Overview

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

Taxes

Employer

Employer Payroll Tax

7.5% - 17%
CPF (Pension)
Up to 0.25%
Skills Development Levy (SDL)
Up to 17.25% Total Employment Cost
Employee

Employee Payroll Taxes

20%
CPF (Pension)
20% Total Employee Cost

Employee Income Tax

0
up to 20,000
2%
20,000-30,000
3.5%
30,000-40,000
7%
40,000-80,000
11.5%
80,000-120,000
15%
120,000-160,000
18%
160,000-200,000
19%
200,000-240,000
19.5%
240,000-280,000
20%
280,000-320,000
22%
above 320,000
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Belarus
Singapore
Cambodia
South Africa
Georgia
87.39%
44.5%
34%
17.25%
2.1%
2%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
Singapore
Georgia
Belarus
Ukraine
45%
27.65%
24%
20%
2%
1%
0%

Minimum Wage

General

Singapore does not have a minimum wage policy.

Payroll

Payroll Cycle

Salaries are paid monthly, within 7 days of the end of the salary period.

13th Salary

“13th month payment” is called AWS. It is not compulsory.

Working Hours

General

If an employee works a 5-day work week, a workday is up to 9 hours a day or 44 hours a week.

If an employee works a 6-day work week the workday is up to 8 hours.

Overtime

For employees who are covered by the Employment Act, an employee must be paid 150% of the hourly basic pay of rate for any overtime hours.

Only the following employees are entitled to overtime:

A non-workman earning up to $2,600.

A workman earning up to $4,500.

  

Leave

Paid Time Off

Employees are entitled to a minimum of 7 days of annual leave after working in a company for three consecutive months. Afterward one additional day is added per each year until reaching 14 days at the 8th year.   

However, it is common that the employee receives 14 to 20 days of annual leave. 

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Singapore
Mexico
Malaysia
Federal
30
13
43
30
12
42
24
17
41
7
11
18
6
8
14
8
6
14
10
10
Public Holidays

There are 11 public holidays. If a public holiday falls on a non-working day, the employee should either receive a day’s salary in lieu of the holiday or an extra day off. If the holiday falls on a rest day, the upcoming workday will be a paid public holiday.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer.  

0-3 Months: 5 non-hospitalized/15 hospitalized days  

4th Month: 8 non-hospitalized/30 hospitalized days  

5th Month: 11 non-hospitalized/45 hospitalized days  

After 6 Months: 14 days non-hospitalized/60 hospitalized days 

The employee must inform their employer within 48 hours of inability to work and must provide a medical certificate upon return.

Maternity Leave

Paid maternity leave of 16 weeks is provided to female employees employed for more than 3 months prior to giving birth and the child is a Singaporean citizen. During this period, employers are prohibited from terminating the employment.

For the first and second child, the first 8 weeks are paid by the employer and additional 8 weeks can be reimbursed by the government. For the birth of the third child and more, all 16 weeks of maternity leave can be reimbursed by the government.

If the child is not a Singapore citizen, maternity leave is 12 weeks

PAID MATERNITY LEAVE (DAYS)
410
365
365
112
45
30
0
Bulgaria
Serbia
Albania
Singapore
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Paternity leave in Singapore is 2 weeks.

To meet the requirements of Government-paid Paternity Leave (GPPL), the child must be a Singapore citizen and the father has or was legally married to the mother between the conception and birth of the child.  In the case the the child is adopted, the father is also eligible for paternity leave if the child is a Singapore citizen.

 

Parental Leave

Parents are entitled to 6 days paid childcare leave yearly if their youngest child is below the age of 7 and a citizen of Singapore.

Other Leave

Work-Related Injury Leave – The employer covers all work-related injuries that an employee has suffered either directly or through insurances. The employee should receive 100% of their average monthly earnings in the 12 months prior to the disability for 14 days if not hospitalized. After 14 days they shall receive 66.7%. 

As of September 1, 2020, all work-related medical leave must be reported to the Ministry of Manpower.  

 

Termination

Termination Process

In the event of a termination of a local employeethe employee’s salary must be paid:  

  • Employee resigns and serves the notice period: On the last day of employment  
  • Employee resigns without notice and no notice period is served: Within 7 days of the last day of employment 
  • Termination due to misconduct: On the last day of employment, however, if this is not possible, the employee must be paid within 3 business days 
  • Employer terminates the employment contract:  On the last day of employment, however, if this is not possible, the employee must be paid within 3 business days. 
Notice Period

The notice period in Singapore is:

  • 1 day notice for less than 26 weeks of employment
  • 1 week notice for employees who have been employed more than 26 weeks and less than 2 years
  • 2 weeks’ notice for employment of more than 2 years and less than 5 years
  • 4 weeks’ notice for over 5 years of employment

 

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 2 years, they are entitled to receive “retrenchment benefits”. The amount given to the employee depends on what is agreed upon in the employment contract or collective agreement when applicable.   

In general, retrenchment benefits are usually between 2 weeks to one month for every year the employee has served at the company.

Probation Period

Probation period is optional but common practice is 3-6 months.

VAT

General

7% standard rate.

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