Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
Singapore does not have a minimum wage policy.
Salaries are paid monthly, within 7 days of the end of the salary period.
“13th month payment” is called AWS. It is not compulsory.
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.
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.
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.
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.
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.
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
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.
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.
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.
In the event of a termination of a local employee, the 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.
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
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 is optional but common practice is 3-6 months.
7% standard rate.