Itemised Pay Slip

An Itemised Pay Slip Issued by an Employer to an Employee

From 1 April 2016, it has been mandatory for employers to issue Itemised Pay Slips to all employees covered by the Employment Act.

Provision of Itemised Pay Slips

The Itemised Pay Slip should be provided with the payment to the employee, or if this is not feasible, within three working days of payment. In the event that the employment contract is terminated, the Itemised Pay Slip must be given together with the outstanding salary.

Points to Note

You should note that from 1 April 2016, all employers must issue Itemised Pay Slips to employees covered by the Employment Act. Failure to issue Itemised Pay Slips will constitute a civil breach of the Employment Act, which could result in administrative penalties, such as a financial penalty.

When to Issue the Itemised Pay Slip

The Itemised Pay Slip should be given together with the payment to the employee, or if this is not feasible, within three working days of payment. In the event that the employee is terminated or dismissed, the Itemised Pay Slip must be given together with the outstanding salary.

Record Keeping of Itemised Pay Slips

Yes, employers are required to keep records of the issued Itemised Pay Slips. For current employees, the Itemised Pay Slips must be kept by the employer for two years. For former employees, the Itemised Pay Slips for the last two years of employment must be kept for one year after the termination of employment.

Who is Covered by the Employment Act?

Everyone who is an employee, local or foreign, full-time or part-time, temporary or permanent, is covered, except:

• Managers or executives with a monthly basic salary of more than SGD 4,500;
• Seafarers;
• Domestic workers; and
• Statutory board employees or civil servants.

Importance of Compliance

Ensuring compliance with the Employment Act is crucial for maintaining a fair and transparent working environment. Issuing Itemised Pay Slips helps in providing clarity on salary components and deductions, thereby reducing disputes and fostering trust between employers and employees.

Benefits of Itemised Pay Slips

Itemised Pay Slips offer several benefits, including:

• Transparency: Clearly outlines earnings, deductions, and net pay.
• Record-Keeping: Provides a documented history of payments for both employers and employees.
• Legal Compliance: Helps employers stay compliant with the Employment Act and avoid penalties.
• Dispute Resolution: Serves as proof of payment and details in case of any disputes regarding salary.

Steps to Implementing Itemised Pay Slips

To implement Itemised Pay Slips effectively, employers should:

1. Review and understand the requirements of the Employment Act.
2. Develop a standard format for Itemised Pay Slips that includes all necessary components such as basic salary, allowances, bonuses, deductions, and net pay.
3. Train HR and payroll staff on the importance of issuing Itemised Pay Slips and maintaining accurate records.
4. Regularly review and update the pay slip format to ensure it meets current legal standards and company policies.
5. Ensure that Itemised Pay Slips are distributed to employees in a timely manner, either together with the salary payment or within three working days.

By following these steps, employers can ensure that they not only comply with legal requirements but also promote transparency and trust within their organisation.

Use a Zegal Pay Slip Template

Creating an effective template for Itemised Pay Slips is essential for ensuring compliance with the Employment Act and fostering a transparent work environment.

Zegal can assist in this process by providing comprehensive resources and tools to develop clear, compliant, and customised pay slip templates.

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About Author

Daniel Walker

Daniel Walker is the Founder and Chief Executive Officer of Zegal, the trusted legaltech firm. Prior to founding Zegal, Daniel practised at DLA Piper, Stephenson Harwood and Clyde & Co, in Hong Kong, Singapore, and the UK.

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