Good to know
Local Currency: Singapore Dollar (SGD)
Minimum Salary: no national minimum wage.
Salary is subject to negotiation and agreement between the employer and the employee or the trade union.
Salary Calculation: gross to net
Legal Working Hours: for common work arrangements, the contractual hours of work are 9 hours per day for an employee working 5 days or less and 8 hours a day for an employee working more than 5 days a week.
Paid Leave: the annual leave entitlement depends on the number of years of service in the company.
An employee is eligible for annual leave after 3 months.
About Singapore
Singapore is a sovereign island country and city-state in maritime Southeast Asia.
The country has launched a productivity drive to boost GDP growth and facilitate its transformation into a high-tech economy. Singapore economy is one of the most stable in the world.
Fun fact: Singapore is actually composed of not one, or two, but 64 islands that surround the main island.
Are you looking to settle in Singapore? Do you need help with payroll or human resources management? Our Singapore payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation
Ready to Benefit from Singapore HR & Payroll Experts?
The Singapore social security system
The Central Provident Fund (CPF) is a key component of Singapore’s social security system. It’s a mandatory social security savings scheme funded by employers and employees contributions. The CPF serves to meet housing, retirement, and healthcare needs.
As you work and make CPF contributions, you accumulate savings in these 3 sub-categorised accounts:
- Ordinary Account (OA): for retirement, housing, insurance, and investment. It can be used at any time to purchase a home, make an investment and/or provide for education.
- Special Account (SA): for old age and investment in retirement-related financial products. It cannot be utilised until the account holder reaches retirement age. To be more specific, this account serves as the income a retired person receives.
- Medisave Account (MA): for hospitalisation and medical expenses and pay for approved medical insurance.
Administrative Organisation
Central Provident Fund Board (CPFB)
Administrate an employment-based savings scheme with the help of employers and employees contributing a mandated amount to the fund for their benefits. It’s a statutory board operating under the Ministry of Manpower that is responsible for investing contributions.
Inland Revenue Authority of Singapore (IRAS)
The IRAS acts as an agent of the government and provides services in administering, collecting, and enforcing the payment of taxes. It also advises the government and represents Singapore internationally on matters relating to taxation.
SkillsFuture Singapore Agency (SSG).
The SSG is responsible for administering the SDL and SDF.
- SDL (Skill Development Levy) is a compulsory levy that has to be paid for all employees working in Singapore.
- SDF is the Skills Development Fund. It supports workforce upgrading programs and provide training grants to companies.
Social contributions in Singapore
CPF Contributions
CPF contributions are payable to employees who are Singapore Citizens and Singapore Permanent Residents (SPRs) at prevailing CPF contribution rates.
* For employees earning monthly wages > $750CPF Contribution Rates from 1 Jan 2023 | |||||
Employee’s Age (years) | Total (% of wage) | By employer (% of wage) | By employee (% of wage) | ||
| 55 and below | 37 | 17 | 20 | ||
| Above 55 to 60 | 29.5 (+1.5) | 14.5 | 15 | ||
| Above 60 to 65 | 20.5 (+2) | 11 | 9.5 | ||
| Above 65 to 70 | 15.5 (1.5) | 8.5 | 7 | ||
| Above 70 | 12.5 | 7.5 | 5 | ||
The CPF contribution rates for employees aged above 55 to 70 have been increased to strengthen their retirement adequacy. The changes apply to wages earned from 1 January 2023.
You can refer to the CPF website for a full explanation of how contributions are calculated and the CPF contribution calculator for a simulation.
Skills Development Levy
Every employer has to contribute to the Skills Development Levy (SDL) for all their employees. The levy is at 0.25% of their monthly total wages. The minimum payable is $2 for an employee earning less than $800 a month and the maximum is $11.25 for an employee earning more than $4,500 a month.
SDL payment should be made by the 14th day of the following month (for every month that the employee is hired).
Foreign Worker Levy
Employers who hire Work Permit holders are obligated to pay a monthly levy for each employee: the foreign worker levy.
The amount of levy paid is typically determined by two factors: the qualifications of the worker and the number of Work Permit or S Pass holders that have been employed. Requirements may vary by sector.
Individual Income Tax
Singapore follows a progressive income tax system. Income tax rates depend on an individual’s tax residency status.
Resident tax rates
An individual may be considered a tax resident for a specific Year of Assessment (YA) if they fall under any of the following categories:
- Singapore Citizen or Permanent Resident who lives in Singapore except for brief absences.
- Foreigner who has stayed/worked in Singapore:
- for at least 183 days in the previous calendar year
- 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.
- a foreigner who has worked in Singapore for at least 183 days* in the previous two calendar years. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, and professionals.
Resident Tax Rates | |||||
| Chargeable Income | Income Tax Year (%) | Gross Tax Year | |||
First $20,000 Next $10,000 | 0 2 | 0 200 | |||
First $30,000 Next $10,000 | 0 3.5 | 200 350 | |||
First $40,000 Next $40,000 | – 7% | 550 2,800 | |||
First $80,000 Next $40,000 | – 11.5 | 3,350 4600 | |||
First $120,000 Next $40,000 | – 15 | 7,950 6,000 | |||
First $160,000 Next $40,000 | – 18 | 13,950 7,200 | |||
First $200,000 Next $40,000 | – 19 | 21,150 7,600 | |||
Non resident tax rates
Taxes on employment income
Non-residents’ employment income will be subject to taxation at either the flat rate of 15% or the progressive resident tax rates (refer to the table above), whichever results in a higher tax amount.
Withholding taxes on income of non-resident individuals
When certain types of income are due and receivable for non-resident individuals, they are subject to withholding tax. The specific withholding tax rate is determined by the type of income earned and the Year of Assessment (YA) in question. The table can be found on the corresponding section of the IRAS website.
Collection
Employers are required on a mandatory basis to prepare annual wage reports for employees who are employed in Singapore by 1 Mar each year and submit it to Inland Revenue Authority of Singapore IRAS.
Employer also required to remit any mandatory CPF contributions ( employer and employee contributions ) to the CPF Board.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Singapore.
Our Payroll and HR services in Singapore
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Singapore
HR & Payroll in Singapore
Good to know
Local Currency: Singapore Dollar (SGD)
Minimum Salary: no national minimum wage.
Salary is subject to negotiation and agreement between the employer and the employee or the trade union.
Salary Calculation: gross to net
Legal Working Hours: for common work arrangements, the contractual hours of work are 9 hours per day for an employee working 5 days or less and 8 hours a day for an employee working more than 5 days a week.
Paid Leave: the annual leave entitlement depends on the number of years of service in the company.
An employee is eligible for annual leave after 3 months.
Ready to Benefit from Singapore HR & Payroll Experts?
About Singapore
Singapore is a sovereign island country and city-state in maritime Southeast Asia.
Singapore has launched a productivity drive to boost GDP growth and facilitate its transformation into a high-tech economy. Singapore economy is one of the most stable in the world.
Fun fact: Singapore is actually composed of not one, or two, but 64 islands that surround the main island.
Are you looking to settle in Singapore? Do you need help with payroll or human resources management? Our Singapore payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Singapore social security system
The Central Provident Fund (CPF) is a key component of Singapore’s social security system. It’s a mandatory social security savings scheme funded by employers and employees contributions. The CPF serves to meet housing, retirement, and healthcare needs.
As you work and make CPF contributions, you accumulate savings in these 3 sub-categorised accounts:
- Ordinary Account (OA): for retirement, housing, insurance, and investment. It can be used at any time to purchase a home, make an investment and/or provide for education.
- Special Account (SA): for old age and investment in retirement-related financial products. It cannot be utilised until the account holder reaches retirement age. To be more specific, this account serves as the income a retired person receives.
- Medisave Account (MA): for hospitalisation and medical expenses and pay for approved medical insurance.
Administrative Organisation
Central Provident Fund Board (CPFB)
Administrate an employment-based savings scheme with the help of employers and employees contributing a mandated amount to the fund for their benefits. It’s a statutory board operating under the Ministry of Manpower that is responsible for investing contributions.
Inland Revenue Authority of Singapore (IRAS)
The IRAS acts as an agent of the government and provides services in administering, collecting, and enforcing the payment of taxes. It also advises the government and represents Singapore internationally on matters relating to taxation.
SkillsFuture Singapore Agency (SSG).
The SSG is responsible for administering the SDL and SDF.
- SDL (Skill Development Levy) is a compulsory levy that has to be paid for all employees working in Singapore.
- SDF is the Skills Development Fund. It supports workforce upgrading programs and provide training grants to companies.
Social contributions in Singapore
CPF Contributions
CPF contributions are payable to employees who are Singapore Citizens and Singapore Permanent Residents (SPRs) at prevailing CPF contribution rates.
* For employees earning monthly wages > $750CPF Contribution Rates from 1 Jan 2023 | |||||
Employee’s Age | Total | By employer | By employee | ||
| 55 and below | 37 | 17 | 20 | ||
| Above 55 to 60 | 29.5 (+1.5) | 14.5 | 15 | ||
| Above 60 to 65 | 20.5 (+2) | 11 | 9.5 | ||
| Above 65 to 70 | 15.5 (1.5) | 8.5 | 7 | ||
| Above 70 | 12.5 | 7.5 | 5 | ||
The CPF contribution rates for employees aged above 55 to 70 have been increased to strengthen their retirement adequacy. The changes apply to wages earned from 1 January 2023.
You can refer to the CPF website for a full explanation of how contributions are calculated and the CPF contribution calculator for a simulation.
Skills Development Levy
Every employer has to contribute to the Skills Development Levy (SDL) for all their employees. The levy is at 0.25% of their monthly total wages. The minimum payable is $2 for an employee earning less than $800 a month and the maximum is $11.25 for an employee earning more than $4,500 a month.
SDL payment should be made by the 14th day of the following month (for every month that the employee is hired).
Foreign Worker Levy
Employers who hire Work Permit holders are obligated to pay a monthly levy for each employee: the foreign worker levy.
The amount of levy paid is typically determined by two factors: the qualifications of the worker and the number of Work Permit or S Pass holders that have been employed. Requirements may vary by sector.
Individual Income Tax
Singapore follows a progressive income tax system. Income tax rates depend on an individual’s tax residency status.
Resident tax rates
An individual may be considered a tax resident for a specific Year of Assessment (YA) if they fall under any of the following categories:
- Singapore Citizen or Permanent Resident who lives in Singapore except for brief absences.
- Foreigner who has stayed/worked in Singapore:
- for at least 183 days in the previous calendar year
- 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.
- a foreigner who has worked in Singapore for at least 183 days* in the previous two calendar years. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, and professionals.
Resident Tax Rates | |||||
| Revenu imposable | Taux d’imposition sur le revenu (%) | Impôt brut à payer (SDG) | |||
First $20,000 Next $10,000 | 0 2 | 0 200 | |||
First $30,000 Next $10,000 | – 3.50 | 200 350 | |||
First $40,000 Next $40,000 | – 7% | 550 2,800 | |||
First $80,000 Next $40,000 | – 11.5 | 3,350 4600 | |||
First $120,000 Next $40,000 | – 15 | 7,950 6,000 | |||
First $160,000 Next $40,000 | – 18 | 13,950 7,200 | |||
Non resident tax rates
Taxes on employment income
Non-residents’ employment income will be subject to taxation at either the flat rate of 15% or the progressive resident tax rates (refer to the table above), whichever results in a higher tax amount.
Withholding taxes on income of non-resident individuals
When certain types of income are due and receivable for non-resident individuals, they are subject to withholding tax. The specific withholding tax rate is determined by the type of income earned and the Year of Assessment (YA) in question. The table can be found on the corresponding section of the IRAS website.
Collection
Employers are required on a mandatory basis to prepare annual wage reports for employees who are employed in Singapore by 1 Mar each year and submit it to Inland Revenue Authority of Singapore IRAS.
Employer also required to remit any mandatory CPF contributions ( employer and employee contributions ) to the CPF Board.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Singapore.
Our Payroll and HR services in Singapore
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Singapore Dollar (SGD)
Minimum Salary: no minimum wage.
Salary is subject to negotiation and agreement between the employer and the employee or the trade union.
Salary Calculation: gross to net
Legal Working Hours: for common work arrangements, the contractual hours of work are 9 hours per day for an employee working 5 days or less and 8 hours a day for an employee working more than 5 days a week.
Paid Leave: the annual leave entitlement depends on the number of years of service in the company.
An employee is eligible for annual leave after 3 months.
Ready to Benefit from Singapore HR & Payroll Experts?
About Singapore
Singapore is a sovereign island country and city-state in maritime Southeast Asia.
Singapore has launched a productivity drive to boost GDP growth and facilitate its transformation into a high-tech economy. Singapore economy is one of the most stable in the world.
Fun fact: Singapore is actually composed of not one, or two, but 64 islands that surround the main island.
Are you looking to settle in Singapore? Do you need help with payroll or human resources management?
Our Singapore payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Singapore social security system
The Central Provident Fund (CPF) is a key component of Singapore’s social security system. It’s a mandatory social security savings scheme funded by employers and employees contributions. The CPF serves to meet housing, retirement, and healthcare needs.
As you work and make CPF contributions, you accumulate savings in these 3 sub-categorised accounts:
- Ordinary Account (OA): for retirement, housing, insurance, and investment. It can be used at any time to purchase a home, make an investment and/or provide for education.
- Special Account (SA): for old age and investment in retirement-related financial products. It cannot be utilised until the account holder reaches retirement age.
- Medisave Account (MA): for hospitalisation and medical expenses and pay for approved medical insurance.
Administrative Organisation
Central Provident Fund Board (CPFB)
Administrate an employment-based savings scheme with the help of employers and employees contributing a mandated amount to the fund for their benefits. It’s a statutory board operating under the Ministry of Manpower that is responsible for investing contributions.
Inland Revenue Authority of Singapore (IRAS)
The IRAS acts as an agent of the government and provides services in administering, collecting, and enforcing the payment of taxes. It also advises the government and represents Singapore internationally on matters relating to taxation.
SkillsFuture Singapore Agency (SSG).
The SSG is responsible for administering the SDL and SDF.
- SDL (Skill Development Levy) is a compulsory levy that has to be paid for all employees working in Singapore.
- SDF is the Skills Development Fund. It supports workforce upgrading programs and provide training grants to companies
Social contributions in Singapore
CPF Contributions
CPF contributions are payable to employees who are Singapore Citizens and Singapore Permanent Residents (SPRs) at prevailing CPF contribution rates.
* For employees earning monthly wages > $750CPF Contribution Rates from 1 Jan 2023 | |||||
Employee’s Age (years) | Total (% of wage) | By employer | By employee (% of wage) | ||
| 55 and below | 37 | 17 | 20 | ||
| Above 55 to 60 | 29.5 (+1.5) | 14.5 | 15 | ||
| Above 60 to 65 | 20.5 (+2) | 11 | 9.5 | ||
| Above 65 to 70 | 15.5 (1.5) | 8.5 | 7 | ||
| Above 70 | 12.5 | 7.5 | 5 | ||
The CPF contribution rates for employees aged above 55 to 70 have been increased to strengthen their retirement adequacy. The changes apply to wages earned from 1 January 2023.
You can refer to the CPF website for a full explanation of how contributions are calculated and the CPF contribution calculator for a simulation.
Skills Development Levy
Every employer has to contribute to the Skills Development Levy (SDL) for all their employees. The levy is at 0.25% of their monthly total wages. The minimum payable is $2 for an employee earning less than $800 a month and the maximum is $11.25 for an employee earning more than $4,500 a month.
SDL payment should be made by the 14th day of the following month (for every month that the employee is hired).
Foreign Worker Levy
Employers who hire Work Permit holders are obligated to pay a monthly levy for each employee: the foreign worker levy.
The amount of levy paid is typically determined by two factors: the qualifications of the worker and the number of Work Permit or S Pass holders that have been employed. Requirements may vary by sector.
Individual Income Tax
Singapore follows a progressive income tax system. Income tax rates depend on an individual’s tax residency status.
Resident tax rates
An individual may be considered a tax resident for a specific Year of Assessment (YA) if they fall under any of the following categories:
- Singapore Citizen or Permanent Resident who lives in Singapore except for brief absences.
- Foreigner who has stayed/worked in Singapore:
- for at least 183 days in the previous calendar year
- 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.
- a foreigner who has worked in Singapore for at least 183 days* in the previous two calendar years. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, and professionals.
Resident Tax Rates | |||||
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable | |||
First $20,000 Next $10,000 | 0 2 | 0 200 | |||
First $30,000 Next $10,000 | – 3.50 | 200 350 | |||
First $40,000 Next $40,000 | – 7% | 550 2,800 | |||
First $80,000 Next $40,000 | – 11.5 | 3,350 4600 | |||
First $120,000 Next $40,000 | – 15 | 7,950 6,000 | |||
First $160,000 Next $40,000 | – 18 | 13,950 7,200 | |||
Non resident tax rates
Taxes on employment income
Non-residents’ employment income will be subject to taxation at either the flat rate of 15% or the progressive resident tax rates (refer to the table above), whichever results in a higher tax amount.
Withholding taxes on income of non-resident individuals
When certain types of income are due and receivable for non-resident individuals, they are subject to withholding tax. The specific withholding tax rate is determined by the type of income earned and the Year of Assessment (YA) in question. The table can be found on the corresponding section of the IRAS website.
Collection
Employers are required on a mandatory basis to prepare annual wage reports for employees who are employed in Singapore by 1 Mar each year and submit it to Inland Revenue Authority of Singapore IRAS.
Employer also required to remit any mandatory CPF contributions ( employer and employee contributions ) to the CPF Board.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Singapore.
Our Payroll and HR services in Singapore
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Sources
https://www.iras.gov.sg/
https://www.cpf.gov.sg/
https://www.mom.gov.sg/