Our guide to Payroll in Singapore

Doing Business in Singapore

Investing in Singapore

The Singapore Economic Development Board (EDB) attracts investment funds on a large scale for Singapore despite the city's relatively high-cost operating environment. The stable and corruption-free government, highly skilled workforce, and efficient infrastructure have attracted investments from thousands of global businesses around the world.

Basic Facts about Singapore

General Information

Full Name: Republic of Singapore

Population: 6.11 million (NTPD Singapore, June 2025)

Capital: Singapore

Major Language(s): English, Mandarin, Malay, Tamil

Major Religion(s): Taoism, Buddhism, Islam, Christianity, Hinduism

Monetary Unit: Singapore Dollar SGD

Main Exports: Computer equipment, machinery & rubber products

GNI Per Capita: SGD 107,365 (Statistics Singapore, 2025)

Internet Domain: .sg

International Dialing Code: +65

How to Say

Hello: Hello

Good Morning: Selamat Pagi

Good Evening: Selamat Petang

Do you speak English? Adakah Anda Bertutur Dalam Bahasa Inggeris?

Goodbye: Selamat Tinggal

Thank you: Terima Kasih

See You Later: Melihat Anda Kemudian

Registration and Establishing an Entity

All companies must appoint at least one company director and a secretary. To register an entity, a company must register for the following:

• Corppass/ Singpass Foreign Account (SFA)
• Unique Entity Number (UEN) through the Accounting and Corporate Regulatory Authority (ACRA)
• CPF submission number
• myMOM Portal

Banking

It is not mandatory to make payments to employees from an in-country bank account in Singapore. However, payments for the CPF contributions can only be made an in-country bank account though Direct Debit or PayNow QR. Private companies must file their annual return within 7 months after the financial year-end, although the deadline may vary depending on the type of company.

Working Week

The working week in Singapore is Monday to Friday and working hours should not exceed 44 hours per week. Employees who work 5 or less days per week can work up to 9 hours per day and those who work more than 5 days can work up to 8 hours per day. Employers must provide 1 rest day per week. As an employee, you are not allowed to work more than 12 hours a day (except for certain circumstances).

Employment Law

Holiday Accrual/Calculations

Employees covered by the Employment Act must work for at least 3 months to be entitled to paid annual leave, and can only apply for annual leave after this period.

Employees who have worked 3-12 months of service have pro-rated annual leave based on the number of months.

Annual leave entitlement is dependent is years of service, detailed below:

Maternity Leave

Employees are entitled to 16 weeks of Government-Paid Maternity Leave (GPML) if:

• The child is a Singapore Citizen.
• The child’s parents are lawfully married.
• The employee has worked for the employer for at least 3 consecutive months before the birth of the child.

The rate of payment is the employee’s normal monthly salary. The maternity leave payee is dependent on the number of expected births as detailed below:

Employees are entitled to 12 weeks of maternity leave if:

• The employee is covered by the Employment Act.
• The employee has worked for the Employer for at least 3 consecutive months before the birth of the child.

Paternity Leave

Eligible working fathers, including those who are self-employed, can enjoy up to 4 weeks of Government-Paid Paternity Leave (GPPL) if:

• The child is a Singapore Citizen.
• The employee has been lawfully married to the child's mother between conception and birth.
• The employee has worked for the employer for at least 3 consecutive months before the birth of the child.

An employee can take paternity leave when adopting a child as long as the:

• The child is a Singapore Citizen.
• The employee has worked for the employer for at least 3 consecutive months before the birth of the child.

Each week of GPPL is capped at $2,500, or a total of $10,000.

From 1 April 2026: Eligible working parents are entitled to 10 weeks of shared parental leave for children born from 1 April 2026 onwards

The 10 weeks of leave is provided on top of GPML and GPPL entitlements.

Sick Leave

Employees are entitled to paid sick leave if:

• They’ve worked for the employer for at least 3 months.
• They’ve informed or tried to inform the employer within 48 hours of the absence.

Employees are entitled to pay outpatient sick leave when they are:

• Certified to be unfit for work by a medical practitioner registered under the Medical Registration Act or Dental Registration Act.

Employees are entitled to paid hospitalisation leave when they’re:

• Warded in a hospital as an in-patient or for day surgery.
• Quarantined under any written law.
• Certified by a medical practitioner who can admit patients into an approved hospital, including medical practitioners from national specialty centres and ambulatory surgical centres:

Employees who have worked 3-6 months of service have pro-rated paid leave based on the number of months of service:

National Service

Under the Enlistment Act, all male Singapore citizens, and permanent residents, unless exempted, are required to serve up to 40 days of Operationally Ready National Service (ORNS) annually in Singapore. This annual training is mandatory until the individual turns 50 (for officers) or 40 (for other ranks).

Employers are required to grant a leave of absence to employees who are called for their national service duties. Male employees will receive Service Pay during national service and can claim MakeUp Pay to cover the difference between Service Pay and their civilian income amount.

Employers aren’t required to submit MakeUp claims as the Ministry of Defence (MINDEF)/ Ministry of Home Affairs (MHA) will automatically generate this amount based on wage data submitted by employers.

Taxable Employer Benefits

Examples of taxable benefits include the following:

• Employee referral award.
• Cash long service award.
• Housing allowance.
• Car provided by the employer.
• Salary in lieu of notice.

Non-Taxable Employer Benefits

Examples of non-taxable benefits include the following:

• A cash or non-cash award for festive occasions up to the value of $200.
• A cash or non-cash award for passing examinations up to the value of $200.
• Non-cash long service award up to the value of $200.
• Reimbursement on car mileage and car park charges for business usage.
• Air travel for business purposes and relocation purposes.

Tax & Social Security

The tax year runs from 1st January to 31st December.

Income Tax

You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

• Singapore Citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or
• Foreigner who has stayed/worked in Singapore:

1. For at least 183 days in the previous calendar year; or
2. Continuously for 3 consecutive years, even if the period of stay in Singapore may be less than 183 days in the first year and/or third year; or

• Foreigner who has worked in Singapore for a continuous period straddling 2 calendar years and the total period of stay is at least 183 days*. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, or professionals.

*including your physical presence immediately before and after your employment

If you do not meet the conditions stated above, you will be treated as a non-resident of Singapore for tax purposes.

Employer Obligations

Employers are responsible in contributing and reporting the following:

• Central Provident Fund (CPF)
• Self Help Group (SHG) Funds
• Skills Development Levy (SDL)
• Foreign Worker Levy (FWL)

The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from employers and employees. Employers are required to pay CPF contributions for employees who are Singapore Citizens or work in Singapore and who earn more than $50 per month.

Employers must pay the total CPF contribution rate to the CPF Board and are entitled to recover the employee's share of CPF contributions when paying the employee's monthly wages. Contributions are due at the end of every month and are detailed below:

The Skills Development Levy (SDL) is a compulsory levy that employers must pay for all employees and is used to support workforce upgrading programmes and grants. The rate of payment is 0.25% of the employee’s monthly total wage. The maximum payable is $11.25 for an employee earning more than $4,500 a month.

Self Help Group (SHG) Funds are set up to uplift the less privileged and low-income households in the Chinese, Eurasian, Muslim, and Indian communities, respectively. Contributions are based on the employee’s religion, or the employee's race indicated on the National Registration Identity Card (NRIC). Employees should contribute to the respective SHG funds and contributions should be deducted from an employee’s wages. Self Help Group (SHG) Funds are detailed below:

The Foreign Worker Levy (FWL) is a monthly levy to regulate the number of foreigners in Singapore and must be paid for Work Permit holders. The amount of levy to be paid is dependent on:

• Worker’s qualifications.
• The number of Work Permits or S Pass holders hired.
• The sector in which the employer operates.

Employers must pay the levy via a General Interbank Recurring Order (GIRO). The levy for each month will be automatically deducted from the bank account on the 17th of the following month (or the next working day if it falls on a weekend or public holiday).

Reporting

Employers are required to submit the following forms to the Inland Revenue Authority of Singapore (IRAS) for employees by 1^st March every year:

Employers do not need to submit the hardcopy forms to IRAS.

Payroll Tax

Reports

It is legally acceptable in Singapore to provide employees with online payslips. Employers must retain payroll records for 5 years and must issue itemised payslips to all employees, monthly.

Items to include on the payslips

Pay slips must include the items below, unless an item is not applicable.

• Full name of employer.
• Full name of employee.
• Date of payment (or dates, if the pay slips consolidates multiple payments).
• Basic salary
• Start and Allowances paid for salary period
• Any other additional payment for each salary period
• Deductions made for each salary period
• Overtime hours worked.
• Overtime pay.
• Start and end date of overtime payment period (if different from start and end date of salary period).
• Net salary paid in total.

New Employees

Employers must apply for a Central Provident Fund (CPF) Submission Number to make CPF contributions. A new employee needs to register for the following:

• Singpass
• Singpass Foreign Account (SFA)
• National Registration Identity Card (NRIC) or Foreign Identification Number (FIN).

New employees who are foreign citizens are required to apply for and obtain an employment pass before they can commence employment.

Employers are required to keep an employee register containing the following details:

• Full name
• Sex
• Age
• Address
• Identity card number
• Nature of employment
• Rate and amount of remuneration
• The date of commencement and cessation of employment

Employers must retain employment records for current employees for the last 2 years and ex-employees, for the last 2 years to be kept for 1 year after their departure.

Leavers

It is mandatory to receive a termination letter in writing. Central Provident Fund (CPF) contributions must still be made by employers and employees during the notice period. The length of the notice period must be as agreed according to the employment contract. If a notice period hasn't been agreed upon, the following structure is used:

Taxable Employer Benefits

Examples of taxable benefits include the following:

• Employee referral award.
• Cash long service award.
• Housing allowance.
• Car provided by the employer.
• Salary in lieu of notice.

Non-Taxable Employer Benefits

Examples of non-taxable benefits include the following:

• A cash or non-cash award for festive occasions up to the value of $200.
• A cash or non-cash award for passing examinations up to the value of $200.
• Non-cash long service award up to the value of $200.
• Reimbursement on car mileage and car park charges for business usage.
• Air travel for business purposes and relocation purposes.

Visas & Work Permits

Singapore has a variety of different work permits available. Some basic requirements need to be met to be eligible for the various passes:

Employment Pass

• This pass is for foreign professionals, managers, and executives for up to 2 years for first-time candidates and up to 3 years for renewals.
• Eligibility requirements:

1. Have a job offer in Singapore.
2. Candidates will need to pass a 2-stage eligibility framework:
   Stage 1: Earn at least the EP qualifying salary, which is benchmarked to the top 1/3 of local PMET salaries by age.
   Stage 2: Unless exempted, pass the points-based Complementarity Assessment Framework (COMPASS).

S Pass

• This pass is for skilled foreign workers for up to 2 years and is renewable.
• Eligibility Requirements:

1. Have a job offer in Singapore.
2. Candidates must earn a fixed monthly salary of at least $3,150 until 31 August 2026. This will increase to $3,300 01 September 2026 for all sectors except financial services. This will increase progressively with age from age 23, up to $4,800 at age 45 and above.

Work Permit for Migrant Worker

• This pass is for candidates working in the construction, manufacturing, marine shipyard, process, or services sector. This pass lasts up to 2 years and is renewable.

Dependent's Pass

• This pass is for a legally married spouse or unmarried children under 21 years of Employment Pass or S Pass holders. This pass lasts for up to years, is renewable, and is tied to the duration of the main work pass.
• Eligibility Requirements:
  1. Hold an Employment Pass or S Pass.
  2. Pass holder must earn a fixed monthly salary of at least $6,000.

• The Singapore Labour Law applies only partially to managers and executives earning above SGD 4,500/month
• CPF contributions apply only to citizens and PRs, not foreigners
• Most payroll and tax filings are submitted via IRAS and CPF Board e-portals
• Penalties apply for late CPF, SDL, or tax filings
• Salary, bonus, and leave benefits are not legally mandated for high-earning executives
• Public holidays vary annually but generally include New Year, Chinese New Year, Good Friday, Labour Day, Hari Raya, Deepavali, National Day, and Christmas
  
  

Further Information

For more information, or assistance with Singapore tax enquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.