Stay compliant, pay smarter, and keep things simple
Singapore is one of Asia’s most efficient business hubs — but when it comes to payroll, even the tiniest detail matters. Between CPF changes, IRAS filings, and Employment Act rules, things move fast.
Here’s your 2025 cheat sheet to help you stay compliant, calm, and confidently in control.
1. Registration & Setup
CorpPass & Auto-Inclusion Scheme (AIS)
Employers must register for CorpPass to transact with government agencies.
Under the AIS, companies must file employee income information directly to IRAS through Form IR8A / IR8E and Appendices.
Mandatory for employers with 6+ employees or those notified by IRAS.
Tax Clearance (IR21)
For foreign and PR employees leaving your company, file Form IR21 at least one month before cessation.
Failure to do so can lead to a SGD 1,000 fine.
PRs not leaving Singapore permanently can file a Letter of Undertaking (LOU) — no clearance needed.
2. Reporting, CPF, and Payroll Deductions
Employee Income Reporting
All payments (cash, in-kind, bonuses, equity) are taxable under the Income Tax Act S68(2).
Employers must file IR8A/E and appendices by 1 March every year.
Skills Development Levy (SDL)
Rate: 0.25% of monthly wages (all employees, all nationalities).
Minimum SGD 2, maximum SGD 11.25 per employee/month.
Usually paid together with CPF contributions.
3. CPF Contributions — What’s New in 2025
Singapore’s Central Provident Fund (CPF) remains the backbone of local employment benefits — but the rules keep evolving.
Senior worker contribution rates (ages 55–65) up by 1.5% total.
Special Account (SA) to be phased out from Jan 2025 — balances move to RA/OA.
Enhanced Retirement Sum (ERS) raised to 4× the Basic Retirement Sum.
Age Group
Total CPF %
Employer
Employee
≤ 55 years
37%
17%
20%
55–60
32.5%
15.5%
17%
60–65
23.5%
12%
11.5%
> 65
16.5%
9%
7.5%
Bonus Tip: The CPF Annual Salary Ceiling stays at SGD 102,000.
4. Employment Act Highlights
Salary Payment Rules
Pay employees at least once a month, within 7 days of the end of the pay period.
Overtime pay must be made within 14 days.
Itemised payslips are mandatory and must show salary breakdown, CPF, and deductions.
Working Hours & Overtime
Max: 12 hours/day, 72 hours/month OT cap.
Overtime rate: 150% of basic pay.
At least 1 rest day/week (30-hour continuous period).
Key Employment Terms (KETs)
Must be given within 14 days of joining.
Include job title, pay rate, hours, and benefits.
5. Payroll Compliance Checklist
✅ Register for CorpPass, CPF Submission Number (CSN), and AIS ✅ File IR8A & Appendices by 1 March ✅ Pay CPF + SDL by 14th of following month ✅ Apply updated CPF rates & OW ceiling (SGD 7,400) ✅ Maintain itemised payslips (keep 2 years) ✅ Issue KETs to new hires within 14 days ✅ Process IR21 at least 1 month before foreign staff leaves
Bonus Tips from HR Forte
Update CPF rates automatically. Most payroll systems (like HR Forte 😉) handle CPF tiers by age — just make sure employee birthdays are entered correctly.
Combine CPF & SDL in one go. The CPF e-submission portal lets you pay both together — no extra forms.
Use digital payslips. They’re 100% accepted under MOM rules and easier to store.
Check rest day compliance. Employees should have a 30-hour continuous rest period weekly — not just “one calendar day.”
Set annual reminders. IR8A submissions, CPF rate updates, and AIS deadlines happen at predictable times — add them to your HR Forte calendar.
Stay Ahead with HR Forte and TaxTok
Payroll and compliance shouldn’t slow you down. HR Forte simplifies CPF calculations, generates compliant payslips, and integrates with IRAS and MOM standards — all in one platform.
And if you ever feel lost in the maze of Singapore rules? Just ask AskGenie — your friendly AI compliance bot built into HR Forte. Learn more about AskGenie
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