In Singapore, the following must be adhered to under strict local legislation:

• Central Provident Fund (CPF) Contributions
• Skills Development Levy (SDL) Contributions
• Minimum of 7 days’ vacation

How does payroll work in Singapore?

All employers in Singapore must contribute to the Central Provident Fund (CPF) and Skills Development Levy (SDL), with contributions ranging from 7.5%-17% and 0.25%, respectively. The CPF is a mandatory pension scheme founded to fund state healthcare and retirements. SDL contributions are used to fund business grants for training and further education, which in turn benefit the employers with higher-skilled workforces.

What are the general employment rules?

After three months of service, employees become entitled to 7 days’ annual leave, per year. Following each additional year of service, a further day of entitlement is added, up to 14 days in their eighth consecutive year. While these are the minimum requirements, many businesses choose to offer higher entitlements to staff.

What about dismissing an employee?

There are various ways to terminate employment in Singapore, depending on the reason for termination and length of service. In some cases, a severance payment may be payable, the value to be subject to length of service and any applicable Collective Bargaining Agreements.