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Payroll in SgSingapore.

Population

5,637,000

Languages

1.

English

2.

Malay

3.

Mandarin

Country Capital

Singapore

Currency

Singapore dollar (S$) (SGD)

With its central location in Southeast Asia and its status as a financial and commercial hub, Singapore is a great place to expand your company. However, it’s critical to understand the country’s various employment laws, taxation rules, and how to stay compliant when setting up payroll.

Taxation rules in Singapore

Singapore operates under the Central Provident Fund (CPF), its nationally mandated benefit or social security program. You should budget around 17% of your employees’ salaries as a cost paid to the CPF by the employer.

Taxation and other enterprise disbursements are administered by the Inland Revenue Authority of Singapore, which has instituted a progressive tax rate that ranges from 0% to 22%. Singapore does not have payroll withholding. The taxes your employees pay will depend on their salary, but they will only get taxed on the income they earn in the country. As an employer, you’ll use Form IR8A and Appendix 8A, Appendix 8B, or Form IR8S to prepare an annual wage report by March 1.

Singapore payroll options for companies

Before you set up payroll in Singapore, you’ll need to learn about the different available payroll options:

  • You can pay employees yourself through your parent company. However, you will need to establish a subsidiary in Singapore before you can officially hire and pay an employee.
  • If you set up a subsidiary but don’t have the means to administer payroll, you can look into Singapore payroll outsourcing. While the outsourcing company can manage compensation, you are still responsible for making sure you stay compliant with all payroll regulations and overall employment compliance.
  • You can also choose to streamline global payroll management with a Global Growth Platform™ such as G-P’s. We ensure your employees are paid on time and accurately – in full compliance with local laws – so you can focus your time and resources on other areas of your global growth.

How to set up a payroll in Singapore

Before setting up Singapore payroll, you have to establish an entity or subsidiary.

Entitlement and termination terms

You need to establish certain entitlement and termination terms with any Singapore-based employee. Both should be included in the employment contract that should be created and signed before your employee’s first day. The notice period for termination ranges by the length of a worker’s service. It is common practice for 1 month’s termination notice to be provided. However, if the notice period is not specified in the employment contract, the following periods apply:

Termination/Severance in Singapore

If you are handling the employment and payroll yourself, consult with someone well-versed in Singapore employment law to make sure all aspects of entitlement and termination are compliant.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150+ currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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