In this guide · 9 sections
- 01What to gather before you open the payroll app
- 02Employee records that drive CPF
- 03CPF and SDL settings
- 04Leave types and entitlements
- 05Payslip template that meets MOM's itemised rules
- 06AIS settings for IRAS year-end filing
- 07Bank salary file and the test pay run
- 08Do it yourself or get help?
- 09Frequently asked questions
Short answer
Set up payroll in this order: company and CPF details, employee records (birth date, citizenship, PR start date), pay items and CPF/SDL settings, leave policies, an itemised payslip template, AIS settings for IRAS, and your bank salary file. Then run one test pay run before the real one.
What to gather before you open the payroll app
Most setup delays come from missing details, not from the software. Collect these first:
Before you start
Treat this list as sensitive personal data. Store it in the payroll app or a restricted folder, not in a shared spreadsheet or chat. Our guide to employee personal data under PDPA covers what you may collect and how long to keep it.
Employee records that drive CPF
Payroll apps calculate CPF from a handful of fields. Get these wrong and every pay run is wrong.
| Field | Why it matters |
|---|---|
| Date of birth | CPF rates change from the first day of the month after the 55th, 60th, 65th and 70th birthday |
| Citizenship | CPF applies to Singapore Citizens and PRs; foreign employees get no CPF but still attract SDL |
| PR start date | First- and second-year PRs use graduated rates (CPF Tables 2 and 3) |
| Monthly wage | Different rates apply by wage band; staff earning over S$50 but not more than S$500 have no employee share |
| Race or self-help group | Used for self-help group contributions collected with CPF |
Ask new PRs for the date their PR status started, as CPF Board's contribution rates page says employees should tell you when they became citizens or PRs. Set a reminder to check the rate change at each PR anniversary, even if the app does it automatically.
CPF and SDL settings
Good Singapore payroll software has the CPF tables built in. Your job is to check the settings match the rules for your workforce.
| Employee age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
- Wage ceiling: CPF applies to Ordinary Wages up to S$8,000 a month from 1 January 2026, with a separate ceiling for Additional Wages such as bonuses.
- Rounding: total CPF rounds to the nearest dollar; the employee's share always drops the cents.
- SDL: 0.25% of monthly total wages for every employee working in Singapore, including foreigners, with a minimum of S$2 and a maximum of S$11.25, per CPF Board's SDL page.
- 2027 change: CPF Board has announced higher rates for employees aged above 55 to 65 for wages from 1 January 2027. Confirm your vendor will update the tables before your January 2027 pay run.
Leave types and entitlements
Set up the leave types you actually offer, with the statutory minimum as the floor. Under the Employment Act, after 3 months of service, employees get paid annual leave starting at 7 days in the first year and rising with each year of service, per MOM's annual leave page. Paid sick leave goes up to 14 days outpatient and 60 days hospitalisation, which includes the outpatient days, per MOM's sick leave page.
- Annual leave with the year-of-service table and pro-rating for new joiners
- Outpatient sick leave and hospitalisation leave as linked balances
- Childcare, maternity, paternity and shared parental leave if any staff qualify
- Unpaid leave, which reduces salary and must show as a deduction on the payslip
- Approvers for each team, so requests don't wait on one person
If your contracts give more than the minimum, enter the contract figure. The app should never allow less than the statutory entitlement.
Payslip template that meets MOM's itemised rules
MOM requires itemised payslips for employees covered by the Employment Act, given with the payment or within 3 working days, in soft or hard copy. MOM's itemised payslips page lists the items to include where they apply:
Payslip items (MOM)
Keep payslip records for current employees for the latest two years, and for ex-employees for the last two years of employment, kept for one year after they leave. Most payroll apps store this automatically; check the retention setting and who can see it.
AIS settings for IRAS year-end filing
Under the Auto-Inclusion Scheme, employers submit employees' income records to IRAS electronically by 1 March each year, and the data is pre-filled in employees' tax returns. IRAS's AIS page says submission is mandatory for employers with 5 or more employees in the year, those who received a notice to file, and those already registered.
In the payroll app, enter your tax reference number, tag each pay item with the right IR8A category (salary, bonus, director's fees, benefits-in-kind), and connect the app's AIS submission if it supports IRAS's API. Our step-by-step guide to getting payroll software ready for AIS covers registration, Corppass roles and pre-submission checks.
Bank salary file and the test pay run
Most apps export a bulk payment file in your bank's format, which you upload to business banking. Set it up, then prove the whole flow once before real salaries go out.
Choose your bank's file format
Select your bank and the bulk payment product in the payroll app. Enter the company debit account exactly as the bank shows it.
Check every employee's bank details
Compare account numbers against what employees gave you in writing. A wrong digit sends salary to someone else.
Run a test pay run
Process a dummy month and compare gross pay, CPF, SDL and net pay with a manual calculation for a few employees.
Upload the file without approving
Upload the bank file to check it is accepted, then cancel. Fix any format errors before payday.
Set the monthly calendar
Fix dates for cut-off, approval, bank upload and CPF submission. CPF Board starts enforcement action if contributions are not paid by the 14th of the following month.
Link the payroll journal to your accounting software if the app supports it, so salary, CPF and SDL land in the right accounts each month.
Do it yourself or get help?
For a business with a handful of staff and a simple pay structure, a careful owner can set up most payroll apps in a day. The risk is in the details: wrong birth dates, missing PR dates, unmapped pay items and a bank file that has never been tested.
Our Payroll Software Setup (S$390) helps you choose a Singapore payroll app, sets up the company, pay groups and up to 20 employees from your spreadsheet, enters CPF, SDL and residency settings as agreed with your accountant, configures leave and payslips, prepares the IR8A and AIS settings, and checks a test pay run with you before the first real one. IT Sorted is a Singapore-based team of developers with over 10 years of experience; we set up the software, and your accountant keeps the books.
Frequently asked questions
You need your company UEN, CPF Submission Number, Corppass access, the company bank account, and for each employee their full name, NRIC or FIN, date of birth, citizenship, PR start date if relevant, start date, pay and bank details. You also need your leave policy and any contract terms, and IRAS tax reference details for AIS.
It uses each employee's date of birth, citizenship, PR start date and monthly wage. Rates change the month after an employee turns 55, 60, 65 or 70, and first- and second-year PRs use graduated rates. If any of these fields is wrong, the app applies the wrong rate every month, so check them during setup.
Yes. CPF Board says the Skills Development Levy is payable for all employees working in Singapore, including foreign employees, in addition to CPF. It is 0.25% of monthly total wages, with a minimum of S$2 for those earning under S$800 and a maximum of S$11.25 for those earning over S$4,500.
For employees under the Employment Act, MOM lists the employer and employee names, payment date, basic salary, salary period, allowances, other payments such as bonuses, deductions including employee CPF, overtime hours and pay where applicable, and net salary. Payslips must be issued with payment or within three working days, in soft or hard copy.
It is compulsory for employers with 5 or more employees in the year, employers who received an IRAS notice to file, and employers already registered. Smaller employers can join voluntarily, and once registered must submit every year. Submissions are due by 1 March, and IRAS says late submission may lead to a fine of up to S$5,000.