Payroll and benefits guide
Singapore
CapitalSingapore
Fiscal Year1 January - 31 December
Date Formatdd/mm/yyyy
CurrencySGD (Singapore Dollar)
Payroll FrequencyMonthly
Employer TaxesUp to 17.25%
Employee CostsUp to 20%
Overview
- Languages
- English, Malay, Mandarin, Tamil
- Income tax
- 0% – 24%
- VAT
- 9%
- Goods and Services Tax (GST)
Contributions
Employer
Up to 17%
Central Provident Fund (CPF)17% for employees aged 55 and below, lower rates above 55. Ordinary wage ceiling SGD 8,000/month (2026); maximum SGD 1,360/month. Citizens and permanent residents only
0.25%
Skills Development Levy (SDL)Minimum SGD 2 and maximum SGD 11.25 per employee per month
Up to 17.25%
Total employer cost
Employee
Up to 20%
Central Provident Fund (CPF)20% for employees aged 55 and below, lower rates above 55; maximum SGD 1,600/month. Annual wage ceiling SGD 102,000 including bonuses
Up to 20%
Total employee cost
Minimum Wage & Working Hours
- Minimum wage
- None / —
- No statutory minimum wage; Progressive Wage Model rates apply in selected sectors
- Standard working hours
- Up to 44 hours per week
- Overtime rules cover workmen earning up to SGD 4,500/month and other employees earning up to SGD 2,600/month
- Overtime
- 1.5x the hourly basic rate, capped at 72 hours per month
Leave
- Annual leave7–14 days7 days in the first year, plus 1 day per year of service up to 14; after 3 months of service
- Sick leave14 days outpatient, 60 days hospitalizationAfter 3 months of service; the 60 days include outpatient leave
- Maternity leave16 weeksGovernment-Paid Maternity Leave for eligible mothers of Singapore citizen children; the government reimburses part of the cost
- Paternity leave4 weeksGovernment-Paid Paternity Leave, mandatory for children born on or after 1 April 2025
- Parental leaveUp to 10 weeksShared parental leave for children born on or after 1 April 2026
- Public holidays11 days
Termination
- Probation period
- Not regulated by statute; 3–6 months is typical
- Notice period
- 1 day – 4 weeks, unless the contract says otherwise
- Severance pay
- No statutory severance; retrenchment benefits of 2 weeks to 1 month per year of service are the norm for employees with 2+ years of service
- 13th salary
- Not mandatory; an Annual Wage Supplement of 1 month is common
- Notes
- Statutory notice when the contract is silent: 1 day under 26 weeks, 1 week up to 2 years, 2 weeks up to 5 years, 4 weeks after 5 years
Benefits
- Central Provident FundMandatory
Retirement, housing, and healthcare savings for citizens and permanent residents
- Work injury compensation insuranceMandatory
Required for manual workers and non-manual employees earning up to SGD 2,600/month
- Group medical insuranceCommon
Standard for professional roles; required for most work pass holders
Visas & Work Permits
Employment Pass
- Requirements
- Minimum qualifying salary of SGD 5,600/month (SGD 6,200 in financial services) and a pass under the COMPASS framework
For professionals, managers, and executives
S Pass
- Requirements
- Minimum qualifying salary of SGD 3,300/month (SGD 3,650 in financial services) from September 2025
For mid-skilled staff, subject to quotas and levies
Overseas Networks & Expertise (ONE) Pass
- Duration
- 5 years
- Requirements
- Fixed monthly salary of at least SGD 30,000 or outstanding achievements
FAQ
Sources
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