A. Update
Inland Revenue Authority of Singapore (IRAS) has released the updated format for Tax clearance (IR21).
Employers use Form IR21 and Appendix 1 / Appendix 2 / Appendix 3 (if applicable) to report the remuneration for Employees with non-Singaporean citizenship status either separating from employment or departing from Singapore.
B. Statutory Compliance Release Date: March 27, 2023
C. Effective Date: Year of Assessment 2025
IRAS | Filing Tax Clearance
A. Update
The Central Provident Fund Board of Singapore (CPFB) has announced an increase in CPF contribution rates, effective from January 01, 2025
- For employees who are Singapore Citizens or Singapore Permanent Residents (3rd year onwards) and aged 55 to 70 with monthly wages exceeding $750, the CPF contribution rates will increase as follows:
| Employee's age (years) | 2024 | CPF Contribution Rates from January 01, 2025 | ||
|---|---|---|---|---|
| Total(% of wage) | Total(% of wage) | By employer(% of wage) | By employee(% of wage) | |
| 55 and below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 31 | 32.5(+1.5) | 15.5(+0.5) | 17(+1) |
| Above 60 to 65 | 22 | 23.5(+1.5) | 12(+0.5) | 11.5(+1) |
| Above 65 to 70 | 16.5 | 16.5 | 9 | 7.5 |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
Note: Figures in brackets () denote increase in rates
- The phased employee contribution rates for those earning between $500 and $750 will be continued.
- There are no changes to the graduated contribution rates for first- and second-year Singapore Permanent Residents.
- With the closure of the Special Account (SA), an increase in the CPF contributions will now be fully allocated to the Retirement Account (RA) up to the Full Retirement Sum (FRS). This aims to help senior workers boost their retirement savings. If employees have set aside the FRS in their RA, these contributions will be directed to their Ordinary Account.
B. Statutory Compliance Release Date: April 01, 2024
C. Effective Date: January 01, 2025
A. Update
Inland Revenue Authority of Singapore (IRAS) has released the latest format for Return of Employee’s Remuneration (Form IR8A) for the year ended December 31, 2024 (Year of Assessment 2025).
Employers use Form IR8A and Appendix 8A / Appendix 8B / Form IR8S (if applicable) to report the remuneration for various types of Employees. For the Year of Assessment 2025, this should be filed by employers and given to employees by March 31, 2025.
B. Statutory Compliance Release Date: June 2024
C. Effective Date: Year of Assessment 2025
A. Update
Singapore government has released the Budget statement for the financial year 1 st April 2023 to 31 st March 2024. The changes relevant for payroll has been summarized below:
- 1. Budget 2023 initiatives focuses on enhancing the retirement adequacy of seniors who are preparing for or are already in retirement, and help middle-income Singaporeans to save more for retirement. To implement the same below changes w.r.t CPF are announced:
- a. Increase in Senior Worker CPF contribution rates for Singaporean and Permanent Resident (3 rd year onwards) aged above 55 as mentioned in table below:
| Age Band | Total | Employer | Employee |
|---|---|---|---|
| >55 to 60 | 31.0% (+1.5%-pt) | 15.0% (+0.5%-pt) | 16.0% (+1%-pt) |
| >60 to 65 | 22.0% (+1.5%-pt) | 11.5% (+0.5%-pt) | 10.5% (+1%-pt) |
| >65 to 70 | 16.5% (+1%-pt) | 9.0% (+0.5 %-pt) | 7.5% (+0.5%-pt) |
Notes:
i) The percentage point figures above refer to the increase in CPF contribution rates from 1 January 2024, compared to current rates as of 1 January 2023.
ii) This increase will be fully allocated to the Special Account, to help senior workers save more for retirement.
The CPF rate applicable from 1 st Jan 2023 for the above age band has been announced in the Budget 2022 provided in the below table:
| Age Band | Total | Employer | Employee |
|---|---|---|---|
| >55 to 60 | 29.5% | 14.5% | 15% |
| >60 to 65 | 20.5% | 11% | 9.5% |
| >65 to 70 | 15.5% | 8.5% | 7% |
- b. Increase in the CPF Monthly Salary Ceiling.
To keep pace with rising salaries, the Government has decided to raise the CPF monthly salary ceiling from $6,000 to $8,000 by 2026. The increase will take place in four steps, as shown in table below, to allow employers and employees to adjust to the changes.
| Change effective from | CPF monthly salary ceiling for Ordinary wage (OW) |
|---|---|
| Till 31 st August 2023 | $6,000 |
| From 1 st September 2023 | $6,300 (+$300) |
| From 1 st January 2024 | $6,800 (+$500) |
| From 1 st January 2025 | $7,400 (+$600) |
| From 1 st January 2026 | $8,000 (+$600) |
There will be no change to the CPF annual salary ceiling as of now, but it will be reviewed periodically to ensure it continues to cover the broad majority of CPF members.
- 2. The Government also focuses on enhancing its support for Marriage & Parenthood (M&P) by introducing the following measures:
- a. Government-Paid Paternity Leave has been doubled from two weeks to four weeks for eligible working fathers of Singaporean children born on or after 1 January 2024.
As of now, the extra two weeks will be given on a voluntary basis, so that employers who are ready to grant the additional leave will be reimbursed by the Government. - b. Unpaid Infant Care Leave for each parent in the child’s first two years has been increased from the current six days per year to twelve days per year.
B. Statutory Release Date: February 14,2023
C. Effective Date: September 01, 2023 & January 01,2024
A. Update
IRAS Interface File Specification Release 14.0 will replace the existing IRAS interface File Specification Release 13 for submission of employment income through PAT system for (YA) 2023.
For the below, telephone number and email address field need to be filled in mandatorily:
- IR8A (Header)
- A8A (Header)
- A8B (Header)
- 8S (Header)
Also, If employee is a Singapore Citizen, employee’s tax Reference must be NRIC Number when e-filing for YA 2018 Statement via PAT.October 2022
B. Statutory Release Date: October 2022
C. Effective Date: January 01,2023
B. Update
The Inland Revenue Authority of Singapore (IRAS) has introduced an Auto Inclusion Scheme (AIS) for Employment Income. In May 2022, IRAS has made participation in AIS scheme, compulsory for those who fall within the gazette under S68(2) of the Income Tax Act.
From YA 2023, participation in the AIS is compulsory for employers:
1. With 5 or more employees including:
- Full-time and Part-time resident employees
- Non-resident employees including those who are based overseas and are required to render service in Singapore during the year (exclude details of employment income where clearance has been filed)
- Company directors (including non-resident directors)
- Board members receiving Board/Committee Member Fees
- Pensioners and employees who have left the organization but were in receipt of income in reporting year (e.g. stock option gains).
2. Who have received the "Notice to File Employment Income of Employees Electronically under the Auto- Inclusion Scheme (AIS)"
However, all employers, regardless of the number of employees, are encouraged to join the AIS and submit their employees' employment income information to IRAS electronically by 1 Mar each year.
IRAS supports payroll provider to use AIS scheme:
Payroll software vendors may develop payroll software for employers on the Auto-Inclusion Scheme (AIS) for Employment Income to prepare and submit their employees' income records.
Basis this Ramco Systems is also now registered as AIS payroll software provider and our software can support AIS submissions via API with effect from YA 2023 submissions.
B. Statutory Compliance Release Date: August 30, 2022
C. Effective Date: January 06, 2023
B. Update
The Central Provident Fund Board of Singapore (CPFB) has announced the increase in contribution rates for employees aged above 55 to 70 to strengthen their retirement adequacy. The changes will apply to wages earned from 1 January 2023.
The changes from 1 January 2023 will be as follows:
For employees earning monthly wages > $750
| Employee's age | Current Total | CPF Contribution Rates from 1 Jan 2023 | ||
|---|---|---|---|---|
| Total | By employer | By employee | ||
| (years) | 80(% of wage) | (% of wage) | (% of wage) | (% of wage) |
| 55 and below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 28 | 29.5 | 14.5 | 15 |
| (+1.5) | (+0.5) | (+1) | ||
| Above 60 to 65 | 18.5 | 20.5 | 11 | 9.5 |
| (+2) | (+1) | (+1) | ||
| Above 65 to 70 | 14 | 15.5 | 8.5 | 7 |
| (+1.5) | (+0.5) | (+1) | ||
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
Note: Figures in brackets () denote increase in rates
As per the CPF board, the increase in the CPF contribution rates will be allocated to the employees’ Special Account to provide a bigger boost to their retirement income.
B. Statutory Compliance Release Date: June 8, 2022
C. Effective Date: January 01, 2023
A. Update
The Ministry of Manpower (MOM) have made foreign workforce policy changes to strengthen the complementarity and diversity of their foreign workforce.
FWL quota, levy rates and tiers for the various sectors:
The levy rates vary across sectors and are tiered. This means that the more WP and S Pass holders you have, the higher your levy rate is. The table below outlines the quota, levy rates and tiers for the various sectors.
| Pass type | Tier | Percentage | Levy Rate (Higher-skilled / Basic-skilled) |
|---|---|---|---|
| S Pass | |||
| Manufacturing | Basic/Tier 1 | ≤10% | $450 |
| Quota: 18% | Tier 2 | >10% ─ 18% | $650 |
| Construction, Marine shipyard, Process | Basic/Tier 1 | ≤10% | $450 |
| Quota: 18% | Tier 2 | >10% ─ 18% | $650 |
| Services | Basic/Tier 1 | ≤10% | $450 |
| Quota: 10% | |||
| Work Permits | |||
| Manufacturing | Basic/Tier 1 | ≤25% | $250 / $370 |
| Tier 2 | >25% ─ 50% | $350 / $470 | |
| Quota: 60% | Tier 3 | >50% ─ 60% | $550 / $650 |
| Services | Basic/Tier 1 | ≤10% | $300 / $450 |
| Tier 2 | >10% ─ 25% | $400 / $600 | |
| Quota: 35% | Tier 3 | >25% ─ 35% | $600 / $800 |
| Construction | Higher-skilled / Basic-skilled on MYE | ≤87.5% | $300 / $700 |
| Quota: 87.5% | Higher-skilled / Basic-skilled on MYE-waiver | $600 / $950 | |
| Process | MYE | ≤87.5% | $300 / $450 |
| Quota: 87.5% | MYE-waiver | $600 / $750 | |
| Marine shipyard | Basic tier | ≤77.8% | $300 / $400 |
| Quota: 77.8% | |||
Change in Levy rates for S-Pass holders:
The changes to the S Pass levy will be implemented over three steps. The new S Pass levy will apply to all S Pass holders based on the timeline shared below.
| Qualification | From 1 Sep 2022 | From 1 Sep 2023 | From 1 Sep 2025 |
|---|---|---|---|
| Levy (for companies with S Passes up to 10% of total workforce) | $450 | $550 | $650 |
| Tier 2 Levy (for companies with S Passes up to 18% of total workforce) | $650 (no change from prevailing) | $650 (no change from prevailing) | $650 (no change from prevailing) |
B. Statutory Compliance Release Date: August 2, 2022
C. Effective Date: September 01, 2022
A. Update
Changes have been made to the File Specifications for CPF Submissions via Provident and Tax (PAT) System. To enable entering an employee’s full name, the character limit for the “Employee Name” field in the Employer Contribution Detail Record will be increased from 22 to 66 characters.
The latest CPF Interface File Specification is Release 3.0, Sep 2021 and is to be used for submissions from January 01, 2022. Kindly refer to the same in Source below.
B. Statutory Compliance Release Date: October 05, 2021
C. Effective Date: January 01, 2022
A. Update
The CPF contribution rates for employees aged above 55 to 70 and earning monthly wages of more than $750 will be increased as under:
| Employee's age (years) | Current (% of wage) | CPF Contribution Rates Changes from January 01, 2022 | ||
|---|---|---|---|---|
| Total (% of wage) | By Employer (% of wage) | By Employee (% of wage) | ||
| 55 & below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 26 | 28 | 14 | 14 |
| Above 60 to 65 | 16.5 | 18.5 | 10 | 8.5 |
| Above 65 to 70 | 12.5 | 14 | 8 | 6 |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
- The increase in the CPF contribution rates will be fully allocated to the employees’ Special Account.
- For those earning monthly wages of more than $500 to $750, the employee contribution rates will continue to be phased in.
- There are no changes to the graduated contribution rates for first- and second-year Singapore Permanent Residents (SPRs).
- There are no changes to the Ordinary Wage (OW) Ceiling and Additional Wage Ceiling.
Official link for CPF contribution rate tables as applicable from January 01, 2022, is provided in source below.
