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Amendments to Employment Act – To Issue Itemised Payslips and Key Employment Terms to Employees

From 1st April 2016, employers will be required to issue itemised payslips and Key Employment Terms (KETs) to their employees. This will enable employees to better understand their regular salary components, as well as employment terms and benefits. This will also help employers prevent misunderstandings and minimise disputes at the workplace. More details on the itemised payslips and key employment terms requirements.
Employers can find resources and guidance to help them implement the changes at Employment Act Assistance. Alternatively, you may engage our payroll services to handle all the Itemised Payslips for you.

Itemised Payslips

From 1 April 2016, all employers will be required to issue itemised payslips to employees covered under the Employment Act. Here are the detailed requirements such as what items to include, when and how to give them.

Requirements

Employers must issue itemised payslips to all employees covered by the Employment Act.
When:

  • At least once a month.
  • Give it together with payment to employee.
  • If unable to give together, to be given within three working days of payment.
  • In the case of termination or dismissal, must give payslip together with outstanding salary

Format: Soft or hard copy (including handwritten).

Items to include

Payslips must include the items below, unless an item is not applicable. For example, if overtime pay does not apply to you, your payslip need not include items 9 to 11. If payments are made more than once a month, employers can consolidate payslips. The consolidated payslip must contain details of all payments made since the last payslip.

  1. Full name of employer.
  2. Full name of employee.
  3. Date of payment (or dates, if the payslips consolidates multiple payments).
  4. Basic salary
    For hourly, daily or piece-rated workers, indicate all of the following:

    • Basic rate of pay, e.g. $X per hour.
    • Total number of hours or days worked or pieces produced.
  5. Start and end date of salary period.
  6. Allowances paid for salary period, such as:
    • All fixed allowances, e.g. transport.
    • All ad-hoc allowances, e.g. one-off uniform allowance.
  7. Any other additional payment for each salary period, such as:
    • Bonuses
    • Rest day pay
    • Public holiday pay
  8. Deductions made for each salary period, such as:
    • All fixed deductions (e.g. employee’s CPF contribution).
    • All ad-hoc deductions (e.g. deductions for no-pay leave, absence from work).
  9. Overtime hours worked.
  10. Overtime pay.
  11. Start and end date of overtime payment period (if different from item 5 start and end date of salary period).
  12. Net salary paid in total.

Keeping Records

Employers must keep a record of all payslips issued.
Format: Soft or hard copy, including handwritten.
For how long?

  • For current employees: Latest two years.
  • For ex-employees: Last two years, to be kept for one year after the employee leaves employment

Key Employment Terms

From 1 April 2016, all employers are required to issue key employment terms (KETs) in writing to employees covered under the Employment Act.

Requirements

Employers must issue KETs in writing to all employees who:

  • Enter into a contract of service on or after 1 April 2016.
  • Are covered by the Employment Act.
  • Are employed for 14 days or more.

When: Within 14 days from the start of employment.
Format:

  • Soft or hard copy, including handwritten.
  • Common KETs, e.g. leave policy, medical benefits, can be provided in employee handbook or company intranet.

Items to include

KETs must include the items below, unless the item is not applicable. For example, if the employee is a PME and overtime pay does not apply, the KETs issued do not need to include items 11 to 12.

  1. Full name of employer.
  2. Full name of employee.
  3. Job title, main duties and responsibilities.
  4. Start date of employment.
  5. Duration of employment (if employee is on fixed-term contract).
  6. Working arrangements, such as:
    • Daily working hours (e.g. 8.30am – 6pm).
    • Number of working days per week (e.g. six).
    • Rest day (e.g. Saturday).
  7. Salary period.
  8. Basic salary.
    For hourly, daily or piece-rated workers, employers should also indicate the basic rate of pay (e.g. $X per hour, day or piece).
  9. Fixed allowances.
  10. Fixed deductions.
  11. Overtime payment period (if different from item 7 salary period).
  12. Overtime rate of pay.
  13. Other salary-related components, such as:
    • Bonuses
    • Incentives
  14. Type of leave, such as:
    • Annual leave
    • Outpatient sick leave
    • Hospitalisation leave
    • Maternity leave
    • Childcare leave
  15. Other medical benefits, such as:
    • Insurance
    • Medical benefits
    • Dental benefits
  16. Probation period.
  17. Notice period.

You may refer to Ministry of Manpower Key Employment Terms for more information.

Help For Employers

For help complying with these requirements, you can tap on the assistance package for employers. Find templates, tools, workshops and advisory services.
The templates, tools, workshops and advisory services are summarised as follows:

Download the Full Guide to Written Key Employment Terms (KETs) and Itemised Payslips today and understand for more information.