Employers must familiarise themselves with the key regulations
relating to payroll in order to ensure compliance. Oversights may
result in hefty penalties and also affect the reputation of the
employer. Business owners and those who have set up new Singapore
companies must familiarise themselves with the relevant payroll
legislation.
By outsourcing payroll processing to professional service
providers, you can ensure accuracy and compliance. The following is
the key regulations relating to payroll in Singapore.
The Employment Act (EA) applies to employees (irrespective of
nationality) who are working under a contract of service. It does
not include seamen, domestic workers and persons employed by
statutory boards and government. All employees under a contract of
service with an employer are covered under the Employment Act, with
the exception that provisions in Part IV of the Act do not cover
managers or executives. From 1 April 2019, wrongful dismissal will
be