Management of Payroll in Singapore
One of the few countries in the world without a minimum wage is Singapore, which you may have heard of. For businesses that have grown beyond the one-man show stage, this course will provide some of the information you’ll need to keep track of wages.
An employee’s wage is the monetary compensation they get for the services they provide under the terms of their employment agreement. Travel, food, and housing allowances are not included in the calculation of retrenchment benefits. In addition, it does not cover costs spent while on the job.
At the absolute least, the employee’s compensation should be paid on a monthly basis.
Workers must be paid at least once a month, although employers are permitted to pay them more often. To pay a wage within one week of the end of a pay period is a criminal offence, and it is punishable by a fine. This is what makes payroll management so important.
Pay stubs with all of your deductions must be provided.
Employees who are covered by the Employment Act will begin receiving itemised pay stubs in April 2016. Both hard and soft copies may be used, and the information should include details such as the amount of pay, the date it was paid out, and any deductions that have been made. If you don’t follow the rules, you’ll be fined money.
Maintaining proper records of employment is essential.
Do you keep detailed records of each employee’s employment and wages? Companies in Singapore must keep these sorts of records on their employees for a minimum of two years. Former employees’ records must be kept for a year after they’ve left their jobs as a legal requirement.
You must make sure you are paying the correct overtime rates.
Overtime is defined as work completed outside of the normal working hours of an employer (excluding breaks). The maximum amount of overtime an employee may work in a month is 72 hours. Pay at least 1.5 times the hourly rate of remuneration if overtime labour is accomplished. Within 14 calendar days at the conclusion of the pay period, a payment must be made to the employee.Check to see whether you are required to pay any fines, fees, or penalties imposed by the law.
Employers are also required to pay the following monthly contributions in addition to the CPF payments they already make:
SINDA and MBMF are two ethnic funds that aim to help the least fortunate within their respective ethnic communities.
Because of the Skills Development Levy, you may be able to get subsidies for training your employees.
Recognize your legal reporting responsibilities
Employers must electronically submit their employees’ income information to IRAS by March 1 of each year if they have either received notification to file their employment income electronically or (ii) have employed 10 or more employees for the duration of the year. This criterion will be in force beginning with the 2017 Year of Assessment.
Employers that have foreign workers on staff must also file Form IR21, which requests tax clearance for such workers, at least one month before the employee is terminated, begins an overseas assignment, or departs Singapore for a duration of three months or longer.
As a Final Thought
Payment management requires not only exact processing but also rigorous maintenance and on-time money delivery. Staff morale is boosted as well as employee engagement is maintained by ensuring compliance.