Singapore Payroll Management- Latest Rules & Practices 2024
Payroll Management Rules and Practices in Singapore
Engage our human resource support and payroll service to comply with current Payroll Management Rules in Singapore.
Payroll Management rules in Singapore has evolved over the years with significant changes made by Singapore’s Ministry of Manpower (MOM) since 2016 to order to protect the rights of both employers and employees.
One of the major requirements in Singapore’s employment laws and regulations is that all employers must provide itemised payslips when paying salaries for all employees. In addition, employers are also required by MOM to provide written Key Employment Terms (KET) or Employment Contracts to all staff covered under the Employment Act (EA) with continuous employment of at least 14 days.
Employers have the flexibility to decide the form in which they would issue the payslips (hard copy or soft copy) as long as the required breakdown is reflected. They are also able to consolidate the payslips if payments are made more than once a month. Similarly, employers will have flexibility in how KETs are provided as long as the required items are clearly printed and accessible.
Singapore payroll management laws are intended to raise employment standards and facilitate dispute resolution at the workplace. It also provides employers the flexibility to manage these changes in a practical manner. Taken as a whole, the payroll management rules together with other employment practices have facilitate the adoption of good employment norms and progressive workplaces.
In line with recent changes, the penalty framework has also be changed to treat less severe breaches under the EA as civil breaches instead of criminal breaches. The breaches are normally the failure to provide itemised payslips, the failure to provide written KETs, the failure to keep detailed employment records as well as the provision of inaccurate information without fraudulent intent to the Commissioner for Labour or inspecting officers.
The practice of having employment contract for each employment relations will help clarify the job description and job responsibilities for each employee. It helps to outline expectations between employer and employees and will minimise potential disputes.
MOM has declared that since April 2014, it has been working with IDA and SPRING as well as the tripartite partners to provide employers with payroll management tools such as payroll templates to issue payslips and KETs in writing.
Employers can also continue to tap on the assistance package, such as funding for the adoption of payroll software or outsourced payroll management service to facilitate and carry out their payroll functions and responsibilities.
If you need a payroll service provider to take care of your payroll management in Singapore, contact us today!