Payroll in Singapore

Singapore has no single national minimum wage, so payroll starts with the contract and the role. Employment Act employees must normally be paid at least monthly, within 7 days after the salary period ends. Monthly is the standard cycle. Overtime follows a separate deadline of 14 days after the period.

Payday and payslips

Employment Act employees must receive an itemised payslip with payment or, if that is not possible, within 3 working days. On termination or dismissal, the payslip goes out with the outstanding salary. Keep the latest 2 years of payslips for current employees. For former employees, keep their last 2 years of payslips for one year after they leave.

Give written key terms within 14 days after employment starts, where the contract lasts at least 14 days and was entered into from 1 April 2016. They should name the employer, role, pay, hours, leave and notice arrangements.

Extra payments and bonuses

A 13th-month Annual Wage Supplement or bonus is not automatically compulsory. It depends on the employment contract or collective agreement. Practice treats it as customary, so state in the contract whether the payment is guaranteed or conditional, how it is calculated and what happens if the employee leaves before it is paid.

CPF, SDL and tax remittance

CPF applies to Singapore citizens and permanent residents earning more than S$50 a month. Foreign work-pass holders do not contribute. First- and second-year permanent residents normally use graduated rates, so check status before running payroll. For 2026, the rates for those from their third year of permanent residence, on monthly wages above S$750, are employer/employee 17%/20% at age 55 or below, 16%/18% over 55 to 60, 12.5%/12.5% over 60 to 65, 9%/7.5% over 65 to 70 and 7.5%/5% over 70. Rates increase again from 1 January 2027.

The Ordinary Wage ceiling is S$8,000 per month. The annual Additional Wage ceiling is S$102,000 minus the total Ordinary Wages subject to CPF for that calendar year, calculated per employer. Bonuses need their own calculation.

The Skills Development Levy is separate from CPF. It is generally payable for employees working in Singapore, including foreigners. The rate is 0.25% of total wages, with a S$2 minimum and S$11.25 maximum per employee. Income tax is not a flat deduction from salary. Confirm remittance deadlines for CPF, SDL and any tax filings with the relevant authorities before your first pay run, as this guide does not set them.

Working-time rules that affect pay

Part IV hours and overtime rules cover workmen earning basic salary up to S$4,500 monthly and non-workmen up to S$2,600, excluding managers and executives. Bonus and allowances do not count toward the threshold. Common schedules are up to 9 hours daily on 5 or fewer days, or 8 hours on more than 5 days, normally within 44 hours weekly. Overtime must be paid at least 1.5 times the hourly basic rate. The ordinary limits are 12 working hours daily and 72 overtime hours monthly. Rest-day and public-holiday work have separate pay rules.

Employees are entitled to 11 paid public holidays a year, subject to holiday-pay conditions. Working on a holiday normally adds a day of basic pay. For staff outside Part IV, agree working-time and overtime terms in the contract.

Singapore has no flat income tax rate you can apply to every employee. Personal income tax is progressive, and the amount withheld from pay depends on the person's residency status and income type. This section covers income tax, withholding, CPF deductions and the business-level charges that sit alongside payroll.

Income tax bands

Resident personal income tax runs progressively from 0% on the first S$20,000 of chargeable income to 24% above S$1 million. This applies from Year of Assessment 2024 onwards, and there are 13 bands in total. The full band table is not reproduced here, so take the band thresholds and rates for each assessment year from the tax authority (IRAS) before building any calculation.

Chargeable income is income after deductions, so it is not the same as gross salary. Residency, deductions and the type of income all matter. These are not flat deductions from every salary.

How withholding works

The dossier for this guide does not describe a monthly income tax withholding procedure for employees. Do not assume a flat percentage is taken from each payslip. Check with IRAS how tax on employment income is collected for each employee, and whether the employee settles it through their own assessment.

Where an employee who is not a Singapore citizen is leaving, going on an overseas posting or departing for more than 3 months, tax clearance may apply. The employer must generally file Form IR21 at least one month in advance and withhold money from when it knows of the impending event. Check IRAS exemptions first, then assess clearance before releasing final pay and follow IRAS's directive.

Employee deductions: CPF

The main statutory payroll deduction is the Central Provident Fund (CPF). It applies to Singapore citizens and permanent residents earning more than S$50 a month. Foreign work-pass holders do not contribute. First- and second-year permanent residents normally use graduated rates, so apply those separately.

For citizens and permanent residents from their third year, with monthly wages above S$750, the 2026 rates by age are:

The 2026 Ordinary Wage ceiling is S$8,000 per month. The annual Additional Wage ceiling is S$102,000 minus the total Ordinary Wages subject to CPF for that calendar year, calculated per employer. Bonuses therefore need their own calculation. S$102,000 is not an extra bonus allowance on top of all monthly wages. Rates increase again from 1 January 2027, so confirm the rates in force at each payment date.

Employer-only charge: SDL

Employers generally pay the Skills Development Levy (SDL) for employees working in Singapore, including foreign employees, subject to exemptions. The rate is 0.25% of total wages, with a S$2 minimum and S$11.25 maximum per employee. The employer totals the levy and rounds that total down to the nearest whole dollar. SDL is separate from CPF and is not deducted from the employee.

Business taxes are a separate matter

The corporate tax rate is 17%, and the rate of goods and services tax is 9%. These are business and transaction taxes. Neither is an extra percentage taken out of an employee's salary.

Who pays CPF and at what rate

Singapore's main employer contribution is the Central Provident Fund (CPF). It applies to Singapore citizens and permanent residents only. Foreign work-pass holders do not contribute, and foreign employees who are not permanent residents are exempt. For the standard age band of 55 or below, the employer pays 17% and the employee pays 20%, a total of 37%.

Rates by age band

CPF rates are age-banded from 1 January 2026. Rates increase again from 1 January 2027, so check the updated table before budgeting beyond 2026.

These rates apply to citizens and to permanent residents from their third year, on monthly wages above S$750. First- and second-year permanent residents normally use graduated rates, and a joint application can allow higher rates. Apply wage ceilings and low-wage rules separately.

Coverage and ceilings

CPF is generally required for citizen and permanent-resident employees earning more than S$50 a month. Exempt categories and changes in residence status need checking.

The 2026 Ordinary Wage ceiling is S$8,000 per month. Additional wages, such as bonuses, have their own ceiling. The annual Additional Wage ceiling is S$102,000 minus the total Ordinary Wages subject to CPF for that calendar year, calculated per employer. S$102,000 is not an extra bonus allowance on top of all monthly wages.

What else sits alongside CPF

The Skills Development Levy (SDL) is separate from CPF. Employers generally pay it for employees working in Singapore, including foreign employees, subject to exemptions. The monthly rate is 0.25% of total wages, with a S$2 minimum and S$11.25 maximum per employee. The employer totals the levy and rounds that total down to the nearest whole dollar.

Work injury compensation insurance is a further employer obligation. It must cover all manual employees and non-manual employees earning S$2,600 or less monthly, local and foreign. The dossier gives no premium rate, so get a quote for the role.

Budgeting notes

• Check each hire's citizenship or residency status first. A foreign work-pass holder carries no CPF cost but still attracts SDL.
• Check the employee's age band, as the rate changes at the stated ages.
• Apply the ceilings to monthly and additional wages separately.

This guide does not include a worked cost example, because the available figures do not cover a full payroll calculation. Price the actual role using the correct age band, wage ceilings and any levy or insurance costs.

Annual leave

Employment Act employees qualify for paid annual leave after 3 months. The minimum is 7 days for the first year of service. It increases by one day for each year of service, to 14 days from the eighth year. Partial years are prorated by completed months, and probation does not defer qualifying service. A contract can give more than the minimum, so check the contract before setting accruals.

Public holidays

Employment Act employees are entitled to 11 paid public holidays a year, subject to holiday-pay conditions. If a holiday falls on the employee's rest day, the next working day is the paid holiday. If it falls on a non-working day, the employee gets another day off or salary in lieu. Working on a public holiday normally adds a day's basic pay. Permitted alternatives and separate rules for the day actually worked also apply, so confirm them before running the payroll.

Sick leave

After 6 months of service, eligible Employment Act employees have up to 14 paid outpatient sick days and 60 paid hospitalisation days a year. The 60 days include the outpatient days. Entitlement phases in after 3 months, as shown below. Medical certification and notification requirements apply.

Maternity leave

Eligible mothers of Singapore citizen children can receive 16 weeks of Government-Paid Maternity Leave, normally with 3 months of continuous service. For a first or second child, the employer pays the first 8 weeks and government reimbursement covers the last 8, capped at S$20,000. For a third or later child, reimbursement covers all 16 weeks, capped at S$40,000.

Where the government-paid scheme does not apply, the Employment Act can provide 12 weeks under its own rules. The first 8 weeks are employer-paid only when the relevant conditions are met, so do not treat every 12-week entitlement as fully paid. MOM has announced broader reimbursement, but implementation details have not been published. Do not apply it yet.

Paternity and shared parental leave

Eligible fathers have 4 weeks of Government-Paid Paternity Leave for qualifying births, estimated delivery dates or formal adoption intentions from 1 April 2025. Citizenship, service and marriage or adoption conditions apply. Employer reimbursement is capped at S$2,500 per week. The usual notice is 4 weeks unless a shorter period is agreed.

For qualifying events from 1 April 2026, eligible parents share 10 weeks of government-paid leave. The earlier cohort from April 2025 to March 2026 has 6 shared weeks. This is additional to maternity and paternity leave. Eligibility, allocation and timing rules apply, and employer reimbursement is capped at S$2,500 per week.

Childcare and infant-care leave

Eligible parents with a Singapore citizen child under 7 and at least 3 months of service have 6 paid childcare days each year. Employers fund the first 3 days. Government reimbursement for the other 3 is capped at S$500 daily. Parents of non-citizen children under 7 can have 2 paid days under the Employment Act.

Each eligible parent with a Singapore citizen child below 2 and at least 3 months of continuous service can also take 12 unpaid infant-care days a year. This is separate from paid childcare leave, with a maximum of 24 days in respect of a child.

Singapore payroll compliance rests on a few areas: who is covered by the Employment Act, written terms, pay timing and payslips, CPF and SDL, tax clearance for departing foreign staff, and the rules on notice and termination. Singapore has no statutory dismissal procedure, so the contract and the notice rules carry most of the weight.

Who the Employment Act covers

The Employment Act generally covers local and foreign employees under a contract of service, including full-time, part-time, temporary and contract staff. Seafarers, domestic workers, statutory-board employees and civil servants are excluded. A contractor label does not decide the relationship. The Ministry of Manpower (MOM) says there is no single conclusive test, and looks at control over the work, who provides tools and premises, and who bears business risk. Hours, overtime and rest-day rules under Part IV have narrower coverage: workmen earning basic salary up to S$4,500 monthly and non-workmen up to S$2,600, excluding managers and executives. Outside Part IV, agree working-time and overtime terms in the contract.

Written terms and records

Provide written key employment terms within 14 days after employment starts, where the contract lasts at least 14 days and was entered into from 1 April 2016. The terms should identify the employer, role, pay, hours, leave and notice arrangements. Employees must receive itemised payslips with payment or, if that is not possible, within 3 working days. Keep the latest 2 years of payslips for current employees. For former employees, retain their last 2 years for one year after departure.

Payment deadlines

Pay must normally be at least monthly, within 7 days after the salary period ends. Overtime is due within 14 days after the period. Different final-pay deadlines apply on resignation and dismissal, so check them before processing an exit.

CPF and SDL

CPF applies to Singapore citizen and permanent-resident employees earning more than S$50 a month. Foreign work-pass holders do not contribute. For citizens and permanent residents from their third year, with monthly wages above S$750, the 2026 rate for age 55 or below is 17% employer and 20% employee. Other age bands are lower. The Ordinary Wage ceiling is S$8,000 per month, and additional wages have their own annual ceiling calculation. First- and second-year permanent residents use graduated rates. Skills Development Levy (SDL) is separate from CPF and applies to foreign employees too, subject to exemptions. The rate is 0.25% of total wages, with a S$2 minimum and S$11.25 maximum per employee.

Employers must also buy work injury compensation insurance for all manual employees and for non-manual employees earning S$2,600 or less monthly.

Notice and termination

Notice must be in writing, and the contractual period must be the same for employer and employee. If the contract is silent, the defaults are:

Salary in lieu or an agreed waiver can apply. Probation does not remove employment rights, and service counts from the original start date. Notice or pay in lieu does not permit discriminatory dismissal, retaliation for an employment right, or dismissal to deprive someone of benefits. A wrongful-dismissal claim generally goes to TADM within one month of the last employment day. Managers and executives dismissed with notice or pay in lieu generally need 6 months of service to bring that claim.

Retrenchment benefits depend on the contract, collective agreement or negotiation. The prevailing norm is 2 weeks to one month of salary per service year for employees with at least 2 years of service, but it is not a fixed statutory formula. A Singapore-registered employer with at least 10 employees must notify MOM within 5 working days after notifying any affected employee of retrenchment.