirements
Since 1 April 2016, all employers must issue itemised pay slips to employees covered by the Employment Act.
Payslips can be in soft copy (eg. email, PDF) or hard copy (printed), to contain these mandatory details:
Employee & employer name
Payment date & salary period
Basic salary and allowances
Additional payments (eg. bonuses, overtime)
Deductions (eg. CPF contribution, no-pay leave)
Total net salary paid
For more details, visit the the Ministry of Manpower website
Employee Tax Filing
Employers in Singapore must prepare and submit employment income details (Form IR8A) to the Inland Revenue Authority of Singapore (IRAS) for all employees.
Submission deadline: 1st March each year, covering the employee’s remuneration for the previous calendar year.
Submission methods:
Electronic filing via the Auto-Inclusion Scheme (AIS)
Mandatory if you have more than 5 employees or have received an IRAS notice to file electronically.
Hardcopy submission (only if not under AIS)
Employers to provide a hard copy of Form IR8A to employees for their tax filing.
For foreign employees leaving Singapore, employers must file Form IR21 to IRAS at least one month before the employee’s last day of work.
For official forms and detailed filing guidelines, visit the IRAS website
Payroll records requirements
Under the Employment Act, employers must maintain detailed employment records for each employee.
Requirements:
Format: Soft or hard copy, including handwritten
For how long?
For current employees: Latest 2 years
For ex-employees: last 2 years, to be kept for 1 year after the employee leaves employment
What to record:
Employee records
Employee full name
NRIC/FIN
Date of Birth
Gender
Date of starting and ending employment
Working hours, including duration of meals and breaks
Dates and details of public holidays and leave taken
Salary records (same as itemised pay slips)
Employee & employer name
Payment date & salary period
Basic salary and allowances
Additional payments (eg. bonuses, overtime)
Deductions (eg. CPF contribution, no-pay leave)
Total net salary paid
For more details, visit the Ministry of Manpower website
Note: This publication is provided for general information purposes and does not constitute legal, tax, financial, investment, or other professional advice from Aspire FT Pte. Ltd. or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a qualified financial advisor, tax professional, attorney, or any other licensed professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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