Overview
Employers maintain specific payroll options prior to hiring employees; tax payment deadlines delayed due to COVID-19
Having earned a reputation as a financial and commercial hub, Singapore is one of the most ideal locations for not only expanding companies, but was also recommended by the World Bank for being one of the easiest countries in which to establish any business.
Singapore has a population of approximately six million individuals who have witnessed sustainable economic growth and decline within the country’s diverse industries. When launching a business within Singapore, both compliance and payroll are two vital pain points entrepreneurs endure, as there are many requirements and methods that need to be met pertaining to the payroll of Singaporean employees.
The country functions under the Central Provident Fund (CPF), a national mandatory benefit or social security program similar to a retirement fund. Every employer is recommended to pay around 17% of employees’ salaries to the CPF. However, contributions on reimbursements for expenses on specific items such as home office equipment, utilities and transport are not necessary since the COVID-19 pandemic.
Many supportive measures are being provided by the Singapore government to assist local employers who have difficulty in making payments to the CPF. A continual tax rate of 0 to 22% is applicable for employees depending on their salary and the income they earn. Certain tax filing deadlines have also been extended owing to the impact of the pandemic. Employers are required to submit employee incomes and deductions to the Inland Revenue Authority of Singapore (IRAS) under Singapore’s Income Tax Act and GST Act.
The Progressive Wage Model (PWM) considers the basic monthly salary of an employee as a wage, whereas for some sectors, this model indicates certain minimum wages. An increment in the minimum wage was made mandatory by the PWM to advance the skills and productivity of employees.
Ministry of Manpower (MOM) and its divisions determine and maintain payroll regulations for both local and foreign employees
MOM is a government agency comprising 15 divisions and 3 statutory boards, namely, the CPF Board, Singapore Labour Foundation (SLF) and Workforce Singapore. With an aim towards building workplaces that deliver real income growth, fulfilling careers and financial security, MOM’s initiatives sustain a manpower-lean and competitive economy.
Moreover, MOM also manages Singapore’s skilled foreign workforce to balance the local workforce, providing job opportunities, a sustainable wage growth as well as improvement of work conditions for those in need. According to a report by MOM, despite current unemployment rates and an increase in retrenchments in 2022, a 1.7% increase in labour market estimates was noted while signs of ease in the speed of improvement were seen despite the country’s slow economic growth during 2022. This increase exceeded growth estimates that were made prior to the pandemic, non-resident employment being the main factor behind this growth, especially within the construction and manufacturing sectors.
MOM’s Employment Act is considered Singapore's main labour law, which covers the basic terms and working conditions for various kinds of employees with specific exceptions. Advisory services for employers pertaining to the Employment Act are provided by the Tripartite Alliance on Fair & Progressive Employment Practices (TAFEP) and the Singapore National Employers Federation (SNEF) for employers, while advisory services for employees regarding the Employment Act are provided by the National Trades Union Congress (NTUC) and the Tripartite Alliance for Dispute Management (TADM).
Workplace Safety and Health (WSH) of employees includes accident reporting and work injury compensation, legal requirements, certification and registration, monitoring and surveillance. Information regarding approved service providers including inspection agencies, auditors, contractors and Work Injury Compensation Act (WICA) designated insurers is provided by MOM. WSH resources ranging from assessment tools (e.g. iWorkHealth) to WSH technology, the OWLinks e-Newsletter and research publications are all provided by the Workplace Safety and Health Institute (WSHI), a department within MOM’s Occupational Safety and Health Division (OSHD).
Foreigners who wish to be employed in Singapore, be they professionals, skilled or semi-skilled workers, family members, trainees or students, all require a work visa as a valid permit. Certain exemptions on working for visit permits are made for foreign speakers, religious workers, journalists, individuals for short-term activities, foreign students and foreign spouses of local residents or children who are students with parents who are local residents.
Key Trends
Aftermath of COVID-19 results in fluctuation in demand for job vacancies and high risk of fatalities within labour market
From 2019to 2022, possibly due to the aftermath of the COVID-19 pandemic, the number of job vacancies has been fluctuating despite the help of initiatives provided by the Singapore government and MOM. However, the number of individuals employed in 2021 reached a peak of 3,643, while the rate of unemployment saw a slight decrease in 2022 by 2.0%.
According to MOM’s reports in 2021, Singapore’s status of employment standards improved considerably due to the decline of employment appeals and claims, a majority of which are salary claims made by local and foreign employees. A noticeable decrease in the amount of wrongful dismissal claims from 0.39 in 2020 to 0.27 per 1,000 employees was also mentioned in MOM’s report.
In August 2022, MOM collaborated with the Ministry of Trade & Industry (MTI) and the Ministry of Communications and Information (MCI) to develop and bolster Singapore’s reputation as a global hub for talent. Four additional changes were made to Singapore's work pass framework - the Overseas Networks & Expertise Pass was launched for various Pass holders with different qualities; a new standard for the first 10% of Employment Pass (EP) holders; companies will be specifically facilitated to be more attentive to the business demands of all EP applicants and a 5-year EP option is provided for 3 specific exemptions.
In July, 2022, the labour market increasingly focused on tangible aspects such as pay and benefits. Specific sectors including the legal sector took initiatives to improve the benefits of employees; employees of one of Singapore’s top four law firms mentioned a rise in the annual increment of 10-20% to 40%; similarly, KPMG also announced its contribution of SGD 25 million for salary increments.
In September 2022, MOM reported a high rate of fatalities in the workplace within specific industries, such as the construction sector, reaching a 6-month fatality rate of 2.3 per 100,000 workers. Additionally, a rise in vehicular-related fatal accidents within the construction, manufacturing, marine, process, and transport and storage sectors was also seen. To combat this, MOM introduced a series of specific measures.
Meanwhile, in contribution to Forward Singapore’s Empower pillar, both MOM and MTI are enlisting worker segments, employers, unions, trade associations and the local community to invigorate the country’s unspoken agreement between the government and the people on their responsibilities, jobs and the economy.
In September 2022, MOM announced that it will build and own two new Purpose-Built Dormitories (PBDs) for the sole intention of promoting innovation in support of public health liveability and resilience, and transformation practices in migrant worker housing in order to increase dormitory standards for migrant workers. NEST Singapore Limited, a new corporate organisation, will be established to manage the operations of these two PBDs.
Key Statistics
- Until March 2023, the Jobs Growth Incentive, a government programme, will provide employers (prior to hiring new employees) with 20% of salary support for the first SGD 6,000 of gross monthly wages, for 6 months. This is applicable when hiring unemployed mature workers, including individuals with disabilities and ex-offenders.
- In 2021, MOM invested SGD 80 million to assist employers in paying senior workers bigger CPF contributions.
- In 2021, to assist individuals with disabilities, Employment Credit was launched, providing employers with wage offsets reaching up to 30%.
Top Singapore MNCs in Payroll Services
INTUIT SINGAPORE PTE. LIMITED
Repeat company as per the client
VISTRA CORPORATE SERVICES (SEA) PTE. LTD.
Repeat company as per the client
AUTOMATIC DATA PROCESSING PTE. LTD.
Automatic Data Processing was incorporated in Singapore in 2002. Headquartered in the United States, the company operates in over 140 countries. Automatic Data Processing offers payroll, global human capital management, and outsourcing services to multinational and local clients. ADP Singapore provides payroll solutions such as Payroll Outsourcing, Payroll Processing and Payroll Software, as well as HCM, Time and Attendance, Talent Services, HR Insights, and HR Services. Automatic Data Processing serves small, medium, large, and global businesses that operate in industries such as restaurant and hospitality, manufacturing, professional and technical services, construction, and finance. The company has been ranked in Everest Group’s Multi-Country Payroll Solutions PEAK Report for ten consecutive years.
EXCELITY SINGAPORE PTE. LTD.
Excelity Singapore, incorporated in 2002, functions as the global headquarters for Excelity in the Asia-Pacific region. The company operates eight global headquarters and several offices across the Asia-Pacific region. Excelity and two other brands – Ceridian and Ascender – have united to provide complete payroll and human capital management services across the region. It now operates under the name Ceridian. Ceridian’s flagship product, which is a cloud-based Enterprise HCM software, offers global and managed payroll services. Its other services include streamlined HR, benefits, talent intelligence, and workforce management with the inclusion of value-added services, and managed and support services, which are made available for the financial, retail, and manufacturing industries.
CLOUDPAY ASIA PTE. LTD.
CloudPay Asia was incorporated in Singapore in 2007. The company is a global payroll provider which is headquartered in the United Kingdom and operates in 10 countries. CloudPay Asia’s platform offers a range of global payroll solutions which provide its clients with real-time transparency. Other solutions include Earned Wage Access Platform, Treasury Services, and Continuous Payroll Processing Tools. CloudPay’s platform has a variety of features, including payment choices such as Bank Payment, Pay to Card, and Virtual Wallet, in addition to a selection of funding options and global coverage, enabling its customers to make local and international payments in 168 currencies across 200 countries.
ADECCO PERSONNEL PTE LTD
Repeat company as per the client
GLOBALIZATION PARTNERS PTE. LTD.
Globalization Partners was incorporated in Singapore in 2015. The company is headquartered in Boston, USA, and operates across North America, Latin America, Europe, Asia-Pacific, the Middle East and Africa. Globalization Partners provides a global employment platform with a range of standard services in the areas of Human Resources, Executive, Finance, Legal, and Revenue. These services include Onboarding, Managing, Benefits, Payroll, and Compliance. The platform enables clients to hire teams from anywhere and at any time, and includes the features G-P Contractor and G-P Recruit. It provides seamless onboarding, on-time error-free payroll with flexible payment options, and enables payment in 150 currencies, while also offering up-to-date insights through its help centre.
CXC SINGAPORE PTE. LTD.
CXC Singapore was incorporated in 2008. Headquartered in Australia, the company operates a global head office in Singapore. It conducts business in more than 50 countries with over 30 local offices across the globe. CXC Singapore offers a variety of services to help its clients handle contractors and improve their workforce. It provides solutions for contingent workforce management, including Risk and Compliance, Health and Safety, Onboarding and Offboarding, and Invoicing and Payroll. Its other solutions include Global Payroll, Talent Sourcing, and enabling clients’ corporate programmes. CXC Singapore also offers CXC Comply, a global contractor vetting and compliance platform, which assists in complex classification issues involved with engaging contractors.
TRICOR SINGAPORE PTE. LTD.
Repeat company as per the client
WORKDAY SINGAPORE PTE. LTD.
Workday Singapore was incorporated in 2015. The company is headquartered in the United States and operates across America, Europe, Asia, and Africa. It provides an AI integrated enterprise management cloud platform which consists of best-in-class applications in the areas of Finance, HR, Planning and Analytics for clients in the healthcare, communications, manufacturing, and retail industries. The company’s range of products includes Analytics and Reporting, Payroll, Workforce Management, Spend Management, Talent Management, Professional Services Automation, and Student Information System for Education Institutes. The platform’s payroll management provides continuous payroll processing services, and built-in reporting and analytics.
Top Singapore Large Local Enterprises in Payroll Services
BOARDROOM LIMITED
Repeat company as per the client
INFO-TECH SYSTEMS INTEGRATORS PTE. LTD.
Repeat company as per the client
NEXIA TS PTE LTD
Repeat company as per the client
TALENTVIS SINGAPORE PTE. LTD.
Repeat company as per the client
RECRUIT EXPRESS PTE LTD
Repeat company as per the client
CONNECT ENERGY SERVICES PTE. LTD.
Repeat company as per the client
BIPO SERVICE (SINGAPORE) PTE. LTD.
Repeat company as per the client
P-SERV PTE LTD
P-Serv was incorporated in 1990. The company, which is headquartered in Singapore, was acquired by Kelly Services Singapore in 2007. It is an HR solutions provider that specializes in Business Process Outsourcing (BPO) solutions for projects relating to the areas of customer service management, concierge and receptionist management, and payroll administration. In addition, P-Serv also provides both temporary and contract placements suited to meet the individual needs of its clients. The company has been honoured with over 200 service awards since 2007. These include the SMILE Award, First Class Service Act Award, and the FCSA Top Agency Award – all of which were conferred by the Changi Airport Group.
Top Singapore SMEs in Payroll Services
EPAYSLIP PTE. LTD.
EPAYSLIP, which was incorporated in Singapore in 1999, is presently known as i-Admin. It offers easy-to-use, cloud-based SaaS payroll and HR management solutions through the use of technology and system infrastructure. i-Admin provides customizable payroll services to small, medium, large, and multi-country payroll businesses in various industries spanning across 15 countries in Asia. It provides its clients with a specially tailored 360 degree payroll and HR platform, which offers Payroll Outsourcing, eHR, Admin Book, Payroll Academy, and Corporate Services. i-Admin’s payroll outsourcing services are made available for multi-country and regional clients. In addition, it offers custodial payment services and statutory lodgement services.
JUSTLOGIN PTE LTD
JustLogin was incorporated in 2000. Headquartered in Singapore, the company also operates in Malaysia, Myanmar, and Hong Kong. It offers an array of services to clients from the retail, tech, consulting, and non-profit sectors. JustLogin provides an integrated, full suite of cloud-based HR solutions through its employee-first HR software. The platform offers a range of integrated softwares such as Payroll Management Software, Leave Management Software, Real-time Attendance Management Software, Expense Claim Software Management, HRMS, Performance Management System, and SafeClock. JustLogin also provides a mobile application of this software for both Android and IOS, enabling employees to handle HR issues from any location.
PAYBOY PTE. LTD.
Payboy is headquartered in Singapore. The company, which was incorporated in 2013, is an ISO certified HR solutions provider for small and medium sized businesses in Singapore. Its software is fully integrated with platforms preferred by its clients – these include Financio, Xero, and QuickBooks. The range of solutions offered by the company includes payroll processing, leave management, claim management, time attendance, shift scheduling, appraisal systems, inventory system, project costing, training management, and healthcare benefits. Its payroll processing services are customizable, compliant, and integrated with popular accounting software. Payboy also operates a blog providing tips and news related to the company’s field of services.
AYP PTE. LTD.
AYP was incorporated in 2009. Headquartered in Singapore, the company operates offices across the Asia-Pacific region. It provides an all-in-one HR solution and utilizes its technology to help companies build scalable and engaged hybrid workforces. The AYP Global Pay software uses AI and data analytics, and provides services such as Hire and Employ, Onboard and Work Anywhere, and Manage and Pay at Any Time. The company offers a safe SaaS-based EOR platform which helps to manage the hiring, payroll, taxes, benefits, and insurance of the client’s remote team. In addition, it offers Professional Employer Organization (PEO) solutions and solutions for multi-country payroll processing.
IT RE-ENGINEERING PTE LTD
IT Re-Engineering, incorporated in Singapore in 1995, is an IT solutions provider which specializes in information technology and human resource solutions. It offers IT products, a biometric fingerprint clock, a biometric facial reader, face temperature screening, and CCTV and access control. IT Re-Engineering’s solutions include PERFORM Human Resource Management System, PERFORM Time Attendance System, PERFORM Payroll Information System (PRIS), PERFORM Leave Portal (E-leave), PERFORM Timesheet Portal (E-timesheet), and the PERFORM visitor Management System (VMS). PERFORM Payroll Information System provides services such as keeping track of employees’ salary history, supporting cross-month payments, and additional wage ceiling capping, among others. In addition, the company offers IT consultancy and services.
EVANTAGE HR PTE. LTD.
eVantage HR was incorporated in 2012 and is headquartered in Singapore. The company is a specialized provider of outsourced payroll services and HR consultancy services through the use of IT. eVantage HR’s products include ePAYROLL, eLEAVE, eCLAIM, Time and Attendance, and Human Resource Information System (HRIS). Its ePAYROLL offers automatic CPF calculations, access rights, customizable pay items, IRAS forms, cloud-based updates, flexible pay run, detailed reports for review, and IRAS submissions. The company’s payroll services include solutions tailored to meet the individual needs of clients. These are cost effective, and the company also offers professional and technical support.
SINGAPORE CORPORATE SERVICES PTE. LTD.
Singapore Corporate Services was incorporated in 2011. The company, which is headquartered in Singapore, is a one-stop corporate service provider for startups, and small and medium enterprises. Its range of services includes bookkeeping and accounting services, income services, company secretarial services, payroll, audit services, and XBRL financial report services. Singapore Corporate Services offers various online packages to cater to the individual needs of its clients. The company uses cloud-based accounting software and also offers free consultancy services. In 2021, Singapore Corporate Services was a finalist for the Singapore Partner of the Year Award at the Xero Awards Asia.
ASL ADVISORY PTE. LTD.
ASL Advisory was incorporated in 2017. The company offers a range of services for small and medium sized businesses through the use of cloud technology. These include corporate secretarial services, cloud accounting services, payroll services, and HR outsourcing services. Its payroll services include computation of full-timer and part-timer payroll; electronic submission of CPF, SDF and donations; last pay; full and final computation; bank advice; and monthly payroll reporting. It also offers a Productivity Solutions Grant (PSG) to support businesses that are keen to adopt IT solutions and equipment to upgrade their business processes. ASL Advisory posts tips and news on its blog to keep customers updated.
IDEAL CORPSERVE PTE. LTD.
Ideal Corpserve was incorporated in 2018. The company, which is headquartered in Singapore, focuses on providing corporate services. These services include accounting and bookkeeping, tax filing, payroll management and payroll outsource, work pass application and administration, as well as other corporate services such as application for government grant, application for licence, and filing for cessation of business. Ideal Corpserve’s payroll services include payroll computation, payroll management, and other related services such as CPF registration, corp pass registration and administration. The company also provides payroll computation services for overseas clients in certain Asian countries.
BRIGHT STAR FINTECH (PTE.) LTD.
Bright Star Fintech was incorporated in 2020. The company, which is headquartered in Singapore, is now known as Kayaroll. It specializes in HR and payroll solutions which have been developed specifically for small and medium sized businesses and startups. Kayaroll provides its clients with a user friendly and efficient online management system, and its end-to-end payroll system can easily be used by companies that operate in various industries. Bright Star Fintech assists its clients with calculation and generation of payslips, provident fund, tax reporting, and payroll disbursements via direct deposits.
