payroll-guides
Published on 10 Sep 2024
OS HRS takes care of your multi-country payroll with local regulatory expertise. From Singapore, across Asia Pacific and beyond, we are the payroll partner of global leaders. Not sure where to start when it comes to multi-country payroll? Here’s our quick payroll guide for your Singapore business operations.
Currency | SGD |
Payroll cycle | Monthly, 13th salary is paid out at the end of the year |
Employer Contributions | CPF Contribution rates depends upon the the Citizenship/PR status etc. |
Minimum wage | No minimum wage laws |
Working hours | Maximum 44 hours a week |
Payroll in Singapore involves a number of compliance requirements, including the calculation and withholding of taxes, social security contributions, and other deductions. Here are the steps to set up payroll in Singapore:
Register your company with the Inland Revenue Authority of Singapore (IRAS). You can do this online through the IRAS website.
Apply for a CPF (Central Provident Fund) account. CPF is Singapore's social security savings scheme, and employers are required to contribute to their employees' CPF accounts.
Obtain necessary information from your employees, such as their NRIC (National Registration Identity Card) numbers and bank account details.
Decide on a payroll schedule and determine how much you will pay your employees. This will depend on factors such as your industry, the size of your company, and the roles and responsibilities of your employees.
Calculate your employees' salaries, taking into account their basic pay, bonuses, and CPF contributions. You can use payroll software or engage a payroll outsourcing company to help you with this.
Set up a payroll bank account and transfer funds to it to cover your employees' salaries.
Issue payslips to your employees, which should include details such as their gross pay, deductions (e.g. CPF contributions), and net pay.
File your employees' CPF contributions and income tax with the relevant authorities. This can be done through the CPF Board and IRAS websites respectively.
Keep accurate records of your payroll transactions, including payslips and tax filings, for at least five years.
Stay up-to-date with changes to Singapore's payroll regulations and adjust your payroll processes accordingly.
It is important to note that setting up payroll in Singapore can be complex, and it is recommended to seek professional advice or engage a payroll outsourcing company to ensure compliance with local regulations.
What do you as an employer need to make in employer contributions?
| Central Provident Fund (CPF) Note: for employees aged 55 and under, reduces progressively to 7.5% as age increases |
Up to 0.25% | Skills Development Levy (SDL) |
What do your employees need to set aside in contributions?
CPF Contribution rates depends upon the the Citizenship/PR status etc. | Central Provident Fund (CPF) |
Self Help Group Contributions |
What are the income tax rates in Singapore?
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% | 320,000-500,000 |
23% | 500,000-1,000,000 |
24% | 1,000,000 and above |
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Last updated September 2024
