What are the statutory contributions for employees and employers in Singapore?
Employee Income Tax
The Singaporean tax system applies a progressive tax structure, with rates as follows:
| Taxable Income | Tax Rate |
|---|---|
| SGD 20,000 | 0% |
| SGD 20,000 – SGD 30,000 | 2% |
| SGD 30,000 – SGD 40,000 | 3.5% |
| SGD 40,000 – SGD 80,000 | 7% |
| SGD 80,000 – SGD 120,000 | 11.5% |
| SGD 120,000 – SGD 160,000 | 15% |
| SGD 160,000 – SGD 200,000 | 18% |
| SGD 200,000 – SGD 240,000 | 19% |
| SGD 240,000 – SGD 280,000 | 19.5% |
| SGD 280,000 – SGD 320,000 | 20% |
| above SGD 320,000 | 22% |
Employer Payroll Contributions
Employers are required to contribute to their employees’ Central Provident Fund (CPF) with rates across different age groups summarized in the following table:
Find out more about CPF contribution rates here.
Together with the CPF payment, employers are also required to make a contribution to the Skills Development Levy (SDL) at a rate of 0.25% of employees’ monthly total wages. The minimum rate is SGD 2 for an employee earning less than SGD 800 a month and the maximum is SDG 11.25 for an employee earning more than SGD 4,500 a month. Employers can use the SkillsFuture SDL calculator to determine their monthly SDL contribution here.
Employers are also expected to deduct their employee’s contributions to Self-Help Group (SHG) funds from employee’s wages, which consists of the Chinese Development Assistance Council (CDAC) Fund, Eurasian Community Fund (ECF), Mosque Building and Mendaki Fund (MBMF), and the Singapore Indian Development Association (SINDA) Fund, with rates as follows:
| CDAC contribution rates | |
| Monthly Total Wages | Monthly Contribution |
| < $2,000 | $0.50 |
| > $2,000 to $3,500 | $1 |
| > $3,500 to $5,000 | $1.50 |
| > $5,000 to $7,500 | $2 |
| > $7,500 | $3 |
| ECF contribution rates | |
| Monthly Total Wages | Monthly Contribution |
| < $1,000 | $2 |
| > $1,000 to $1,500 | $4 |
| > $1,500 to $2,500 | $6 |
| > $2,500 to $4,000 | $9 |
| > $4,000 to $7,000 | $12 |
| > $7,000 to $10,000 | $16 |
| > $10,000 | $20 |
| MBMF contribution rates | |
| Monthly Total Wages | Monthly Contribution |
| < $1,000 | $1 |
| > $1,000 to $1,500 | $3 |
| > $1,500 to $2,500 | $5 |
| > $2,500 to $4,500 | $7 |
| > $4,500 to $7,500 | $9 |
| > $7,500 to $10,000 | $12 |
| > $10,000 to $15,000 | $18 |
| > $15,000 | $30 |
| SINDA contribution rates | |
| Monthly Total Wages | Monthly Contribution |
| < $1,000 | $1 |
| > $1,000 to $1,500 | $3 |
| > $1,500 to $2,500 | $5 |
| > $2,500 to $4,500 | $7 |
| > $4,500 to $7,500 | $9 |
| > $7,500 to $10,000 | $12 |
| > $10,000 to $15,000 | $18 |
| > $15,000 | $30 |
To find out more about the SHG contribution, visit this page.
The contribution rates vary, but the total employment cost generally range from 7.75% to 17.25%.
Employee Payroll Contributions
If their monthly wage amounts to more than SGD 750, employees are required to contribute a percentage of their salary to the Central Provident Fund (CPF) according to the previous table.
What is the minimum wage in Singapore?
Singapore does not set a national minimum wage. However, in recent years, minimum wages are starting to be set for specific industries, such as cleaning, security, and landscape sectors, and is encouraged to be around SGD 1,400.
What is the payroll cycle in Singapore?
The standard payroll cycle in Singapore is monthly, with pay dates falling on the last day of the month.
It is also customary for employers to pay a 13th month salary at the end of the year in Singapore.
How long is the working hours in Singapore?
Under the Singapore Employment Act, the maximum number of working hours in Singapore is 44 hours per week; however, employees are allowed to work overtime at a maximum of 12 hours a day and 72 hours a month.
How many leaves are employees entitled to?
- Standard paid time off — employees in Singapore are entitled to at least 7 days of paid annual leave during their first year of service; however, it is common practice for employers to grant them 14 – 20 days after the completion of the first year.
- Compulsory annual public holidays — there are 11 national public holidays in Singapore. If the holiday falls on a non-working day, the employee should either receive a day’s salary in lieu of the holiday or an extra day off. If the holiday falls on a rest day, the upcoming workday will be a paid public holiday.
- Minimum paid sick leave — Once an employee has worked for six months, they are eligible for paid sick leave of 14 days of outpatient care and 60 days of hospitalization. Before completing six months of service, an employee’s sick leave is based on the length of employment:Up to three months – five days per year, 15 days if hospitalization is necessary
Four months – eight days per year, 45 days if hospitalization is necessary
Five months – 11 days per year, 45 days if hospitalization is necessary
Six months + – 14 days per year, 60 days if hospitalization is necessary
The employee must inform their employer within 48 hours of any inability to work and provide a certificate from a medical professional upon returning to work. - Other Leaves:
Bereavement leave — in the event of the death of an immediate family member, Singaporean employers usually allow employees two or three days of paid leave.Marriage leave — in the event of an employee’s marriage, the employee can take up to five days of leave.Voting leave — in Singapore, voting/polling day is a public holiday.Military leave — employees are entitled to receive paid Reservist leave on an annual basis when they receive the official Notification of National Service Call Up –SAF 100 issued by the government.
What are the public holidays in Singapore?
Singapore’s public holidays generally fall on the same dates each year; however, they may occasionally shift to accommodate various considerations such as weekends and religious observances. To access the most recent holiday list, please visit this link.
How long is the maternity and paternity leave in Singapore?
- Statutory maternity leave — female employees in Singapore are entitled to up to 16 weeks of government-paid maternity leave.
- Statutory paternity leave — male employees in Singapore are entitled to 2 weeks of paternity leave.
- Statutory parental leave — male employees are allowed to share up to 4 weeks of his spouse’s 16 weeks government-paid maternity leave, subject to the spouse’s agreement.
What rights do employees have upon leaving employment due to certain conditions?
Employers can terminate employees for valid reasons such as poor performance or misconduct, but this must be done via providing a legal notice. When an employee’s service with a company is terminated for certain reasons, they are entitled to certain rights and benefits, including:
- Notice period — the minimum notice period for termination varies based on the length of service, ranging from one day to four weeks.
- Severance pay — employees with at least two years of service are entitled to retrenchment benefit, which varies based on the length of service.
- Probation period — employees generally have three months of probation period according to their contracts.
What is the type of visa for employees in Singapore?
In order to be granted an employment visa in Singapore, the applicant must obtain a work permit from the Singapore Ministry of Manpower (MOM).
Singapore offers a variety of employment passes, but the basic procedures remain the same. An Employment Pass is set by the individual and the company they work for. If an Employment Pass holder wants to change jobs, the employer will have to cancel the existing EP, and the new employer will have to apply for a new one.
Standard VAT Rate
The standard VAT (known as Goods and Services Tax or GST) rate in Singapore is set at 8% in 2023 and will increase to 9% in 2024.
Is there a maximum length of contract for employees?
There is no specific maximum length of time for employees to be employed on a contract basis in Singapore. The length of a contract varies according to the agreement between the employer and the employee.
What is the retirement age in Singapore?
Under the Retirement and Re-employment Act (RRA), the minimum retirement age in Singapore is set at 63. Companies are not allowed to ask employees to retire prior to reaching the age of 63.