Overview

Capital
Singapore
Currency
Singapore Dollar
Date Format
dd/mm/yyyy

Taxes

Employer
Up to 17% - CPF (Pension)
Up to 0.25% - Skills Development Levy (SDL)
Employee
0.00% - Up to 20,000
2.00% - 20,000 - 30, 000
3.50% - 30,000 - 40,000
7.00% - 40,000 - 80,000
11.50% - 80,000 - 120,000
15.00% - 120,000 - 160,000
17.00% - 160,000 - 200,000
18.00% - 200,000 - 320,000
20.00% - Over 320,000

Minimum Wage

General
None. However, two exceptions were made recently: 1) Cleaner jobs to have a minimum wage of $1,000/month effective January 2014. 2) Security guards to have a minimum wage of $1,100/month effective September 2016.

Working Hours

General
Fulltime employment is considered 44 hours weekly, and 8 hours daily. *Employers are not allowed to work more than 6 hours without a break.
Overtime
From April 1 2019, work done during public holidays is paid as an extra day salary regardless of the number of hours worked.

VAT

General
7% standard rate.

Payment

Payroll Frequency
Salaries are paid on monthly basis for work done between the first and last day of the month. Salaries must be paid by the 5th of the following month (commonly between the 30th and 2nd of the following month).

Mandatory Benefits

Pension Fund
The employer contributes from 16% with monthly salary ceiling of $960. The employee contributes 20% with monthly salary ceiling of $1,200. *Contributions aren't made for foreign employers on either a work permit or employment pass.
Social Security
"16% for Singaporean nationals and Singapore permanent residents (with a limit of 960 SGD/ month). The Skills Development Levy (SDL) is payable is at 0.25% of the monthly remuneration for each employee, with the minimum payable of $2 (for an employee earning less than $800 a month) and a maximum of $11.25 (for an employee earning more than $4,500 a month). 20% for Singaporean nationals and Singapore permanent residents (with a limit of 960 SGD/ month).
The Employment Act
Singapores main labor law covering local and foreign employees working under a contract of service with an employer

Termination

Termination Process
Employers are legally required to provide written notice or payment in lieu. Employers have the responsibility of holding an expatriate employee his due monies; Prorated salary, bonus, unused vacation days, approved expenses for that month and an air ticket unless employee agrees otherwise in writing. Following, one month proior to termination date, the employer is required to file the IR21 Tax form. If Employees’ taxes are borne by their employer, the employer makes the payment to the revenue board on behalf of the employee. In the case where the employee wishes to bear the tax expenses himself, employer is entitled to deduct the tax amount from the employee’s salary and pay the tax expenses on his behalf before releasing his final salary. The employer now bears the responsibility of cancelling the employment pass granted to the employee one week prior to employment termination. In lieu, a short-term visit pass will be generated if the worker is still in Singapore. A copy of the cancellation acknowledgement needs to be provided to the employee to ensure a smooth departure. Failure of following the regulations set by the ministry of Manpower will result in either a late filing fee, law suit, or exposing your employee to the risk of an outstanding taxpayment.
Advance Notice
Employees can terminate their contract with written notice or payment in lieu. There is no regulation for length of notice, it is agreed upon between parties in the employment agreement. It is common practice to provide two weeks notice during the probation period, and one months notice afterward.
Severance Pay
The severance payment includes all the salaries and benefits due at the last day of employment. If the employee has been employed for at least 3 years they are entitled to receive “retrenchment benefits”. The amount is decided by the employee and employer at the time of hiring.