Overview

2016 sees a number of employment law developments in Singapore. 

Contents

These include -

  • A requirement to provide key employment terms in writing to all employees covered by the Employment Act (EA).
    • From 1 April 2016, employers must provide employees with written key employment terms by no later than 14 days after the commencement of employment including terms such as name of employer and employee, commencement date and term, working hours, salary including allowances, deductions and overtime payments, duties and responsibilities, leave entitlements, probation period and termination and medical benefits
    • The specific requirements are set out in the Tripartite Guidelines on the Issuance of Key Employment Terms in Writing, which was issued in December 2014.
    • Although these requirements apply only to EA employees, as a matter of best practice, many employers are likely to apply them across their workforce. Liability for breach can only arise, however, in relation to EA employees.
  • A requirement to issue itemised payslips
    • From 1 April 2016, employers must issue pay slips to EA employees which should include items such as basic salary, total allowances and total deductions for each salary period
    • The specific requirements are set out in Annex A and B of the Tripartite Guidelines on Issuance of Itemised Pay Slips, which was issued in January 2014.
  • A higher Central Provident Fund (CPF) salary ceiling
    • To help middle-income Singaporeans accumulate more CPF savings during their working years, the Government will increase the CPF salary ceiling from $5,000 to $6,000 to keep pace with income growth over the years.
  • Raised CPF contribution rates for older workers
    • To boost the retirement adequacy of older workers, from 1 January 2016, the Government raised the CPF contribution rate for workers aged 50 to 65 years. The increase in employer contributions will go to the Special Account, while the increase in employee contributions will go to the Ordinary Account.
  • Measures to encourage re-employment beyond 65 years old and top-up to the Special Employment Credit ("SEC") Fund
    • To promote voluntary re-employment of older workers, the Singapore Government is providing employers with an additional SEC of up to 3% of wages for workers aged 65 years and above in 2015. This is on top of the 8.5% wage offset that employers received in 2015.
    • The Singapore Government will top up the SEC Fund by $500 million to meet the needs of the SEC until the scheme expires in 2016.