Are You Ready for the MOM Itemised Pay Slip Mandate

MOM granted a one year grace period from April 2016 to end March 2017 for companies to comply with this new legislation. Given that the grace period is coming to an end soon, it is time to relook at your company’s itemised pay slips to see whether it is in line with MOM’s requirements. Moreover, if your organization has yet to issue out these itemised pay slips, it is high time to get started on it. Do note that failure to comply with these new rules can subject your company to fines between S$100 to S$200 per EMPLOYEE or occurrence.

For a quick overview, here are the requirements as well as KETs to include within the itemised pay slip.

When should the employer issue out the itemised pay slips?

• Give it together with payment to the employee
• If that is not possible, it must be given to the employee within three working days of payment
• In the case of termination or dismissal, the itemised pay slip must be given together with outstanding salary.

Items to include

Here are the KETs to include in the pay slips, unless an item is not applicable. Additionally, the itemised pay slip can be issued in a soft or hard copy format. This includes handwritten itemised payslips.

1. Full name of employer
2. Full name of employee
3. Date of payment (or date, if the pay slips consolidates multiple payments)
4. Basic salary
   1. For hourly, daily or piece-rated workers, indicate all of the following:
      1. Basic rate of pay e.g. S$X per hour
      2. Total number of hours or days worked or pieces produced
   2. Start and end date of salary period
   3. Allowances paid for salary period, such as:
      1. All fixed allowance e.g. transport
      2. All ad-hoc allowance e.g one-off uniform allowance
   4. Any other additional payment for each salary period, such as:
      1. Bonuses
      2. Rest day pay
      3. Public holiday pay
   5. Deductions made for each salary period, such as:
      1. All fixed deductions e.g. employee’s CPF contribution
      2. All ad-hoc deductions e.g. deductions for no-pay leave, absence from work
   6. Overtime hours worked
   7. Overtime pay
   8. Start and end date of overtime payment period (if different from item 5 – start and end date of salary period)
   9. Net salary paid in total

Keeping Records

Finally, all employers must keep a record of all the pay slips issued. This includes the soft or hard copy as well as handwritten pay slips.

Employers have to keep the pay slip records of current employees for a duration for their latest two years, and for ex-employees, the last two years of employment which is to be kept for one year after the employee leaves employment.

For more information on the itemised pay slips or a sample format, do check out the MOM website here.

You can also visit Gpayroll to tackle these itemised pay slips woes. Gpayroll, an online payroll solutions provider, offers a very unique solution which no other online payroll provider does.