Salary & Bonus
Requirements for salary
Minimum Salary
Singapore does not have a general minimum wage. Salary is agreed between the employer and the employee, or their union. However, some minimum salary levels apply:
- Progressive Wage Model (PWM). Local workers in certain sectors, such as cleaning, security, landscaping, retail, food services and waste management, must be paid at least the mandatory PWM wages.
- Work passes. Employment Pass and S Pass holders must be paid at least the minimum qualifying salary for their pass.
- Local Qualifying Salary (LQS). To count toward your company's foreign worker quota, local employees must be paid at least the LQS, which is $1,800 a month from 1 July 2026.
Time of Payment
For employees covered by the Employment Act:
- Salary must be paid at least once a month, within 7 days after the end of the salary period.
- Overtime pay must be paid within 14 days after the end of the salary period.
- Final salary must be paid as follows:
- If the employee resigns and serves notice: on the last day of employment.
- If the employee resigns without serving notice: within 7 days of the last day of employment.
- If the employee is dismissed for misconduct: on the last day of employment.
- If the employer terminates employment without notice: on the last day, or if not possible, within 3 working days.
Salary Deduction
Employers can only deduct from an employee's salary for reasons allowed under the Employment Act, such as absence from work, CPF contributions or recovery of salary advances, or with the employee's written consent. Total deductions in any salary period generally cannot exceed 50% of the employee's salary.
Bonus
Bonuses, including the Annual Wage Supplement (AWS, also known as the "13th month"), are not required under the Employment Act. They are paid at the employer's discretion or as agreed in the employment contract or a collective agreement. If a bonus is contractual, it must be paid as the contract states.
When offering a bonus, employers should:
- State it in the employee's Key Employment Terms (KETs), including whether it is fixed or discretionary.
- Be clear about how it is calculated and when it is paid, including whether it is prorated for employees who join or leave during the year.
- Note that bonuses are Additional Wages for CPF purposes. CPF is payable on bonuses up to the Additional Wage ceiling of $102,000 a year, minus the Ordinary Wages already subject to CPF.
