Outsourcing on-boarding and off-boarding of employees is a common practice in many companies. Outsourcing these processes can help businesses focus on their core operations, while also providing employees with a smooth transition into and out of the company.

It is not mandatory to have a written employment contract in Singapore. However, employers must provide employees with a written description of their primary duties and responsibilities within 14 days from the start of employment. The document must include the following information: Employer and employee's full name.

Allied Services provide HR advisory services to help companies drafting and reviewing their employment contracts to ensure they compliance with the local rules and regulations.

Most employment contracts in Singapore must adhere to the Employment Act. Terms set must meet or exceed the minimum standards stipulated in the said Act. Terms present in the employment agreement that do not meet these standards will be void and illegal.

Singapore's Ministry of Manpower has stringent laws regarding hours of work and conditions for working overtime. An employee is entitled to work not more than 8 hours daily, or 44 hours weekly. The Employment Act also deems that employees cannot work for more than 6 hours without a break

Although there is no law that requires a written employee handbook, there are laws that require employers to provide certain information to employees in writing. An employee handbook can be the vehicle to help employers effectively disseminate the required information and fulfill these requirements. Signed acknowledgment forms also provide legal protection for your company in the event of a dispute that involves policies laid out in the handbook.

An employee handbook helps to establish and communicate your company's culture, mission, vision, and values. It should be written in a way that employees can easily understand and connect with these core aspects of the business.

A policies and procedures manual is a reference tool for managers and supervisors. This tool is much more complete in detail than the employee handbook and should be used for back-up when more information is needed to explain a policy or when a deeper understanding of a process is desired.

To set up employees on your company’s payroll in Singapore, you need their:

• full name;
• date of birth;
• immigration status;
• identification number;
• current job start date;
• pay frequency;
• pay currency;
• pay amount;
• self-help group contribution status;
• payment method; and
• bank account details.

Payroll processing in Singapore has to be managed properly even if it is simple and transparent, as it involves specific rules and regulations – and should take the status of resident and non-resident workers into account. If not handled properly then it may lead to discrepancies and affect the payroll accounting which will result in inaccurate report data for income tax filing.

Typical Payroll processing workflow in Singapore includes:

• Payroll setup;
• Raw data collection and cleaning;
• Payroll processing;
• Payroll payment/pay slip;
• Statutory submission;
• Annual report for individual income tax;
• Employee payroll data maintenance;
• Year-end payments like bonuses, etc.

To make payroll management successful, companies should have accurate payroll processing, good maintenance, and timely disbursement. This would help in motivating employees and keeps staff optimistic other than ensuring compliance.

Working hours:  employees in Singapore work either:

• a nine-hour workday with an average working week of no longer than 44 hours, and (most commonly) two days off per week; or

• an eight-hour workday, working six days a week.

Pay cycles: salaries in Singapore are typically paid monthly.

Minimum wages: there is no minimum wage in Singapore. Salaries are negotiated and mutually agreed upon by employees and employers.

Overtime, rest day and holiday pay rates: overtime is paid at 1.5 times the employee’s hourly basic rate of pay. This rate is capped at the salary level of $2,600 or an hourly rate of $13.60 (excluding manual labourers).

Employees can work up to 72 hours of overtime per month. Rest days and public holiday pay rates vary depending on several factors outlined here

We can process for payroll for all or a few selected employees. as per your requirements. However, do understand that there is minimum fees charge per employee inclusive payroll calculation and submission of CPF contributions on a monthly basis.

Usually, it takes one working day to process the monthly payroll after the payroll cut-off date. Once processed, we will send you the payroll summary report for you to arrange the funds for the monthly payroll for your employees. Additionally, we will help to submit the CPF returns before the due date and send the CPF statement for your reference and record.

There is no restriction on number of payroll runs you can be executed for a month as our payroll services is charged based on number of headcounts per month. However, for special request to process payroll after the cut-off date on and urgent matters, there is a special processing fee to be charged as we need to re-prioritise your request with other customer payroll schedules.  

Yes, we can help you in the processing of expatriate employee payroll and preparation of their personal income tax returns. We can assist to compute the personal income tax return and advise the expatriate employee on the areas to take note of upon filing the person income tax return.

According to the Ministry of Manpower in Singapore, “employers must issue itemised payslips to all employees covered by the Employment Act.” As such, they must all be on payroll.

No. 13th month pay is not mandatory in Singapore, but it is the cultural business norm.

Employers in Singapore are not required to withhold taxes from an employee’s salary. However, employers must withhold tax for foreign workers for at least one month if they cease working in Singapore, or if they leave Singapore for longer than three months.

However, employers must also make social security and statutory contributions for their employees.

Central Provident Fund (CPF):   employers and most employees (Singaporean citizens or permanent residents only) must contribute to the CPF retirement benefits scheme.

The CPF contribution rate for employees varies depending on their monthly salary, whereas the employer contribution rate for employees aged up to 55 years is 17%.

Self-Help Group (SHG) Funds:   these are voluntary employee contributions to less privileged and low-income households of the communities that each employee is a part of. There are four SHG funds:

• Chinese Development Assistance Council Fund (CDAC);

• Eurasian Community Fund (ECF);

• Mosque Building and Mendaki Fund (MBMF); and

• Singapore Indian Development Association Fund (SINDA).

Employers deduct the SHG contributions from employee wages. The contribution rates vary per fund but range from $0.50–$30 per month.

Skills Development Levy (SDL):   employers are required to contribute SDL for all their employees (irrespective of their immigration status) up to the first $4,500 of each employee’s total monthly wages.

The levy rate for SDL is 0.25% or a minimum of $2 (for total wages of $800 or less). This supports training and workforce upgrade programs.

Foreign Worker Levy (FWL): this levy applies to foreign workers with a Work Permit or S Pass Holders. It does not apply to employees under Employment Pass (EP).

The FWL rate varies depending on:

• industry type;
• whether the employee has a Work Permit or an S Pass;
• employee skill level; and
• the number of foreign workers employed within the company.

More information on the FWL is available here.

As an employer, you must prepare Form IR8A and Appendix 8A, Appendix 8B or Form IR8S (where applicable) for all your employees who are employed before 1st March of each year

Outsourcing payroll services can offer a number of benefits for a company. Some of these benefits include cost savings, access to specialised expertise, increased efficiency, and reduced responsibility. By outsourcing payroll, companies can also free up internal resources to focus on other aspects of their business. Additionally, outsourcing can help companies ensure compliance with relevant laws and regulations and offer additional HR services. Ultimately, outsourcing payroll can help companies streamline their payroll processes and provide a cost-effective and convenient solution for their payroll needs.