Salary and Wages

1. Payment of Salary:

Timeliness: The Employment Act mandates that salaries must be paid at least once a month and within 7 days after the end of the salary period. Additional wages (like overtime pay) must be paid within 14 days after the salary period ends.

2. Itemized Payslips:

Employers are required to provide itemized payslips to employees, which should detail gross salary, deductions (e.g., CPF contributions, tax), and net salary.

3. Salary Deductions:

Permissible Deductions: Deductions from salary are allowed for CPF contributions, absence from work, damage or loss of goods, housing accommodations provided by the employer, and other scenarios as specified in the Act.

Consent and Limits: Some deductions, like those for housing and amenities, require employee consent. There are also limits on the total amount that can be deducted.

4. Overtime Pay:

Employees who fall under the Employment Act’s coverage and work more than their standard hours are entitled to overtime pay. The rate for overtime is at least one and a half times the hourly basic rate of pay.

5. Annual Wage Supplement (AWS):

Commonly known as the “13th-month payment,” AWS is a discretionary bonus, not mandated by law but widely practiced in Singapore.

6. No Unlawful Withholding of Salary:

It's unlawful for employers to withhold any part of the salary due without valid reason. This includes delaying or refusing to pay the salary.

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7. Increments and Adjustments:

Salary increments, adjustments, or reductions should be in line with employment contracts and communicated clearly to the employee.

8. Record Keeping:

Employers must keep detailed employment records, including salary records, for at least two years.