Singapore Payroll Information

Updated on: 2025/08/07 09:56 (UTC)

Overview

Singapore, officially the Republic of Singapore, is a parliamentary republic located in southeast Asia. In total, Singapore consists of more than 60 islands that are separated from mainland Asia by the Johor Strait, which at its narrowest width between Singapore and Peninsular Malaysia on mainland Asia is about 2 kilometers. The island that by far is the largest and most populous island of Singapore is Pulau Ujong (Singapore Island). Many of the Riau Islands, which are part of Indonesia, are quite close to Singapore. The part of the Riau Islands to the south of Singapore is separated from Singapore by the Singapore Strait, which at its narrowest width between Singapore and Indonesia is about 15 kilometers.

There are no first order administrative divisions in Singapore. The country has five community development councils. They are the Central Singapore Development Council, the North East Development Council, the North West Development Council, the South East Development Council, and the South West Development Council.

Singapore’s currency is the Singapore dollar.

Employers in Singapore are responsible for submitting income tax returns and paying social taxes for employees. Under the Employment Act, the Work Injury Compensation Act, and the Workplace Safety and Health Act; employers also must uphold workplace compensation and benefits requirements. These include regulations relating to wages, leave, hours of work, and termination pay.

Foreign workers in Singapore generally are covered by workplace laws and are liable for income taxes for income accrued in Singapore but may be able to qualify for special tax treatment.

Singaporean residents working in the United States are covered by U.S. tax law with possible work and visa status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.

CURRENCY DETAILS

The currency of Singapore is the Singapore Dollar (S$). The internationally recognized three-letter currency code for the Singapore dollar is SGD. The plural form of Singapore dollar is Singapore dollars.

When an amount of Singapore dollars is written using the currency symbol S$ or the variant $S to distinguish Singapore dollars from other dollar currencies, and when Singapore documents use the general dollar currency symbol $ to refer to Singapore dollars, the symbol precedes the numerical value with no space between the numerical value and symbol.

One hundredth ( ¹ ⁄ ₁₀₀ ) of a Singapore dollar is referred to as a cent, with the plural form of cents.

Digital Currencies: Employers and employees that choose to use digital currencies for their remuneration or revenue are generally subject to standard income tax rules.

Tax deductions are to be allowed when permissible under Singapore’s tax laws. Employers using digital currencies as a payment method may be required to keep records in Singapore dollars. If the open market value of the services exchanged in Singapore dollars cannot be determined, the digital currency exchange rate at the point of the transaction may be used.

TAXES

The federal government generally enacts laws relating to income tax. While employers are not required to withhold income taxes from employees and make monthly remittances, they are required to contribute to social taxes monthly, and submit monthly remittances for themselves and their employees. Income taxes can be paid monthly through GIRO, an online service, for the previous tax year.

The tax year in Singapore is the calendar year, Jan. 1 through Dec. 31.

Coronavirus (Covid-19) Guidance: Employers may receive refunds of S$750 for each employee subject to the Foreign Worker Levy who worked for the employer as of Feb. 29, 2020, May 1, 2020, and June 1, 2020, with a fourth refund of S$375 for each employee subject to the levy who worked for the employer as of July 1, 2020. For all refunds, employers must have paid the levy in full up to amounts due for December 2019 in January 2020, and starting with the second refund, employers must acknowledge that the refund is to be used towards paying foreign employees’ wages. Employers in the construction, shipyard, and processing sectors may receive fifth and sixth refunds of S$375 for each employee subject to the levy who worked for the employer as of Aug. 1 and Sept. 1, 2020, if they paid the levy in full up to amounts due for February 2020 in March 2020, and are to receive monthly refunds of S$90 for each employee subject to the levy from October 2020 to December 2021.

Levy payments due in April and May 2020 were also waived, with additional waivers of 100% of the payment due in July, August, and September 2020; 75% of the payment due in October 2020; 50% of the payment due in November 2020; and 25% of the payment due in December 2020 only for employers in the construction, shipyard, and processing sectors. Other employers not permitted to reopen received a waiver of 100% of the payment due in June 2020 and 50% of the payment due in July 2020.

The Foreign Worker Levy is waived from January to September 2021 for any time for which foreign workers must quarantine upon entering Singapore. For employers that in January and February 2021 paid levies for workers for the duration of the quarantine, which is known as a stay-home notice, the waivers are to be used to offset June 2021’s levy, which is payable in July 2021. Employers with workers serving their stay-home notice in periods from March to September 2021 are not required to pay levies for the duration of the stay-home notice.

Singapore residents who normally work in another country, but are working from home in Singapore, are considered to be working in the normal work country, effective until June 30, 2021. Foreign workers who were given an assignment in Singapore, but cannot leave because of travel restrictions, may continue to work remotely in Singapore for up to 60 days without incurring a Singapore tax liability as long as the work performed remotely is not related to the employee’s assignment in Singapore.

Income Taxes

Income tax laws are regulated by the Inland Revenue Authority of Singapore (IRAS).

Coverage: An individual is considered a resident in Singapore if he or she normally is a resident and has temporary absences, is a Singapore Permanent Resident (SPR) who has established a permanent home in Singapore, or is a foreigner who has stayed or worked in Singapore, excluding directors of companies, for at least 183 days in the year before the yearly assessment. Residents of Singapore are taxed only on Singapore-sourced income, unless such income is received through a partnership in Singapore.

Employees: In Singapore, an employee is defined as any individual who works under a contract of service or otherwise, with or without salary. An employer is defined as a sole-proprietorship, partnership, corporation, or any person who is defined to be an employer under any written law in force in Singapore.

Rates and Thresholds: Income tax rates are levied on a progressive scale, with rates ranging from zero to 22%.

Singapore’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:

Range of Income for Tax Year (Singapore Dollar)	Income Tax Rate
Up to S$20,000	Zero
More than S$20,000 and up to S$30,000	2%
More than S$30,000 and up to S$40,000	3.5%
More than S$40,000 and up to S$80,000	7%
More than S$80,000 and up to S$120,000	11.5%
More than S$120,000 and up to S$160,000	15%
More than S$160,000 and up to S$200,000	18%
More than S$200,000 and up to S$240,000	19%
More than S$240,000 and up to S$280,000	19.5%
More than S$280,000 and up to S$320,000	20%
More than S$320,000	22%

Registration: Employers and individuals may register with the IRAS online using the government’s CorpPass system. Effective Sept. 1, 2018, CorpPass is the only method for logging into the government’s online services. CorpPass replaces other systems including SingPass, which formerly could be used for filing taxes online.

Taxable Amounts: Taxable income includes all income from employment; including salary, bonuses, director’s fees, commission, gains from stock, retirement benefits, and income received from any overseas pension. Severance pay and retrenchment payments are not subject to income tax when paid as compensation for loss of employment. Some deductions include employment-related expenses; donations; earned income relief; handicapped spouse, child or sibling relief; and life insurance relief. Employer-provided fringe benefits also are included in the definition of remuneration and employers should consult the IRAS website for a detailed explanation of how to determine the amount that must be included in taxable remuneration when a fringe benefit is granted to an employee.

Withholding Methods: Employers are not responsible for withholding income tax from an employee’s paycheck monthly. GIRO, the online income tax payment service, makes tax deductions from the previous year of income from an employee’s bank account monthly on the 6th, or if unsuccessful, on the 20th.

Returns and Remittance: Employers must provide employment income data using Form IR8A, Appendix 8A, Appendix 8B, and Form IR8S for their employees each year by March 1.

Employers must log into the IRAS website using the government’s CorpPass system to file employment income data.

Employers with at least nine employees must participate in the Auto-Inclusion scheme (AIS), a free e-Service provided by IRAS. Employers that have fewer than nine employees also are encouraged to join AIS.

IRAS hosts and provides AIS employers with free software to prepare and submit employees’ income information so they do not receive hard-copies of forms. Employers that participate in AIS do not need to distribute hard copies of Form IR8A, Appendix 8A, Appendix 8B, or Form IR8S to the IRAS or their employees. Employees also can check the status of their annual remuneration via their payslips or their automatically included income online.

Employees must file either Form B or Form B1 annually by April 15 of every year and by April 18 if the return is done online. An extension can be requested until March 31.

Income tax payments can be made online through GIRO, an electronic, cashless form of payment, in 12 monthly interest-free installments. Otherwise, a single payment must be made within a month of receiving a tax bill.

For employees that are part of the AIS scheme and do not have new sources of income over the course of a year of assessment, a No-Filing Service (NFS) can be used to automatically file tax returns and receive income tax bills. Individuals will receive a letter in the mail if qualified for NFS. If an individual receives additional income or needs to apply for additional reliefs, a tax return must be submitted.

Employee Share Plans: The taxation of employee share plans depends on the type of share plan. For plans that give employees the option to purchase share in the company at a future date, employees are taxed on the exercise. Plans that allow employees to own or purchase shares, such as share awards, are taxable at their grant if the employer does not impose a vesting period, but are taxable at their date of vesting if employers do impose a vesting period. The taxable gains are calculated by subtracting the price employees pay for shares from the open market price of the shares on the date when they are taxable.

Employees may have their taxes deferred if the share plans meet the requirements of the Qualified Employee Equity-based Remuneration (QEEBR) Scheme. These plans must have a vesting period of between half a year and two years depending on their price and the tax can be deferred for up to five years.

Recordkeeping: Records generally must be kept for a minimum of five years. All records from accounting periods prior to Jan. 1, 2007 must be kept for a minimum of seven years.

Penalties: Depending on individual circumstances, a taxpayer convicted of an error, omission or discrepancy in a tax return is subject to a penalty of up to 200% of the amount of tax undercharged. A fine up to S$5,000 or an imprisonment of up to three years can also be imposed. Additionally, if it is deemed that the error was committed with an intent to evade taxes, then the penalty may be up to 400% of the amount of tax undercharged. A fine up to S$50,000 or imprisonment of up to 5 years may also be imposed.

Employers that are required to participate in the AIS but fail to do so are subject to a penalty of up to S$1,000.

Social Taxes

The Central Provident Fund (CPF) was created under the Central Provident Fund Act, which was originally enacted in 1955. The CPF is an organization that administers the comprehensive Social Security savings plan that provides different types of benefits, including retirement, health care, and family protection, among others. Employees and employers make monthly contributions to the CPF which go into three different accounts: the Ordinary Account, which can be used to buy a home, pay for CPF insurance, investment and education; a Special Account, for old age and investment in retirement-related financial products; and a Medisave Account, which can be used for hospitalization expenses and approved medical insurance.

When an employee turns 55, a Retirement Account is created within the CPF by transferring funds from the Special Account, Ordinary Account, and any additional savings above the Medisave Minimum Sum in the Medisave Account. Singapore citizens are automatically entitled to all benefits within the CPF Life Plan; and any citizen not automatically placed on the CPF Life Plan can choose to join between the ages of 55 and 80.

Coverage: Employers are broadly defined as persons responsible for the payment of wages to an employee. Employees are limited to Singapore citizens or Singapore Permanent Residents employed in Singapore.

Employers are required to contribute social taxes for each employee who is paid more than S$50 per month. Employees who are paid more than S$500 per month also are required to pay social taxes.

Rates and Thresholds: Employer and employee contributions to the Central Provident Fund (CPF) are subject to two separate wage ceilings, which are maximum amounts of wages paid to an employee upon which CPF contribution rates may be assessed on the employee and employer. There is a monthly wage ceiling and an annual wage ceiling, and the monthly wage ceiling applies to ordinary wages while the annual wage ceiling applies to additional wages. Ordinary wages are considered to be types of employment income, such as basic pay, that generally are paid monthly in recognition of work performed in a particular month. Additional wages are considered to be types of employment income, such as annual bonuses, that generally are provided at intervals of longer than one month and are in recognition of work performed during a period of more than one month.

The monthly CPF wage ceiling for ordinary wages paid to an employee during a month is S$6,000 for employees in the private sector and non-pensionable employees and S$8,000 for public-sector employees who are pensionable.

The annual CPF wage ceiling for additional wages paid to an employee during a year is S$102,000, minus the amount of ordinary wages paid to the employee during the year that was subject to CPF contributions.

CPF contribution rates for employers and employees vary depending on employees’ citizenship status, age group, monthly wages, and sector of work.

Employer contribution amounts to the CPF range from 3.5% of employee salary to 17% of employee salary depending on employees’ citizenship status, age group, monthly wages, and sector of work.

Employee contribution amounts to the CPF range from 0.15% to 20% of salary depending on employee citizenship status, age group, monthly wages, and sector of work.

The Central Provident Fund Board specifies varying employer and employee contribution rates based on employment income paid to the following types of employees:

• Singapore citizens or third-year Singapore Permanent Residents (SPR);
• graduated rates for first-year SPRs;
• graduated rates for second-year SPRs;
• full graduated rates for first-year SPRs, if they have jointly applied with their employers to pay at the full graduated rate; and
• full graduated rates for second-year SPRs, if they have jointly applied with their employers to pay at the full graduated rate.

Contribution amounts are remitted into the three different types of CPF accounts. These remitted amounts range from 1% to 23% for the Ordinary Account depending on employee age and sector of work, 1% to 11.5% for the Special Account depending on employee age and sector of work, and 8% to 10.5% for the Medisave Account depending on employee age and sector of work.

For private sector employees, contribution amounts remitted to the Ordinary Account decrease as an employee ages, amounts remitted to the MediSave Account increase as an employee ages, and amounts remitted to the Special Account increase until age 55 and decrease thereafter.

Registration: Employers are required to register with the CPF using the government’s CorpPass system before they intend to hire any employees.

Taxable Amounts: Social taxes are calculated on an employee’s total salary per month. This includes the normal wage received in addition to bonuses, commissions, allowances, leave pay, incentives, and other payments made at intervals of more than a month.

Returns and Remittance: Employers are to remit to the government the employer and employee portions of CPF contributions on a monthly basis. CPF contributions assessed on employment income paid during a month generally are due by the 14th day of the following month. However, if the 14th day of the following month is a Saturday, Sunday, or public holiday, the CPF contributions must be paid by the next work day.

Effective since Sept. 1, 2018, employers must log into the CPF’s website using the government’s CorpPass system to pay employees’ Social Security contributions, report data regarding the contributions, and use the CPF’s other online services.

Recordkeeping: Records generally must be kept for a minimum of five years. All records from accounting periods prior to Jan. 1, 2007, must be kept for a minimum of seven years.

Penalties: An individual who goes against any part of the Central Provident Fund Act is subject to a fine not of up to S$5,000 and not less than S$1,000 and/or six months in jail and, in the case of a second or subsequent conviction, to a fine of up to S$10,000 and not less than S$2,000 and/or 12 months in jail. If an employer is found to have withheld an employee’s contribution to CPF but did not remit the payment to the CPF board, then they are subject to a fine of up to S$10,000 and/or up to seven years in jail.

Late CPF payments are subject to an 18% interest charge per year (1.5% per month), starting from the first day of the following month after the contributions are due. The minimum interest payable is S$5 per month.

Other Taxes

Skills Development Levy: The Skills Development Levy (SDL) is used to support workforce upgrading programs and to provide training grants to employees under the National Continuing Education Training system. All employers are required to pay the SDL for every employee, including foreign employees working in Singapore. Employers are exempt from SDL contributions for the following employees: employees who do not render services in Singapore; domestic servants, chauffeurs, or gardeners wholly and exclusively employed by an individual otherwise than in connection with that individual’s business.

Employers must pay the SDL at a rate of 0.25% of the monthly remuneration for each employee, with the minimum amount payable of S$2, which is for an employee earning less than S$800 a month, and a maximum amount of S$11.25, which is for an employee earning more than S$4,500 a month. The SDL due for a month must be paid no later than 14 days after the end of the month. The SDL is collected by the Central Provident Fund Board and remitted to the Skills Development Fund, managed by the Skills Future Singapore Agency (SSG).

Foreign Worker Levy: The Foreign Worker Levy (FWL) is a pricing mechanism to regulate the number of foreign workers in Singapore. Employers that hire foreign workers are required to pay a monthly levy for Work Permit and S Pass holders via a General Interbank Recurring Order (GIRO), an electronic, cashless form of payment. The levy liability begins from the day the Temporary Work Permit or Work Permit is issued and ends when the permit is cancelled or expires.

Levy rates are announced by the Ministry of Manpower in the annual budget statement. The current levy rates vary by sector and are available at the Ministry of Manpower website.

Self-Help Group Funds: Self-Help Group (SHG) funds are established to help disadvantaged and low income households in the Chinese, Eurasian, Muslim, and Indian communities. All employees are required to contribute to SHG Funds, depending on the race or religion of the employee, which is indicated on the National Registration Identity Card.

Employers are required to withhold and remit employee monthly SHG contributions to the Central Provident Fund Board. Employee monthly contribution rates vary depending on the type of SHG and monthly income as follows:

• Chinese Development Assistance Council (CDAC) Fund: monthly contributions range from S$0.50 to S$3;
• Eurasian Community Fund (ECF): monthly contributions range from S$2 to S$20;
• Mosque Building and Mendaki Fund (MBMF): monthly contributions range from S$3 to S$26; and
• Singapore Indian Development Association (SINDA) Fund: monthly contributions range from S$1 to S$30.

Employees who do not want to contribute to their respective SHG funds may exercise an opt-out option by submitting an opt-out form to the SHG.

State/Jurisdiction Taxes

There are no state or jurisdiction taxes levied in Singapore.

COMPENSATION AND BENEFITS

The Employment Act of 1968 has been amended various times and covers overtime, hours of work, holidays, leave, and wage payment. Some employees can be covered under the Child Development Co-Savings Act in regards to child care and maternity leave. Termination pay and worker’s compensation are covered by the Work Injury Compensation Act. The Supplemental Retirement Scheme is an additional retirement plan program.

Penalties for offences under the Employment Act can reach up to S$15,000. Repeated offences of the Employment Act can reach up to S$30,000 and can include imprisonment of up to 12 months.

Coronavirus (Covid-19) Guidance: A wage-replacement program, the Jobs Support Scheme, provides employers with payments from 25% to 75% of the first S$4,600 of gross monthly wages per employee up to August 2020; 10% to 50% from September 2020 to March 2021; and 10% to 30% from April to September 2021. The program makes eight payments in April, May, July, and October 2020 and March, June, September, and December 2021. Employers in aviation, tourism, or hospitality are considered Tier 1 and receive the highest subsidies; employers in food service, retail, arts and entertainment, land-based transportation, or offshore sectors are considered Tier 2 and receive the next-highest subsidies; and all other employers are considered Tier 3 and receive the lowest subsidies. However, all employers could receive a 75% subsidy once in April or May 2020.

Minimum Wage

Singapore does not have a national minimum wage that covers all workers, and in general, salary is subject to negotiation and mutual agreement between an employer and an employee or the trade union representing the employees. However, under the country’s Progressive Wage Model (PWM) overseen by the Ministry of Manpower, workers in the security, cleaning, and landscaping industry sectors must be paid minimum wages that vary based on their job responsibilities.

Security-Industry Sector: Minimum wages for the security-industry sector are differentiated among four types of personnel: security officers, senior security officers, security supervisors, and senior security supervisors.

Effective from Jan. 1, 2021, to Dec. 31, 2021, the monthly minimum wages for the security-industry sector are:

• S$1,400 for security officers;
• S$1,585 for senior security officers;
• S$1,785 for security supervisors; and
• S$1,985 for senior security supervisors.

Effective from Jan. 1, 2020, to Dec. 31, 2020, the monthly minimum wages for the security-industry sector are:

• S$1,250 for security officers;
• S$1,235 for senior security officers;
• S$1,420 for security supervisors; and
• S$1,820 for senior security supervisors.

Cleaning-Industry Sector: For the cleaning industry, in addition to minimum wages varying based on job responsibilities, the minimum wages vary based on groups within the industry. Group 1 includes cleaners who work in office or commercial buildings, such as private enterprise offices and schools. Group 2 includes cleaners who work in food and beverage establishments. Group 3 includes cleaners who work in conservancy, with jobs such as cleaning public spaces and driving trucks related to town cleanliness.

Effective since July 1, 2021 through June 30, 2022, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$1,274 to S$1,910; and
• Group 3 ranges from S$1,486 to S$2,016.

Effective from July 1, 2022 through June 30, 2023, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$1,312 to S$1,967; and
• Group 3 ranges from S$1,530 to S$2,077.

Effective from July 1, 2023 through June 30, 2024, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$1,570 to S$2,210; and
• Group 3 ranges from S$1,795 to S$2,210.

Effective from July 1, 2024 through June 30, 2025, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$1,740 to S$2,455; and
• Group 3 ranges from S$2,060 to S$2,455.

Effective since July 1, 2025 through June 30, 2026, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$1,910 to S$2,700; and
• Group 3 ranges from S$2,325 to S$2,700.

Effective from July 1, 2026 through June 30, 2027, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$2,080 to S$2,870; and
• Group 3 ranges from S$2,495 to S$2,870.

Effective from July 1, 2027 through June 30, 2028, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$2,250 to S$3,040; and
• Group 3 ranges from S$2,665 to S$3,040.

Effective from July 1, 2028 through June 30, 2029, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 range from S$2,420 to S$3,210; and
• Group 3 ranges from S$2,835 to S$3,210.

Effective from July 1, 2020 through June 30, 2021, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 ranged from S$1,236 to S$1,854; and
• Group 3 ranged from S$1,442 to S$1,957.

Effective from July 1, 2019 through June 30, 2020, the monthly minimum wages for cleaning-industry sector employees in:

• Groups 1 and 2 ranged from S$1,200 to S$1,800; and
• Group 3 ranged from S$1,400 to S$1,900.

Landscaping-Industry Sector: Minimum wages for the landscaping-industry sector are differentiated among four types of personnel: landscape workers, landscape technicians, assistant landscape supervisors, and landscape supervisors.

Effective from July 1, 2020, to June 30, 2021, the monthly minimum wages for the landscaping-industry sector are:

• S$1,450 for landscape workers;
• S$1,650 for landscape technicians;
• S$1,850 for assistant landscape supervisors; and
• S$2,250 for landscape supervisors.

Effective from July 1, 2021, to June 30, 2022, the monthly minimum wages for the landscaping-industry sector are:

• S$1,550 for landscape workers;
• S$1,750 for landscape technicians;
• S$1,950 for assistant landscape supervisors; and
• S$2,350 for landscape supervisors.

Effective from July 1, 2022, to June 30, 2023, the monthly minimum wages for the landscaping-industry sector are:

• S$1,650 for landscape workers;
• S$1,850 for landscape technicians;
• S$2,050 for assistant landscape supervisors; and
• S$2,450 for landscape supervisors.

The landscaping-industry minimum wages are to be increased by 3% on July 1, 2023; July 1, 2024; and July 1, 2025.

Effective from July 1, 2019, to June 30, 2020, the monthly minimum wages for the landscaping-industry sector were:

• S$1,300 for landscape workers;
• S$1,500 for landscape technicians;
• S$1,700 for assistant landscape supervisors; and
• S$2,100 for landscape supervisors.

Overtime

Any work done beyond the normal work day or work week (eight hours a day or 44 hours a week) is remunerated at 1.5 times the basic rate of pay of an employee. Employees are not permitted to work more than 72 hours of overtime in a month and all overtime payments must be made within 14 days of the pay period. Overtime pay is limited to manual workers that earn not more than S$4,500 monthly, or non-manual workers that earn not more S$2,500 monthly.

An employee who volunteers to work on a rest day is entitled to half a day’s wages for up to half a day’s work, a full day’s wages for work that exceeds half a day but not the employee’s normal work hours, or a full day’s wages plus overtime pay for any hours worked in excess of the employee’s normal work hours.

An employee who works on a rest day at the request of the employer is entitled to a full day’s wages for up to half a day’s work, two full days’ wages for work that exceeds half a day but not the employee’s normal work hours, or two full days’ wages plus time and a half for any hours worked in excess of the employee’s normal work hours.

An employee required to work on a holiday is entitled to a full day’s pay in addition to the employee’s regular rate of pay for any hours worked on the holiday. For employees in managerial or executive positions required to work on holidays, employers can give compensatory time off.

Hours of Work

The standard workday in Singapore is eight hours and the standard workweek 44 hours. An employee cannot work more than 12 hours a day and 48 hours in a week unless the work is deemed essential and the employer obtains approval from the Ministry of Manpower.

Employers are required to give employees daily break times of at least 45 minutes for six to eight consecutive hours of work and one day off each week, generally Sunday.

Holidays

Employees covered under the Employment Act are entitled to 11 paid holidays, the dates of which are determined by the Ministry of Manpower.

• Jan. 1: New Year’s Day.
• Chinese New Year: Singapore recognizes the first two days of each year of the Chinese Calendar as a public holiday.
• Good Friday: the Friday immediately before Easter Sunday.
• Vesak Day (Wesak Day), commemorating the birth and enlightenment of the Buddha, generally falls in April or May
• Hari Raya Puasa, known internationally as Eid al-Fitr and also known as the Festival of Breaking the Fast. The principal day of Eid al-Fitr is internationally recognized as the 1st day of Shawwal, which is the 10th month of the Islamic Calendar and can fall in any month of the Gregorian Calendar.
• Hari Raya Haji, known internationally as Eid al-Adha and also known as the Festival of Sacrifice. The principal day of Eid al-Adha is internationally recognized as the 10th day of Dhu al-Hijjah, which is the 12th month of the Islamic Calendar and can fall in any month of the Gregorian Calendar.
• May 1: Labor Day
• Aug. 9: National Day
• Deepavali, known internationally as Diwali, falls in October or November
• Dec. 25: Christmas

The days of general and presidential elections also are considered public holidays.

When a holiday falls on a day that is not a rest day but on which an employee is not required to work, which for employees with a five-day week is generally Saturday, the employee may either receive pay or a substitute day off for the holiday. When a holiday falls on an employee’s rest day, which is generally Sunday, the next day that is not a holiday is celebrated as the holiday and paid leave is required to be provided on that day.

An employee who is absent from work on the day before or after a holiday without the consent of the employer or without reasonable excuse is not entitled to pay for the holiday.

Leave

An employee who has worked at least three months and up to a year is entitled to seven days of paid vacation in a 12 month period. One day of leave is added for each year worked up to the eighth year of service, at which time an employee is entitled to 14 days of paid vacation a year. Annual leave is forfeited if an employee has unexcused absences for over 20% of the working days in one year or if an employee fails to take vacation within a 12 month period.

Sick Leave: Employees who have worked with an employer for at least three months are entitled to 15 days of sick leave for hospitalization and five days of sick leave that are not hospitalized. Employees with four months of service are entitles to 30 days of sick leave for hospitalization leave and eight days of sick leave that is non-hospitalized. Employees with five months of service are entitled to 45 days of leave for hospitalization and 11 days of sick leave for non-hospitalization. Employees with six months or more or service are entitled to 60 days of sick leave for hospitalization and 14 days of sick leave for non-hospitalization. All leave is paid, and sick leave is capped at the maximum number of days (hospitalized and non-hospitalized) that an employee is allowed each year.

Maternity Leave: Under the Child Development Co-Savings Act, employees are entitled to maternity leave if the following criteria are met: the child is a Singapore citizen, and the employee has completed at least three months of service with the current employer. Mothers who have been self-employed for at least three months are also entitled to maternity leave.

If a mother is able to meet the criteria of the child being a Singapore citizen and if she is able to become lawfully married within one year of the child’s birth, she will become eligible for maternity leave benefits.

Under the Child Development Co-Savings Act, women are entitled to paid maternity leave four weeks before and 12 weeks after the birth of a child, totaling to 16 weeks of maternity leave. The last eight weeks can be taken flexibly within the first 12 months after the child’s birth.

If a woman is covered only by the Employment Act and not the Child Development Co-Savings Act, she is entitled to 12 weeks of maternity leave. The first eight weeks of maternity leave is paid if the employee has fewer than two living children (excluding the newborn) and she has completed at least three months of service before the birth of the child. The last four weeks of maternity leave can be taken flexibly over a 12-month period from the child’s birth.

For single women, women who are not having a child that is a Singapore citizen, or women who are not Singapore citizens themselves, a maternity leave of eight weeks is paid. Four more weeks of maternity leave can be taken, but employers are not obliged to pay women for the last four weeks of leave in these circumstances.

If a mother seeks to use maternity leave and the father, with the mother’s agreement, seeks to use shared parental leave for the same child, the mother’s total number of available weeks of maternity leave would be reduced by the number of shared paternal leave taken by the father.

Employers are prohibited from dismissing an employee on maternity leave.

Paternity Leave: Fathers who fulfill criteria are eligible for two weeks of government-funded paid paternity leave. The criteria for the father are that he is a citizen of Singapore, was lawfully married to the child’s mother between conception and birth, although this is inapplicable regarding adopted children, and completed at least three months of service with the current employer. The child must also be a citizen of Singapore at birth or within one year of birth. Fathers may also share four weeks of the mother’s 16 weeks of maternity leave.

Shared Parental Leave: Under the Child Development Co-Savings Act, fathers are entitled to four weeks of parental leave if the following criteria are met: the child is a Singapore citizen born on or after May 1, 2013, the mother qualifies for government-paid maternity leave, and the father is lawfully married to the child’s mother. This benefit is paid for by the government.

Child Care Leave: Employees are entitled to six days of child care leave each year if covered under the Child Development Co-Savings Act if the following three criteria are met: the child is under seven years old, the child is a Singapore citizen, and the parent has completed at least three months of service.

For a parent who is self-employed, he or she must have been engaged in a particular business, trade, or profession for a at least three calendar months and have lost income as a result of not engaging in the trade, business, profession or vocation during the child care leave period.

The first three days of child care leave are paid by the employer, and the second three days are paid by the government with a cap of S$500 per day.

Parents of noncitizens covered under the Employment Act are entitled to two days of childcare leave per year if the child is below seven years of age and the employee has completed at least three months of service.

Adoption Leave: Employees are entitled to 12 weeks of Adoption Leave if the following criteria are met: the adopted child is below the age of 12 months at the point of ‘formal intent to adopt’, the adopted child is a Singapore Citizen (if the child is a foreigner, one of the adoptive parents must be a Singapore Citizen and the child must become a Singapore Citizen within six months of the child’s adoption), the adoptive mother is lawfully married at the point of ‘formal intent to adopt’, the mother has served the employer for at least three calendar months, and the Adoption Order is passed within one year from the point of formal intent to adopt.

The Government will reimburse employers up to a cap of S$10,000 for the four weeks of Adoption Leave per employee. This leave must be taken before the child’s first birthday.

Infant Care Leave: An employee is entitled to six days of unpaid Infant Care Leave if covered under the Child Development Co-Savings Act if the following criteria are met: the child is below two years of age, the child is a Singapore citizen and the parent has completed at least three months of service with an employer.

Wage Payment

An employee must be paid at least once a month. However, employers are allowed to pay salaries at shorter intervals. All salaries generally must be paid within seven days after the end of the salary period. Salary should be paid on a working day and during working hours at the place of work, or at any other place agreed to between the employer and the employee. It may also be paid into an employee’s personal or joint bank account.

Employers are required to provide itemized payslips to all employees at least once a month. A list of items that must be included on the payslip is identified on the Singapore Ministry of Manpower’s Annex A: Requirements for Itemised Payslips.

Bonuses and Special Benefits

Annual bonuses of one month’s salary or more are common practice in Singapore, but not mandatory.

Retirement Plans: Retirement plans and savings are covered under the Central Provident Fund (CPF). See social taxes for more information about retirement.

Additionally, citizens and foreign workers can apply to contribute to a Supplementary Retirement Scheme (SRS). Employees can qualify to open and contribute to an SRS scheme if they meet the following criteria: if an employee is a Singaporean, Singapore permanent resident (SPR),or foreigner who earns any form of income (e.g., employment income including directors’ fees, trade income, rental income); at least 18 years of age; not an undischarged bankrupt, and is capable of managing personal affairs. The employer’s contribution to an SRS account is part of an employee’s remuneration and taxable income.

Foreigners must fill out the Declaration Form for SRS to enroll in an SRS scheme.

An SRS account can be opened at any one of three qualifying branches- DBS Group Holdings Ltd Overseas, Chinese Banking Corporation (OCBC) Ltd, and United Overseas Bank (UOB) Ltd. Penalties are implemented if more than one SRS account is opened by an individual.

Employees and employers may contribute to SRS at any time of the year and as often as desired, subject to the maximum SRS contribution amount for the year. To be eligible for the tax relief, all contributions must be made or cleared by Dec. 31 of the year.

Termination Pay

Employees and employers engaged in an employment contract may give notice of termination of the contract at any time. According to the nonbinding Tripartite Guidelines on Managing Excess Manpower, the prevailing norm for a retrenchment benefit is between two weeks’ and one month’s salary per year of service. Notice of termination must be in writing. Unless the notice period is specifically set forth in the contract, the following notice must be given:

• one day’s notice if the period of employment is less than 26 weeks;
• one week’s notice if the period of employment is at least 26 weeks but less than two years;
• two weeks notice if the period of employment is at least two years but less than five years; or
• four weeks notice if the period of employment is five years or more;

Either party may choose to waive the right to receive notice. In lieu of providing the requisite notice, the terminating party may pay the other party an amount equal to the wages the employee would have earned during the notice period.

An employment contract may be terminated without notice under the following conditions:

• The right to receive notice has been waived.
• The terminating party has paid the other party an amount equal to the wages the employee would have earned during the requisite notice period.
• The other party has willfully breached a condition of the contract.
• The employer has breached the contract by failing to pay salary.
• The employee has breached the contract by being continuously absent from work for more than two days without permission from the employer, reasonable excuse, or attempt to inform the employer of the reason for absence.
• After due inquiry, the employer determines that the employee engaged in conduct inconsistent with the fulfillment of the express or implied conditions of service.
• The employee or a dependent is immediately threatened by danger of violence or disease that was not anticipated when the employee entered into the employment contract.

Total salary and any other amounts due to a terminated employee must be paid on the date of dismissal or at the latest within three business days thereafter. Payment of wages to an employee who has resigned with the requisite notice must be made on the date the employment contract is terminated. When an employee resigns without proper notice, payment of wages must be made within seven days of resignation. An employee is entitled to be paid for all accrued leave unless terminated for breaching the employment contract. An employee who has been in continuous service with an employer for at least three years and is laid off because of the employer’s downsizing is entitled to a “retrenchment benefit;” the amount of which is determined by negotiation.

Workers’ Compensation

According to the Work Injury Compensation Act, if an employee suffers a specified occupational disease or a work-related injury, the employer must pay compensation, unless the disease or injury:

• is directly attributable to the employee’s use of alcohol or a controlled drug not prescribed by a medical practitioner; or
• resulted from deliberate self-injury or the deliberate aggravation of an accidental injury.

In the case of temporary incapacity, the employee is entitled to full pay for 60 days if hospitalized, 14 days if not hospitalized, plus a further payment of two-thirds of salary during the period of incapacity or for a period of one year, whichever is shorter. If the employee dies or suffers permanent total or partial incapacity as a result of a work-related disease or injury, the employee or the employee’s dependents are entitled to lump-sum compensation based on the employee’s age, earnings, and degree of disability. Employers must pay the cost of medical treatment the employee receives during the first year after suffering the disease or injury, up to S$36,000.

Recordkeeping

Employment records generally must be kept for a minimum of two years for current employees and one year for ex-employees.

FOREIGN WORKERS

Foreign workers are entitled to the same rights as Singapore citizens and are generally covered by the same tax and workplace laws.

Visas: Various types of visas exist for foreign workers depending on skill level. The following are the types of visas employees may apply for when working abroad in Singapore. All visa requirements and regulations can be found on Singapore’s Ministry of Manpower website.

• Employment Pass (EP): This is the most common type of visa a foreign worker will receive for working in Singapore. It is issued to foreign professionals, managing directors, general managers, CEOs, executives, and specialists. Effective since Sept. 1, 2020, new applicant employees are eligible for this visa if their monthly salary is at least S$4,500 per month, and effective since Dec. 1, 2020, new applicant employees only in the financial services sector are eligible for this visa if their monthly salary is at least S$5,000 per month. The salary thresholds took effect May 1, 2021, for visa renewals.
• Entrepreneur Pass (EntrePass): This visa is for foreign entrepreneurs who are qualified to start and operate a business in Singapore.
• Personalized Employment Pass (PEP): Individuals that can apply for this visa must be overseas foreign professionals with a monthly salary of at least S$18,000. PEP holders can generally take on employment in any sector and do not have to reapply for a visa when changing jobs.
• Work Permit: A Work Permit Scheme is for foreign employees who want to work in Singapore and are from an approved source country/territory (depending on the sector which the worker is going to be employed in).
• S Pass: Mid-level skilled foreigners (e.g. technicians) with a monthly salary of at least S$2,200 can apply for an S Pass. Applicants will be assessed on a points system, taking into account multiple criteria. S Pass applicants accumulate points based on how far they meet the criteria. Generally, criteria to be considered consists of the minimum fixed monthly salary, the work experience and quality the employee is expected to bring, and educational qualifications.
• Miscellaneous Work Pass: This visa is for foreign employees working in Singapore for 60 days or less. Usually this includes foreigners working with an organization conducting a seminar, conference, workshop, gathering or talk concerning any religion, race or community, cause, or political end; a foreign religious worker giving talks relating directly or indirectly to any religion; and a foreign journalist, reporter, or an accompanying crew member not supported or sponsored by any Singapore Government agency to cover an event or write a story in Singapore.

Employment Pass and S Pass holders are required to receive a monthly minimum salary of S$6,000 to obtain a Dependant’s Pass or Long Term Visit Pass for their spouse or unmarried dependent children, and a monthly minimum salary of S$12,000 to obtain a Long Term Visit Pass for their parents.

Taxes: Foreign workers are taxed at a 15% flat rate or by the progressive resident income tax rates; whichever amount yields a higher payable income tax. However, foreign employees with an annual income of S$22,000 or less are not required to submit an income tax return. Non-resident directors are taxed at a flat rate of 22%.

A “Not Ordinarily Resident (NOR) Taxpayer Scheme” also is used in Singapore to attract foreign talent and is applicable to an employee for a period of five years. To qualify for the NOR regime, an employee must meet the following criteria: an individual must not have been a Singapore tax resident in the three years of assessment before the year first qualifying for the NOR scheme, and an individual must be a tax resident for the year of assessment while qualifying for the NOR scheme. The last individuals to qualify for the NOR scheme qualified for the five-year period from 2020 through 2024.

Additionally, to qualify for the NOR scheme, an individual must have spent at least 90 days outside of Singapore for business reasons and their total Singapore employment income must be at least S$160,000. If the tax on the apportioned income is less than 10% of an individual’s total employment income, the individual is subject to a tax of 10% of the total employment income.

Foreigners within the NOR scheme must submit form IR37C by the 15th of the second month from the date of payment for income tax.

After qualifying for the NOR scheme, an employee is entitled to time apportionment of Singapore employment income, tax exemption of pre-assignment income remitted to Singapore, and tax exemption of employer’s contribution to a nonmandatory overseas pension fund or social security scheme. Beginning in January 2014, employees of investment holding companies and tax exempt bodies were no longer eligible for a tax exemption of employer contributions to nonmandatory overseas pension or social security funds. Since 2016, employees of some service companies are also not eligible for this exemption depending on how their company calculates its corporate income tax.

Employers must file form IR21 a month before any foreign employees who have worked in Singapore at least three months leave the country in order receive tax clearance for the employee. Employers that do not comply are subject to a fine up to S$1,000.

Wages/Payments: Salaries must be paid in Singapore dollars, but accounting records can be kept in other currencies. If records are kept in another currency, all tax returns and income tax must be denominated and determined in Singapore dollars by calculating the average rate of exchange, as made available by the Monetary Authority of Singapore, on the basis of the rate of exchange at the end of each month for the accounting period that constitutes the basis period for the year of assessment.

WORKING IN THE UNITED STATES

Foreign workers from Singapore must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate

Singapore is eligible for the visa waiver program for business visitors, which allows Singaporean citizens to travel to the U.S. for 90 days or less for business-specific purposes without having to obtain a B-1 business visa. Stays longer than 90 days will require a visa. Individuals may return to the U.S. under the visa waiver program if a “reasonable length of time” has passed. The determination for reasonable length of time is at the discretion of the Department of Homeland Security.

U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.

For tax purposes, Singaporean citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they work under specific visa types that exempt earnings from taxes.

State and local taxation of Singaporean workers also can apply.

The U.S. labor laws apply to all workers employed and providing services in the country.

Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.

Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the

Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.

Income Taxes:

Generally, nonresidents in the U.S. who are from Singapore and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends. A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer.

All nonresidents in the U.S. who are from Singapore and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c. Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the

Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.

An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the

Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.

Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.

Tax treaties: Singapore and the U.S. do not have a tax treaty.

Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.

Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.

Totalization Agreements: Singapore and the U.S. have not entered into a social tax totalization agreement.

Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.

There are no particular requirements that employees be paid in U.S. dollars.

TREATY ARRANGEMENTS

Singapore has entered into more than 80 income tax treaties, but has not entered into an income tax treaty with the United States. Singapore does not have a totalization agreement with the United States for social tax coverage purposes.

The countries with which Singapore has a bilateral income tax treaty in effect are Albania, Australia, Austria, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Brunei, Bulgaria, Cambodia, Canada, China, Cyprus, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Fiji, Finland, France, Georgia, Germany, Ghana, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Kazakhstan, Kuwait, Laos, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Mexico, Mongolia, Morocco, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Papua New Guinea, Philippines, Poland, Portugal, Qatar, Romania, Russia, Rwanda, San Marino, Saudi Arabia, Seychelles, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, Uruguay, Uzbekistan, and Vietnam.

Singapore additionally has an income tax treaty in effect with Taiwan (the Republic of China).

Singapore also has income tax treaties in effect with Guernsey, the Isle of Man, and Jersey, the three of which are crown dependencies of the United Kingdom.

RESOURCES

General

U.S. State Department: U.S. Relations With Singapore

CIA World Factbook: Singapore

Currency Details

International Organization for Standardization: Currency Codes - ISO 4217

Unicode Consortium: Currency Symbols

United Nations: United Nations Terminology Database: Singapore

Taxes

Inland Revenue Authority of Singapore:

• Tax Treatment of Employee Remuneration
• Stock Options

Singapore Ministry of Finance

Singapore Income Tax Act

Central Provident Fund Board

Central Provident Fund Act

Skills Future Singapore

Comptroller of Income Tax v. Forsyth (2020)

Compensation and Benefits

Singapore Ministry of Manpower

Retirement and Re-employment Act

Foreign Workers

Embassy of the Republic of Singapore in Washington, D.C.

Ministry of Manpower: Long Term Visit Pass

Working in the United States

U.S. Department of Labor:

• Foreign Labor Certification
• Hiring Foreign Workers

U.S. Internal Revenue Service:

• IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
• IRS Publication 15, Circular E, Employer’s Tax Guide
• IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
• IRS Publication 519, U.S. Tax Guide for Aliens
• IRS Publication 901, U.S. Tax Treaties

U.S. Department of State: Visa Waiver Program

Treaty Arrangements