Labour laws are getting more and more stringent and it’s mainly to protect the rights of employees and employers. Singapore’s Ministry of Manpower (MoM) has already put specific templates for salary slips which are commonly known as itemised salary slips. They contain the particular must to be included, but how you being an employee understand this and how much you have the knowledge about the laws and regulations can decide actually if the salary slip issued by your employer is withstanding the norms or not.
I have designed this guide to help you understand the particulars of the salary slips, how to read your salary slips along with the more such information you being an employee in Singapore must know and understand.
What Is A Salary Slip?
A salary slip is a recei[t or a document which contains the particulars of your monthly salary and is issued by an employer with complete breakdown of your earnings for the month it’s issued for. An itemised salary slip as per MoM includes information about basic salary, allowances, deductions, overtime pay, and net salary. In Singapore, a salary slip for new employees must contain details of all components of your pay, including basic salary, allowances, overtime pay, deductions like CPF contributions, and most importantly the comprehensive mentioning of final net salary.
How To Read Your Pay Slips – Know The Components
Singapore’s Mom made it mandatory for all employers that from 1 April 2016 they must issue itemised pay slips to all of their employees covered by the Employment Act.
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Below I have broken down the components of an itemised salary slip, making it easy for you to understand how to read and which particular component stands for what purpose, so that you can identify effectively for any portions missing or wrong labelings or inaccuracy;
Understand the requirements and the norms first;
| When |
|
| Format | Soft or hard copy (including handwritten). |
Items Of An Itemised Pay slip
Pay slips must include the items below, unless an item is not applicable. For instance, if overtime pay isn’t applicable to you, your pay slip need not include items 9 to 11. In case the payments are made more than once in a month, employers are allowed to consolidate pay slips, but it still must contain details of all payments made since the last pay slip;
| Number | Item description |
| 1 | Full name of employer. |
| 2 | Full name of employee. |
| 3 | Date of payment (or dates, if the pay slips consolidates multiple payments). |
| 4 | Basic salary
For hourly, daily or piece-rated workers, indicate all of the following:
|
| 5 | Start and end date of salary period. |
| 6 | Allowances paid for salary period, such as:
|
| 7 | Any other additional payment for each salary period, such as:
|
| 8 | Deductions made for each salary period, such as:
|
| 9 | Overtime hours worked. |
| 10 | Overtime pay. |
| 11 | Start and end date of overtime payment period (if different from item 5 start and end date of salary period). |
| 12 | Net salary paid in total. |
Source MoM
Keeping Records
Employers must keep a record of all payslips issued.
| Format | Soft or hard copy, including handwritten. |
| For how long? |
|
Source MoM
Employee Rights For Payslips
I have also mentioned below your must to have information clearly mentioned, understand below;
- Salary Payment: Monthly, within seven days after the salary period. Final salary paid on the last day of employment or within three working days of termination.
- Payslip Issuance: Itemized payslips are compulsory which includes detailed information as outlined in the Employment Act.
- Compliance and Enforcement: In case of non-payment of salary, employees can file claims with TADM, it’s an offence.
PaySlip Compliance and Legal Requirements in Singapore
To be in compliance with payroll regulations is crucial, which would help any employer avoid fines and operational disruptions. Below I have mentioned what small business owners must ensure for total compliance;
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CPF Contributions
- Employers ensure timely CPF contributions for their employees who earn more than SGD 50 per month. Contribution rates slightly vary and depend upon the age and salary level, with regular updates from the CPF Board. Staying updated and incorporating these changes is crucial for compliance.
Skills Development Levy (SDL)
- All employers ensure SDL payments, which is calculated at 0.25% of an employee’s gross monthly salary. The lowest payment is SGD 2, and the highest is SGD 11.25 per employee per month. Exact calculation without assumptions along with timely payments helps in avoiding penalties.
Tax Filing and Employer Obligations
- AIS Submission: Employers who participate in the Auto-Inclusion Scheme (AIS) are required to submit employees’ income details digitally to IRAS by 1 March 2025.
Form IR21: In case an employee is permanently leaving Singapore, their employer must ensure to file Form IR21 at least one month prior to the departure of the employee.
Conclusion
With stringent yet comprehensive labour laws, payslips have been made an integral part of payroll in Singapore. A particular ruling and following laws by The Ministry of Manpower has already announced the compulsion which implies that employers must under law provide a payslip that is itemized as per MoM outlines, to all employees. This payslip as per the system designed, may be formatted in hard or soft copy.
