Singapore Payroll Guide for Employers

1. Salary Payment Timelines

Under Section 20 of the Employment Act, employers must pay employees their salary at least once a month, within 7 days after the end of the salary period. For example, salary for the month of March must be paid on or before 7 April.

Overtime payments must be paid within 14 days after the end of the salary period in which the overtime was worked.

2. Overtime Pay Calculation & Eligibility

Overtime protections under Part IV of the Employment Act cover:

• Workmen: Earning up to S$4,500/month.
• Non-Workmen: Earning up to S$2,600/month.

The legal overtime rate is at least 1.5 times the hourly basic rate of pay:
Hourly Rate = (12 × Monthly Basic Salary) / (52 × Weekly Working Hours)

3. Mandatory Itemised Payslips

MOM mandates that all employers issue itemised payslips to employees covered under the Employment Act. Payslips can be in soft copy (PDF/email) or hard copy and must be given within 3 working days of payment. Essential fields include:

• Employer full name & employee full name
• Salary period & date of payment
• Basic salary, allowances, and overtime hours worked
• Itemised deductions (Employee CPF, unpaid leave, CDAC/SINDA/MBMF)
• Net salary paid & employer CPF contribution

4. Authorized Salary Deductions

Employers may only make deductions authorized by the Employment Act or court order (such as employee CPF, absence from work, or damage caused by negligence). The total deductions in any one salary period cannot exceed 50% of the employee's total salary (excluding tax clearance deductions).