Paying Salary in singapore you should know
In accordance to the Employment Act, your employer must pay your salary at least once a month and within 7 days after the end of the salary period. There are exceptions for overtime, resignation without notice and other situations.
What is salary
Salary refers to remuneration, including allowances, paid for work done under a contract of service.
It does not include:
The value of accommodation, utilities or other amenities.
Pension or provident fund contribution paid by the employer.
Payments for expenses incurred during work.
Gratuity payable on discharge or retirement.
Singapore does not have a minimum wage. Your salary is subject to negotiation and agreement between your employer and you or your trade union.
How often salary must be paid
If you are covered by the Employment Act, your employer must pay your salary at least once a month.
They can also pay it at shorter intervals if they choose.
Salary must be paid:
Within 7 days after the end of the salary period
For overtime work, within 14 days after the end of the salary period
Your final salary payment could vary depending on the following situations:
If your contract involves commission, how and when the commission is paid depends on what is in your employment contract or existing policies or practices.
If you’re a foreign employee who is leaving your employment, your employer is required to withhold all your monies due to you for tax clearance. The monies include your salary, leave pay, etc.
How salary should be paid
Salary should be paid:
- On a working day, during working hours.
- At your place of work, or any other place you and your employer have agreed on.
Payment can be made:
- Directly into your bank account.
- By cheque. The cheque needs to be cleared by your bank before you’re considered paid.