All You Need To Know About Payroll in Singapore part 2 Agenda - - PowerPoint PPT Presentation

All You Need To Know About Payroll in Singapore –part 2

Agenda

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Central Provident Fund

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Employment Law

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Calculating monthly pay

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Annual Leave

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Sick Leave

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Maternity Leave

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Shared Parental Leave

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Adoption Leave

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Paternity Leave

Central Provident Fund

Central Provident Fund

Definition of an Employer

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An employer is a person, company, association or body of persons, whether or not incorporated, employing an employee.

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An employer can be:

u Any manager, agent or person responsible for the payment of wages to an

employee on behalf of an employer

u Any person trading in his own name or who has domestic worker(s). u The person must register under the name shown in his identity card or

passport

u Companies which employ foreign workers holding work permits in

Singapore.

u These employees are on the Foreign Worker Levy (FWL) Scheme and

are exempted from contributing to CPF

Central Provident Fund

Definition of an Employee

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An employee is any person who is employed in Singapore and any Singaporean seaman who is employed by an employer under a Contract of Service or other agreement entered into in Singapore.

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Some of the factors which form the contract of service are:

u The control over payment u Duration of work u Dismissal u Substitution of workers u Method of work

Central Provident Fund

Definition of an Employee

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CPF contributions are not payable by a foreign employee

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Once a foreign employee obtains SPR status the contribution rates are payable at a lower rate – graduated employee and employer contributions – for the first two years

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From the third year onwards the employer and employee pay the full rate of CPF based on the employee’s age and earnings

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The date used is the date of the permit (Form 5 or 5a)

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Year 1 runs from the date of SPR conversion to the last day of the month of the first anniversary e.g. if the date of the Form 5 was 5 May 2016 Year 1 runs to 31st May 2017 and year 2 from 1 June 2017 to 31 May 2018

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The employee and employer can jointly apply for full employer and graduated employee contributions or full employer and employee contributions

Central Provident Fund

What are the employer’s responsibilities?

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Employers must collect the employees’ contributions from their wages/salary and pay over the employee and employer’s CPF contributions each month for all employees (Singapore Citizens and SPRs) using the rates set out in the CPF Act.

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The contributions should be based on the employee’s actual total wages earned for the calendar month

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CPF contributions are to be paid by the employee and employer by the end of the month.

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Employers have 14 days after the end of the month to make payment of CPF contributions to the authorities.

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Employers must apply CPF correctly and make the payments promptly for their employees

Central Provident Fund

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The CPF contributions are allocated to 3 different funds:

u Ordinary account – housing, insurance, investment and education u Special account – old age and investment in retirement related products u Medisave account- for hospitalisations expenses and approved medical

insurance

u When an employee reaches 55 a retirement fund is also created

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Each fund attracts a minimum rate of interest and the actual rate is reviewed

• n a regular basis

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The allocation across the funds is based on the employee’ earnings and age, with a greater amount allocated to medisave as the employee gets older

Central Provident Fund

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Due to a a higher rate of unemployment in the over 55s and to encourage employers to these workers the CPF contribution rates for both employer and employee had been reduced

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The reduction for employees in recognition that that wages might be lower and so the overall earnings were being protected

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Unemployment rates have fallen significantly and the CPF rates will gradually be equalised

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In 2016 the employee contribution rates for over 55s were increased to allow greater savings for retirement

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The increase in employee contributions will go into the ordinary CPF account and the employer contributions into the special account

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The CPF salary ceiling and supplementary retirement scheme contribution cap were also raised

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Employers will therefore get additional tax deduction on the CPF contributions and the employees get additional tax relief to mirror these changes

Central Provident Fund

Determining CPF contributions:

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Establish which earnings attract CPF contributions – total wages (TW)

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Classify the earnings in the pay period as ordinary wages (OW) and additional wages (AW)

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Apply the CPF contribution rates to those earnings based on age and employee type

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Employer contributions are deemed to be total contributions less employee share

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Total CPF contributions are rounded to the nearest $ and and amount of 50 cents should be rounded up

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Employee share is whole dollars only i.e. any cents are dropped

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Contribution calculator of Singapore citizens and SPR in 3rd year

https://www.cpf.gov.sg/eSvc/Web/Miscellaneous/ContributionCalculator/Index?isFirstAndSecond Year=0&isMember=1

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Contribution calculator of Singapore citizens and SPR in 1st and 2nd years

https://www.cpf.gov.sg/eSvc/Web//Miscellaneous/ContributionCalculator/Index?isFirstAndSecon dYear=1&isMember=1

Central Provident Fund

CPF payable wages/earnings CPF non-payable wages/earnings Basic salary Reimbursements that are amounts not exceeding the actual expense incurred and supported by official receipts Bonuses Gifts in kind e.g. shopping vouchers Cash incentives e.g. good service awards Termination benefits e.g. retirement gratuity, retrenchment pay, ex gratia pay, pay in lieu of notice Allowances e.g. meals, laundry, transport Commissions e.g. sales Overtime NSmen make-up pay

Central Provident Fund

Classifying wages as ordinary wages (OW) or additional wages (AW)

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CPF contributions are based on the total wages

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Ordinary wages are:

u Wages due or granted wholly, exclusively in respect of an employee’s employment that

month and

u Wages payable before the due date of CPF contributions that month u Ordinary wages are capped, the current monthly cap is $6, 000

u

Additional wages are:

u Wages which are not wholly and exclusively for the month or u Wages made at intervals of more than one month u Examples include leave pay and annual bonus payments u Additional wages are capped at $102, 000 – total OW subject to CPF for the year

u Where $102, 000 is equal to 17 months x the OW cap of $6, 000

u Employers must monitor the AW cap and it applies per employer u https://www.cpf.gov.sg/eSvc/Web/Services/CPFAdditionalWageCeiling/Index

Central Provident Fund

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Errors in CPF calculation are often due to:

u Incorrect classification of ordinary and additional wages u Non-payment of contributions on allowances and NSmen make-up pay u Underpayment where wages are not paid monthly u Common mistakes by employers:

https://www.cpf.gov.sg/Assets/employers/Documents/MistakesbyEmplo yerswhenDeterminingCPFContributions.pdf

u Adjustments and refunds of CPF - these would be claimed by the

employeehttps://www.cpf.gov.sg/Employers/EmployerGuides/employer- guides/paying-cpf-contributions/adjustment-and-refund-of-cpf-contributions

Central Provident Fund

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The tables used to calculate CPF contributions depend on the status of the employee and the earnings and include:

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Private sector and public sector non-pensionable employees

u Singapore citizen u Singapore permanent resident (SPR) from the 3rd year and onwards of obtaining SPR

status

u SPR during the first 2 years of obtaining SPR status where jointly applied with the

employer to contribute at full rates

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Private and public sector non- pensionable employees during the first 2 years of

• btaining SPR status

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Public sector employees

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Pensionable employees in statutory bodies and aided schools

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For your information and reference we have included the most used tables Details of the deductions and the allocation rates can be found at www.cpf.gov.sg/Assets/Members/Documents/Jan2016_Con_Rate_Page.pd

Private sector and non pensionable employees (Ministries, Statutory Bodies and Aided schools) – Singapore citizens and SPR 3rd year onwards

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions 55 and below Up to $50 Nil Nil >$50 - $500 17% TW Nil >$500 <$750 17% TW + 0.6% in excess

• f $500

0.6% TW in excess of $500 >$750 37% OW* + 37% AW * Max of $2, 220 20% OW* + 20% AW *Max $1, 200 Above 55 -60 Up to $50 Nil Nil >$50 - $500 13% TW Nil >$500 <$750 13% TW + 0.39% TW in excess of $500 0.39% TW in excess of $500 >$750 26% OW* + 26% AW *Max of $1, 560 13% OW* +13% AW Max $780

Private sector and non pensionable employees (Ministries, Statutory Bodies and Aided schools) – Singapore citizens and SPR 3rd year onwards

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions Above 60 -65 Up to $50 Nil Nil >$50 - $500 9% TW Nil >$500 <$750 9% TW + 0.225% in excess of $500 0.225% TW in excess of $500 >$750 16.5% OW* + 16.5% AW * Max of $990 7.5% OW* + 7.5% AW *Max $450 Above 65 Up to $50 Nil Nil >$50 - $500 7.5% TW Nil >$500 <$750 7.5% TW + 0.15% TW in excess of $500 0.15% TW in excess of $500 >$750 12.5% OW* + 12.5% AW *Max of $750 5% OW* +5% AW Max $300

Fund Private sector and public sector non pensionable employees - SPR years 1 and 2 of obtaining SPR status

Employees and employers can jointly apply to pay higher contributions in the first year these are:

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Graduated employer and employee rates – private sector and non-pensionable employees Statutory Boards and aided schools

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Full employer and graduated employee rates for:

u Non- pensionable employees working in Ministries u Non - pensionable employees working in statutory boards and aided schools

where jointly applied for these rates

u Private sector employees who have jointly applied with employers to pay

these rates

Fund Private sector and public sector non pensionable employees - SPR year 1 of obtaining SPR status graduated employer and employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions 60 and below Up to $50 Nil Nil >$50 - $500 4% TW Nil >$500 <$750 4% TW + 0.15% in excess of $500 0.15% TW in excess of $500 >$750 9% OW* +9% AW *Max $540 5% OW* +5% AW * Max $300 Above 60 Up to $50 Nil Nil >$50 - $500 3.5%TW Nil >$500 <$750 3.5% TW + 0.15% TW in excess of $500 0.15% TW in excess of $500 >$750 8.5% OW* + 8.5% AW * Max $510 5% OW* +5% AW * Max $300

Fund Private sector and public sector non pensionable employees - SPR year 2 of obtaining SPR status graduated employer and employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions 55 and below Up to $50 Nil Nil >$50 - $500 9% TW Nil >$500 <$750 9% TW + 0.45% in excess of $500 0.45% TW in excess of $500 >$750 24% OW* + 24% AW *Max $1,440 15% OW* + 15% AW * Max 900 Above 55 - 60 Up to $50 Nil Nil >$50 - $500 6% TW Nil >$500 <$750 6% TW + 0.375% in excess of $500 0.375% TW in excess

• f $500

>$750 18.5% OW* +9% AW Max, $1, 110 12.5% OW* +12.5% AW * Max $750

Fund Private sector and public sector non pensionable employees - SPR year 2 of obtaining SPR status graduated employer and employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions Above 60 -65 Up to $50 Nil Nil >$50 - $500 3.5% TW Nil >$500 <$750 3.5% TW + 0.225% in excess of $500 0.225% TW in excess

• f $500

>$750 11% OW* + 11% AW *Max $660 7.5% OW* + 7.5% AW * Max $450 Above 65 Up to $50 Nil Nil >$50 - $500 3.5% TW Nil >$500 <$750 3.5% TW + 0.15% in excess of $500 0.15% TW in excess

• f $500

>$750 8.5% OW* +8.5% AW * Max $510 5% OW* +5% AW * Max $300

Fund Private sector and public sector non pensionable employees - SPR year 1 of obtaining SPR status - full employer graduated employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions 55 and below Up to $50 Nil Nil >$50 - $500 17% TW Nil >$500 <$750 17% TW + 0.15% in excess of $500 0.15% TW in excess of $500 >$750 22% OW* + 22% AW *Max $1,320 5% OW* + 5% AW * Max 300 Above 55 - 60 Up to $50 Nil Nil >$50 - $500 13% TW Nil >$500 <$750 13% TW + 0.15% in excess of $500 0.15% TW in excess of $500 >$750 18.% OW* + 18% AW Max, $1, 080 5% OW* + 5% AW * Max $350

Fund Private sector and public sector non pensionable employees - SPR year 1 of obtaining SPR status - full employer graduated employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions Above 60 -65 Up to $50 Nil Nil >$50 - $500 9% TW Nil >$500 <$750 9% TW + 0.15% in excess of $500 0.15% TW in excess of $500 >$750 14% OW* + 14% AW *Max $840 5% OW* + 5% AW * Max $300 Above 65 Up to $50 Nil Nil >$50 - $500 7.5% TW Nil >$500 <$750 7.5% TW + 0.15% in excess of $500 0.15% TW in excess of $500 >$750 12.5% OW* + 12.5% AW * Max $750 5% OW* + 5% AW * Max $300

Fund Private sector and public sector non pensionable employees - SPR year 2 of obtaining SPR status - full employer graduated employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions 55 and below Up to $50 Nil Nil >$50 - $500 17% TW Nil >$500 <$750 17% TW + 0.45% in excess of $500 0.45% TW in excess of $500 >$750 32% OW* + 32% AW *Max $1,920 15% OW* + 15% AW * Max 900 Above 55 - 60 Up to $50 Nil Nil >$50 - $500 13% TW Nil >$500 <$750 13% TW + 0.375% in excess of $500 0.375% TW in excess of $500 >$750 25.5% OW* + 25.5% AW Max, $1, 530 12.5% OW* + 12.5% AW * Max $750

Fund Private sector and public sector non pensionable employees - SPR year 2 of obtaining SPR status - full employer graduated employee

Employee age Employee total wages for the month Total CPF contributions Employee CPF contributions Above 60 -65 Up to $50 Nil Nil >$50 - $500 9% TW Nil >$500 <$750 9% TW + 0.225% in excess of $500 0.225% TW in excess of $500 >$750 16.5% OW* + 16.5% AW *Max $990 7.5% OW* + 7.5% AW * Max $450 Above 65 Up to $50 Nil Nil >$50 - $500 7.5% TW Nil >$500 <$750 7-5% TW + 0.15% in excess of $500 0.15% TW in excess of $500 >$750 12.5% OW* + 12.5% AW * Max $750 5% OW* + 5% AW * Max $300

Employment Law

Employment Law

The Employment Act covers all employees, except the following:

u Managerial & Executive Positions u Defined as a position where a person has direct authority or

influence in the hiring, firing, promotion, transfer, reward or discipline of other employees or

u The main duties involve management and running of the business. u It also applies to professionals (possessing tertiary education along

with specialised knowledge or skills) who carry out the same or similar responsibilities as managers or executives.

u Examples of such professionals include lawyers, accountants,

dentists, and doctors

u Domestic Workers u Seamen u Most government employees

Employment Law

Employment agreements

u For all employees the employment contract is the most important document

as it specifies the terms and conditions of employment between you and your employee

u It is advisable to seek guidance from a lawyer or HR consultant who is

familiar with these documents and the laws applicable

u From April 2016 all employers are required to issue key employment terms

(KET) to all employees covered under the Employment Act

u If your employee is covered under the Employment Act, the contract terms

should abide by the minimum requirements of the Act

u Some employers are bound by a collective agreement

Key Employment Terms

Details of employment:

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Company name

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Employee name

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Employee NRIC/FIN

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Employment start date

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Job title

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Main duties

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Full time or part time employment

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Duration of employment where on a fixed term contract

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Place of work if different from company’s registered address

Key Employment Terms

Working hours and rest days

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Details of working hours including start and end times, details of breaks, total working hours excluding break hours

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Number of working days per week

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Rest days per week – the day must be specified

Key Employment Terms

Salary

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Salary period i.e. payment period

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Overtime payment period if different to salary period

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Date(s) of salary payment

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Date(s) of overtime payment

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Basic salary per period including hourly rate if part time

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Overtime rate of pay if working hours are more than 8 hrs per day or 44 hrs per week

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Fixed allowances per salary period – item, allowances, total fixed allowances

u

Fixed deductions per salary period – item, deductions, total fixed deductions

u

Other salary related components

u

Indicate if CPF contributions payable subject to prevailing CPF rates

Key Employment Terms

Leave and medical benefits

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Types of leave – applicable if service is at least 3 months

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Paid annual leave per year for 1st year of service – maybe pro rated for part time employees based on hours

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Paid outpatient sick leave per year (days or hours)

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Paid hospitalisation leave per year which is inclusive of outpatient sick leave (days or hours)

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Other types of leave e.g. maternity leave

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Indicate of paid medical examination fee

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Specify any other medical benefits – these are optional benefits

Key Employment Terms

Others

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Length of probation

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Probation start date

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Probation end date

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Notice period for termination of employment – initiated by either department

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It is advisable to check your contracts to ensure they meet the requirements

• f the Key Employment Terms especially for new employees

Employment Law

Salary

u

There is no minimum wage

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Payment must be made at least once a month, within 7 days of the salary period ending

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Hours of work and overtime are only regulated by the Employment Act for those earning less than $2000 per month

u

Those covered under the Act are entitled to work no more than 44 hours per week

Employment Law

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The Ministry of Manpower (MoM) has strict laws around working time

u Employees cannot work more than 8 hours a day, or 44 hours a week u Employees cannot work for more than 6 hours without a break u Employees cannot work more than 12 hours a day, except under certain

circumstances (shift workers are not allowed to work more than 12 hours a day under any circumstances)

u Employees are entitled to 1 rest day per week, with a maximum number of

days between rest days of 12

u

It is common practice for those not covered by the Employment Act to work from 9am to 6 or 7pm Monday to Friday and half a day on Saturdays

Other amendments to the Employment Act

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A framework has been set up to treat less severe breaches of the Employment Act as civil breaches. These include:

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Failure to issue itemised payslips

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Issuing inaccurate or incomplete payslips

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Failure to issue Key Employment Terms (KET) in writing

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Issuing inaccurate or incomplete KETs

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Failure to maintain detailed employment records

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Provision of inaccurate information without the intent to defraud or mislead

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There are a number of templates that can be downloaded for the payslips and KETs including those in different languages

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It is suggested that you check your payslips meet this new standard

Calculating monthly pay

Calculating pay

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Employees may receive a monthly or daily salary

u

Daily wages are calculated using either the gross rate for paid public holidays, paid leave, salary in lieu and salary deductions

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Or basic rate for work on rest days and public holidays

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Calculating one month or a complete month is any one month in the year

u

For an incomplete month the pay is calculated as:

u Monthly gross rate of pay/total number of working days in the month x

the total number of days actually worked

Definitions

Half day Where 5 hours or less were worked One working day Where 5 hours or more are worked Incomplete month of work Where an employee:

• Starts work on a day other than the first day of the

month

• Leaves the employment on a day other than the last

day of the month

• Takes unpaid leave of one or more days in the

month

• Is on reservist training during the month

Monthly gross pay Total amount of pay including allowances payable for

• ne month’s work. Excluding:
• Additional payments for overtime, bonus, annual

wage supplement

• Reimbursement for special expenses incurred as a

result of the employment

• Productivity incentive payments
• Travel, food and housing allowance

Definitions

Total number of working days in the month Excludes rest days and non-working days but includes public holidays For employees with fixed rest days on Sundays or non- working days on Saturdays the MoM has a table of the total number of working days per month for the year 2016 Total number of days actually worked in the month Includes public holidays, paid hospitalisation leave, and annual leave where entitled

Basic rate of pay

How is it used? For calculating pay for work on a rest day or public holiday What is included? Wage adjustments and any increments the employee is entitled to under their contract What is excluded? Overtime payments, bonus payments and annual wage supplements Reimbursement of special expenses incurred in the employment Any allowance How is it calculated? 12 x monthly basic rate of pay/52 x average number

• f days an employee is required to work a week

Gross rate of pay

How is it used? For calculating: Salary in lieu of notice Salary deduction for unauthorised absence Paid public holidays Approved paid leave including annual leave, hospitalisation leave and maternity, paternity and shared parental leave What is included? Allowances that an employee is entitled to under the contract of service What is excluded? Overtime payments, bonus payments and annual wage supplements Reimbursement of special expenses incurred in the employment Productivity incentive payments Travel, food and housing allowances How is it calculated? 12 x monthly basic rate of pay/52 x average number of days an employee is required to work a week

Variable wage components including the annual wage supplement

u The variable portion of an employee’s pay can include the 13th month

bonus i.e. the annual wage supplement, bonuses and variable payments

u Annual wage supplement (AWS) is a single annual payment, it is not

compulsory and payment depends on the employment contract or a collective agreement

u A lower amount can be negotiated by the employer where the

company hasn’t performed well financially

u If an employer did not pay AWS prior to August 1988 it cannot pay

more than one month’s salary for AWS

u Bonus is a one-time variable payment – generally an incentive payment u Variable payments are incentive payments to increase productivity or

reward employees

Leave

Public Holidays

u

As Singapore is a multicultural society holidays are set to reflect many different ethnic communities

u Those covered under the Employment Act should receive a days paid leave,

although the date can be substituted for any other day if agreed by employee and employer

u If public holiday dates fall on a Sunday, the following Monday will be

considered to be the public holiday

u If the holiday falls on a day the employee does not normally work, they should

either receive a days pay or another days paid leave

u It is common practice for those not covered under the Act to receive the same

paid leave as those who are

Public Holidays - 2016

Date Event 1 January New Year’s Day 8 -9th February Chinese New Year 25th March Good Friday 1st May (2nd May taken) Labour Day 21st May Vesak Day 6th July Hari Raya Puasa 9th August National Day 12th September Hari Raya Haji 29th October Deepavali 25th December (26th December taken) Christmas Day

Annual leave

An employee is entitled to Annual Leave if they satisfy all following conditions:

u

The employee is covered under Part IV of the Employment Act; and

u

The employee has been employed with you for at least three months

An employee's annual leave entitlement under Part IV of the Employment Act is as follows:

Annual leave

u

Any leave taken for less than a day is still considered to be a full days leave

u

Where an employee is dismissed or is absent for more than than 20% of days in the month, the leave is forfeited*

u

If the annual leave is not used within 12 months of every year of continuous service, it is forfeited*

u

It is common practice for employees in Singapore to receive 14 days leave per year, above the statutory minimum *Unless otherwise agreed in an Employment Contract

Sick Leave

Sick Leave

An employee covered by the Employment Act is entitled to paid sick leave, including medical leave issued by a dentist if they have at least 3 months service:

Sick Leave

u

The employee must inform or have attempted to inform the employer of their absence within 48 hours

u

Otherwise, the employee will be deemed to be absent from work without permission or reasonable excuse

u

The sick leave must be certified by the company's doctor, or by a government doctor (including doctors from approved public medical institutions)

u

Sick leave benefits for all employees generally correspond to the statutory minimum as laid out in the Employment Act

u

Hospitalisation leave includes outpatient leave

Maternity Leave

Maternity Leave

u

Female employees who have been continuously employed by you may be entitled to paid maternity leave

u

Leave is for 16 weeks in total, but depends on various circumstances

u

An employee with at least 3 months service cannot be dismissed during pregnancy and the employer is required to pay the full maternity benefits

u An employee who believes they have been unfairly dismissed or has a dispute

with their employer over maternity leave can file a dispute with the Ministry

• f Manpower

u Employers cannot ask an employee to work during the first 4 weeks of leave u

Where the contractual probation period is longer than 3 months the maternity protection will apply once the employee has 3 months service. Probationary status does not affect any rights to protection

u

http://www.mom.gov.sg/employment-practices/leave/maternity-leave/calculate- maternity-leave

Maternity Leave

Paid scheme

u

The Child Development Co-Savings Act covers parents of Singapore Citizen children, including managerial, executive and confidential staff

u

Under the Act, an employee is entitled to maternity leave benefits if:

u The child is a Singapore Citizen; u The child's parents are lawfully married; and u The employee has at least 3 months service with the employer before the

child's birth

u

If the employee does not meet the first two criterion at the time of confinement, but meets them within 12 months of the child's birth, she will be eligible for the remaining maternity leave from the date they are met

u

The remaining maternity leave entitlement must be taken before the child’s first birthday

u

She will not be eligible for the maternity leave that has lapsed

Maternity Leave

Payment to employees on Maternity Leave

u

Under the Employment Act, an employer is required to continue paying an employee her usual salary at the monthly gross rate of pay for the first eight weeks of maternity leave if:

u The employee has at least 3 months service with the employer before the child's

birth

Ø The employee has less than two children of her own at the time of delivery. Ø In the case of multiple births e.g. twins during the first pregnancy, the employer is

still required to pay eight weeks of maternity leave for the next pregnancy; and

Ø The employee has given her employer at least one week's notice before going on

maternity leave, and informed her employer as soon as practicable of her delivery.

Ø Otherwise, the employee is only entitled to half the payment during the maternity

leave, unless she can show sufficient cause that prevented her from giving such notice to the employer

Maternity Leave

Payment / Salary to employees on Maternity Leave contd.

u

If the employee qualifies for Government-paid Maternity Leave under the Child Development Co-Savings Act, she will be paid by the employer during the entire 16 weeks of the maternity leave

u

The employer may claim reimbursement from the Government for the last eight weeks for the first and second confinements and all 16 weeks for the third or subsequent confinements

Maternity Leave

Entitlement under Child Development Co-Savings Act

u

An eligible employee is entitled to maternity leave four weeks immediately before and 12 weeks immediately after delivery, totalling 16 weeks.

u

Where there is a mutual agreement with the employer, the last eight weeks

• f maternity leave(9th to 16th week) can be taken flexibly over a 12-month

period from the child's birth – a maximum of 48 days See more at: http://www.mom.gov.sg/employment-practices/leave-and- holidays/Pages/maternity-leave.aspx#sthash.PesE8t0C.dpuf

Maternity Leave

Single (unmarried) employees and the child is a Singapore citizen

u A single (unmarried) employee is entitled to 12 weeks of maternity leave if

she is covered under the Employment Act

u She will be paid by her employer for the first eight weeks of maternity leave

if she has fewer than two living children (excluding the newborn) and has at least 3 months service with the employer before the child's birth

u The final four weeks maternity pay is voluntary and the employer is not

entitled to claim any reimbursement from the government. The contract of employment may specify that 12 weeks is payable

Maternity Leave

If the employee's child is not a Singapore citizen

u If the child is not a Singapore citizen, the employee is entitled to 12

weeks of maternity leave if she is covered under the Employment Act

u She will be paid by her employer for the first eight weeks of maternity

leave if she has fewer than two living children (excluding the newborn), and has at least 3 months service with the employer before the child's birth

u The final four weeks maternity pay is voluntary and the employer is not

entitled to claim any reimbursement from the government. The contract

• f employment may specify that 12 weeks is payable

Maternity Leave

If the employee has 3 months service but the child is not is not a Singapore citizen and she is unmarried

u The employee is entitled to 12 weeks of maternity leave if she is covered

under the Employment Act

u She will be paid by her employer for the first eight weeks of maternity

leave if she has fewer than two living children (excluding the newborn)

u The final four weeks maternity pay is voluntary and the employer is not

entitled to claim any reimbursement from the government. The contract

• f employment may specify that 12 weeks is payable

Maternity Leave

Maternity leave for a foreign worker The employee is entitled to 12 weeks of maternity leave if she is covered under the Employment Act, regardless of her nationality and the employee has at least 3 months service with the employer before the child's birth

u She will be paid by her employer for the first eight weeks of maternity leave if she

has fewer than two living children (excluding the newborn)

u

The final four weeks maternity pay is voluntary and the employer is not entitled to claim any reimbursement from the government. The contract of employment may specify that 12 weeks is payable

u

If the child is a Singapore citizen and the other criteria are met 16 weeks may be payable

Maternity Leave

Maternity leave for a foreign worker contd.

u

If the child is not a Singapore citizen and or the employee is not legally married to the father at the time of confinement but meet these criteria before the child is 1 year old she will be eligible for the remaining maternity leave from the date she meets all the criteria

u

The employee is eligible for the remaining leave from the date all the criteria are met

u

The remaining maternity leave entitlement must be taken before the child turns 12 months old

u

She will not be eligible for the maternity leave that has lapsed

u

Where the mother was married at the time the child was conceived but is subsequently divorced before the child is born maternity leave and pay is due provided the other criteria are met

Maternity Leave

Employees on fixed term contract, temporary and part-time employment

u

An employee on fixed term contract, temporary or part-time employment is entitled to 16 weeks of maternity leave if she meets the eligibility conditions under the Child Development Co-Savings Act

u

Or 12 weeks of maternity leave if she satisfies the eligibility conditions under the Employment Act.

u

If she is eligible for paid maternity leave, she will be paid at the gross rate for each day that she would normally have been required to work under her contract of service

Maternity Leave

Employees on probation

u

If the employee has at least 3 months service with the employer before the child's birth and meets the other eligibility criteria under the Employment Act

• r the Child Development Co-Savings Act, she is eligible for paid maternity

leave Employees with twins or more children

u

An employee who gives birth to twins will be treated the same way as an employee who gives birth to a single child

u

Additional leave and pay is not given

u

It will be considered as a single confinement and she will not receive double maternity benefits.

Maternity Leave

Employees with stillbirth

u

The employer is required to give an employee full maternity leave if she had a stillbirth

u

The stillbirth will not be counted in determining her eligibility for maternity leave benefits for the next confinement Employees with abortions or miscarriage

u

Maternity leave benefits do not apply to such cases

u

However, the employee will be entitled to paid sick leave if she satisfies the qualifying conditions for paid sick leave

Maternity Leave

Employees with premature delivery

u

If an employee has a premature delivery before she goes on her maternity leave, she can commence the full 16 weeks of maternity leave from the date

• f confinement

u

However, if she is unable to take the full eight weeks of employer-paid maternity leave after her delivery, her employer should pay her wages for the period of her maternity leave which she has worked prior to her confinement If you fall sick during maternity leave

u

Employees are not entitled to paid sick leave while on maternity leave.

u

They are not eligible to claim for medical expenses incurred in connection with the delivery of her child, unless it is provided for in the employment contract.

Maternity Leave

Flexible maternity leave

u

If flexible maternity leave is taken it would be calculated based on the number of working day. Non working days, rest days and public holidays would be in addition

u

The total number of days flexible maternity leave should be equal to the number of days that the employee would be entitled to if they were taken as a continuous period

u

For example if the employee works 5.5 days a week and takes 4 weeks flexible maternity leave the number of days leave would be 4 x 5.5 = 22 days

Maternity Leave – other points to note

u

If the employee had planned to spread the maternity leave over a 12 month period but is going to leave her job before the leave is taken this has to be arranged with the employer. Any untaken leave is lost

u

If there is a public holiday during the maternity leave and the leave is taken in a continuous period then there is no entitlement to any additional pay for the public holiday

u

If the employee resigns when on maternity leave the leave period cannot be used to offset the resignation notice as the benefits stop on leaving and unused leave cannot be transferred to a new employer

Maternity Leave

Claiming reimbursement of maternity pay

u

Before the employer starts to pay maternity pay they should ensure they have the declaration form GPML1 at least one week before the leave starts

u

During the period of maternity leave the employer is not required to pay more than the reimbursement cap of $10, 000 but can do so voluntarily

u

The employer can only claim the reimbursement of maternity pay when the employee has returned to work

u

The claim should be made within 3 months of the last day of maternity leave

u

For the first and second birth the first 8 weeks are paid by the employer and the final 8 weeks (4 weeks) are reimbursed by the government

u

For third and subsequent births all 16 (12) weeks are reimbursed by government

u

For audit purposes the declaration form must be kept for at least 3 years

u

The claim for reimbursement is submitted at www.profamilyleave.gov.sg

Planning maternity leave

Arrangement 16 weeks 12 weeks By default Take 16 weeks continuously starting 4 weeks before delivery Take the 12 weeks continuously starting 4 weeks before delivery By mutual agreement Start anytime within 4 weeks before delivery The first 8 weeks must be taken in one continuous stretch The 8 weeks can be taken flexibly over the 12 months from the child’s birth Start anytime within 4 weeks before delivery The first 8 weeks must be taken in one continuous stretch The 4 weeks can be taken flexibly over the 12 months from the child’s birth Flexible leave calculation 8 weeks x the number of working days in the week capped at 48 working days 4 weeks x the number of working days in the week capped at 24 working days

Adoption Leave

Adoption Leave

u

There is no equivalent adoption leave but employers may voluntarily give maternity leave and or pay.

u

The employer can claim reimbursement from the government for up to 4 weeks pay.

u

This is capped at $10, 000 including CPF contributions

Shared parental leave

Shared parental leave

u

A working father can apply to share 1 week of their wife’s paid maternity leave subject to the wife’s agreement

u

The following criteria have to be met:

u The child has to be a Singapore citizen u The child’s mother qualifies for government paid maternity leave (GPMAL) u The father is lawfully married to the mother

u The pay is capped at $2, 500 including CPF contributions u The father may also be eligible for 1 week paternity leave u From 2017 working fathers can share up to 4 weeks of the maternity

leave and is applicable to citizen children born on or after 1 July 2017

Shared parental leave

Arrangement 1 week Default without mutual agreement Take 1 continuous week within 12 months of the birth Flexibly by mutual agreement Split the week into working days and take them in any combination within the 12 months of the birth Calculating working days 1 week x the number of working days in the week, capped at 6 days

Paternity leave

Paternity leave

u

Eligible working fathers including self employed are entitled to 1 week paternity leave funded by the government and may be eligible for a further week funded by the employer

u

The following criteria have to be met:

u The child has to be a Singapore citizen u The child’s mother qualifies for government paid maternity leave (GPMAL) u You are or were lawfully married to the mother between conception and

birth

u You have at least 3 months service with the employer at the time of the

birth

u

The pay is capped at $2, 500 including CPF contributions

u

From 2017 it is mandatory for employers to provide the 2nd week of paternity leave to fathers to citizen children born from 1 January 2017

Paternity leave

Arrangement 1 week Default without mutual agreement Take 1 – 2 continuous weeks within 12 months of the birth Flexibly by mutual agreement Take 1 – 2 weeks within the 12 months of the birth Split the week(s) into working days and take them in any combination Calculating working days 1 -2 weeks x the number of working days in the week, capped at 6 days

Childcare Leave

Childcare Leave

u

For children who are under 7 years old the eligible female employees are entitled to 6 days childcare leave per year if they have worked for the employer longer than 3 months Common Practice:

u

Maternity and Childcare leave benefits for company employees in Singapore generally correspond to the minimum requirements of the Employment Act as above.

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