Payroll in Singapore

Mercans is your go-to partner for top-notch payroll (Managed & SaaS) services in Singapore. Our commitment to delivering exceptional payroll outsourcing in Singapore is unwavering. With years of experience in the payroll industry, Mercans ensures accurate and compliant payroll services in Singapore, making us the preferred choice for businesses of all sizes. Trust Mercans for timely and accurate payroll transactions, along with the convenience of multi-currency payments in the Singaporean market. As your dedicated local payroll provider in Singapore, we boast a team of in-country payroll specialists with deep knowledge of local laws, offering comprehensive support for a seamless payroll experience tailored to your business needs.

Everything you need to know before running payroll in Singapore

Working Hours and Overtime

In Singapore, regulations governing working hours are crucial aspects of employment. According to the law, working hours encompass the time dedicated to performing tasks and the duration employees must be present at the workplace, ready for duty, even if not actively engaged in work. Under Part IV of the Employment Act, the stipulated standard working hours must not surpass 8 hours per day and 44 hours per week for covered employees.

For individuals employed five days or less per week, the maximum daily working hours may extend to nine, provided the total does not exceed 44 hours weekly. Conversely, for those with a schedule spanning more than five days, the limit is generally set at eight hours per day or 44 hours weekly.

Moreover, it’s imperative to note that covered employees are generally not permitted to exceed 12 hours of work in a single day except in specific situations allowed by law, and they are entitled to one rest day per week. Additionally, employees should not be subjected to continuous work for more than six hours without a break. However, if an uninterrupted work period of up to eight hours is necessitated, a minimum 45-minute break for mealtime should be provided.

As a premier payroll provider and payroll company in Singapore, staying abreast of such regulations is fundamental to ensuring compliance and facilitating smooth operations for businesses and their workforce.

Minimum Wages

Singapore does not have a universal statutory minimum wage. However, minimum pay requirements apply in certain cases, including workers covered by the Progressive Wage Model and firms that must meet the Local Qualifying Salary requirement for local employees in order to hire foreign workers.

13th Month Salary

The Additional Wage Supplement (AWS), commonly referred to as the “13th month payment,” represents a singular annual disbursement in addition to an employee’s total yearly salary.

AWS is not mandatory under Singapore law and is only payable if it is provided for in the employment contract, collective agreement, or company policy. Employers may nevertheless choose to offer AWS as a means of acknowledging their employees’ contributions to the company’s achievements.

Payroll Cycle

Employees typically receive their wages on a monthly basis, although payment intervals can be shorter if necessary. Salary must be paid at least once a month and no later than 7 days after the end of the salary period. Regarding termination, the employee’s salary settlement is as follows:

• If the employee resigns and completes the notice period, payment is made on the final day of employment. If immediate payment is not feasible, payment must be made within 3 working days from the last day of employment.
• In cases where the employee resigns abruptly without serving notice, payment must be made within 7 days of the last day of employment.
• For terminations due to misconduct, payment is typically rendered on the last day of employment. If immediate payment is not feasible, settlement must occur within 3 working days.
• In instances where the employer terminates the employment contract, compensation is due on the last day of employment. If immediate payment is impractical, the employee must be compensated within 3 working days.

Company Formation in Singapore

Singapore stands out as one of the world’s leading locations to launch a company, supported by a transparent regulatory environment and an efficient electronic incorporation process managed by the Accounting & Corporate Regulatory Authority (ACRA).

Facilitating this process, ACRA provides a computerized company registration procedure through BizFile+, and many incorporations can be completed quickly once all information and approvals are in place.

Beyond mere registration, Singapore offers diverse business entity options tailored to various needs:

• Private Company Limited by Shares: A separate legal entity with limited shareholder liability and up to 50 shareholders for a private company.
• Exempt Private Company (EPC): A private company with not more than 20 members and no corporate shareholder beneficial interest.
• Public Company Limited by Shares: Shares may be offered to the public, subject to applicable regulatory requirements.
• Public Company Limited by Guarantee: Commonly used for non-profit or public-interest purposes.
• Sole Proprietorship: Simplest form suitable for small businesses, with the owner bearing unlimited liability.
• Partnerships: General partnerships, with partners bearing liability according to the applicable legal structure.
• Limited Partnerships (LP): A structure involving at least one general partner and one limited partner.
• Limited Liability Partnerships (LLP): Integrating features of partnerships and companies, with liability generally limited for partners.
• Branch Office of Foreign Company: Allows foreign companies to conduct business in Singapore through a registered branch.
• Representative Office (RO): Undertakes limited market research and liaison activities for foreign parent companies and cannot carry on business.

Moreover, Singapore’s flexible company law permits incorporation with a minimum issued capital of S$1, facilitating business establishment with ease and affordability. Whether aiming for local or global expansion, Singapore’s business ecosystem offers ample opportunities for success.

Singapore Company Registration in 5 Easy Steps

Key Requirements for Singapore Company Registration

Next Steps

• Get Started to begin your Singapore company registration process.
• View FAQs for common queries on company registration in Singapore.

Payroll Compliance in Singapore

Statutory Filings and Contributions

In Singapore, employers are obligated to submit the following statutory filings. Mercans assists you in completing the necessary filings as per the Singapore local laws.

Payroll Taxes in Singapore

Social Security in Singapore

The Central Provident Fund (CPF) is a compulsory savings scheme funded by contributions from both employers and employees. It plays a crucial role in Singapore’s social security system, aiming to address retirement, housing, and healthcare needs.

Individual CPF funds are divided into three categories

• Ordinary Account: Used for home purchases, investments, and education.
• Special Account: Reserved for retirement purposes, with exceptions for certain financial products.
• Medisave Account: Dedicated to covering medical expenses and approved insurance.

For Singapore citizens and permanent residents in the third year onwards, standard CPF contribution rates from 1 January 2026 are 17% by the employer and 20% by the employee for employees aged 55 and below, subject to the applicable wage ceilings and age-related rates. Different contribution rates apply for senior workers and for permanent residents during the graduated rate periods. CPF funds earn interest at rates set under CPF rules.

Key CPF provisions include

• The CPF Act mandates savings and pension provisions for Singapore citizens and permanent residents.
• The monthly Ordinary Wage ceiling increased to S$8,000 from 1 January 2026.
• CPF contributions can be submitted via the CPF EZPay system, which helps employers calculate contributions.
• Retirement and re-employment ages are subject to the prevailing statutory framework and any announced adjustments.
• Retirement payouts are provided through schemes like the Retirement Sum Scheme (RSS) and CPF LIFE.
• Tax relief is available for eligible voluntary top-ups, subject to the applicable caps.
• CPF savings are distributed in accordance with CPF nomination rules or relevant estate rules upon the member’s death.

CPF serves as a cornerstone of Singapore’s financial landscape, ensuring financial security and stability for its citizens and residents.

Personal Income Taxes in Singapore

Individuals, regardless of their residency status or citizenship, are generally subject to income tax on income earned in or derived from Singapore. Overseas income received in Singapore by individuals is generally not taxable, except in specific cases such as income received through a partnership in Singapore.

Taxable income typically encompasses:

• Profits from trade, business, or professional activities
• Earnings from employment within Singapore
• Dividends, interest, or discounts where taxable under Singapore law
• Pensions, charges, or annuities where taxable
• Rental income, royalties, premiums, and other property-related profits
• Any gains or profits of an income nature not covered by the aforementioned categories.

Employee Benefits in Singapore

Mandatory Employee Benefits in Singapore

• Central Provident Fund (CPF): Mandatory savings for retirement, housing, and healthcare, with contributions based on age, residency status, and wages.
• Annual Leave: Statutory paid annual leave starts at 7 days in the first year of service and increases by 1 day per year up to 14 days for employees covered by the Employment Act who have worked at least 3 months.
• Maternity/Paternity Leave: Statutory maternity, paternity, childcare, and shared parental leave may apply for eligible employees, subject to the relevant legal conditions.
• Sick Leave: Eligible employees are entitled to paid sick leave, including up to 14 days of outpatient sick leave and up to 60 days of hospitalization leave per year, subject to eligibility conditions.
• Childcare Leave: Eligible working parents of Singapore citizen children are entitled to 6 days of paid childcare leave per year, while parents of non-citizen children may be entitled to 2 days under the Employment Act.

Supplemental Employee Benefits in Singapore

• Mobile Phone Allowance: Compensation for using personal mobile devices for work-related purposes.
• Season Parking: Company-sponsored parking for senior management team members.
• Voluntary Benefits: Additional perks provided by employers at discounted rates.
• Flexible Spending Dollars: Budget allocation for various expenses like health screenings and holidays.
• Gym Membership: Subsidized or discounted memberships to promote employee fitness.
• Study Benefits: Support for continuous skills upgrading and retraining.
• Life Assurance: Non-mandatory life insurance coverage with varied premiums.
• Medical Insurance: Coverage for medical expenses, often offered as part of a broader employee benefits package.
• Work Injury Compensation Insurance: Mandatory insurance is required for all employees doing manual work and for all non-manual employees earning S$2,600 or less a month.
• Dental: Dental benefits are commonly provided as an additional employee benefit.
• Employee Assistance Program (EAP): Mental health support often included in broader medical or wellness plans.

Employee Perks in Singapore

• Holidays, Gym Memberships, and Wellness Benefits: Reflective of dynamic organizational culture and commitment to employee well-being.
• Additional Paid-Leave: Often valued by employees and may exceed mandated requirements.
• Subsidized Gym Memberships: Contribute to employee wellness either on-site or through partnerships with local gyms.
• Educational Support: Financial assistance and paid study/leave days for job-related qualifications.
• Onsite Wellness Initiatives: Programs promoting physical and mental well-being, such as massages and mindfulness classes.
• Financial Wellness: Onsite education focusing on retirement planning and financial literacy.
• Taxi and Dinner Reimbursements: Compensation for extended work hours, subject to company policy.
• Others: Additional perks enhancing work-life balance and fostering a sense of community within the organization.

Leave Benefits in Singapore

Benefits of Payroll Outsourcing in Singapore

• Ensuring Compliance with Complex Regulations: Outsourcing payroll services in Singapore guarantees meticulous adherence to intricate labor laws and regulations. Seasoned professionals adeptly navigate these complexities, reducing the risk of errors or penalties due to non-compliance, thus offering peace of mind to businesses.
• Scalability and Adaptability: Payroll outsourcing provides unparalleled scalability and adaptability to meet the evolving needs of businesses. Whether expanding the workforce or adjusting to changes in employment regulations, outsourcing providers seamlessly tailor their services to meet these demands.
• Access to Advanced Technologies and Expertise: Harnessing cutting-edge software solutions, outsourcing providers streamline processes, enhance data security, and improve efficiency in payroll management. Additionally, experts possess extensive knowledge of tax regulations, deductions, and reporting requirements, ensuring accurate and timely processing.
• Cost Efficiency and Competitive Pricing: Outsourcing payroll leads to significant cost savings by eliminating the need to recruit and train in-house staff. Moreover, providers often offer competitive pricing models customized to the specific needs of businesses, optimizing cost-effectiveness while upholding quality service.
• Supporting Business Expansion: Overall, outsourcing payroll services in Singapore allows businesses to concentrate on core objectives while benefiting from accurate, compliant, and cost-effective management. With specialized expertise, advanced technologies, and scalability, providers play a vital role in supporting the growth and success of businesses.
• Adherence to High Safety Standards: Incorporating industry-leading security measures to safeguard sensitive data, coupled with ISO 27001 and ISAE3402 certifications, ensures strict adherence to information security protocols.
• Consistent and Sustainable Performance: Ensuring reliable and sustainable performance that aligns with the dynamic demands of payroll services.
• Flexibility and Scalability: Offering flexibility and scalability to accommodate evolving client needs and adapt to changing business environments.
• Collaborative Cloud Tools: Utilizing a Cloud-based platform that fosters collaborative work, promoting efficiency and accessibility across teams. These certifications demonstrate a commitment to the highest standards of information security and operational integrity.

Payroll Solutions in Singapore

Unlock the potential of seamless payroll processing in Singapore with Mercans’ Global Payroll Solutions. Our adaptable models ensure local compliance, enable multi-currency transactions, and seamlessly integrate with global Human Capital Management (HCM) and Enterprise Resource Planning (ERP) systems, making accurate payments effortless.

Explore Our Flexible Models:

• Software as a Service (SaaS): Tailored for enterprise businesses managing payroll across multiple countries with diverse data points, locations, currencies, and languages. Our SaaS model optimizes operations for maximum efficiency.
• Managed Services: Customized for mid-sized and large enterprise businesses handling multi-country payroll, our Managed Services model provides on-demand HR expertise, ensuring security, reliability, and compliance at every stage.

Streamline Payroll with Mercans’ Technology and Integrations

• Technology: Explore the forefront of innovation with Mercans’ cutting-edge technology that powers our global payroll solutions. Learn more about our technological prowess here
• Integrations: Seamlessly integrate your Human Capital Management (HCM) systems with Mercans’ solutions, enhancing efficiency and connectivity. Discover the power of integration here.
• Recognitions: Join a partner recognized for excellence. Mercans has earned accolades for its commitment to delivering exceptional payroll services. Explore our awards and recognitions here.