Payroll Terminology
Annual Leave Encashment
Any unconsumed annual leave may be encashed when:
  • contract of service is ceased by either the employer or employee
  • at the discretion of the employer
  • contractual agreement between the employer and employee.
Allowance is the payment grant to the employee as part of the salary package to defray expenses bore by the employee for business purposes. Usually, they are subject to CPF contributions and taxable. For e.g. transport allowance, meal allowance and etc.
Basic Pay
Same as Basic Salary
Basic Salary
Basic Salary is the payment (in the form of money) granted to the employee for the services provided to the employer. It does not include:
  • Additional payments by way of overtime, bonus or commission;
  • Travel, food, housing or any allowances however described;
  • Any sum paid to an employee or contract worker to defray special expenses incurred by the person due to the unusual or hazardous nature of the job;
  • Productivity incentive payments;
  • Contributions paid by the employer or employee to any pension or provident fund; or
  • Graduity payable on discharge or retirement.
Usually, it refers to the payment in place of money such as such as club memberships granted to the employee for the services provided to the employer.
Gratuity given as gift, or compensation earned as reward upon achieving a goal or milestone.
Business Bank Account
The bank account registered for a business entity such as DBS Entrepreneur’s Account, OCBC Business Entrepreneur Account, or UOB Current Account.
Business Registration Number
Unique Entity Number
Claims usually refer to staff benefits, for e.g. medical, dental benefits, etc. Usually, they are not subject to CPF contributions and non-taxable.
Childcare Leave (CCL) Claim
Childcare Leave Claim - Currently, working parents with at least one child who is a Singapore Citizen under the age of 7 years are entitled to 6 days of paid child care leave every year*. The first 3 days are employer-paid, and the last 3 days are Government-paid (capped at $500 per day, inclusive of CPF contributions).
Chinese Development Assistance Council (CDAC) Fund
All employees belonging to the Chinese Community (Singapore Citizens and Singapore Permanent Residents) may contribute monthly to the CDAC Fund according to the wage levels set out by CDAC. If the employees wish to contribute different amounts or opt out, they have to obtain the relevant forms from the CDAC and submit them to their employers for endorsement before returning them to the CDAC.
Compension is the payment (in the form of money) granted to the retrenched employee for loss of employment i.e. early termination of contract of service by the employer. Compension can also be payable when an employee:
  • suffered an injury by an accident arising out of and in the course of employment,
  • contracted an occupational disease, or
  • contracted a disease due to work-related exposure to biological or chemical agents (effective 1 June 2012)
Commission refers to payment (in form of money) granted to the employee for the services provided to the employer. Based on the total amount of sales the employee made, a certain portion, percentage or amount paid to the employee.
Central Provident Fund (CPF)
The Central Provident Fund (CPF) is a comprehensive social security savings plan that has provided many working Singaporeans with a sense of security and confidence in their old age. The overall scope and benefits of the CPF encompass retirement, healthcare, home ownership, family protection and asset enhancement. Working Singapore Citizens or Singapore Permanent Residents and their employers make monthly contributions to the CPF at rates set out in the CPF Act.
Date Confirmed
Date of a statement, often written, that an arrangement or meeting is certain.
Date Joined
Specified in the award of a contract, it is the date when the contractor must begin the work on the site.
Amount withheld by an employer from employee's salary including income tax, national insurance or social security contributions, and may also include group insurance or pension fund contributions, union or association dues, authorized wage assignments, etc.
Employee Code
Employee Code is an unique identification number issued to all employees by the employer.
Employee Pension
Contribution/Payment to retirement(pension) fund paid by the employee.
Employee Status
Employee Status refers to the condition of the employee's contract of service with the company. When the employee's contract of service ceased, i.e. resigned or terminated, employee status will be inactive. If it remains in force, employee status will be active
Eurasian Community Fund (ECF)
All employees belonging to the Eurasian Community (Singapore citizens and Singapore Permanent Residents) may contribute monthly to the Eurasian Community Fund according to the wage levels set out. If employees wish to contribute different amounts or opt out, they have to get the relevant forms from the Eurasian Association (EA) and submit them to their employers for endorsement before returning them to the EA.
Employment Pass
The Employment Pass is a work pass for foreign professionals working in managerial, executive or specialised jobs.
Foreign Identification Number (FIN)
Foreign Identification Number (FIN) is a unique identification number issued to all foreigners who are residing / studying, working and staying in Singapore by Immigration & Checkpoints Authority (ICA).
An award given without any claim or obligation
Gross Pay
Same as Gross Salary
Gross Salary
Aggregate amount of wages received on a regular basis, usually weekly, bi-weekly, or monthly prior to any deductions such a federal and state taxes. An individual's gross salary is one factor that is used by creditors to determine if credit will be extended to the individual and his/her ability to repay the funds.
Inland Revenue Authority of Singapore (IRAS)
Inland Revenue Authority of Singapore (IRAS) is responsible for collecting income tax, property tax, goods & services tax, estate duty (for deaths occuring before 15 Feb 2008), betting taxes and stamp duty.
IRAS Tax Reference Number
Loan Repayment
The act of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment. The other common method of repayment is a lump sum with interest at maturity.
Maternity Leave Claim
The Child Development Co-Savings Act covers parents of Singapore Citizen children, including managerial, executive and confidential staff.
Under the Child Development Co-Savings Act, an employee is entitled to maternity leave benefits if:
i.The child is a Singapore Citizen;
ii.The child's parents are lawfully married; and
iii.The employee has served her employer for at least 3 months before the child's birth.
The mother is self-employed and has been engaged in a particular business / trade / profession for a continuous duration of at least 3 months before the birth of the child; and have lost income as a result of not engaging in her trade, business, profession or vocation during the maternity leave period.
If the employee does not meet criterion (i) and/or (ii) 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 she meets all the criteria. The remaining maternity leave entitlement must be taken before the child turns 12 months old. She will not be eligible for the maternity leave that has lapsed.
Ministry of Manpower (MOM)
The Ministry of Manpower is a ministry of the Government of Singapore that directs the formulation and implementation of policies related to manpower in Singapore.
Monthly Payroll
A list of employees receiving wages or salaries, with the amounts due to each
Mosque Building and Mendaki Fund (MBMF)
All working Muslim Singapore Citizens, Singapore Permanent Residents and foreigners are required to contribute to the MBMF according to the wage levels set out by Majlis Ugama Islam Singapura (MUIS). It comprises Mosque Building Fund and Yayasan Mendaki Fund If the employees wish to contribute different amounts or opt out, they can complete the MBMF Change Form from the MUIS and submit it to their employers for endorsement before returning it to the MUIS.
National Service Make Up Pay (MUP)
National Service Make Up Pay (MUP) is a reimbursement for any civilian income loss NSman suffered as a result of having to attend his NS training. Any NSman who is gainfully employed or self-employed is eligible to claim MUP. Note that MUP is claimable only if there is an overlap between the NSman civilian working hours and the NS training. Any loss of income suffered outside the duration of NS training will not be compensated by MINDEF.
For NSmen who are employed, employers have two options for MUP.
Option 1: Direct Reimbursement to Employers of Claims for NS Training Scheme (DIRECT) [Optional Scheme for Employers]
Employer continues to pay the NSmen as per his normal pay schedule and claim reimbursement from MINDEF.
Option 2: Payment to the NSmen
Employer will certify the MUP claim and submit it to MINDEF and NSmen will be reimbursed directly by MINDEF.
Net Pay
Same as Net Salary
Net Salary
The salary which is left after deducting tax and other contributions
Notice Pay
A payment made to an employee by the employer, rather than the employee working. An employee dismissed for gross misconduct is not entitled to any pay or notice.It can either be set out in the contract as an option for the employer or it may simply be paid to cover any potential damages for breach of contract.
National Registration Identity Card (NRIC)
National Registration Identity Card (NRIC) is an identity document issued to all Singapore Citizens and Singapore Permanent Residents by Immigration & Checkpoints Authority (ICA).
Ordinary Wage (OW) Ceiling
The Ordinary Wage (OW) Ceiling sets the maximum amount of Ordinary Wages on which CPF contributions are payable per month.
From 1 September 2011, the OW Ceiling is revised from $4,500 to $5,000 per month.
Overtime (OT)
Overtime refers to the number of hours worked in excess of eight hours for one day or 44 hours for one week.
Overtime (OT) Rate
Number of times of an employe hourly basic salary paid per hour of overtime.
Pay Item
Allowance / Deduction / Reimbursement
Payment Mode
Cash / Cheque / Interbank GIRO
In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time.
Payroll Frequency
How often you pay employees is a business decision that is made by your company such as weekly, bi-weekly, monthly, bi-monthly, etc.
A detailed list of payments for e.g. basic salary and pay items granted to the employee for the services provided to the employer each month.
Periodical or lump sum income received as a retirement benefit
Reimbursements may refer to expenses bore by the employee for business purposes, for e.g. clients entertainment, office stationeries, travelling claims, transport claims, etc. Usually, they are not subject to CPF contributions and non-taxable.
S Pass
Mid-level skilled foreigners (e.g. technicians) who wish to work in Singapore may apply for an S Pass.
Salary Adjustment
Any change made to the pay rate of an employee, such as an increase or decrease to the rate of pay.
Salary Payout
Salary payment due to the employee
Sales Commission
A fee paid based on a % of sale made by employee and is paid as part of salary
SHARE Programme Donations
CPF Board collects donations for SHARE on behalf of the Community Chest, a division of National Council of Social Service. The donations will support critical social service programmes that help children with special needs and youths-at-risk, people with disabilities, frail and lonely elderly and families facing difficulties. Donations by employees are voluntary and are deducted from their wages.
Singapore Indian Development Association (SINDA) Fund
All employees belonging to the Indian* Community may contribute monthly to the SINDA Fund according to the wage levels set out. If the employees wish to contribute different amounts or opt out, they have to obtain the relevant forms from the SINDA and submit them to their employers for processing. *Refers to every person of Indian descent including Bangladeshis, Bengalis, Parsees, Sikhs, Sinhalese, Telegus, Pakistanis, Sri Lankans, Goanese, Malayalees, Punjabis, Tamils and all people originating from the Indian sub-continent. Foreign workers on the Foreign Worker Levy Scheme do not have to contribute to the Fund.
Singapore Permanent Residence (SPR)
The person is allowed to reside indefinitely within Singapore of which he or she is not a citizen.
Skills Development Levy (SDL)
CPF Board collects Skills Development Levy (SDL) on behalf of the Singapore Workforce Development Agency (WDA). The SDL collected is channelled into the Skills Development Fund (SDF), which provide grants to employers who send their employees for training. Under the SDL Act, employers are required to contribute SDL for all employees* up to the first $4,500 of gross monthly remuneration^ at a levy rate of 0.25%, subject to a minimum of $2, whichever is higher. * Employees include full-time, casual, part-time, temporary and foreign employees rendering services wholly or partly in Singapore. ^ Remuneration is any wage, salary, commission, bonus, leave pay, overtime pay, allowance (e.g. housing) and other payments in cash.
SPR Start Date
The approval date obtained as Singapore Permanent Resident which can be found in the Entry Permit (Form 5/5A)
Transport Allowance
Fixed monthly allowance paid to the employee who is required to travel to external venues for business purposes
Unique Entity Number (UEN)
All entities that are registered in Singapore, such as businesses, local companies, limited liability partnerships (LLPs), societies, representative offices, healthcare institutions and trade unions, will have a Unique Entity Number (UEN) as its identification number to transact with Singapore government agencies. It is like NRIC for SIngapore Citizens and Singapore Permanent Resident.
Work Permit (WP)
The Work Permit (WP) is for foreigners who:
  • Want to work in Singapore; and
  • Are from an approved source country/territory (depending on the sector which the worker is going to be employed in).
Work Week
Number of days the employee is required to work in a week for the employer under the contract of service. For e.g. 5 days (Monday - Friday), 5.5 days (Monday - Saturday 1/2), 6 days (Monday - Saturday)
Year-to-Date is the period starting January 1 of the current year and ending today
YTD Earnings
Total payment (in the form of month) grant to the employee for the services provided to the employer starting first month of contract of service and ending today.
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