Singapore HR Glossary

In 2025, total CPF contribution rates for Singaporean and PR employees aged below 55 are 37% of wages (employer: 17%, employee: 20%), applied up to the Ordinary Wage Ceiling (S$6,800/month). CPF contributions are paid monthly to the CPF Board via the CPF e-Submit platform, with contributions due by the 14th of the following month. Late or underpaid CPF contributions incur interest (up to 18% p.a.) and penalties.

Since amendments in 2019, all employees (regardless of salary level) are covered by Part II (general provisions) and Part IV (rest days, hours of work, overtime) now covers employees earning up to S$4,500 basic salary per month. Managers and executives above S$4,500 are covered only by Part II. Violations of the EA can result in fines of up to S$10,000 per offence and criminal prosecution.

MOM issues Employment Passes (EPs), S Passes, and Work Permits for foreign professionals, skilled workers, and semi-skilled workers respectively. MOM's Labour Relations and Workplaces Division investigates employment disputes and salary claims. Employers found to have falsified work pass applications or violated Fair Consideration Framework requirements risk debarment from hiring foreign workers.

Mandatory payslip items include basic salary, overtime pay, allowances, any deductions, CPF contributions (employee and employer), and net salary paid. The requirement covers all employees regardless of salary level. Failure to issue compliant payslips is an offence under the EA, with fines up to S$1,000 per offence. Payslip records must be kept for 2 years after each employee's last day.

Levy rates vary by sector and worker tier. In manufacturing and construction, FWL ranges from S$300 to S$950 per worker per month depending on dependency ratio. Employers must pay the levy by the 17th of the following month via GIRO or e-payment. Non-payment suspends the employer's ability to hire or renew work passes. FWL is not tax-deductible.

AWS is not legally mandated in Singapore but is standard practice and often contractually required. Under the National Wages Council (NWC) guidelines, employers are encouraged to pay AWS to all employees, especially those in lower income brackets. If contractually agreed, non-payment can be pursued as a salary claim under the EA. Unlike in the Philippines, the amount and timing are at the employer's discretion unless specified in the contract.

Annual leave is pro-rated in the first and last years of employment. Unused annual leave must be carried over or encashed within 12 months — employers cannot require employees to forfeit accrued leave. For employees with more than 3 months but less than 1 year of service, leave entitlement is pro-rated. Some employers top up contractual leave above the statutory minimum.

Overtime is defined as work beyond 8 hours on a normal workday, or beyond 44 hours in a week. The maximum permissible overtime is 72 hours per month. Employees cannot be compelled to work overtime that would exceed these limits. Overtime work must be agreed in the employment contract or with the employee's consent. The S$4,500 threshold was introduced in 2019 to expand EA protection.