Easily manage employment in Singapore

Payroll services in Singapore

Singapore has a highly developed economy with key industries in finance, technology, and manufacturing. With specific labor laws and tax regulations, employers in Singapore must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Singapore

Employers in Singapore must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Singapore does not have a statutory minimum wage; wages are determined by market conditions and industry agreements.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Singapore is 44 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 150% of the regular wage for extra hours and higher rates for work on public holidays.

Taxation and social security contributions

• Personal income tax: Singapore has a progressive income tax system with rates ranging from 0% to 22% depending on income levels.
• Employer contributions:
• Central Provident Fund (CPF): 17% of the gross salary (for Singaporean and permanent resident employees).
• Employee contributions:
• Central Provident Fund (CPF): 20% of the gross salary (for Singaporean and permanent resident employees).
• Corporate tax: The corporate income tax rate in Singapore is 17%.
• Tax reporting: Employers must file payroll taxes and contributions with the Inland Revenue Authority of Singapore (IRAS) and CPF Board regularly.

Payroll compliance in Singapore

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for CPF contributions and income tax.
• Employers must stay updated on changes to Singapore’s labor laws and tax regulations to avoid penalties.

Run payroll in Singapore with Remote

Managing payroll in Singapore requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.