What you need to know about Payroll
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General Information
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Singapore does not have a legally mandated minimum wage.
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Salary agreements between employee and employer must include basic pay, incentives, commissions, contributions/deductions, bonuses, and allowances.
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An exception for foreign workers with Work Passes (Employment Pass, S Pass, Work Permit). They must meet minimum salary criteria specific to their pass type.
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Government mandates minimum salaries for workers in cleaning, security, and landscape industries.
CPF Contribution
The Central Provident Fund (CPF) is a mandatory retirement savings plan in Singapore, requiring adherence by both employees and employers. Each party is obligated to contribute at a specified rate.
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Monthly deductions from salaries are made into CPF accounts, accessible post-retirement.
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At age 55, a Retirement Account (RA) is created.
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CPF savings accumulate in three accounts:
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Ordinary Account (OA): For retirement housing, insurance, and investment.
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MediSave Account (MA): For hospitalization and approved medical insurance.
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Special Account (SA): For old age, retirement-related investments.
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CPF deductions apply to Singapore Citizens and Permanent Residents.
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Not applicable to Employment Pass or Work Permit holders, who are expected to return to their home countries.
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CPF contribution rates range from 12.5% to 37% of monthly wages, with a salary ceiling increase from $6,000 to $8,000 by 2026.
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Visit the Central Provident Fund (CPF) website or contact for more information.
IR8A Form
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IR8A form is a mandatory for reporting employee income to the Inland Revenue Authority of Singapore (IRAS).
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Every year on 1 March, IRAS must receive IR8A form submissions from all employers doing business in Singapore. It must be filled out for each worker at that firm to alert IRAS of their wages.
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Employers with six or more workers must participate in AIS; companies with five or fewer employees can opt-in.
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The IR8A form is submitted electronically to IRAS via the Auto-Inclusion Scheme (AIS) for Employment Income on their website.
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The submitted IR8A form includes:
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Full-time and part-time resident workers.
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All non-resident workers.
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Local corporate officers.
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Directors of non-resident corporations.
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Board/committee members receiving fees.
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Employees on pension from the company.
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Former employees owed prior year wages.
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In cases where employees receive benefits-in-kind or profit share, employers must also submit Appendix 8A and 8B. Additionally, if an employer has overpaid CPF contributions or intends to claim a refund for extra CPF contributions, they must provide Appendix 8S.
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Further information available on the IRAS website regarding IR8A and its appendices
IR21 Form
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IR21 form (sample) required for non-Singapore citizen employees leaving Singapore for over three months, going on overseas assignments, or ending employment.
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It serves as tax clearance for Work Pass holders leaving local assignments.
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Employers must complete IR21 for clearance, withholding payments upon learning of departure or employment cessation.
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IR21 form should be submitted to Inland Revenue Authority of Singapore (IRAS) at least one month before employee's departure.
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Detailed submission guidelines are available on the IRAS website.
Skill Development Levy (SDL)
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Skill Development Levy (SDL) is a compulsory levy employers must pay for all employees, including foreign employees working in Singapore.
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SDL is paid in addition to monthly CPF contributions and collected by the Central Provident Fund Board for SkillsFuture Singapore Agency (SSG).
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Funds go to the SDL, supporting workforce training and grants under the National Continuing Education Training system.
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For details on calculation, payment, exemptions, and refunds, refer to CPF fact sheets.