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Thursday, 5 May 2016

Paying Salary Requirement in Singapore





Paying salary

Under 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.
  • Travelling allowance.
  • Payments for expenses incurred during work.
  • Gratuity payable on discharge or retirement.
  • Retrenchment benefits.
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 under 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:



In This Situation:Your final salary must be paid:
Employee resigns and reserves the required notice periodOn the last day of employment
Employee resigns without notice and doesn't serve the notice period Within 7 days of the last day of employment
Dismissal on grounds of misconductOn the last day of employment

If this is not possible, then within 3 working days from date of dismissal.
Employer terminates the contractOn the last day of employment.

If this is not possible, then within 3  days from date of termination.
  

Note: 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.

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.
It can also be paid directly into your bank account.

Itemised pay slips

From 1 April 2016, all employers must issue itemised pay slips to employees covered under the Employment Act.

Salary records

From 1 April 2016, employers must keep detailed employment records, including salary records, of employees covered under the Employment Act.
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