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HomeIndustriesERPSingapore new ePayslip rule from MoM

Singapore new ePayslip rule from MoM

The Ministry of Manpower (MOM) in Singapore introduced a new mandate for SMEs operating in the country, requiring the issuance of payslips to employees through payroll software. This directive necessitates the generation of Singapore payslips for all staff members, ensuring comprehensive record-keeping of their salary information and facilitating access for authorized personnel. Moreover, it enables transparent reporting to the government regarding employee counts, salary specifics, and the necessary contributions to the Provident Fund (CPF).

As per MOM’s regulation, Singapore’s payroll software must produce ePayslips for all employees. Businesses equipped with efficient payroll systems already possess most required data within their software, potentially necessitating minor updates. However, for entities without a payroll system, compliance presents a substantial undertaking. To adhere to this mandate, such SMEs must consider implementing an integrated ERP encompassing Accounting, HRMS, and other pertinent business processes tailored to their industry, whether retail, travel, construction, or manufacturing.

Beginning April 1, 2016, all SMEs are obligated to adopt and operationalize these systems, ensuring the issuance of itemized payslips to their entire workforce in alignment with this governmental directive.

Key Takeaways

  • MOM’s directive specifies the necessity for Singapore’s payroll software to generate ePayslips for all employees. To meet this mandate, SMEs might need to consider implementing integrated ERPs encompassing various business processes, tailored to their respective industries.
  • HashMicro’s payroll software offers features like employee payslip generation, self-service ePayslip printing, batch payslip generation, and additional input entries for accurate payroll components.
  • Singapore payroll software integration with company accounting helps in managing employee salaries effectively, reducing the complexities associated with a large workforce.
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Table of Content:

    Key Employment Terms for Payroll Software Singapore

    The Ministry of Manpower gives mandatory to provide the Key Employment Terms or KETs in writing in order to minimize employment disputes. Once, both the employer and employee have their mutual terms in the paper signed by both parties, there is little scope for dispute unless there is a marked deviation from the agreed terms. The MOM also give confirmation that they will impose a heavy fine on employers who do not comply with the norms.

    Considering the cost of implementing a payroll system in Singapore, the MOM website gives these options to SMEs. So, they can generate the payslips Singapore directly from the government website. They can also maintain hard copies of hand-written payslips. The MOM is also conducting 2-day seminars and workshops for the employers. It is important to make sure they understand what they need to finish or do and what should they do.

    Payslips Singapore aims to describe the wages or work results that employees get. Salary is a mandatory component that companies must fulfill as an industry. Manually managing company salaries will make the company overwhelmed and difficult to handle. That’s what makes companies need Singapore payroll software to make it easier. Singapore payroll software is one of the software that can help companies in distributing employee salaries, calculating taxes, and managing employee attendance.

    The Itemized Pay Slip

    itemized payslip

    Under the amended employment act, it is mandatory that the employer gives an itemized bill along with the salary or within 3 days of paying the salary. It can give the Payslip as a soft copy or a hard copy which can also be a hand-written copy. The itemized Pay slip must contain the following details:

    • Employer’s Full name
    • Employee’s Full name
    • Date(s) of payment of salary. Multiple dates are relevant when the employee has multiple payments. It could be some pending payments or accrued bonuses.
    • It must clearly mention the basic salary. Also, the details regarding the pay per hour for the hourly employee and the total hours or piece.
    • The period of salary payment.
    • Details regarding the allowances paid. For example, travel allowance, uniform allowance, etc.
    • Any additional pay like the bonus, holiday pay, etc.
    • Any deductions including the CPF contribution of the employee, loss of pay on account of leaves, etc.
    • Overtime hours (if relevant)
    • Overtime pay (if relevant)
    • The period for which overtime is paid if it is different from the salary period. (if relevant)
    • Net salary paid

    Payslips of the last 2 years of an ex or current employee is mandatory for the employer to make. It is mandatory to keep 2 years of payslips of ex-employee and keep them for a year since they leave. Since this was mandatory for all organizations except SMEs, the current rule applies basically to them for the time being.

    Cloud-based ERP for Payroll Software Singapore

    The SMEs can adopt cloud-based Payroll software solutions to comply with the MOM’s latest ordinance and at the same time benefit further from the digital data that will be available to them using this software. Though it is not mandatory to maintain the employee details in a digital form.

    A simple Payroll model with employee details, terms of employment, salary details, government mandates for each employee, etc. Integrating all that with accounting can improve the salary disbursement and HR requirements of SMEs. Using this data, the SMEs can also generate various comparison reports that they can use for appraisals, accounting, and budgeting.

    Payroll software Singapore is one of the software models that companies must have. The obstacle that companies experience when they don’t use the Singapore payroll system is the difficulty in managing employee salaries. A large number of employee salaries makes companies need Singapore payroll software that is integrated with company accounting.

    HashMicro payroll software offered some of these features that you can use:

    1. HRM Payroll – Employee Payslip: This feature is explicitly designed for generating individual payslips for employees.
    2. HRM Payroll – Able to Print E Payslip by Employee Self Service: Enables employees to access and print their ePayslips through self-service options.
    3. HRM Payroll – Payslips Batches: This allows the generation of payslips in batches, simplifying the process for multiple employees simultaneously.
    4. HRM Payroll – Other Input Entries: This feature likely includes options for additional data entry required for specific payroll components to be reflected accurately on the ePayslip.

    When it comes to managing employee salaries efficiently, payroll system stands out as a crucial solution for companies.  To explore the available pricing schemes and benefits of adopting this essential software for your business, click on the banner below!

    download skema harga software erp
    download skema harga software erp

    Conclusion

    Cloud-based implementation will be more cost-effective for SMEs as they don’t have to invest further in setting up a system. The cloud-based software is exclusively for handling employee data. Instead, the person in charge of HR can just input the data into the software using a browser over a secured internet connection.

    Cloud-based solutions will ensure the government’s compliance with the data input. It will also generate the required payslips to be given to the employees and consolidated reports to the government. If the government does a modification then the vendor will do the mandatory changes later. Cloud-based Payroll system solutions can be made accessible on the mobile platform also which makes it easier for the HRMs to access the data from anywhere, any time of the day.

    Singapore payroll software is also able to calculate and distribute various taxes that employees have. In addition, Singapore Payroll Software is also able to manage employee attendance such as leaves, absences, and incoming data. This is what makes large companies in Singapore use Singapore payroll software a lot when managing their companies. Get free demo now!

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    FAQ About Payroll Software Singapore

    • What are the mandatory features to look for in payroll software for Singaporean businesses?

      The essential features include ePayslip generation, compliance with local tax regulations (CPF, IRAS), integration with accounting systems, and capabilities for generating comprehensive reports required by the Ministry of Manpower (MOM).

    • Is it mandatory for all businesses in Singapore to use payroll software?

      While not explicitly mandatory, the MOM requires all businesses, especially SMEs, to issue itemized payslips to employees using compliant systems. Employers must ensure proper records of employee salaries and contributions to CPF.

    • What are the advantages of cloud-based payroll software for Singaporean SMEs?

      Cloud-based payroll solutions offer accessibility, data security, and cost-effectiveness. They streamline compliance with MOM regulations, facilitate easy updates, and allow seamless integration with other business systems.

    • Can payroll software in Singapore handle complex salary structures and various employment terms?

      Yes, advanced payroll software can manage intricate salary structures, diverse employment terms, deductions, bonuses, allowances, and overtime calculations, ensuring accuracy and compliance with MOM standards.

    • How does payroll software assist in tax compliance and reporting to local authorities in Singapore?

      Payroll software automates tax calculations, manages CPF contributions, generates accurate tax reports required by IRAS, and ensures timely submission, simplifying the tax compliance process for Singaporean businesses.

    Interest in getting savvy tips for improving your business efficiency?

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    Hashmicro
    HashMicro is a software development and enterprise resource planning (ERP) company. Consequently, we often provide articles about ERP and other systems that all businesses need.
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