Why Payroll Setup Matters in Singapore

Managing payroll is more than just issuing monthly salaries — it’s a legal obligation that involves statutory contributions, accurate record-keeping, and timely filings. In Singapore, employers must comply with the Employment Act, Central Provident Fund (CPF) regulations, and other statutory frameworks that govern employee compensation.

Mistakes or delays can lead to regulatory penalties, employee dissatisfaction, and reputational harm. Setting up your payroll correctly from the start is crucial for maintaining operational efficiency and compliance.

Key Components of Payroll in Singapore

Employers in Singapore are expected to manage the following components within their payroll system:

  1. Employee Salary
    Must comply with contractual agreements and minimum wage guidelines (for specific sectors).

  2. Central Provident Fund (CPF)
    Mandatory contributions apply to Singapore citizens and permanent residents. Employers must contribute both the employer’s and employee’s share monthly to CPF.

  3. Skills Development Levy (SDL)
    Required for all employees, regardless of nationality. Funds go towards national training and workforce upgrading programs.

  4. Foreign Worker Levy (FWL)
    Applicable to foreign workers under Work Permit or S Pass schemes. Rates vary based on industry and quota.

  5. Leave Entitlements
    Employers must manage statutory leave such as annual leave, sick leave, maternity leave, and childcare leave.

  6. Itemised Payslips
    Must be issued monthly, showing breakdowns of salary, deductions, CPF contributions, and net pay.

Payroll Compliance Requirements

To stay compliant in Singapore, employers must:

  • Register with CPF and SDL as soon as hiring begins

  • Submit CPF contributions by the 14th of each month

  • File IR8A and IR21 forms for employee tax reporting

  • Maintain proper employee records

  • Comply with data protection standards (PDPA)

Handling these tasks manually can be time-consuming and error-prone, especially for SMEs and foreign-owned businesses.

Common Payroll Mistakes to Avoid

  • Incorrect CPF or SDL calculations

  • Late or missed submissions

  • Non-compliance with itemised payslip requirements

  • Failure to register with CPF Board upon hiring

  • Poor documentation leading to audit risks

These mistakes can result in penalties, employee disputes, and long-term reputational issues.

How Excellence Singapore Simplifies Payroll for You

Our payroll services are designed to reduce your administrative burden while ensuring full compliance with Singapore’s employment and tax laws. We provide:

  • Payroll account setup and CPF registration

  • Monthly salary computation and payslip generation

  • CPF, SDL, and FWL calculations and submissions

  • IRAS form submissions (IR8A, IR21, Appendix 8A/8B)

  • Leave and claims tracking

  • Employee database management

  • Xero or QuickBooks payroll integration

Whether you have one employee or a full team, we tailor our services to meet your company’s specific needs.

End-to-End Support for Employers

In addition to payroll, we offer services that support your full HR and compliance journey:

  • Work Pass application and renewals

  • Employment contracts and HR policies

  • PDPA compliance advisory

  • Corporate tax filing and accounting

  • Company secretarial services

This integrated approach means you only need one partner to manage all your back-office functions.

Conclusion: Focus on Your Business, Let Us Handle Payroll

Payroll compliance in Singapore is non-negotiable — but it doesn’t have to be complex. With the right partner, you can ensure every employee is paid accurately and on time, while meeting all your legal responsibilities.

Contact us today to learn how our payroll services can support your business or explore our full suite of HR and compliance solutions.