Additional Wages (AW)
Wages that are not paid wholly and exclusively for the month — bonuses, commission paid by the quarter, leave encashment. Subject to CPF up to an annual ceiling of S$102,000 less the year's ordinary wages.
A
Annual leave
Paid leave an employee covered by Part IV of the Employment Act earns after three months of service: 7 days in the first year, one more each year, up to 14. Unused statutory leave carries into the next 12 months.
B
Basic rate of pay
Pay for one day or one hour of work excluding allowances, overtime and bonuses. For a monthly-rated employee the daily basic rate is (12 × monthly basic) ÷ (52 × days worked a week). Used for work on a rest day or public holiday.
C
CPF (Central Provident Fund)
The mandatory savings scheme for Singapore citizens and permanent residents. Employers contribute once monthly wages exceed S$50; the employee's share is deducted once wages exceed S$500. Rates depend on age and, for PRs, the year of residency.
CPF Ordinary Wage ceiling
The monthly wage above which no CPF is payable on ordinary wages: S$8,000 a month from 1 January 2026.
D
Day off in lieu
A replacement day off given when an employee works on a public holiday, or when the holiday falls on a non-working day. The alternative is an extra day's pay; company policy chooses.
E
Employment Act
Singapore's main labour law, administered by MOM. It covers most employees; its Part IV adds limits on hours, overtime and rest days for lower-paid workers.
F
Flexible work arrangement (FWA) request
A formal request to change where, when or how much an employee works. Under the Tripartite Guidelines in force from 1 December 2024, employers must consider formal requests properly and reply within the set time.
Foreign worker levy
A monthly charge employers pay for each Work Permit and S Pass holder. The amount depends on sector, pass tier and skill level, and the company's quota of foreign workers.
G
Gross rate of pay
Basic pay plus allowances but not overtime, bonuses or reimbursements. Used for paid public holidays, paid leave, salary in lieu of notice and deductions for unauthorised absence.
H
Hospitalisation leave
Paid sick leave for hospital stays: up to 60 days a year from six months of service (the 60 includes the 14 outpatient days), pro-rated between three and six months.
Hourly basic rate
For a monthly-rated employee: (12 × monthly basic salary) ÷ (52 × 44). Overtime is paid at not less than 1.5 times this rate.
I
Incomplete month salary
Pay for an employee who joined or left mid-month or took unpaid leave: monthly gross rate ÷ working days in the month × days actually worked. Working days exclude rest and non-working days but include public holidays.
IR8A
The annual statement of each employee's employment income that employers prepare for IRAS, the tax authority. Cohumi produces it from the year's published payslips at no charge.
Itemised payslip
A payslip every employee covered by the Employment Act must receive, showing the pay period, basic pay, allowances, overtime, deductions and net pay. Paper or electronic.
M
Medical certificate (MC)
The doctor's or dentist's certificate that makes sick leave paid. The employee should inform the employer within 48 hours of the absence.
MOM (Ministry of Manpower)
The ministry that administers the Employment Act, work passes and the foreign worker levy, and publishes Singapore's public holidays.
See Employment Act
O
Ordinary Wages (OW)
Wages due wholly and exclusively for the month — basic salary and fixed monthly allowances. Subject to CPF up to S$8,000 a month.
Overtime
Work beyond contractual hours. For Part IV employees it is paid at not less than 1.5 × the hourly basic rate, within 14 days of the end of the salary period, and capped at 72 hours a month unless MOM grants an exemption.
P
Part IV of the Employment Act
The section that regulates hours, overtime, rest days and leave for workmen earning up to S$4,500 basic a month and other employees earning up to S$2,600. Managers and executives are outside it.
Source See Workman, Employment Act
Part-time employee
An employee contracted for under 35 hours a week. Statutory leave is pro-rated by their hours against a full-timer's.
Public holiday
One of the 11 days gazetted each year. A holiday on a rest day makes the next working day a paid holiday; working on a holiday earns an extra day's basic pay or a day off in lieu.
R
Rest day
One unpaid day off a week that every Part IV employee is entitled to; the gap between two rest days may not exceed 12 days.
S
Salary advance
Pay given before it is due. It may be recovered in at most 12 instalments, each no more than 25% of the period's salary. Migrant workers must consent in writing to deductions.
Salary deductions
Amounts an employer may take off wages. Total deductions in a salary period may not exceed 50% of the salary; deductions for absence and recovery of advances or loans sit outside the cap.
SDL (Skills Development Levy)
A levy employers pay for every employee, local or foreign: 0.25% of monthly wages, minimum S$2, maximum S$11.25.
Self-help group (SHG) funds
CDAC, ECF, MBMF and SINDA. Employers deduct a small monthly contribution from the employee's wages according to the fund the employee belongs to and the wage band; opting out is done with the fund.
Sick leave (outpatient)
Paid leave for illness with a medical certificate: up to 14 days a year from six months of service, pro-rated from three months.
W
Work Permit / S Pass / Employment Pass
MOM work passes for foreign employees. Work Permit and S Pass holders attract the foreign worker levy; no CPF is payable for any foreign employee, but SDL is.
Source See Foreign worker levy, CPF
Workman
An employee doing mainly manual work (cleaners, drivers, machine operators and the like). Workmen earning up to S$4,500 basic a month are covered by Part IV.
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